Prohibition of Money Laundering Bill (Amendment No. 36) (Temporary Freezing of Property or Transactions Involving Property), 5785-2025

This bill seeks to add a new chapter to the Prohibition of Money Laundering Law, which would allow authorities to temporarily freeze property or transactions involving property suspected of being linked to money laundering or terrorism financing offenses. The proposal stipulates that the competent authority, or the head of the authority, may order a temporary freeze of property or a transaction involving property for a period of up to five business days. This applies if there is a suspicion that the property or transaction is linked to money laundering or terrorism financing offenses. The freeze may be issued based on information received in a database, a detailed request from a foreign authority, or a request from specific bodies listed in the law (such as the Israel Police, the Israel Securities Authority, the Israel Security Agency, etc.). In certain cases, the competent authority may extend the temporary freeze through a temporary judicial freezing order issued by the District Court. This extension will be for periods of up to 30 days at a time, and the total of all additional periods shall not exceed 90 days, unless the court orders otherwise. The court may also order living expenses for the property owner or their family, and determine how the property will be managed during the freezing period. The proposal also stipulates that the temporary freezing order may be canceled or modified if the conditions for issuing the order are no longer met, or if the freeze disproportionately infringes upon rights. Furthermore, the court may extend the validity of the temporary judicial freezing order while examining the balance between enforcement needs and the infringement of rights. The bill also adds amendments to existing laws, including the establishment of regulations for submitting requests for temporary judicial freezing orders and the addition of a list of bodies authorized to submit requests for a temporary freeze.

Source: הצעת חוק לקריאה הראשונה