Israeli Tax Authority Warns Diamond Traders of Failure to Report Cash Transfers

Following a number of cases of cash smuggling into Israel, the Israeli Tax Authority and the Diamond Controller have reminded Israeli diamond traders of their duty to report cash transfers when entering or exiting the country.

In recent months, a number of diamond traders were caught carrying large amounts of cash that was not declared or that the declaration did not disclose the full amount held by the trader.

Israel does not tax cash brought in or taken out of the country. The report is required as part of international agreements set to battle money laundering and terrorist activities.

According to Diamond Controller Shmuel Mordechai, the notice was issued as a reminder of the legal requirement to disclose the cash transfers and warn of the punishments set in the law for failure to do so.

Avi Ardity, deputy director for investigations at the Tax Authority, said that the battle against international crime and terrorism is focusing on disabling financial abilities. “An organization without economic abilities can not exist,” he said.

Israel has adopted Special Recommendation IX of the Financial Action Task Force (FATF) that requires reporting cash transfers and the ways to report it.