Israel Launches $9.5 Million Fund for Businesses Targeted by Extortion

Israel's Ministry of Finance has established a pilot program allocating 35 million shekels (approximately $9.5 million) to aid businesses that have fallen victim to extortion and racketeering. The initiative is set to launch on Thursday and will initially run for about two months.

The program aims to compensate business owners for material damages incurred directly from extortion attempts, specifically when such damages are not covered by their insurance policies. The Israeli Tax Authority's Land Appreciation Tax division will manage the fund.

Its effectiveness will be assessed to determine if it encourages entrepreneurs to continue their operations and fosters cooperation with law enforcement. The government intends this financial guarantee to support shopkeepers, farmers, and business leaders who refuse to pay criminal organizations.

Finance Minister Bezalel Smotrich urged targeted individuals not to yield to payment demands, promising state economic support in cases of retaliation. The practice of demanding "protection money," known in Israel as "protektsia" or "criminal sponsorship," has been a significant issue for businesses and farms, particularly in the Negev and Galilee regions, for several years.