Thousands of Foreign Workers Must File Claims to Recover Funds After Fintech Firm Collapse
Translated & summarized from Davar by baba
Thousands of foreign workers in Israel must file debt claims by December 30 to recover funds lost when the fintech company Global Remit collapsed due to an anti-money laundering investigation. The process is complex, with full recovery not guaranteed, and assistance is available for filing.
The story in 5 lines · by baba
- Foreign workers must file Hebrew debt claims by Dec 30 to recover funds from collapsed Global Remit.
- Global Remit's license was suspended due to an anti-money laundering investigation.
- Recovery efforts include retrieving seized funds and collecting outstanding debts.
- Full repayment is not guaranteed and could take over six months.
- Assistance is available for filing claims, but representation in distribution is not provided.
Thousands of foreign workers whose money was deposited with the collapsed fintech company, "Global Remit," are being urged to file debt claims to recover their funds. The deadline for submitting these claims, which must be in Hebrew, is December 30. The "Koach LaOvéd" organization has been assisting workers with the process, but only a few dozen out of potentially thousands eligible have so far sought help.
Global Remit, an Israeli company specializing in money transfers abroad, primarily for foreign workers sending salaries home, had its license suspended in May. This action followed a police investigation into suspected violations of anti-money laundering laws. Attorney Hagai Ullman was appointed as the company's trustee in June.
To file a claim, workers must submit it online in Hebrew and pay a 35 shekel fee. "Koach LaOvéd" clarifies they do not represent the workers in the proceedings or oversee fund distribution, only assist with claim submission for a fee of 350 shekels, which includes the state fee. The recovery process could take over six months, and full repayment is not guaranteed, depending on approved claims, available funds, and court approval.
The trustee's representative, attorney Yehuda Asraf, stated that efforts are underway to recover funds for creditors. This includes collecting debts and retrieving approximately 29 million shekels seized by police during investigations into the company's alleged money laundering activities. The Lod District Court is aware of the case's complexity, balancing the funds deposited by workers against technical challenges in identifying and allocating seized money, as well as ownership disputes amid an active criminal investigation.
Asraf mentioned that the court has ordered creditors, especially foreign workers, to file debt claims. To reach vulnerable populations, including non-Hebrew speakers, proactive outreach has been made through the Ministry of Labor, employer organizations, and SMS messages. "Koach LaOvéd" is collaborating to help workers file claims, which require a lawyer-witnessed affidavit. Further outreach to embassies is planned.
To date, about 120 debt claims totaling 15 million shekels have been filed against the company, with approximately 70 from foreign workers. The company had previously reported total debts of around 35 million shekels, including about 22 million owed to foreign workers. The trustee has begun reviewing claims for distribution, pending court approval, and encourages more workers to file before the December 30 deadline.