Israeli Police Uncover International Money Laundering Network Involving Half a Billion Shekels

After a covert investigation lasting over a year, Israeli police from the Jerusalem district's central unit, together with tax investigators from the Jerusalem and Southern Income Tax Investigations Department, arrested three suspects linked to the "Payment Voucher" case. The suspects face charges including fraud, money laundering, and tax offenses involving approximately 500 million shekels. Authorities allege the suspects operated an international economic crime network aimed at laundering money, evading taxes, and deliberately concealing income, thereby harming state revenues.

The case earned the nickname "Payment Voucher" due to the extensive use of real estate-related payment vouchers in the scheme. Investigations revealed the suspects managed a complex network of fictitious companies and nonprofits both in Israel and abroad. This network allegedly laundered money for local companies while smuggling funds into Israel. The method reportedly involved cash transactions, issuing false invoices, and sophisticated concealment of funds through bank transfers, real estate payment vouchers, and bank accounts held by family members.

On July 14, the investigation entered its public phase, with police raiding the homes of 16 suspects and detaining several for questioning in a joint operation by the Jerusalem district unit and tax investigators. During the raids, dozens of assets believed to have been fraudulently acquired or purchased with undeclared income were seized. To date, dozens of individuals suspected of using the suspects' services for money laundering, income concealment, and fraud have been questioned. The detention of two primary suspects, aged 48 and 56 from Kiryat Yearim and Tel Aviv, was extended by the court until July 23 to allow further investigation.