The Israeli legislation against terrorist financing
| Published date | 01 October 2004 |
| Date | 01 October 2004 |
| DOI | https://doi.org/10.1108/13590790410809329 |
| Pages | 366-379 |
| Author | Ruth Plato‐Shinar |
| Subject Matter | Accounting & finance |
Journal of Financial Crime Ð Vol. 11 No. 4
The Israeli Legislation against Terrorist Financing
Ruth Plato-Shinar
INTRODUCTION
States throughout the world have become pre-
occupied with terrorism on a daily basis. The image
of terrorism, enormous in its scope, organisation and
®nancial resources, has meant that we can no longer
turn a blind eye to it. International terrorism endan-
gers human life and the lives of nations themselves,
threatening global peace and security.
The state of Israel has been on the front line of
terrorism since its founding. The only democracy in
the Middle East has for many years faced deadly
terrorist attacks and has conducted a special cam-
paign against terror through extensive legislation
and uncompromising enforcement. This is not a
simple campaign. It is being undertaken out of a
desire to safeguard human rights and respect for indi-
vidual freedoms. Alongside considerations of security
and the maintenance of public safety and public order
are additional values which every modern society
must respect. Finding the balance between them is
not easy and it is becoming increasingly dicult the
more menacing the terror.
1
The escalation in terrorist attacks around the world
in recent years has placed the need for more eective
methods of combating terrorist organisations on
the international agenda. Special emphasis has been
placed on dealing with the economic aspect of this
issue: the ®nancing of terrorism and the transfer of
funds for terrorist activities.
2
In this context it also
seems appropriate to follow in the track of the
money. Eorts are being made throughout the world
to expose funds and assets connected with terrorism,
3
and this is also the situation in Israel.
ISRAELI LAW
Israel has a number of laws dealing with terrorism.
4
Nonetheless, there was recently a desire to elaborate
on the legislation in this area. The existing provisions
were not originally designed to deal with terrorism
unrelated to the state of Israel, and are thus incompa-
tible with the international approach.
5
Furthermore,
the subject of ®nancing terrorism per se had not been
broadly referred to in the legislation. Israel signed
the UN International Convention for the Suppression
of the Financing of Terrorism
6
and later rati®ed it.
7
Israel is clearly subject to the Resolutions of the UN
Security Council on terrorist ®nancing, including
Resolution 1373 of 28th September, 2001,
8
and acts
in accordance with the Rules determined by the
Financial Action Task Force (FATF)
9
in this area.
These international steps obligated Israel to enact
special legislation on terrorist ®nancing.
The object of this paper is to review the principal
Israeli legislation regulating terrorist ®nancing.
THE DEFENCE (EMERGENCY)
REGULATIONS 1945
The Defence Regulations are an inheritance from the
pre-state days of British rule in this region and were
intended to apply in a state of emergency.
10
They
have the normative status of primary legislation and
remain in eect to the present day.
11
Regulation 84(1) de®nes a `prohibited association'
as a body of persons, incorporated or unincorporated,
which encourages or incites the commission of any of
the following prohibited acts, or which has com-
mitted, been involved in or responsible for prohibited
acts: the overthrow of the constitution of Israel or the
government of Israel by violence; causing hatred, con-
tempt or the incitement of hostility against the gov-
ernment or any of its ministers;
12
the destruction of
or damage to property of the state; acts of terrorism
against the government or its employees; and any
body of persons declared by the Minister of Defence
to be a prohibited association, including any branch,
centre, committee, group, party faction or institution
of any such body.
The trend in the case law, and in particular the
rulings of the military courts, indicates a tough line
in implementation of the Regulations.
13
It has been
held that an entity shall even be regarded as a prohib-
ited association where it has no formal eects or orga-
nisational or physical infrastructure. It is sucient for
its members to execute their terrorist thoughts by
words or deeds. The intent is to any body of
persons, even where it is not incorporated, has no
name, constitution or rules of association, and even
where its views are disseminated in any manner
whatsoever and not speci®cally in any formal written
Page 366
Journalof Financial Crime
Vol.11,No. 4, 2004,pp.366±379
#HenryStewart Publications
ISSN1359-0790
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