Israelis with relatively "small" bank accounts in Switzerland are reportedly emptying them out and bringing the money to Israel in cash, usually through Ben Gurion airport. The small transfer, which is limited up to NIS 100,000, is being carried out by the account holders themselves or through close relatives, who become couriers doing the job for the air-fare, a short stay in Switzerland and perhaps a small fee.
If until recently this was done via direct flights to and from Switzerland, with the rise in the number of stories about unreported capital in Swiss banks, the number of transfers carried out via other cities in Europe, a train or a car ride away from Switzerland, has risen. Everything depends on the amount of money being brought to Israel and the number of transfers required. According to Israel Tax Authority instructions on the "obligation to report money coming into or moving out of Israel," every person entering or leaving Israel must report the money they have on them - cash, checks or travelers checks whether shekels or foreign currency - (on customs and excise form 84 filed with the red channel of customs). This is only if the amount of money involved is above NIS 100,000, or the equivalent in foreign currency.
These reports are also passed onto the Authority for the Prevention of Money Laundering. If such amounts are not reported and customs find the money being smuggled into Israel, then an administrative procedure is immediately begun as part of the criminal procedures required by law. Even today, it is not known if customs, or Tax Authority investigators, or the Authority for the Prevention of Money Laundering check out the source of the money or who the real owner is. But within 10 days from when the unreported money is found, the person caught with the money is called to face a sanctions committee, and a fine is set. But any sum under NIS 100,000, whether cash or checks, requires no reporting whatsoever. Thus any account in Switzerland with several hundred thousand dollars requires multiple trips abroad, or several couriers, if the money is to be brought into Israel legally.
Bringing the money in this way does, however, have some risks. According to a recent OECD multilateral covenant, the Israel Tax Authority is entitled to receive information about foreign bank accounts that are closed and the names of the account holders.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2015
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