(Kitco News) – Israeli Prime Minister Benjamin Netanyahu is considering limiting citizens’ right to own precious metals as part of a series of sweeping changes to help fight financial crime.
According to a report from Ynetnews.com, The Prime Minister has asked officials within his government to begin exploring measures to limit the circulation of black market currency to curb illegal activity in Israel.
The report indicated that Netanyahu has called for a meeting to be held with Finance Minister Bazalel Smothrich, Bank of Israel Governor Amir Yaron, Prime Minister’s Office Director-General Yossi Shelley, and top officials from the Tax Authority and Task Force for Combating Crime in the Arab Community.
One of the proposals is to ban private ownership of large quantities of cash alternatives such as gold, silver, and valuable coins. Economists have suggested that Israel could increase its tax revenues by $24 to $31 billion by 2030 with effective measures against black market money.
Netanyahu has also asked the group to consider phasing out the 200-shekel banknote, the largest denomination bill in circulation in the country. Under the plan, citizens would be given a short time frame to exchange their 200-shekel notes in order to prevent criminal organizations from disposing of the money.
Citizens could also make use of a “voluntary disclosure” campaign, which would permit tax evaders to avoid prosecution by declaring previously unreported income.
The report said the measures aim to force tax evaders and other criminals to deposit or exchange cash at banks, which would then be able to identify the source of the funds.
As a medium-term goal, the proposal also seeks to drastically reduce the use of cash in Israel in favor of bank transfers or credit cards, which would enable the government to better track illicit transactions.
Other measures under the proposed plan include expanding citizens’ income reporting obligations, launching a joint enforcement program involving all relevant agencies - including the Tax Authority, the Anti-Money Laundering Authority, the police, the prosecutor’s office and the Counter-Terrorism Economic Warfare Headquarters - using artificial intelligence to identify tax evaders, and increased oversight of non-bank financial entities, including currency exchange providers.
