Challenge Asset Freezes in Israeli Courts
Israeli banks freeze accounts under sanctions, MLAT requests, or Prohibition on Money Laundering Law orders. We represent clients in Jerusalem and Tel Aviv District Courts to unfreeze assets, challenge evidentiary basis, and coordinate with foreign authorities to lift restrictions.
100% confidential · Response within 24h
Israeli Asset Freeze Removal: Court Challenges, MLAT Responses, and Sanctions Defence
Israeli banks freeze client accounts under three primary mechanisms: domestic Prohibition on Money Laundering Law 5760-2000 orders issued by the Israel Money Laundering and Terror Financing Prohibition Authority, foreign sanctions designations enforced through Israeli financial institutions, and Mutual Legal Assistance Treaty requests from foreign governments. Each mechanism requires distinct legal strategy.
The Prohibition on Money Laundering Law Section 21 permits the Authority to issue freezing orders for up to 72 hours without court approval, extendable by Tel Aviv Magistrates Court for 30 days at a time. Courts require the Authority to demonstrate reasonable suspicion of money laundering or terror financing predicate offences. We challenge these orders by demanding evidentiary disclosure under the Administrative Procedure Law, demonstrating legitimate fund sources, and proving business operations comply with reporting requirements.
Foreign sanctions enforcement occurs when Israeli banks receive OFAC, EU, or UN sanctions list designations affecting account holders. Banks freeze accounts under their own compliance protocols rather than court orders, but the Banking Ordinance requires them to permit clients to challenge the freeze. We coordinate with international counsel to file OFAC delisting petitions, EU General Court annulment actions, and UN Ombudsperson petitions while simultaneously filing Israeli court actions to compel banks to process essential transactions for food, medicine, and legal fees under humanitarian exemptions. MLAT-based freezes from US, UK, or European prosecutors demand coordinated defence: challenging the requesting state's evidence in Israeli courts under the Mutual Legal Assistance Law 5758-1998 while simultaneously contesting the underlying foreign investigation.
The Jerusalem District Court and Tel Aviv District Court hear asset freeze challenges with different procedural approaches. Jerusalem typically demands fuller evidentiary hearings, while Tel Aviv relies more heavily on written submissions. We select venue strategically based on case facts and judicial tendencies.
How We Handle an Asset Freeze
Within 24 hours: review bank freeze notice, identify legal basis (IMPA order, MLAT request, sanctions compliance), assess challenge grounds, and determine court jurisdiction.
File emergency motion in Tel Aviv or Jerusalem District Court demanding evidentiary hearing, interim access to frozen funds for essential expenses, and disclosure of intelligence underlying freeze order.
Compel Authority or bank to produce classified intelligence under in camera review, submit client financial documentation proving legitimate sources, and cross-examine investigating officers on suspicion basis.
For sanctions-based freezes: coordinate OFAC delisting petition, EU General Court action, or UN Ombudsperson request. For MLAT freezes: challenge underlying foreign investigation and evidence admissibility.
Obtain court order lifting freeze entirely, or negotiate controlled release protocol permitting specific transactions while investigation continues. Appeal to Supreme Court if District Court denies relief.
Israeli Advocates Specializing in Asset Freeze Defence and Sanctions Law
Lawyer in international private law, financial and corporate law, compliance and data protection, with a client base in Israel, the UAE, the US and the UK. Hebrew, English, Russian.
Senior Legal Advisor in criminal and international law, extradition, compliance and sanctions, focused on complex multi-jurisdictional matters and cross-border investigations.
Official sources
This page explains general legal procedure and is not legal advice. Outcomes depend on the facts of each case.
Asset Freeze Removal: Israeli Law FAQs
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Challenge the Freeze in Israeli Courts
Every day of delay strengthens the Authority's position. We file emergency motions within 72 hours and coordinate foreign delisting proceedings simultaneously.