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. Success rate in contesting initial extensions exceeds 67% when proper documentation exists.
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.
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
15+ years representing clients in Israeli asset freeze challenges under Prohibition on Money Laundering Law, MLAT proceedings, and foreign sanctions enforcement. Former prosecutor with Israel Money Laundering Authority; handled 140+ District Court freeze hearings.
Asset Freeze Removal Outcomes in Israeli Courts
"Our company's accounts were frozen under an IMPA money laundering order based on a foreign client transaction. Adv. Cohen filed an emergency motion in Tel Aviv District Court, obtained in camera review of the intelligence, and proved the transaction was a legitimate export payment. The court lifted the freeze after 18 days. Without his intervention, we would have lost critical contracts."
"My personal accounts were frozen after OFAC designated a business associate. The bank refused all access for six months. Adv. Levi coordinated an OFAC delisting petition proving I had no knowledge of his activities, while simultaneously obtaining a Jerusalem District Court order compelling the bank to release funds for my mortgage and medical expenses under humanitarian exemption. OFAC removed the designation 11 months later."
"A US MLAT request froze my investment accounts based on allegations I had no knowledge of. Adv. Cohen challenged the MLAT request in Israeli court, arguing the US evidence was inadmissible hearsay. The court ordered the Israel Ministry of Justice to demand proper affidavits from US prosecutors. When they failed to provide them within 90 days, the court ordered the freeze lifted."
Asset Freeze Removal: Israeli Law FAQs
Is an asset freeze a sanction? +
Is it legal to freeze assets? +
Does Israel have a statute of limitations? +
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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.