Transferring your funds from your bank abroad to Israel, can be a very serious headache If not done properly.
Israeli banks have been heavily fined in the past, for contravening money laundering laws. They, therefore, are very strict about international transfers and have been known to reject foreign transactions, leaving purchasers in the lurch, causing extra interest payments and even wrecking deals.
This can be very frustrating for a purchaser who has spent months looking for the right property, has finally signed, has all the funds readily available and suddenly discovers that the bank is giving him a hard time spending his own money!
However, with a little planning, the problem can be alleviated and quite smooth:
· Contact your bank. Let them know that these funds will be arriving
· Ask them what documents you need for them to accept the transfer – make sure you have it in writing
· Make sure you get those documents and e-mail it to them a few days (or as soon as you can) before the transfer arrives
· Ask the bank if there’s anything else that they need
The bank will normally want proof that the money was legally acquired and has no suspicion of tax evasion and money laundering. The type of evidence for the bank normally requires is:
· A letter from your lawyer or accountant (sometimes both) that the money was legally acquired and that local taxes, if relevant, have been declared
· Your foreign bank details with evidence that the transfer came from that account.
If you have trouble producing these documents, it might still be possible to make the transfer. You’d need to speak with us personally about that.
In our next blog, I’ll discuss the different methods for transferring the funds.