Moving a large sum of money across borders can feel intimidating, like something out of a spy movie. But for a legitimate purpose like buying property, it’s a routine and regulated process. The key is to be transparent and follow the rules to the letter.
First, you cannot just show up with a suitcase full of cash. Israel, like all modern economies, has strict Anti-Money Laundering (AML) laws. Every shekel that enters the Israeli banking system for a real estate transaction must have a clear and documented source.
The most common method is a simple wire transfer from your bank account in your home country to your lawyer’s escrow account or your own Israeli bank account. An escrow account is a special, neutral trust account held by your lawyer. They hold the funds safely until the terms of the real estate contract are met, at which point they release the money to the seller. This is the safest way to handle the transaction.
Before you transfer the funds, your Israeli bank or lawyer will require a “source of funds” declaration. You will need to provide documentation proving where the money came from. This could be:
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Bank statements showing the funds in your account.
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A letter from your employer regarding a bonus or savings.
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Documents from the sale of another property or stocks.
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A letter of gift if the money came from a family member.
The goal is to create a clean paper trail. The bank needs to be able to tell the regulators, “We know this money is legitimate.” It’s not about being suspicious of you; it’s about following global financial regulations.
Using a reputable currency exchange specialist can also save you a significant amount of money compared to using a retail bank. They offer better exchange rates and lower fees. However, they must also be fully compliant with AML regulations. Your lawyer can often recommend a trusted service.
Too Long; Didn’t Read
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You must transfer money through official banking channels, like a wire transfer, due to strict Anti-Money Laundering (AML) laws.
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The safest method is transferring funds to your lawyer’s dedicated escrow (trust) account.
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You will be required to provide clear documentation proving the “source of funds” (e.g., bank statements, sale of assets).
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Using a currency exchange specialist can offer better rates than a bank, but ensure they are fully regulated.
Let’s make sure your transfer is smooth, legal, and cost-effective. DM me at Semerenko Group.
