It is called “mezuman” in Hebrew and it is about to become illegal.  On August 1st, a new law is about to take effect which will ban all large payments in cash and in bank checks.

Israel’s Tax Authority states that the goal of the new law is to fight three things:

  • Organized Crime
  • Money Laundering
  • and non-compliance of the payment of taxes.

Any payment that is more than 6000 NIS must now be made with either a debit card or through a digital transfer.  That is about $1700.  Thankfully, however, for non business owners who are private citizens – the limitation is 15,000 NIS which is $4360 in US money.

Tzedaka organizations are exempt, however, but they must be an amutah – which is the equivalent in Israel of the American 501-C-3.  Another exception is trade with Palestinians from the West Bank, who are not citizens of Israel.

The exceptions are temporary, however, and are just meant to give people time.

As reported by Vos Iz Neias