Breaking Update
Business owner arrested for cash income evasion, money laundering
Rishon LeZion business owner Yitzhak Asraf arrested for allegedly evading millions in cash income and money laundering via supermarket ATM deposits.
A supermarket and real estate agency owner from Rishon LeZion is suspected of having concealed revenues totaling millions of NIS over the years. These funds, received in cash from his clients, were allegedly deposited into an ATM located in his supermarket, which was accessible to the general public. According to the suspicion, in exchange for the amounts deposited into the ATM, the business owner, Yitzhak Asraf, received payments via bank transfers from the company that owns the ATM, plus a commission. An analysis of the suspect’s bank account revealed repeated deposits from the ATM company amounting to over 20 million NIS between 2020 and 2024.
A week ago, another case was reported where the Tax Authority investigated a convenience store owner from Ashdod who attempted to conceal revenues using this method. These investigations are part of the Tax Authority’s fight against the black economy and various methods of money laundering, including through ATMs located in businesses.
ATMs located in businesses are owned by companies that have received special approval from the Capital Markets Authority. Some of these machines are operated on an ongoing basis by the companies that own them, who pay rent to the business owner where the machine is located. Other machines are operated by the business owners where the machine is located, who receive a commission for each withdrawal from the company that owns the ATM.
The contract between the company marketing the ATMs and the ATM holder stipulates that the ATM machine holder must open a dedicated bank account into which funds from the ATM company will be transferred. The cash deposited by the business owner into the machine is supposed to be withdrawn solely from that dedicated account.
According to the suspicion, the supermarket owner from Rishon LeZion refrained from opening a dedicated bank account and instead used his business accounts for this purpose. In doing so, the suspect mixed the funds transferred to him for replenishing the ATM with the funds received by the business. Furthermore, during a bookkeeping inspection conducted at the business, unregistered revenues amounting to tens of thousands of shekels were discovered, including commissions received by the suspect from the ATM company.
Following an investigation, the suspect was brought before the Rishon LeZion Magistrate’s Court, which released him under restrictive conditions. This morning, the temporary gag order on the details of the affair and the suspect’s name expired.
