After two and a half years of complicated discussions, the Finance Committee, headed by Chairman MK Rabbi Moshe Gafni, approved the second and third reading of the Gemachim Law, which paved the way for the approval of the CRS regulations later in the week vis-a-vis the prohibition of the Money Laundering Law, which comes into effect on Jan. 1.
The committee chairman, Rabbi Gafni, who promoted the law throughout his legislation, said: “I thank Rabbi Litzman for the backing he gave me regarding this law. Initially, we both debated this law, and ultimately we decided to pass the law. Ultimately, I think that this is a law that can be lived with and it is a good law.”
The proposed law to regulate the provision of deposit and credit services without interest by chessed institutions is intended to regulate, for the first time, the activity of the gemachim as financial institutions for the provision of deposit and interest-free credit services, which receives a license from the State and is subject to supervision.
The bill is expected to be brought to vote in the Knesset plenum on Tuesday.
Gemachim – free-loan funds that provide large amounts of assistance to many Israelis – accept donations from people around the world , including Americans. As a result, the gemachim are expected to report on those donations – providing the Treasury Department with information on who gave how much money.
Now that the gemachim will be legalized, people will be able to continue donating to them unhindered.