National Bureau for Counter-Terror Financing of Israel (NBCTF)

It serves as the Israeli authority that consolidates, coordinates and outlines enforcement policy at the national level regarding the combat against terrorist organizations and their financial infrastructures.

The activities of the Harpon Unit were transferred to the IMOD and integrated into the NBCTF activities. The Defense Minister appoints the Director of NBCTF in consultation with the Prime Minister, and the Director reports directly to the Minister of Defense. This reporting structure reinforces the NBCTF's importance in Israel's national security framework.

1.     Forming policies on the national level with regard to combating terror financing

2.     Designating terrorist organizations.

3.     Endorsing designations made by foreign partners.

4.     Issuing and managing seizure and blocking orders.

5.     Institutionalizing and leading interagency forums with the intelligence community, law enforcement, governmental agencies, and regulators.

6.     Operating a national "Fusion Center" on counter-terror financing.

7.     Maintaining and strengthening cooperation with relevant foreign counterparts and financial institutions.

These comprehensive authorities and functions make the NBCTF a crucial component in Israel's strategy to combat terrorism by targeting and disrupting its financial foundations.

The NBCTF operates under the IMOD to fulfill and execute the authorities of the Minister of Defense as outlined in the Counter-Terrorism Law, 5776-2016, concerning:

·      The designation of terrorist organizations

·      The seizure and confiscation of terror-related assets

The Law provides the Minister exclusive authority to issue designations, seizure, and blocking orders. The NBCTF is also responsible for comprising the annual report submitted by the Defense Minister to the Cabinet under the "Law of Freezing of Funds Paid by the Palestinian Authority in Linkage with Terror, from the Funds Transferred to it by the Israeli Government, 5778-2018."

In Israel's fight against terror and its funding sources, the government has the authority to declare relevant bodies and organizations as terrorist organizations. According to the 1948 Prevention of Terrorism Order, a terrorist organization is defined as a body of persons resorting to acts of violence calculated to cause death or injury to a person or to threats of such acts of violence to achieve its goals.

A member of a terrorist organization is defined as:

·      A person belonging to the group.

·      A person participating in its activities.

·      A person publishing propaganda in favor of a terrorist organization or its activities or aims.

·      A person collecting funds or goods to benefit a terrorist organization or its activities.

The Terror Prevention Act establishes severe penalties:

·      Persons convicted of activities in terror groups may face up to 20 years imprisonment.

·      Those convicted of membership may face 5-7 years imprisonment.

·      Those convicted of aiding or supporting terrorist organizations are liable for imprisonment, fines, or both.

As specified by court order, any property of a terrorist organization shall be forfeited to the state. Any property is liable for confiscation with a written decision by Israel's police commissioner. The commissioner may decide to close locations used for terrorist purposes or frequented by members of terror organizations.

The government's declaration that a particular body is a terrorist organization is legal proof unless proven otherwise. Under this authority, Hamas, Hezbollah, Islamic Jihad, and others have been recognized as terrorist organizations.

The Defense Minister has the authority to declare groups as unlawful associations. Following the 1945 Defense (Emergency) Regulations, an unlawful association is defined as any body of persons, whether incorporated or unincorporated, named or unnamed, which suggests, incites or encourages:

1.     Violation of Israeli law or government by force or violence.

2.     Hatred or contempt against the Israeli government or its ministers in their official capacity.

3.     Destruction or damage to Israeli government property.

4.     Acts of terror directed against the Israeli government or its employees.

Additionally, the 1945 Defense (Emergency) Regulations determine that an unlawful association includes any group declared by the Minister of Defense as unlawful, including every branch, center, committee, group, faction, or institution of such a body.

After declaration, the property of an unlawful association will be confiscated. A police officer or authorized person will be given permission to enter each site of property or documentation and hold it until receiving further instruction from the Defense Minister.

According to Article 120 of the Defense Regulation, the Defense Minister may order the forfeiture to the Israeli government of all or part of the property of any person who:

·      Committed or attempted to commit violations of these regulations.

·      Encouraged violations of these regulations.

·      Was an accomplice to the commission of an offense against these regulations.

·      Committed an offense involving violence or the imposition of terror.

·      Committed an offense to be discussed in a military court.