Police’s National Fraud Unit and the Justice Ministry’s Money Laundering Prohibition Authority launched a preliminary investigation into allegations that former prime minister Ehud Barak was in possession of millions of dollars’ worth of undeclared funds abroad, an Israeli newspaper reported Tuesday. The offense could warrant a 10-year prison sentence.
Barak, who served as premier from 1999 to 2001 and later as defense minister, was approached by investigators regarding the allegations Monday, but so far has not been summoned for questioning by police, according to daily Haaretz.
The Money Laundering Law, which was passed by the Israeli government in 2000 — during Barak’s term as prime minister — determines that holding more than NIS 500,000 ($130,000) in undeclared funds outside the country is illegal, and that failing to alert authorities as to the existence of such foreign assets may result in a 10-year prison sentence or a fine.