After two and a half years of complex committee discussions in the Knesset, the Gemach Law was passed recently just before the dispersal of the Knesset.
The law subjects the Gemachim to the Prohibition on Money Laundering Law. The law intends to regulate Gemachim as interest-free financial institutions for deposit and credit, authorized by the State and subject to government supervision. The oversight will be managed by the Capital Market Authority.
Over the past two years, a team of experts from the Charedi Institute for Public Affairs worked closely with representatives of Gemachim and with relevant government officials in order to advance policy that would best fit the reality of the charedi community as well as the government.
Under th enew law, a gemach is unregulated for deposits under NIS 1 million,. With deposits between NIS 1 million and NIS 8 million, a gemach is partially regulated. With deposits above NIS 8 million, a gemach must be registered as a nonprofit organization.
Read more at Arutz Sheva.
{Matzav.com}
