Bank Freezes Accounts of 80-Year-Old War Victim Over Compliance Checks
An 80-year-old Israeli property owner facing war damage repairs had her bank accounts frozen over compliance concerns. Attorney Raz Sitbon Sabag successfully resolved the issue by providing documented proof of legal rental income.
An 80-year-old Israeli woman, whose apartment sustained heavy damage from Iranian missile shrapnel during the Roaring Lion conflict, faced an unexpected financial hurdle when seeking a renovation loan. Accompanied by her daughter-in-law to a bank branch, the elderly woman triggered an internal compliance review that ultimately led the bank to freeze their joint account and restrict the daughter-in-law's personal accounts.
The elderly woman owns 11 rental apartments generating over 60,000 shekels per month. For years, her daughter-in-law has managed this extensive real estate portfolio, handling tenants, rental agreements, and daily expenses. The two also maintained a joint bank account through which significant funds were transferred over the years.
Compliance Investigation and Account Freeze
During the review initiated for the home renovation loan, the bank identified substantial financial transfers between the joint account and the daughter-in-law's personal account, as well as external accounts. The high volume of rental income, frequent transfers, and centralized management triggered automated compliance alerts regarding potential anti-money laundering concerns or undeclared income.
Consequently, the bank froze the joint account and imposed severe restrictions on the daughter-in-law's personal accounts, paralyzing their financial operations precisely when funds were desperately needed to repair the war-damaged property.
Legal Intervention and Resolution
Faced with frozen assets, the daughter-in-law retained attorney Raz Sitbon Sabag, an expert in economic criminal law and financial regulation. The legal counsel thoroughly examined the account activity, lease agreements, and property management documents to construct a comprehensive financial profile for the bank.
Following the submission of detailed clarifications regarding the family-run property management arrangement and the legal origin of the funds, the bank lifted all restrictions and unfroze the accounts without requiring formal litigation. Attorney Sitbon Sabag noted that routine family financial arrangements often trigger automated banking alerts, emphasizing the critical importance of maintaining meticulous documentation for all asset management activities.
