An Israeli authority familiar with the matter has said investigations into the suspension of millions of dollars in remittances belonging to Sri Lankan workers in Israel are ongoing and expressed confidence that the issue will be resolved.
Speaking to Sri Lanka Guardian on condition of anonymity due to the sensitivity of the case, the official said Israeli authorities are continuing their inquiries into the matter and are working through the legal process surrounding the frozen funds. The official added that the case remains under investigation and is expected to be resolved.
The comments provide the first known response from an Israeli source following concerns raised over approximately $6.9 million in remittances sent by Sri Lankan workers in Israel that remain inaccessible due to legal proceedings involving remittance service provider Global Remit.
The development follows statements made by the Sri Lankan Government earlier this week. Addressing Parliament on Tuesday, Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra said reports claiming the funds had disappeared as a result of a cyberattack were “completely false.” He stated that the money had been frozen due to legal action initiated by Israeli authorities against Global Remit.
According to Hemachandra, around 5,100 Sri Lankan workers have been affected by the suspension. He said the Government was engaged in discussions at both banking and diplomatic levels to secure the release of the funds and bring the matter to a resolution.
The Deputy Minister also told Parliament that alternative remittance channels had already been introduced to enable Sri Lankan workers in Israel to continue sending money to their families while efforts to recover the suspended funds continue.
The issue emerged after Global Remit Currency Services, an Israel-based international money transfer company, sought temporary protection from creditors and the appointment of administrators through Israel’s Central District Court after accumulating debts of approximately NIS 35 million, equivalent to about $12.4 million.
Court filings indicate that the company’s financial difficulties followed a police investigation into suspected money laundering offences. Global Remit has stated that a substantial portion of the funds seized by authorities belongs to customers, most of them foreign workers who used the company to transfer earnings to family members overseas.
Founded in 2012, Global Remit provided money transfer services to thousands of foreign workers in Israel. The company’s operating licence was suspended by Israel’s Capital Market Authority following developments in a police investigation that began about two years ago. The investigation concerns allegations that the company and its managers violated Israel’s Money Laundering Prohibition Law. Following the suspension, the Bank of Israel disconnected the company from the national payments system.
Global Remit has told the court that it remained financially viable until the seizure of funds and suspension of its licences triggered an immediate liquidity crisis. The company has proposed a restructuring plan that would transfer its remittance operations to Monox, a company within the 019 Group, while introducing measures intended to safeguard customer funds and preserve the value of its assets.
Sri Lankan authorities have said efforts to secure the release of the frozen remittances are continuing through diplomatic and financial channels as the Israeli investigation proceeds.
