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Israel tech firm to move $500m to foreign banks

March 9, 2023 at 11:07 am

CEO and co-founder of Israeli tech company, Riskified, Eido Gal [LinkedIn]

Israeli tech company, Riskified, announced yesterday that it would transfer $500 million to foreign banks fearing that Israel is heading into a state of uncertainty due to planned judicial overhaul.

The firm, which employs 781 people including 288 in Israel, also said it is offering a limited number of relocation packages to staff members who wish to move.

CEO and co-founder of the company, Eido Gal, said in an email sent to staff that the firm was transferring the money, which was “essentially all” of the firm’s reserves in Israel, fearing that the government would place restrictions on money transfers soon.

“Our concern is that as the financial situation deteriorates, and in order to maintain financial stability, the government will limit transfers and withdrawals of large amounts,” Gal told his staff

“The laws being passed can lead to the dismantling of our independent judicial system.”

He stated: “In high likelihood, this will lead to a meaningful and prolonged economic downturn in Israel. More importantly, this will result in Israel changing from a democracy with liberal values into a more authoritarian state. I believe that only bad outcomes will come from this ‘reform’.”

Riskified has supported anti-judicial overhaul protests and gives its workers explicit permission to join strikes and demonstrations against the overhaul, but Gal called for his staff to organise their leave to the protests with their bosses in order to maintain workflow.

On Tuesday, Moody’s rating agency said the Israeli government’s proposals could weaken the country’s institutional strength and negatively affect its economic outlook.

READ: Israel judicial reform concerns push people to move money abroad