Financial Crime World

Israeli Threat to Cut Off Palestinian Banks from Global System Violates International Law, Experts Warn

A Grave Concern for Human Rights and the Palestinian Economy

GENEVA (April 25, 2024) - The Israeli government’s threat to revoke a protection waiver issued annually to two banks in Israel that maintain connections with Palestinian financial institutions would be a violation of fundamental principles of international law, warn two UN experts.

A Threat to International Law

Professors Attiya Waris and Alena Douhan, Independent Expert on Foreign Debt and Special Rapporteur on the negative impact of unilateral coercive measures on the enjoyment of human rights, respectively, caution that cutting off Palestinian banks from the global banking system unilaterally would violate:

  • The principle of sovereign equality of states
  • Non-intervention into domestic affairs
  • Cooperation in good faith

Exacerbating Humanitarian Crisis

The experts express concern that such a move would exacerbate the ongoing humanitarian catastrophe in the Palestinian Territory, occupied by Israel since 1967. The waiver, which expired on April 1, 2024, was issued annually to protect Israeli banks from lawsuits involving the Palestinian Authority for transferring funds to “terror groups.”

Crippling the Palestinian Economy

Without this protection, Israeli banks will be exposed to legal action and are expected to break ties with Palestinian banks, crippling the Palestinian economy. The Palestinian authority relies heavily on the Israeli shekel, and its financial dealings with the rest of the world must go through the Israeli banking system.

Vulnerability to Unilateral Suspensions

The experts also highlight that the Palestinian economy is vulnerable to unilateral suspensions by Israel of transfers of clearance revenue, which are contrary to international law. They urge interim measures to prevent irreparable harm and potential breaches of international law.

Call for Immediate Action

The UN experts have established communication channels with the Israeli government to address these concerns and call for immediate action to prevent a humanitarian disaster. The experts serve in their individual capacity and are independent from any government or organization.

Contact Information

For further information, please contact: