UN Experts Warn: Israeli Government’s Threat to Revoke Protection Waivers Violates International Law
The Israeli government’s threat to revoke a protection waiver issued annually to two Israeli banks that maintain connections with Palestinian financial institutions would be a violation of international law, according to two UN experts.
Background
The waiver, which expired on April 1, protects Israeli banks from lawsuits involving the Palestinian Authority for allegedly transferring funds to “terror groups.”
International Law Violations
Cutting off Palestinian banks from the global banking system unilaterally would also violate the principles of sovereign equality of states, non-intervention into domestic affairs, and cooperation in good faith. This is according to Professor Attiya Waris, Independent Expert on Foreign Debt and Human Rights, and Professor Alena Douhan, Special Rapporteur on the negative impact of unilateral coercive measures on human rights.
Economic Consequences
The Palestinian economy relies heavily on the Israeli shekel and financial dealings with the rest of the world must go through the Israeli banking system. Isolating the Palestinian Authority from the global financial system would cripple the economy, the experts warned. This is particularly concerning since protection waivers were guaranteed under the Oslo and Paris Accords.
Tax Revenue Suspensions
Since January 24, 2024, the monthly tax revenue previously allocated to public sector employees in Gaza has been transferred to a Norwegian-based trust account, which cannot release funds without Israeli permission. This has left the Palestinian Authority vulnerable to unilateral suspensions of funding.
Interim Measures Needed
The experts called for interim measures to prevent irreparable harm and potential breaches of international law. They have established communication channels with the Israeli government to address these concerns.
Humanitarian Consequences
The impossibility of bank transfers would exacerbate the ongoing humanitarian catastrophe in Palestine and affect all fundamental human rights, including:
- The right to food
- The right to water
- The right to sanitation
- The right to health
- Freedom from torture
- The right to life
The UN Special Rapporteurs urged immediate action to prevent these violations of international law.