Israel’s Move to Cut Off Palestinian Banks from Global System Sparks Alarm
UN Experts Slam Israeli Decision as Violation of International Law
Geneva, April 25, 2024 - The Israeli government’s decision to revoke a protection waiver issued annually to two banks in Israel that maintain connections with Palestinian financial institutions has been strongly criticized by two UN experts.
Background
The waiver, which expired on April 1, 2024, protected Israeli banks from lawsuits involving the Palestinian Authority for allegedly transferring funds to “terror groups”. Without this protection, Israeli banks will be exposed to legal action and are expected to break ties with Palestinian banks.
Consequences for Palestine
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, the move would have far-reaching consequences for the people of Palestine.
- Cutting off Palestinian banks from the global banking system unilaterally violates the fundamental principles of international law.
- It will exacerbate the ongoing humanitarian crisis and affect all fundamental human rights, including:
- The right to food
- Water
- Sanitation
- Health
- Freedom from torture
- The right to life
Palestinian Economy at Risk
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 its economy, warned the experts.
History of Tax Revenue Collection
Since the 1990s peace accords, Israel has collected tax revenue on behalf of Palestinians and transferred funds to the Palestinian Authority. However, since January 24, 2024, the monthly tax revenue allocated to public sector employees in Gaza has been transferred to a Norwegian-based trust account, requiring Israeli permission for release.
Urgent Action Needed
The experts have called for interim measures to prevent irreparable harm and potential breaches of international law, urging the Israeli government to address their concerns.
- We urge the Israeli government to take immediate action to ensure that Palestinian banks remain connected to the global banking system.
- Any unilateral actions that disrupt this connection would be a violation of international law.
Contact
For further information and media enquiries, please contact:
Halida Nasic (halida.nasic@un.org)