Financial Crime World

Unilateral Move by Israel to Cut Off Palestinian Banks from Global System Violates International Law, Warn Experts

Geneva - UN Experts Sound the Alarm

Two United Nations experts have warned that unilaterally cutting off Palestinian banks from the global banking system would be a violation of fundamental principles of international law. The warning comes after an Israeli Minister threatened to revoke a protection waiver issued annually to two Israeli banks that maintain connections to Palestinian financial institutions.

Violation of International Law Principles

According to the experts, such a move would violate:

  • The principle of sovereign equality of states
  • The principle of non-intervention into domestic affairs
  • The principle of cooperation in good faith

They warned that the impossibility of bank transfers would affect all people of Palestine indiscriminately, exacerbate the ongoing humanitarian catastrophe, and affect 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

Background on Protection Waiver

The waiver, which expired on April 1, protected Israeli banks from lawsuits involving the Palestinian Authority for transferring funds to ’terror groups’. Without this protection, Israeli banks will be exposed to legal action and can be expected to break ties with Palestinian banks.

Impact on Palestinian Economy

The Palestinian economy runs on the Israeli shekel, and its financial dealings with the rest of the world must go through the Israeli banking system. Isolating the Palestinian Authority from the financial world would cripple the Palestinian economy, warned the experts.

  • Recall that protection waivers were guaranteed under the Oslo and Paris Accords.
  • 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 previously allocated to public sector employees in Gaza has been transferred to a Norwegian- based trust account, which cannot release the money without Israeli permission.

Interim Measures

The experts have established communication channels with the Israeli Government to address these concerns and called for interim measures to prevent irreparable harm and potential breaches of international law.

Contact Information

For further information and media enquiries, please contact Halida Nasic at halida.nasic@un.org.

The UN experts serve in their individual capacity and do not receive a salary for their work. They are independent from any government or organization and have established communication channels with the Israeli Government to address these concerns.

Expert Profiles

  • Professor Attiya Waris, Independent Expert on Foreign Debt and human rights
  • Professor Alena Douhan, Special Rapporteur on the negative impact of unilateral coercive measures on the enjoyment of human rights