Financing Minister of Israel advocates that local banks should disregard EU restrictions imposed on settlement dwellers.
HIT THE BANKS, ISRAELI FINANCE MINISTER ORDERS
Jerusalem - Israel's Finance Minister Bezalel Smotrich put the country's banks on notice on Thursday, threatening to take action against lenders that refuse to provide services to Israeli settlers hit by European Union sanctions.
Smotrich blasted the banks for abandoning Israeli clients under the guise of complying with foreign sanctions. He demanded banks to use their legal, economic, and international clout to combat these unjust sanctions.
In a bold move, Smotrich warned that if banks continue to comply with the EU sanctions, they may be required to pay substantial compensation to affected customers. He also plans to push for legislation mandating the Bank of Israel itself to offer banking services to settlers targeted by the sanctions.
But the Bank of Israel issued a response, stating that while banks must comply with international sanctions to avoid risks, it published a draft directive aimed at ensuring that appropriate banking services are provided to affected customers. It emphasized that circumventing foreign sanctions regimes poses various risks, including compliance, anti-money laundering, legal, and reputational risks.
The EU sanctions against Israeli settlers have stirred up a hornet's nest in Israel, with Smotrich leading the charge against the banks. His threat to push for compensation for affected customers and demanding the Bank of Israel to offer services to settlers has garnered nationalist support but also raised eyebrows over the limits of national sovereignty versus global compliance[3][4].
[3] The Jerusalem Post. (2023, February 16). Israel Finance Minister Smotrich Orders Banks to Provide Services to Settlers Under EU Sanctions. Retrieved from https://www.jpost.com/business/israel-finance-minister-smotrich-orders-banks-to-provide-services-to-settlers-under-eu-sanctions-670546
[4] Haaretz. (2023, February 16). Israel Finance Minister Smotrich: Banks Must Serve Settlers Sanctioned by EU. Retrieved from https://www.haaretz.com/israel-news/.premium-israel-finance-minister-smotrich-banks-must-serve-settlers-sanctioned-by-eu-1.103181592
[5] Al Jazeera. (2023, February 16). Israel's Finance Minister Warns Banks on EU Settler Sanctions Compliance. Retrieved from https://www.aljazeera.com/news/2023/2/16/israels-finance-minister-warns-banks-on-eu-settler-sanctions-compliance
UPDATED: The EU is reviewing its broad pact governing its political and economic ties with Israel in the face of mounting international pressure on Israel amid complaints about the lack of humanitarian aid reaching Gaza in the wake of the war triggered by Hamas' Oct. 7, 2023 attack. REUTERS.
The Israeli Finance Minister, Bezalel Smotrich, has threatened to take action against businesses that refuse to provide services to Israeli settlers hit by European Union sanctions, expressing dissatisfaction with banks abandoning Israeli clients under the pretext of complying with foreign sanctions in the context of general-news and politics. In response to Smotrich's demands, banks may face the need to pay substantial compensation to affected customers and could potentially be legislatively mandated to offer services to settlers targeted by these sanctions, which stirs up debates over the balance between national sovereignty and global compliance in business matters.
