Finance Minister Bezalel Smotrich has encouraged Israeli banks to “take measured risks” when providing services to settlers targeted by EU sanctions in 2024.
Bezalel Smotrich, Israel’s Finance Minister, has urged Israeli banks to continue serving settlers sanctioned by the European Union, despite potential consequences. He cautioned that non-compliance could result in substantial compensation payouts.
In July, the EU, for the first time, imposed sanctions on five Israeli settlers and three entities for alleged “serious and systematic human rights abuses against Palestinians” in the occupied West Bank, considered Palestinian territory under international law. These sanctions include an EU-wide entry ban, asset freeze, and prohibition of “provision of funds or economic resources, directly or indirectly,” to the sanctioned Israelis.
Smotrich, known for his far-right views, stated on X on Wednesday that he had sent a letter to banking supervisor Dani Khachiashvili, calling for an end to “the ‘zero risk’ policy on the part of banks, which leads to the abandonment of Israeli customers under the guise of compliance with foreign sanctions.” He accused Israeli financial institutions of “small-mindedness” and blindly adhering to “unjust” EU sanctions.
He contended that banks possess “a significant ability to act against” the EU’s punitive measures through legal action and leveraging their “global economic connections.”
Smotrich threatened to push for legislation mandating significant compensation payments to affected individuals if banks did not heed his call. He also mentioned potentially promoting legislation requiring the Bank of Israel to “open and manage bank accounts for citizens on whom sanctions are imposed.”
Swedish Foreign Minister Maria Malmer Stenergard told AFP last month that Sweden would “push for EU sanctions against individual Israeli ministers” due to the lack of “clear improvement for the civilians in Gaza.”
Around the same time, Slovenian Foreign Minister Tanja Fajon announced that Slovenia was “looking into the possibility of sanctions against Israel, alongside France and Ireland.”
In May, the UK and Canada, along with France, issued a joint statement condemning Israel’s ongoing military campaign in Gaza.
The statement accused the Israeli government of denying “essential humanitarian assistance to the civilian population” of Gaza.
London, Ottawa, and Paris threatened to “take further concrete actions,” including “targeted sanctions,” if Israel’s “egregious actions” persisted.
The statement also demanded that Israel cease settlement activities in the occupied West Bank.
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