Smotrich Criticizes Banks on Sanctions Against Israeli Settlers

Israel's Finance Minister Bezalel Smotrich criticized banks for refusing services to Israeli settlers sanctioned by the EU. He urged banks to oppose unjust sanctions and threatened legislation mandating compensation for affected clients. The Bank of Israel responded, emphasizing compliance with international sanctions while ensuring appropriate services for impacted customers.

Israel's Finance Minister Bezalel Smotrich has openly criticized the country's banks for denying services to Israeli settlers who have faced sanctions imposed by the European Union. Smotrich urged these banks to resist these so-called unjust sanctions, emphasizing that the banks' substantial profits allow them to take necessary risks in favor of their clients.

This development comes as the EU enforces sanctions on some settlers over violence against Palestinians, sparking a contentious debate on financial compliance and ethics. Smotrich, leading the charge, has even threatened to initiate legislation demanding banks to compensate affected clients if they continue adhering to these sanctions.

In response, the Bank of Israel highlighted the necessity of complying with international protocols to mitigate various risks, including those related to compliance, money laundering, and reputation. While agreeing to address the issue of service availability for impacted customers, they cautioned against circumventing international sanction regimes entirely.

(With inputs from agencies.)