Israel banks freeze accounts of settlers hit with US sanctions

Israel’s Bank Leumi froze the account of extremist settler, Yinon Levi, who had been placed under sanctions by the US along with another three extremist settlers, over their involvement in terrorist attacks against Palestinians and their property in the occupied West Bank.

The Central Bank of Israel yesterday issued a statement in support of the Bank Leumi’s decision, ignoring calls by the Israeli Finance Minister, Bezalel Smotrich, not to comply with the American decision.

Addressing Smotrich’s calls, the Central Bank said: “Circumventing the sanctions regulations would expose banking companies to significant risks, including compliance risks, money laundering and terrorist financing risks, legal risks, and reputational risks.”

Earlier in the day, state-owned Bank Hadoar froze the account of David Chai Chasdai, another settler hit with the US sanctions.

On Sunday, Smotrich slammed the US sanctions, telling reporters: “We are not a banana republic of the United States in this regard and we won’t allow for the harming of our citizens.” He described the allegations against the settlers as “utterly specious”.

He added that he would use “all available tools” to stop Israeli banks enforcing the sanctions.

The four settlers included in the US sanctions are accused of initiating and leading a rampage in the northern West Bank village of Huwara last year that resulted in the death of a Palestinian resident.

Israel does not prosecute or punish settlers who practise terrorism against Palestinians.

On Monday, the Walla website quoted the former chief economist at the Israeli Ministry of Finance, Professor Asher Blass, as saying: “If these four people had been tried, this matter would not have happened. This happens when local authorities do not work.”

READ: Smotrich urges Israel banks not to enforce US sanctions on settlers