Israeli Banks Threaten to Cut Off Palestinian Economy
Two Israeli financial firms have long served as partners to Palestinian banks, handling transactions that make possible the West Bank’s imports and exports.
Reporting from Ramallah, Jerusalem and Tel Aviv
Palestinians in the Israeli-occupied West Bank are routinely being terrorized by military raids and settler violence. But a more obscure menace is threatening to bring the entire West Bank economy to a halt.
If the Israeli banks severed ties, officials say, it would amount to the imposition of a suffocating commercial blockade.
The banks have long been concerned they could be exposed to lawsuits over money laundering or terrorist financing, and have grown frustrated that Israel’s government is not better shielding them against these risks.
