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A group of Israeli citizens sanctioned by the US government under President Joe Biden’s administration for alleged “harm to Palestinians” has filed a lawsuit against five prominent Israeli financial institutions.
The plaintiffs claim their accounts were frozen, credit cards canceled, and access to personal funds restricted, leaving them unable to meet basic financial needs.
The lawsuit, filed with representation from attorneys Tzofia Nahon and Ovadia Avizur, names Bank PAGI (a subsidiary of the First International Bank of Israel), Max, PayBox (owned by Discount Bank), Harel Insurance Company, and Bank Leumi as defendants.
The plaintiffs accuse these institutions of exceeding the scope of US sanctions by imposing punitive measures not just on the sanctioned individuals but also on their family members, allegedly without due process or transparency.
Plaintiffs Allege Severe Financial Harm
Among the plaintiffs are Ataret Yardeni, whose husband, Eitan Yardeni, resides in the settlement of Havat Ma’on, and Reut Ben Haim, co-founder of the Tzav 9 organization. Both individuals claim significant personal and financial losses resulting from the actions of the targeted banks and financial entities.
The lawsuit highlights alleged violations of fundamental rights, including property ownership, privacy, and the ability to earn a dignified livelihood. “These measures have denied our clients access to their funds and disrupted their lives in unprecedented ways,” said Nahon.
The legal action seeks to recover damages, restore the plaintiffs’ financial rights, and establish legal protections to prevent similar situations in the future.
Lawyers Warn of Dangerous Precedent
Attorneys Nahon and Avizur argue that the actions of Israeli financial institutions, in enforcing US-imposed sanctions, create a troubling precedent.
“This slippery slope allows foreign governments to unjustly label Israeli citizens as terrorists, leading to devastating consequences without proper legal recourse,” said Avizur.
The plaintiffs assert that the banks’ measures have gone beyond compliance with international sanctions, extending punitive actions to non-sanctioned individuals such as family members. Critics of the banks’ actions argue this undermines basic principles of justice and due process.
Balancing Sanctions and Citizen Rights
The case could have significant implications for how Israel balances international obligations with the protection of its citizens’ rights. Legal experts and activists are closely watching the lawsuit, which may set a precedent for the extent to which financial institutions can enforce foreign policies without infringing on fundamental rights.
The financial institutions named in the lawsuit have not yet issued public statements addressing the allegations. However, industry analysts suggest they may argue that adherence to international sanctions is critical for maintaining their global financial operations.
The plaintiffs and their legal team remain resolute. “We cannot stand idly by while Israel’s financial system enforces foreign laws that infringe upon its citizens’ rights,” the lawyers emphasized.
Broader Implications
This lawsuit underscores the complex intersection of international sanctions and domestic legal protections. If successful, the plaintiffs’ claims could challenge the mechanisms through which foreign policies are enforced and lead to stronger safeguards for Israeli citizens.
The court’s ruling will likely reverberate beyond Israel, potentially influencing global discussions on the responsibilities of financial institutions under international law.