'Slippery slope': Israelis sanctioned by US sue banks over frozen accounts

The lawsuit targets five major financial institutions for enforcing foreign sanctions.

By JERUSALEM POST STAFF DECEMBER 2, 2024 14:24

Israelis walk past a branch of Bank Leumi in Tel Aviv (photo credit: REUTERS/GIL COHEN MAGEN)

A group of Israeli citizens sanctioned by the US government under President Biden for alleged "harm to Palestinians" have filed a substantial lawsuit on Monday against five Israeli financial institutions.

The plaintiffs, represented by attorneys Tzofia Nahon and Ovadia Avizur, argue that these institutions unjustly froze their accounts, canceled credit cards, and restricted access to personal funds, denying them basic financial services.

The lawsuit includes Ataret Yardeni, whose husband, Eitan Yardeni, resides in Havat Ma'on, and Reut Ben Haim, co-founder of the Tzav 9 organization. Both claim significant personal and financial damage due to actions by the targeted financial entities.

Institutions accused of overreach

The lawsuit 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.

According to the plaintiffs, these entities exceeded the scope of US sanctions by imposing additional restrictions on family members of the sanctioned individuals without due process or transparency.

Israelis walks next to Bank Leumi in Jerusalem. (credit: YONATAN SINDEL/FLASH90)

The plaintiffs argue that these actions violate fundamental rights such as property ownership, privacy, and the ability to earn a dignified livelihood.

Attorneys Nahon and Avizur warned that this creates a "slippery slope" where foreign governments can unjustly label Israeli citizens as terrorists, resulting in severe financial and personal repercussions.

The lawsuit seeks restitution of the plaintiffs' rights, compensation for damages, and the establishment of legal precedents to prevent similar violations in the future.

"We cannot stand idly by while Israel's financial system enforces foreign laws that infringe upon its citizens' rights," said the attorneys. The case could set a significant precedent for balancing international sanctions with the protection of Israeli citizens' rights.