Ella Rosenberg, a counter-terror financing expert, warned Monday that Israeli banks' exposure to Palestinian Authority money transfers could lead to loss of access to Euro transfers via Deutsche Bank and USD transfers via Citigroup. She cautioned that cutting off PA bank transfers entirely would push the Authority to cash, forex, and cryptocurrency, reducing oversight of money laundering and terror financing.
The warning from Rosenberg, a member of the JCFA and the Debora Forum, expands on earlier reports. She stated that international anti-terror financing laws could lead to claims against Israel's banks and even severance of ties with any entity in the terror financing chain. In the extreme scenario, she said, Israeli banks could lose their ability to transfer funds internationally in Euro via Deutsche Bank and in USD via Citigroup.
Rosenberg also warned that completely cutting off bank transfers to the Palestinian Authority would backfire: the PA would shift to cash, foreign currency, and cryptocurrency, making it harder to track money laundering and terror financing. She argued that without a state-regulated solution, ending correspondent banking services would actually reduce oversight capabilities rather than strengthen the fight against terror financing.
As The Zioneer reported earlier today, the issue has drawn attention amid ongoing tensions between Israel and the PA over the latter's payments to terrorists and their families. The Knesset has passed legislation deducting PA funds for terror compensation, adding to the financial pressure.
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Source and signal
- Open-source intake