Smotrich vs. Sanctions: USA reduces sanctions against Judea and Samaria residents

Peloni:  US sanctions rolled back!  This was a sizeable victory.  Well done Smotrich!

The USA has significantly reduced the sanctions it imposed on residents of Judea and Samaria following Finance Minister Bezalel Smotrich’s threats of economic sanctions against Palestinian Authority banks.

Israel National News Mar 29, 2024

Bezalel Smotrich?????: Yonatan Sindel/Flash90

The Biden administration has significantly reduced the sanctions imposed on seven residents of Judea and Samaria, allowing them to once again use their bank accounts.

According to the Israel Hayom, the American retraction comes following the threat by Finance Minister Bezalel Smotrich to collapse the Palestinian economy.

It was also reported that in a letter to the Finance Minister, a representative from the US Treasury Department clarified that there is no reason for banks in the country to prevent Israelis who have been sanctioned from making routine use of their bank accounts.

The letter explains that this refers to routine household or business transactions as customary in any family or business. According to the Americans, such transactions will be permitted and do not expose Israeli banks to reprisals.

The American government only objects to financial transactions intended for acts that were banned according to the sanctions. The new format cancels the sanctions for most practical purposes.

Before the announcement, Minister Smotrich threatened that if the sanctions were not reduced, he would not renew the immunity for banks that have connections with financial entities in the Palestinian Authority.

Without Smotrich’s signature on a document that provides protection for Israeli banks which have financial connections with Palestinian entities, Israeli banks were expected to sever connections with the Palestinian banks, fearing exposure to international lawsuits on charges of transferring money to terrorists.