From: Reuters June 11, 2025
Smotrich cancels waiver on cooperation with Palestinian banks citing 'global de-legitimization campaign against Israel'

Finance Minister Bezalel Smotrich has ordered the cancellation of a waiver on cooperation between Israeli and Palestinian banks, according to his office.

"Against the backdrop of the Palestinian Authority's global de-legitimization campaign against the State of Israel," the treasury said in a statement:
"Finance Minister Bezalel Smotrich has instructed Accountant General Yali Rotenberg to cancel the indemnity provided to correspondent banks dealing with banks in Palestinian Authority territories."

The waiver allows Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, without the risk of being charged with money laundering and funding extremism.

Without it, Palestinian banks would be cut off from the Israeli financial system.