During routine dealings related to cases of Palestinians from the Occupied Palestinian Territories who are undergoing family unification with spouses from East Jerusalem, HaMoked has come across an alarming practice. Israeli banks do not let Palestinians who live in Israel lawfully for many years open bank accounts. This is a blanket refusal, without individual examination, that is based solely on the national identity of the applicants - people with Palestinian Authority identity cards.
It is difficult to imagine modern life without a bank account. Without an active bank account it is very difficult to pay bills, receive paychecks (which are commonly deposited directly into employees' bank accounts) and make day-to-day financial transactions.
The state only recently announced, HaMoked's petition, that the stay-permits given to Palestinians as part of the family unification process would also constitute work permits allowing holders to work in Israel both as self-employed and as hired employees. In addition, Palestinians living in Israel as part of the family unification process are required to have a bank account in order to access some of the social services available to them. The injustice is made worse by the fact that the banks, including the postal bank, allow any foreign resident, including migrant workers, to open bank accounts without restriction.
The banks' discriminatory policy has no basis and contravenes the law against discrimination in products and services and the provisions of the Banking Law (Customer Service) 5743-1981. According to the Banking Law, banks may refuse to open bank accounts only on individual grounds, which may include doubts as to whether or not the potential client would be able to meet the terms set for managing the account. According to the postal bank's regulations, it must provide financial services to the entire public in Israel. Moreover, the postal bank, as a subsidiary of the Israeli postal service, is bound by the norms and provisions of public law and hence has an even stronger obligation to treat its customers equally and respectfully, without discrimination based on nationality.
HaMoked has contacted
the banking commissioner and
the director of the postal bank , demanding they change the discriminatory policy immediately, or alternatively, explain what legal provisions or regulations the banks rely on when refusing to take on Palestinians as clients.
