The case of blocking Roman Abramovich’s donation to the ZAKA organization in the amount of 8 million shekels takes another turn today (Sunday) with the position of legal advisor to the government Gali Beharve-Miara, who represents the supervisor of banks Danny Khachiashvili and the governor of the Bank of Israel Prof. Amir Yaron, which completely supports the decision-making of Bank Mizrahi-Tefahot.
● Mizrachi Tefahot Court: approve Roman Abramovich’s donation to ZAKA
Recall that according to the indictment, the bank’s refusal is because Abramovich’s account is blocked due to the sanctions imposed on him by the European Union and the British government, and therefore, according to the bank’s approach, no operation of any kind can be performed on it. On the other hand, Abramovich’s lawyers submitted an urgent request for temporary relief, so that the bank would allow the donation. About three weeks ago, the first hearing was held in the District Court in Tel Aviv, where Judge Jordana Sarosi, before ordering an appeal to the Ombudsman, said, “Is it reasonable that the bank comes and adopts European sanctions that there is no dispute that they do not apply to Israel? Especially if it is a donation to an association that helps the State of Israel in its difficult time? The blanket refusal is not reasonable.” Now, the ombudsman has come forward and clarifies that according to the state’s position, the refusal is completely reasonable – while noting that “in this position there is no reason to downplay the importance of the plaintiff’s blessed activity – Zaka”.
According to her, “the position focuses on the question of the consequences and the systemic risk of violating the international sanctions regime, in accordance with the assessment of the professionals at the Bank of Israel and the supervision of the banks, and it is also true for the concrete circumstances of this procedure. That is, the transfer of funds in shekels from a bank account managed in a bank in Israel in the name of a declared entity to the account of An association that is managed by a bank in Israel for a donation.”
All banks in Israel will be exposed to danger
Beharve-Miara adds that there is no dispute that the sanctions were not imposed by the State of Israel and these were not brought under Israeli law, “However, the exploitation of the banking system for the purpose of circumventing sanctions regimes imposed by foreign countries and international organizations exposes the banking corporations to various risks, including compliance risks, Risks of money laundering and terrorist financing, legal risks and reputational risks.
Therefore, the position of the ombudsman is that Bank Mizrahi-Tefahot’s decision to block Abramovich’s contribution to ZAKA is consistent with the legal obligation of the instructions of proper banking management, “to establish a risk management policy in connection with the various potential consequences in the event that sanctions imposed on by foreign countries and international organizations, and to implement it. This, even if apparently there is no direct Israeli involvement or a declared Israeli interest in the imposition of the sanctions themselves.”
Therefore, Beharve-Miara explains that if Abramovich’s contribution to ZAKA is approved, then not only Bank Mizrahi-Tefahot will be exposed to danger due to international sanctions – but all banks in Israel.
Bank Mizrahi-Tefahot is represented in the case by lawyers Sharon Lubetzky and Viniv Holtzman from Amit Polk Matlon.
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