The Physicians for Human Rights NGO filed a lawsuit against Bank Hapoalim, accusing the bank of unjustly closing its account.
The organization, which provides medical assistance to various populations, including Palestinians in Gaza, argued that the closure of its account was unreasonable and influenced by outside factors.
The organization's legal team also presented evidence in the Tel Aviv District Court that in December 2024, they had requested a transfer of funds to a rehabilitation center in Kalkilya to support its mobile clinic operating in the Palestinian village.
On the other hand, Bank Hapoalim claims that the transfer was directed to an unauthorized group, as defined by Israeli law. The bank asserts there was reasonable evidence to suggest the recipient organization had connections to terrorism financing.
Furthermore, Bank Hapoalim stated that the group acknowledged this in a preliminary court hearing before the full lawsuit was examined.
Hearing to determine validity of terrorism support
The hearing, which took place in February, centered on determining whether there was any uncertainty regarding the identity of the entity receiving the transferred funds, which Bank Hapoalim claims is linked to financing terrorism.
The organization’s attorney responded to the court’s inquiry, stating, “The name listed in the declaration is not exactly the same as the one in the official documents, but I assume this is indeed the same entity, given the accurate translation.” The attorney further stated, “I agree with the bank’s decision to halt the transfer,” supporting the bank’s actions.
In its defense, Bank Hapoalim argued that the plaintiff had effectively admitted to requesting the transfer of funds to an entity listed by the Israeli Defense Ministry as a prohibited organization and a terrorist group.
The case is set to be heard again at the end of this year. Following a proposal from the court, both parties agreed that the organization’s account would remain open under specific conditions until the case is decided.
All requests to transfer funds will be reviewed and pre-approved by the bank’s CEO, along with supporting documents confirming that the funds are intended solely for the purchase of medical supplies, which will be delivered directly to the organization.