Yinon Levi – Frozen accounts and confrontation

Leumi Bank froze Yinon Levi’s account after US President Joe Biden imposed sanctions on Levi and three other Israelis accused of violence in the West Bank. The U.S. State Department alleges their involvement in the violence, but Levi has strongly denied any involvement.

The presidential order freezes the assets and bank accounts of the four Israelis and prohibits transactions and transfers through the U.S. banking system. The Bank of Leumi’s decision to freeze Levi’s account was made in order to avoid sanctions by the American government. Violation of the orders can result in heavy fines and loss of access to the SWIFT global banking system.

Levi has two accounts at Bank Leumi: a personal one and a business one. 

Hapoalim Bank also has accounts with some of the names on the US list. It is expected that the bank will act like Leumi and block them. Bank Hapoalim said, “Bank Hapoalim respects international sanctions and will comply with any lawful order. For reasons of banking confidentiality, we cannot refer to specific cases.”

What is Levi accused of?

Israeli banks and sanctions

Israeli Finance Minister Bezalel Smotrich opposes the freezing of Levi’s account and advocates discussing the issue with the bank’s management. He argues that it makes no sense to subject an Israeli citizen to sanctions by an Israeli bank on the orders of the United States. Smotrich plans to continue to fight for the lifting of the freeze, which could lead to a confrontation with the Bank of Israel.

Israeli banks have already been sanctioned by the American authorities and are aware of the consequences of not complying with the regulator’s demands, which can lead to the loss of business relations with foreign financial institutions.

It should also be noted that there is currently a legal dispute between Mizrahi Tefahot Bank and Roman Abramovich. Abramovich wanted to make a donation through a bank, but was refused due to sanctions in the European Union and the United Kingdom. The bank believes that the transfer violates international sanctions and intends to appeal the decision to the Supreme Court.