UK Expands Sanctions to Target Banks and Insurers Financing Illegal Israeli Settlements

Darwin, October 15: The United Kingdom has opened the door to imposing sanctions not only on individuals and organisations involved in illegal Israeli settlement construction, but also on banks and insurance companies that finance such activities. London’s expanded sanctions measures aimed at curbing settlement expansion in the occupied West Bank came into effect on Thursday, October 15. In response, Israel has ordered the closure of the UK consulate in occupied East Jerusalem.

The new measures follow an announcement by the UK Foreign Office in September. Israeli newspaper Haaretz reported that the previous framework primarily focused on sanctioning individuals involved in violent attacks by settlers against Palestinians. The expanded framework allows the UK to target a broader range of individuals and organisations, including banks and insurance companies that provide funding for settlement construction and expansion.

The sanctions took effect just days before the deadline of Monday, October 19, for submitting construction tenders in the E1 area between occupied East Jerusalem and the Ma’ale Adumim settlement. The controversial project has raised international concerns. Critics warn that expanding Israeli settlements in the E1 area could sever the territorial contiguity of a future Palestinian state.

Under the new rules, the UK will be able to add more individuals and organisations to its sanctions list. However, the potential targets will not automatically face sanctions as soon as the framework comes into force.