US denies telling banks to stop working with Palestinians

The United States has denied accusations it is pressuring banks to stop dealing with the Palestinian government, whose relations with Washington have been plummeting. Several Palestinian officials have accused the US of trying to force banks not to deal with transactions linked to the Palestinian Authority, which has limited self-rule in the occupied West Bank.

“The United States has not requested that foreign donors restrict assistance to the Palestinians, nor has it requested that financial institutions cease transfers to Palestinian Authority (PA) bank accounts,” a US official said late Monday. “We are aware of media reports suggesting this has occurred. Those reports are incorrect.” On Sunday, senior Palestinian official Hussein al-Sheikh charged that Washington was launching a “financial siege” on the PA.

“Major international financial institutions and parties have begun to accede to an American request to impose a tight financial siege on the Palestinian Authority,” he said. “Washington has asked for financial aid given to the authority to be stopped, and it has also issued a circular to banks not to receive transfers for the authority’s accounts.”