Bill to Freeze Funds Paid by the Palestinian Authority in Connection with Terrorism from Funds Transferred to it by the Government of Israel (Amendment - Forfeiture and Management of Funds), 5784-2024

This bill seeks to amend an existing law concerning the freezing of funds paid by the Palestinian Authority in connection with terrorism from funds transferred to it by Israel. According to the bill, within six months of its publication, all frozen funds shall be forfeited and transferred to the state treasury. Additionally, if the Palestinian Authority continues to pay funds in connection with terrorism thereafter, these additional funds shall also be forfeited. The bill adds a new section to the existing law, stipulating that the Accountant General at the Ministry of Finance will be responsible for managing the forfeited funds. These funds may be used for the following purposes: 1. Payment of compensation to victims of acts of terrorism, in accordance with a court ruling in Israel or an order under the Counter-Terrorism Law. 2. Indemnification of the compensation fund. 3. Indemnification of those whose property was damaged due to acts of war or hostility originating from the region or the Gaza Strip, or any other use intended to compensate victims of acts of terrorism. The bill comes against the backdrop of an existing law approved in 2018, which established that funds transferred to the Palestinian Authority would be frozen in an amount equal to the sum the Authority paid to terrorists and their families in the previous year. The current bill seeks to convert the freezing into forfeiture, meaning the funds will not be returned to the Palestinian Authority but will be transferred for the state's use.

Source: הצעת חוק לדיון מוקדם