British banks and financial institutions have received written warnings from MPs advising against investment in Israel’s E1 settlement project. This comes despite new UK laws banning trade with illegal settlements not being expected to be in place for several months.
The all-party Britain-Palestine group of MPs sent a letter to all banks on Tuesday, stating that banks should review their obligations regarding cooperation with new settlements. The letter, signed by Labour MPs Debbie Abrahams and Andy McDonald, asks boards to consider the interim risk before agreeing to new or increased commitments, as these may be difficult to unwind once restrictions commence.
Foreign Secretary Ed Miliband announced plans for a complete ban on trade with illegal settlements and new sanctions two weeks ago. However, the complex secondary legislation required for these powers to come into force may take six to nine months to pass through parliament.
The issue is considered urgent as the Israeli government is seeking bids for the construction of up to 3,400 houses in the E1 settlement. This includes more than 1,300 houses for which a tender closes on 25 October.
The all-party group stated its intention to publish replies to its letter by 10 October.