"There is no prohibition by virtue of the sanctions on the transfer of the donation. The sanctions do not apply in Israel , and the only impediment to the transfer stems from the damage that may be caused and the bank's obligation to manage risks. Sanctions cannot be violated where they do not apply. Therefore, the transfer of the donation should not be examined from the perspective of a violation of the sanctions regime, but only from the perspective of the damage that may be caused to the bank and the management of its risks accordingly..."
- In Civil Appeal 1052/24 Mizrahi Tefahot Bank in Tax Appeal v. Zaka-Rescue and Success et al . (April 2, 2024), the Supreme Court reversed the District Court's decision.
- In paragraph 18 of the judgment, the Supreme Court discussed the bank's risk management policy, which deals with compliance with international sanctions. It was clarified that although the sanctions do not apply in Israel, this policy was determined due to the Bank's concern that it will be perceived as helping to circumvent international sanctions and is a result of the policy of the Supervisor of Banks, namely:
"18. As described, the bank's refusal to transfer the donation in our case is rooted in Abramovich's inclusion in the lists of financial sanctions published by the British government and the European Union following the Russia-Ukraine war. The Bank's refusal is based on a risk management policy it has established, which deals with "compliance with international sanctions", according to which "the Bank will not carry out activities that are contrary to the international sanctions programs" and "[j]e will comply with these sanctions, even though it is not directly subject to them", "as part of the conduct of international financial activity in general and proper business relations with correspondent banks in particular, and in light of the supervisory expectation in this regard" (see Appendix 10 to the Bank's response to the request for interim relief, Sections 1-2). Although the aforementioned sanctions do not apply directly to Israel, this policy was established due to the bank's concern that it would be perceived as helping Abramovich circumvent the sanctions imposed on it, in a way that would expose the bank to various risks.