חוק להקפאת כספים ששילמה הרשות הפלסטינית בזיקה לטרור מהכספים המועברים אליה מממשלת ישראל (תיקון), התשפ"ו–2026Law on Freezing Funds Paid by the Palestinian Authority in Connection with Terrorism from Funds Transferred to It by the Government of Israel (Amendment), 2026 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Law for the Freezing of Funds Paid by the Palestinian Authority in Connection with Terrorism from Funds Transferred to It by the Government of Israel, 2018, established a mechanism whereby the Government of Israel freezes, out of the funds it collects and transfers to the Palestinian Authority in accordance with the implementation laws, an amount equal to the funds the Authority pays to terrorist operatives and their family members. Now, as part of the Law for the Freezing and Deduction of Funds Paid by the Palestinian Authority in Connection with Terrorism from Funds Transferred to It by the Government of Israel (Amendment), 2026 (whose original title was changed as part of this amendment), an explicit purpose was added to the Law of compensating the State and victims of terrorism for damage caused by terrorist activity. According to the amendment to the Law, the Minister of Finance shall submit annually to the Ministerial Committee on National Security Affairs a report detailing the total benefits paid by the National Insurance Institute and compensation paid from the Property Tax fund in the previous year to victims of hostile acts carried out by a person who, in accordance with the Palestinian Authority's payment policy, there is reasonable basis to assume is paid funds in connection with terrorism, or whose family member is so paid, as well as compensation debts awarded in favor of the victims. Based on this information, the Ministerial Committee shall determine an additional amount to be deducted annually from the funds Israel transfers to the Palestinian Authority, beyond the amounts already frozen under the original Law. As a rule, the deducted funds shall be transferred to the State Treasury; however, the Law establishes priority for victims of terrorism, such that out of the deduction amount, compensation debts to victims and amounts awarded in their favor by courts shall be covered first. In addition, the Law enshrines an annual reporting duty of the Minister of Finance to the Ministerial Committee and to the Knesset Foreign Affairs and Defense Committee regarding the total funds frozen in connection with fund transfers carried out by the Palestinian Authority to the Gaza Strip.

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