Jerusalem Wins Court Battle, UNRWA Bank Account Frozen for 11 Million Shekels
Translated & summarized from Makor Rishon by baba
A Jerusalem court ordered Bank Leumi to seize approximately 11.05 million shekels from UNRWA's bank account to cover municipal property tax debts owed to the Jerusalem Municipality. Judge Haya Zandberg rejected UNRWA's immunity claims, ruling that the agency failed to legally contest the final tax assessments. The court also determined that UNRWA's diplomatic immunity expired in October 2024, and that Israeli law supersedes international obligations in this case. The ruling allows the municipality to collect the debt, despite UNRWA's previous claims of immunity and concerns over terrorism financing.
The story in 6 lines · by baba
- Jerusalem Municipality will receive 11.05 million shekels from UNRWA's frozen bank account for property taxes.
- A Jerusalem court rejected UNRWA's claims of immunity regarding the tax debt.
- Judge Haya Zandberg ruled UNRWA failed to legally contest the final tax assessments.
- UNRWA's diplomatic immunity was deemed to have expired on October 7, 2024.
- Bank Leumi is ordered to transfer the seized funds to the Jerusalem Municipality.
- The organization "Bצלמו" hailed the ruling as a victory against UNRWA's alleged support for terrorism.
A Jerusalem District Court has ruled in favor of the Jerusalem Municipality and Bank Leumi in a legal dispute with the UN Agency for Palestine Refugees (UNRWA), ordering the bank to seize approximately 11.05 million shekels from UNRWA's account to cover outstanding municipal property taxes. Judge Haya Zandberg rejected UNRWA's claims of immunity, stating that the agency failed to legally challenge the tax assessments, which therefore became final.
UNRWA previously held properties in Jerusalem, including offices and a school, and benefited from tax exemptions due to diplomatic immunity. However, following Knesset legislation to halt UNRWA's activities in Israel, the Jerusalem Municipality began levying property taxes for 2024-2025. UNRWA did not contest these charges through the proper legal channels.
The legal drama escalated in February 2024 when Bank Leumi froze UNRWA's account over concerns of funds being used for terrorism. UNRWA did not take legal action to unfreeze it. In August 2025, a seizure order was placed on the account for the tax debt.
Judge Zandberg determined that UNRWA's immunity, derived from a 1967 agreement, expired on October 7, 2024, when the agreement lapsed due to law. She dismissed the argument for automatic immunity as an auxiliary UN organ, emphasizing that international obligations cannot override explicit Israeli legislation, especially when the Attorney General's office did not assert immunity.
The court also found that concerns about terrorism financing did not prevent the municipality from collecting debts, and that the seizure was not a cover for transferring funds to UNRWA. The ruling mandates Bank Leumi to transfer the seized funds to the Jerusalem Municipality.
Shai Glick, CEO of the organization "Bצלמו," called the ruling a significant legal and moral victory, asserting that UNRWA's unjustified immunity, amid alleged involvement in terrorism and incitement, has ended. He stated that Israeli law applies to UNRWA and that organizations supporting terrorism will not receive special treatment.
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