Banco Sabadell of Spain, the country’s fourth-largest bank, has asked Israeli business owners to sign declarations confirming they do not conduct any business related to illegal Israeli settlements, the Israeli newspaper The Calcalist reported.
The businesses have reacted by accusing the bank of “discriminatory treatment,” while the bank maintains it is simply implementing Spain’s new decree against genocide in Gaza, adopted in September.
In September, the Spanish government introduced “urgent measures against the genocide in Gaza and in support of the Palestinian population.” The royal decree includes an arms embargo extended to Israel and prohibits the import, export, or promotion of goods and services originating from illegal settlements in the West Bank.
In recent days, Israeli entrepreneurs with companies registered in Spain have received warnings that funds from Israel will not be deposited into their accounts unless they submit signed declarations. Several have stated that the bank is applying the new law excessively and unfairly, and some are now considering legal action or transferring their accounts to other banks.
On X, an Israeli businesswoman recounts that a manager in Sabadell asked her to provide written declarations from each Israeli client. “Every Israeli who receives money from Israel must prove they are clean and comply with the new Spanish government law,” she wrote. “A crazy situation I never thought I’d find myself in,” she commented.
The issue of transaction traceability
The bank’s requirements include a detailed form in which customers must confirm that “the export or import of the goods/services included in this transaction does not violate the restrictions set out in Royal Decree No. 10/2025 of September 23”.
