Visa and Mastercard to stop credit services in Palestine after alleged terror links
Global payments sector giants Visa and Mastercard have been questioned about their credit services in the Palestine region over ties to funding terrorism. Allegedly, the two companies are providing services to banks in Palestine, allowing terror outfits to secure funding.
After initially closing terrorist accounts, existing banks in the Palestinian Authority (PA) controlled area of West Bank has been persuaded to keep them open until the Palestinian Liberation organisation creates an alternative. Local reports suggest that the Palestinian Authority intends to use the new bank to finance terrorism. That is why Mastercard and Visa have received warnings to cut ties with banks operating in the Westbank area.
The Palestinian Authority has the hallmark of a brutal regime because it uses a payments system called ‘pay for slay’. Specifically, this is a special salary for terrorists and their families. Most banks operating from the PA dominated regions have been offering these transactions to terrorists and their families.
However, in May this year, Israel passed legislation stating that any participation in funding terror outfits would amount to terror activity. Banks in the West Bank responded by declining to serve their terrorist customers, fearing criminal and civil charges.
To generate payments to its mercenaries, the PA decided to create a new bank in the bloc. However, the new bank will likely use Visa and Mastercard as credit service providers. According to the new Israeli law, both payments giants would face criminal and civil charges for aiding terror activities.
NGOs in the region have reported that the Palestinian Authority has been generating funds through global service providers since 1994.