Banco Sabadell’s chairman apologized after Israeli clients in Spain reported account restrictions and delayed transfers, saying revised procedures followed an internal compliance misunderstanding.
A major Spanish bank chairman apologized for what he described as an internal compliance misunderstanding after Israeli clients in Spain reported account restrictions and delayed transfers linked to new government measures.
In a letter revealed by The Jerusalem Post, Banco Sabadell chairman Josep Oliu wrote to President Isaac Herzog expressing support for Israel and saying the bank had revised its procedures after some internal teams’ early handling may have created the wrong impression about its treatment of Israeli customers.
In the letter, dated November 14, 2025, Oliu said Sabadell supported “the relations of both companies and individuals between the citizens of Israel and Spain,” and stressed that over the previous 12 months the bank had provided financial services to “more than 2,000 companies” with commercial relations with Israel, including transfers, letters of credit, and export and import guarantees totaling about 500 million euros, according to the document.
Oliu linked the confusion to Spain’s Royal Decree-Law 10/2025, saying Sabadell “changed its procedures” to comply while enabling customers to continue “normal business activities” connected to Israel. He wrote that the “initial interpretation” of the decree and its implementation “in the internal systems of the bank” could have led the international Jewish community to perceive a shift that was “far from the reality” of the bank’s relationship with Israel.
“As soon as this issue has been identified, the bank’s services have revised our procedures,” Oliu wrote, adding that since then the bank had “not received any indication of dissatisfaction or complaint” from customers with relations to Israel. He concluded, “I am deeply sorry for this situation,” and reiterated support for continued business ties between Israel and Spain.
'Heightened scrutiny' against Israelis
The letter followed reports circulating in Israeli and Jewish media, and on X (formerly Twitter), alleging that Israeli customers in Spain faced heightened scrutiny after Madrid adopted new measures framed as “urgent” steps connected to Gaza.
According to those reports, some Israeli clients and Israel-linked businesses were asked to submit detailed documentation, including transaction descriptions, addresses, end-user information, and written declarations that goods involved in certain transactions did not originate from Israeli settlements. Some said transfers were delayed or subjected to case-by-case compliance approval, and that funds were not released until additional paperwork was submitted.
Maldita.es, a Spanish fact-checking outlet, published a “Buloteca” entry on the claim, noting that the submission had been sent in by users and had not been independently investigated by its newsroom, while summarizing the allegations and the wording circulating online.
A central point of contention is whether Spain’s decree targets only the entities it explicitly names, or whether banks may apply risk checks more broadly. Spain’s government said the decree included a “total arms embargo” on Israel, as well as a ban on imports of products originating from what it calls 'illegal Israeli settlements' in 'occupied Palestinian territory', alongside restrictions on advertising for settlement-origin goods and services.
Spain’s Tax Agency has emphasized that Article 3 of Royal Decree-Law 10/2025 specifically addresses the customs import of products originating from Israeli settlements in the territories Spain defines as "occupied," and notes that the decree requires a published list of localities and postal codes to facilitate enforcement.
That distinction matters because banks often build compliance controls that go beyond narrow customs procedures. Financial institutions routinely apply “know your customer” and risk-based frameworks, which can lead to additional documentation requests when a government introduces new restrictions affecting particular geographies, goods, or counterparties, even if the original measure is framed as an import rule rather than a banking rule.
Demanding declarations
Critics of Sabadell’s approach argued that whatever the decree requires from Spanish importers, demanding declarations from clients and slowing ordinary account activity amounts to overreach. Supporters of the bank’s compliance posture countered that lenders face significant exposure if transactions are later judged to have facilitated restricted trade, and that they may therefore request stronger documentary assurances to protect themselves.
Oliu’s letter sought to separate the bank’s stated position from the customer experience described during the initial rollout. By acknowledging the possibility of a “wrong perception” and describing revised procedures, the chairman appeared to signal recognition that the first implementation created reputational and diplomatic damage.
The Sabadell dispute has also unfolded against a broader deterioration in Israel-Spain relations over the war. In September, Reuters reported that Spain barred ships and aircraft carrying weapons to Israel from calling at Spanish ports or entering its airspace, a move that drew sharp Israeli criticism.
Spain’s policy has also shown internal tension between political signaling and industrial reality. On Tuesday, Reuters reported that Spain granted Airbus an exemption allowing continued use of Israeli technology in production at Spanish facilities, despite the broader direction of Spain’s restrictions, citing the company’s industrial weight and employment footprint.
For Israeli individuals and firms operating in Spain, the practical question now is whether the revised procedures described in Oliu’s letter translate into predictable, non-discriminatory access to banking services, and what documentation will be required for Israel-linked payments going forward.
31/12/2025 by THE JERUSALEM POST
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