Capital On Tap, which provides credit cards for small businesses,  has restored transactions with Israel, having previously place Israel on a restricted list.   Customers had been dismayed to find that Capital on Tap had refused transactions with Israel in the last few weeks.

Several of Capital on Tap’s customers approached UK Lawyers for Israel (UKLFI) with concerns that the company had put Israel on a “restricted” list, and was not allowing any financial transactions with Israel.

Capital on Tap claimed that it was  complying with its “obligations under national and international law” by putting Israel on a restricted list, alongside countries including  Congo (Democratic Republic), Russia, Serbia, Venezuela, Yemen and Zimbabwe.

UKLFI wrote to Capital on Tap and pointed out that there is no national or international law that means that Israel should be placed on a restricted list. Furthermore,  Israel is not on the Financial Action Task Force (FATF) “black and grey” list and is not a “high-risk” jurisdiction.

Only a governmental body or a regulator, not a private company, can declare a country to be “prohibited” and then only for valid reasons.

UKLFI pointed out that Israel is a democratic nation that is in compliance with FATF and other requirements and is recognised as a leader in the world’s financial markets and regulation. It is not proper to impose prohibitions, blocks or conditions on a monetary transaction or transfer involving Israel or Israelis.

Happily, Capital on Tap has reversed its decision, and on 8 September 2024, sent out a notice to its customers telling them

“We’ve expanded the list of countries where you can use your Capital on Tap Business Credit Card.  We noticed that in the past year, your card was declined by a merchant in Israel due to restrictions. We’re happy to confirm you can now spend there.”

Caroline Turner, director of UKLFI commented: “We are pleased that Capital on Tap has now removed Israel from its Restricted list and its customers can use the credit card as usual.”