US Business Banking for Palestinian Founders: Navigating Restrictions and Realities

Palestine — specifically the West Bank and Gaza — is not subject to comprehensive US sanctions or an embargo. There is no OFAC program that prohibits all transactions with Palestinian nationals. However, Palestinian founders face significant practical barriers due to targeted sanctions, de-risking by financial institutions, and the fragile state of the Palestinian banking system. This guide explains what is blocked, what is possible, and what to expect.

The legal framework

OFAC maintains targeted sanctions against specific individuals and entities linked to terrorism or extremist activities in the Palestinian territories. These are individual designations, not a comprehensive country program. However, the effect on banking access is broad because US and international financial institutions apply enhanced scrutiny to all Palestinian-related transactions.

The West Bank and Gaza are different situations. The West Bank has a functioning (if constrained) banking system connected to the international financial system. Gaza's banking infrastructure has been severely damaged by conflict, and financial flows in and out of Gaza are subject to additional restrictions.

What fintech platforms say

Mercury — Palestinian founders have reported significant difficulty. Mercury's compliance team applies heightened scrutiny to applications from the Palestinian territories.

Wise — Wise supports transfers to and from the Palestinian territories in some cases, but account opening for Palestinian residents is subject to enhanced review.

Payoneer — Payoneer has historically been more accessible for Palestinian freelancers than other platforms, particularly for receiving payments from international clients. This is not full business banking, but it is a practical starting point.

Relay and Airwallex — generally not accessible for Palestinian founders.

What traditional US banks say

Chase, Bank of America, and other major US banks will not onboard Palestinian founders in standard circumstances. The compliance risk is considered too high given the targeted sanctions environment and the general de-risking trend.

What is possible

West Bank founders have more options than Gaza founders. The Palestinian banking system in the West Bank — through banks like Bank of Palestine, Arab Bank, and Cairo Amman Bank — maintains SWIFT connectivity. International wire transfers are possible, though subject to enhanced scrutiny.

Payoneer for freelancers and service providers — if your business model involves receiving payments from international clients, Payoneer is the most accessible option for Palestinian founders. It is not a full business banking solution, but it works for payment receipt.

Palestinian founders with residency outside Palestine — if you hold a second passport or residency in another country, applying through that country of residence is often more practical.

What we recommend

If you are a Palestinian founder with a West Bank address and a clear, well-documented business purpose, contact us. We can assess your situation and advise on the right structure. We will be honest about the likelihood of success with each bank before you invest time in an application.

This guide is for informational purposes only and is not financial, tax, or legal advice. Consult a qualified adviser for your specific situation.