Can I give a relative power of attorney to operate my Israeli bank account while I live abroad?

An account holder who has moved abroad usually wants the same thing: a sibling or adult child in Israel who can pay the arnona (municipal property tax), move money between accounts, or deal with the branch in person. They sign a power of attorney at a local notary, post it to the relative, and assume that settles it. The branch then declines to act on it, and the frustration begins. The authority is real; the document is simply not in the form the bank will accept.

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Detailed Explanation

Two separate things are in play. The first is the legal power to act for someone, which Israeli law recognises readily. A power of attorney (yipui koach) under the Legal Capacity and Guardianship Law 1962 lets an agent act in the principal's name, and there is nothing unusual about appointing a relative to handle financial matters. The second is what a regulated bank will operate on, and that is governed by the bank's own compliance rules under the supervision of the Bank of Israel. Banks treat account operation as a high-risk activity and will not simply rely on a foreign document whose authenticity they cannot easily verify.

In practice the bank wants its own account-operation mandate. Most Israeli banks have a specific form that names the authorised person, sets the scope (view only, transact, or full operation), and is recorded against the account. The cleanest route, where possible, is to sign that form at the branch. When the holder is abroad and cannot attend, the bank will accept a power of attorney executed before a notary in the home country, apostilled under the Hague Convention, and usually accompanied by a notarised Hebrew translation. A document signed before an Israeli consul carries similar weight. Our guide to opening an Israeli bank account as a non-resident explains the same identity and compliance framework these mandates sit inside.

Expect limits even once the mandate is accepted. Banks frequently cap what an attorney may do without a fresh instruction from the holder, for example blocking the agent from closing the account, opening new products, or sending large international transfers. Anti-money-laundering rules require the bank to know the source of funds and the purpose of significant movements, so a relative cannot quietly redirect the account's money to themselves. Where the agent wants to send money out of Israel, the bank applies the same scrutiny it would to the holder, and a tax withholding clearance may be needed before the funds leave.

There is also the question of what happens if the account holder later loses mental capacity. An ordinary power of attorney lapses if the principal becomes incapacitated, which defeats the purpose for an ageing parent. Israel's continuing power of attorney (yipui koach mitmashich), introduced by amendment to the 1962 law, is designed to survive incapacity, but it has its own registration and execution requirements and is not a casual substitute for a bank mandate. For a non-resident planning ahead, the two instruments often need to be set up together rather than treated as interchangeable.

In Practice: A power of attorney under the Legal Capacity and Guardianship Law 1962 gives the legal authority, but the bank acts on its own account-operation mandate. Signed abroad, that document must be notarised and apostilled under the Apostille Convention 1961, with a notarised Hebrew translation; notarisation and translation typically cost NIS 200 to 600 in total, plus a small apostille fee. The branch reviews the mandate under Bank of Israel anti-money-laundering rules, a process that usually takes 1 to 3 weeks, and commonly withholds authority to close the account or remit large sums abroad without the holder's separate instruction.

Key Considerations

• A foreign power of attorney gives legal authority, but the bank operates on its own account mandate form.
• Signed abroad, the document normally needs notarisation, an apostille, and a notarised Hebrew translation.
• Banks often restrict an attorney from closing the account, opening products, or sending large transfers abroad.
• Anti-money-laundering rules mean the agent must still justify the source and purpose of significant movements.
• An ordinary power of attorney lapses on incapacity; a continuing power of attorney is needed to plan for an ageing holder.

When to Consult a Lawyer

This question typically requires professional legal advice when:

• The bank has refused a power of attorney you signed abroad and you need a document it will accept.
• You are planning for a parent's possible future incapacity and need a continuing power of attorney as well as a mandate.
• The agent needs to make international transfers and you must address tax clearance and source-of-funds rules in advance.

A qualified Israeli attorney should draft or review the mandate and confirm with the bank what the agent will be permitted to do before you sign.

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Speak With an Israeli Attorney

We prepare bank-acceptable powers of attorney for non-residents, coordinate the apostille and translation, and liaise with the branch so an authorised relative can operate your Israeli account within the limits the bank requires.

Contact us for a confidential initial consultation.