The relationship between the Palestinian Authority (PA) and Israel has been heading downhill ever since the negotiations were halted in April 2014. The strained relationship reached a new level of tensions on March 16 when Israeli Defense Minister Avigdor Liberman labeled the Palestinian National Fund (PNF) as a “terror group.”

In a step deemed one of the most serious moves taken by Israel against Palestinian institutions since 1993, when the Oslo Accord was signed, Liberman banned the PNF, which he accused of providing millions of shekels to Palestinian prisoners in Israeli jails and families of victims on a monthly basis, in addition to supporting attacks against Israel.

Although Liberman believes the PNF supports individuals responsible for executing terrorist attacks against Israel and pays money to Palestinian prisoners who have killed Israelis, the PNF works on providing legal defense to these prisoners before Israeli courts, offers support and social welfare to prisoners and their families, and mobilizes local, regional and international support for their release.

Israel's Channel 7 reported on March 16 that Israel will take the necessary legal measures against the PNF, inside and outside the Palestinian territories, to seize and forfeit all of its properties and assets.