US-based Israel Bonds should register as 'foreign agent', says pro-democracy group

A US-based financial organisation should register as a foreign agent representing Israel, a pro-democracy group said on Thursday.

The Development Corporation for Israel, or Israel Bonds, is a "broker-dealer and underwriter for securities – Israel bonds – issued by the State of Israel in the United States", according to its website.

It "appears to be a foreign agent acting on behalf of Israel, representing the public and political interests of the state to the American public", said Democracy for the Arab World Now (DAWN).

"Israel Bonds is a sophisticated operation to enlist American public support for Israel's political projects while dodging the minimal transparency and scrutiny our laws require," DAWN Israel/Palestine advocacy director Adam Shapiro said in a press release.

DAWN accused Israel Bonds of being an unregistered foreign agent in breach of the US's Foreign Agent Registration Act (FARA), with the pro-democracy group saying it had made a referral to the FARA Unit at the Department of Justice (DOJ) calling for an investigation.

"Israel Bonds, at the direction and control of the Israeli government, acts as a publicity agent for Israel; promotes the public and political interests of Israel; and disperses government-issued bonds for Israel in the United States," DAWN said in its press release.

"These are elements that constitute a 'foreign agent' according to FARA, and for which there is no commercial exemption."

In response to a request for comment, a DOJ spokesperson said: "With regard to any claims involving possible obligations under the [FARA] Act, please note that the FARA Unit does not issue advisory opinions to third parties nor comment on activities the staff conducts to enforce the Act.

"Similarly, the FARA Unit does it comment on compliance matters related to registered agents or other parties."

The New Arab also contacted Israel Bonds for comment but did not receive a reply.

Note: This article was updated at 16:20 GMT on 26 June 2023 after a response was received from the US Department of Justice.