SOCIAL DEMOCRATS TD Gary Gannon has launched legal proceedings against the Central Bank of Ireland over claims that investors in Israeli bonds could be legally complicit in genocide in Gaza.

Lawyers for Gannon lodged legal papers against the Central Bank in Dublin this afternoon. 

The Dublin Central TD alleges that the Central Bank’s failure to ban the marketing, distribution and sale of Israeli bonds exposes investors to risks that have not been disclosed to them.

Israeli State Bonds have been advertised as a method to support the country’s economy and, more recently, websites promoting the investments have emphasised their importance to Israel’s military operations in Gaza.

Some TDs, as a result, have dubbed the securities as “Israeli war bonds”.

Speaking today, Gannon said the case asks whether Ireland’s financial regulatory system “can remain silent”.

“The Taoiseach has said clearly in the Dáil that what’s happening in Gaza is genocide. Arrest warrants have been issued by the International Criminal Court. These are not distant issues – they raise urgent legal and moral questions for Ireland.” he said. 

“These bonds are not neutral financial instruments. They are a funding pipeline for a military campaign that includes the bombardment and starvation of thousands of civilians.

Letters, seen by the PA news agency, sent to Central Bank governor Gabriel Makhlouf in recent weeks by McGarr Solicitors, acting on behalf of Gannon, claim that these risks were not made known to investors in prospectuses for bonds, which had been approved by the Central Bank.

The letter warns Makhlouf that the “continued issuing and trading of those bonds gives rise to significant investor protection concerns, in light of the complicity of Israel in genocide in Gaza, and the use of the proceeds of the Israeli bonds to facilitate the same”.

Today, @GaryGannonTD submitted his case against the Central Bank, which aims to end the facilitation of the sale of Israeli war bonds.

The sale of these bonds goes against EU and international law.

We need to ensure that "never again" means never again. pic.twitter.com/9fFbdS6keG

— Social Democrats (@SocDems) July 24, 2025

It goes on to say that the Central Bank is empowered under EU law to prohibit the marketing, distribution or sale of the Israeli Bonds.

“We call upon it to do so,” the letter adds.

There have been ongoing calls for the Central Bank to end its role in approving Israel Bonds for sale in the EU.

The bank is the designated authority in relation to the sale of Israel bonds in the EU, and has determined the securities meet the standards of the bloc’s prospectus regulations.

Israel bonds have been advertised as supporting the country’s economy and, more recently, websites promoting the securities emphasise their role in supporting Israel’s military operations in Gaza.

Protesters and opposition parties have called for legislation that would give Ireland the power to refuse the sale of Israeli “war bonds” over human rights concerns.

They say the bonds are intended to fund the war in Gaza, while Ireland has an obligation under the Genocide Convention to use all means likely to have a deterrent effect on those suspected of preparing genocide.

Last month, the government rejected a joint-proposal from the opposition which called on the Central Bank to stop facilitating the sale of Israeli bonds within the EU. 

The motion, put forward by the Social Democrats and supported by Sinn Féin, People Before Profit and the Labour Party, sought the reversal of a previous government decision to block a bill calling for the same measure in May.

Gannon issued the letters to the bank about investor protection concerns relating to the bonds, as well as the use of the bonds to finance the war in Gaza at the end of last month.

In response, the Central Bank, through its solicitors, said that there is “no valid legal basis” to support Gannon’s purported judicial review proceedings.

They claimed that Gannon lacked the right or ability to bring the proceedings and that the bank is satisfied it does not meet the relevant criteria to exercise its powers under EU law.

The letter also claims that judicial review proceedings would lead to court time being “expended unnecessarily and substantial costs being incurred”.

However, Gannon said the Central Bank has the power to stop the sale of the bonds.

The judicial review was formally issued this afternoon.

Gannon said the Central Bank has the power under Article 42 of EU Markets in Financial Instruments Regulation to prohibit the sale of bonds that pose serious investor protection risks.

He asked: “If financing a regime accused of genocide doesn’t meet that threshold, what does?”

With reporting from Press Association