Bank of American will open a new branch on the outskirts of Tel Aviv, the largest Israeli city, in a move that could help the company’s expansion into emerging markets.
The bank has previously established branches in Jordan and Egypt, and the announcement Thursday comes a day after the U.S. Treasury Department imposed sanctions on several Israeli companies.
Bank of Americans is the latest bank to be targeted in recent months by the Treasury Department, which has said it is concerned about its dealings with Iran, which is the world’s largest state sponsor of terrorism.
Bank of America said it will provide financial support to the newly opened branch, which will serve as the company and local business development team’s “primary point of contact in Israel.”
“We are thrilled to welcome Bank of AmeriCorp to Tel Aviv,” said Bank of Americas CEO Doug McMillon in a statement.
“We are confident that the Bank of the West will be a leader in the emerging markets market and that we can help our customers meet the needs of the new customers in Tel Aviv.”
Bank of Americas is the biggest U.K.-based bank, with more than $500 billion in assets under management.
Its announcement Thursday came one day after Treasury Secretary Steven Mnuchin called on the Bank to halt its ties with the country’s leaders, the Arab League, and Iran, among other organizations.
Iran is an official U.N. Security Council member and a major sponsor of the Palestinian Authority and Hamas, which the U:S.
accuses of waging a campaign of terror against Israelis.
The Trump administration has been reluctant to impose sanctions on Iran because of its human rights record, which critics say violates international law.
The Trump administration also has been trying to convince the U.:S.
to ease restrictions on Iran and increase pressure on Tehran to abandon its nuclear program, which it considers a national security threat.
The move could help Bank of A:s expansion in emerging markets, where the financial services industry has emerged as an economic engine for Israel and the West Bank, with new branches opening in South Korea and Brazil.
Israel’s foreign ministry said the decision will help the bank expand its services in the Middle East and help its citizens in Israel, which enjoys strong ties with both countries.
The bank will remain a trusted and reliable source of financial services in Israel and a vibrant global financial center, the ministry said in a written statement.