An executive order signed by Defense Minister Naftali Bennet on Wednesday freezes the bank accounts of eight Palestinian terrorists and their families.
All of the terrorists are currently in prison in Israel, with five serving life sentences.
The order freezes the monthly allowance given by Palestinian sources to them and their families.
Among the terrorists affected by the move is the leader of the squad that in 2003 bombed Tel Aviv Central Station, resulting in 23 deaths; two Israeli-Arabs that facilitated the August 2002 Meron Junction Bus 361 attack, which resulted in the deaths of six civilians and two IDF soldiers.
Also included under in the order is the leader of the 1992 "Night of the Pitchforks" attack, targeting an IDF training base which resulted in three IDF casualties and the perpetrator of the 1984 murder of IDF soldier Moshe Tamam.
Others included are various instigators and terror engineers arrested by the IDF in the course of the First and Second Intifadas.
The Defense Ministry spokesperson stated that this was the first time that Israel is actively working against terrorists' allowances coming from the Palestinian Authority – and that similar orders will be signed into action.
According to the spokesperson, the order was put into effect following a thorough review with security agencies in the ministry, together with police, Israel Prison Services, Israel Money Laundering and Terror Financing Prohibition Authority and other government agencies.
Following the signing of the order, Bennet said: "We are taking action, this is a further step in the fight against terrorism."
"We are working to make the spilling of Jewish blood, not economically profitable," he said.
The issue of these allowances has come up lately in an opinion filed by the Attorney General Avichai Mandelblit to the Israel Labor Court.
In the opinion, the attorney general described the background of the payments and stated that they should be classified as income – therefore subject to taxation.
Since its founding, the Palestinian Authority has made monthly payments to terrorists under arrest in Israel, with sums ranging from NIS 1,400 to NIS 12,000 a month.
According to the Israeli-based media watchdog "Palestinian Media Watch", more than NIS 500 million were given to terrorists serving prison sentences in Israel during 2018.
The organization has begun working on implementing the attorney general's opinion.