The lawsuit alleges that Bank of China knowingly let Palestinian militants use its accounts for financing their terror operations, including the suicide attack that killed, Daniel Wultz and 10 others. Bank of China has denied the allegations.
Wultz's parents hope that evidence from the former Israeli officer, Uzi Shaya, could prove decisive in the case. He had allegedly told his Chinese counterparts in 2005 about the suspicious bank transactions.
It is said to have yielded to Chinese pressures and filed a petition last month seeking to stop Shaya from testifying.
Israeli government petition had justified the step as necessary to address national security concerns. It had also sought the said measure to prevent any harm to international efforts to counter terrorism.
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The Wultzs dismissed the argument alleging that Israeli government and Mossad, its espionage agency, had actively encouraged them to launch the case and handed over copious evidence.
"The complaint was filed only after the GOI (Government of Israel) repeatedly assured my attorneys that it would provide cooperation and support for our allegations," Yekutiel Wultz, victim's father was quoted by Ha'aretz as saying in a written declaration.