The supply of services by the Israel Postal Company to Palestinian banks is liable to expose the company to lawsuits, its spokeswoman said Sunday. The Bank of Israel and the Finance Ministry have asked the Postal Bank to offer "correspondent services" to banks in the Palestinian Authority after Bank Hapoalim and Bank Discount halted these services to Palestinian banks. The Postal Bank, which works out of the postal branches of the state-owned Israel Postal Company, is a member of the inter-bank mechanism for clearing checks and clears millions of checks a year. It, therefore, demanded full state compensation as the condition for offering such services since the company could be sued for violations of the law to prevent the legalizing of "black" money and the prohibition of financing terror. Until the state commits itself to this, the spokeswoman said the Postal Company would not supply such services to PA banks.