The US Department of Justice reports that Bank Hapoalim has reached an agreement with federal authorities to pay almost $900 million to the US Treasury, Federal Reserve, and the New York State Department of Financial Services, after admitting in a Manhattan federal court to having assisted US clients in hiding bank accounts and evading taxes.
"Bank Hapoalim, and its Swiss subsidiary have admitted not only failing to prevent but actively assisting U.S. customers to set up secret accounts, to shelter assets and income, and to evade taxes,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “The combined payment approaching $1 billion reflects the magnitude of the tax evasion by the Bank’s U.S. customers, the size of the fees the Bank collected to provide this illegal service, and the gravity of the illegal conduct.”
Bank Hapoalim is Israel's largest bank, and the payment it will be making represents the second-largest recovery by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks.