Israeli Bank Pays $195 Million Fine For Helping Customers Evade U.S. Taxes
Image by Bernhard Richter/iStock
JERUSALEM (JTA) — Israel’s third-largest bank will pay a $195 million fine after admitting to helping its customers avoid paying U.S. taxes.
The fine was announced Tuesday by the U.S. Justice Department and it is the result of a five-year investigation, Reuters reported.
Under the settlement, Mizrahi Tefahot, accepted responsibility for the actions of former employees who, it says, acted in contravention of the policies of the bank and its management, the Israeli business daily Globes reported. The employees, who were not in senior management, worked in private banking and customer relations between 2002 and 2012.
The bank also has put in place a new tax and money laundering measures program.
In August, the bank rejected a proposal from the Justice Department to pay a fine of $342 million to settle the tax evasion investigation, saying it was not a reasonable calculation, according to Reuters.
A message from our Publisher & CEO Rachel Fishman Feddersen
I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.
We’ve set a goal to raise $260,000 by December 31. That’s an ambitious goal, but one that will give us the resources we need to invest in the high quality news, opinion, analysis and cultural coverage that isn’t available anywhere else.
If you feel inspired to make an impact, now is the time to give something back. Join us as a member at your most generous level.
— Rachel Fishman Feddersen, Publisher and CEO
