Skip To Content
JEWISH. INDEPENDENT. NONPROFIT.

Support the Forward

Funded by readers like you DonateSubscribe
Fast Forward

Israeli Bank Pays $195 Million Fine For Helping Customers Evade U.S. Taxes

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.

Engage

  • SHARE YOUR FEEDBACK

Republish This Story

Please read before republishing

We’re happy to make this story available to republish for free, unless it originated with JTA, Haaretz or another publication (as indicated on the article) and as long as you follow our guidelines. You must credit the Forward, retain our pixel and preserve our canonical link in Google search.  See our full guidelines for more information, and this guide for detail about canonical URLs.

To republish, copy the HTML by clicking on the yellow button to the right; it includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to the Forward. It does not include images; to avoid copyright violations, you must add them manually, following our guidelines. Please email us at [email protected], subject line “republish,” with any questions or to let us know what stories you’re picking up.

We don't support Internet Explorer

Please use Chrome, Safari, Firefox, or Edge to view this site.