Israel's Hapoalim set to pay $870m to settle US tax probes

Pedro Gonçalves
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Israel's Hapoalim set to pay $870m to settle US tax probes

Bank Hapoalim is set to pay US government agencies $870m (NIS 3.11bn) to settle the two international investigations in which it has been involved. 

The bank, Israel's biggest lender, was accused of helping US clients evade taxes. The investigation was carried out by the US Department of Justice, the New York Department of Financial Services and other US authorities.

Bank Hapoalim said it agreed to a deferred prosecution agreement. The bank said in a regulatory filing it will increase its provision for the tax probe in the fourth quarter to $259m, in addition to $611m it had already set aside.

The bank and each of the DoJ and bank regulatory teams handling the investigations have extensively negotiated the terms of resolutions"

"Recently, the bank group and each of the DoJ and bank regulatory teams handling the investigations have extensively negotiated the terms of resolutions, which, once approved by the US authorities and the bank group and finalized, would resolve the investigations," Hapoalim said.

Bank Hapoalim announced that these fines were "in accordance with the indications that we received from the teams handling the investigation on behalf of each of the US authorities."

Its subsidiary in Switzerland will sign a plea agreement with the DoJ relating to its business with its American customers.

The bank also said it expects to pay $30m, which it will provision in the fourth quarter, to settle a US probe into alleged corruption involving officials from world soccer's governing body, FIFA.

 

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