Three of the 10 Swiss banks required to provide information about US citizens accounts by September 23 are Israeli owned.
The US administration has handed an ultimatum to 10 Swiss banks to provide information about their clients who are US citizens. Three of the 10 banks are Israeli owned - Bank Leumi (TASE:LUMI) unit Bank Leumi (Switzerland) Ltd., Bank Hapoalim (LSE: 80OA; TASE: POLI) unit Bank Hapoalim (Switzerland), and Mizrahi Tefahot Bank (TASE:MZTF) unit United Mizrahi Bank Ltd. (Switzerland). The US has demanded the information by September 23.
At this stage, the banks are only required to provide a statistical breakdown about the accounts, and the clients' activities but not the clients' names. However, it is believed that the US authorities will in the next stage demand the names of specific clients as part of its ongoing investigations into tax evasion by US citizens as part of the Foreign Account Tax Compliance Act (FACTA).
The pressure from the US government on the Swiss government is enormous and it is expected that the Swiss will allow the information to be handed over regarding activities since September 30 2009.
Bank Leumi confirmed that Bank Leumi Switzerland has received such a request. Bank Hapoalim declined to comment and no response was received from Mizrahi Tefahot Bank.
Published by Globes, Israel business news - www.globes-online.com - on September 11, 2011
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