Bank Hapoalim (TASE: POLI) has notified the Tel Aviv Stock Exchange (TASE) this morning that it will set aside an additional $70 million in its third quarter financial report for the tax investigation against it by the US authorities. The Israeli bank allegedly helped American customers in tax evasion and money laundering. Bank Hapoalim has already set aside $50 million on the matter. The bank also announced that the amount set aside will have a material effect on its third quarter results.
At the end of last month, representatives of the bank met with officials from the US Ministry of Justice and decided to set aside the additional sum. During the meeting the two sides discussed a possible settlement and how such a settlement might be calculated if ultimately agreed upon.
Bank Hapooalim said, "Due to the uncertainty that still prevails including additional components that the bank might be required to pay as part of a possible settlement with the US Ministry of Justice, thjat was not included in the aforementioned initial estimate, it's possible that the final expenses of the matter will be substantially different from the aforementioned sum set aside. In addition, setting aside the amount is no admission of any charges that might be made against the banking group by the US authorities."
Bank Hapoalim also announced that the current sum being set aside in no way relates to the investigation being carried out by the New York Department of Financial Services (NYDFS) on which there is no new information.
Published by Globes [online], Israel business news - www.globes-online.com - on October 6, 2016
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