Bank Hapoalim (TASE: POLI) is setting aside a further $80 million for the investigation against it by the US authorities for allegedly helping US citizens evade taxes. Bank Hapoalim notified the Tel Aviv Stock Exchange (TASE) today that it has set aside that amount in its third quarter financial statement. The bank has set aside amounts in previous quarters so that a total of NIS 960 million has now been set aside.
The bank has also had to pay tens of millions of dollars in fees to lawyers and consultants supporting it during the investigation.
Bank Hapoalim, managed by CEO Arik Pinto, had previously announced that it was postponing publication of its third quarter results on Tuesday of last week. Speculation in the market had been that the delay was related to the US probe, and that speculation turns out to have been correct.
The money has been set aside even though Hapoalim has yet to reach a settlement with the US Justice Department. The amount is an assessment based on talks over the past two months and includes potential fines to both the Ministry of Justice and other US regulatory authorities such as the New York Department of Financial Services.
In 2014, Bank Leumi (TASE: LUMI) agreed to pay $400 million in fines after admitting helping US citizens evade tax - $270 million to the Justice Department and $130 million to the New York Department of Financial Services. A similar investigation is underway against Mizrahi Tefahot Bank (TASE:MZTF).
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2017
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