The investigation of Bank Hapoalim (TASE: POLI) on its alleged assistance in helping US customers evade taxes is moving forward. Bank Hapoalim revealed in its financial report yesterday that at the start of the month it had received an order from the New York State regulator requiring it to provide documents concerning the entire bank's activities (and not just Bank Hapoalim Switzerland) regarding suspicions that it had assisted US customers to evade taxes.
The New York State regulator is considered especially aggressive and many claim more aggressive than the Federal regulator at the US Ministry of Justice.
Bank Hapoalim added that the order had been received following meetings in January and February with representatives of the US Ministry of Justice regulator and the New York State regulator. At these meetings it was made clear that the investigation encompassed all Bank Hapoalim's US customers and not just customers of Bank Hapoalim Switzerland (as the bank had been told in 2011).
Bank Hapoalim is now expected to hire a top US accountancy firm to represent it just as Bank Leumi (TASE: LUMI) was represented by Deloitte in its tax evasion investigation, and Mizrahi Tefahot Bank (TASE:MZTF) has hired KPMG.
In its financial statement for the further quarter and full-year 2014, Bank Hapoalim reported that it had set aside NIS 196 million for this matter.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2015
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