Israel regulator seeks bank provisions to cover possible tax settlements-Army radio
Feb 26 (Reuters) – Israel’s banking regulator has demanded that two of Israel’s largest banks set aside money to settle possible U.S. tax evasion investigations, Army Radio reported on Thursday.
Citing an unnamed source, the radio said the request was made to Hapoalim, Israel’s largest bank, and Mizrahi Tefahot, the fourth biggest. It did not say how much the banks needed to provision.
The Bank of Israel declined to comment, while a Hapoalim spokeswoman said there was nothing to add since publishing quarterly financial results in November. Mizrahi-Tefahot was not immediately available for comment.
“It’s possible this will not be the only provision but the first of several,” said Amir Adar, a banking analyst at brokerage Meitav Dash.
Leumi, Israel’s second-largest lender, in December agreed to pay fines totalling $400 million in the United States to settle two separate investigations into whether it helped its U.S. clients evade taxes.
Hapoalim has said Swiss authorities have notified Hapoalim Switzerland that several Swiss banks, including Hapoalim Switzerland, are under investigation by U.S. authorities. No details or circumstances concerning Hapoalim Switzerland specifically were provided in connection with this investigation.
Mizrahi-Tefahot in October said the bank had provided regulators with statistical data but there were no new developments. In August, it said its Swiss unit was asked by U.S. authorities to provide more data.
