Was Bank Leumi too hasty in revealing U.S. clients’ info to the IRS?

The issue of whether Israeli banks should take the Swiss approach and refuse to disclose customer identities may be a moot point, in light of a new international anti-tax-evasion treaty that is taking shape.

There is a direct line connecting the disclosure of the identities of 6,200 Israelis with Swiss bank accounts, and the settlement Bank Leumi reached with U.S. authorities concerning the help its American-based staff allegedly provided to their customers in evading tax payments. That connection, however, doesn’t relate to the tax evasion per se, but rather to the disclosure of the names.