According to a report that appeared in the Israeli Channel 2 news site Mako, Bank Leumi will be required to pay NIS 1 billion in fines to the US for suspected money laundering at its American branches.
The claim is that the US branches may have made transactions on American client’s accounts in the US branches, but not all taxes were paid as required by law.
The bank’s directors held a special meeting yesterday to agree to a compromise agreement with the US government, and pay the fine.
Banks not just in Israel but around the world are also under investigation by the US government for suspected money laundering, in violation of new US laws.
Credit Suisse was recently fined $2.5 Billion USD.
The Mako report states that Mizrachi-Tefachot and Poalim may also have to pay fines.