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Bank Leumi Fined $400 Million for Tax Evasion Scheme; Bans Compliance Officer

Jaclyn Jaeger | December 29, 2014

Israel-based Bank Leumi last week agreed to pay a total of $400 million to resolve charges that it conducted an illegal cross-border scheme to assist U.S. clients in evading federal and state taxes by hiding income and assets in offshore bank accounts in several countries around the world. 

Bank Leumi Group will pay a total of $270 million to the United States, and another $130 million to the New York State Department of Financial Services. Under the terms of the settlement, Bank Leumi will also install an independent monitor, selected by DFS, to conduct a comprehensive review of the bank’s compliance programs, policies, and procedures.

Bank Leumi also agreed to terminate and ban various senior operations, compliance, and legal staff who actively supported the misconduct. As one example, Bank Leumi USA banned its former chief compliance officer (currently chief administrative officer) from conducting...

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