New York – Bank Leumi will pay $130 million and has fired two senior employees to settle an investigation into a scheme to help U.S. clients evade federal and state taxes, New York regulators say.
The Department of Financial Services says Bank Leumi-Israel enabled clients to access funds without repatriating them or creating a paper trail that would disclose undeclared accounts to U.S. authorities.
The consent order signed Monday notes the bank, one of Israel’s largest, had about $313 billion in assets at the end of 2013 and has more than 13,000 employees and subsidiaries in seven countries and has been licensed in New York since 1959.
According to regulators, Bank Leumi will install an independent monitor to review its compliance programs.