New York Department of Financial Services seeks $300m from bank Leumi for having helped US clients evading tax. This amount is more that the $254m set aside by the bank to solve the federal tax probe with the US. Bank Leumi holds a New York license that could be revoked by the state for violating laws.
Benjamin Lawsky, head of the NY Department of Financial Services obtained $715m from Credit Suisse in May as part of the 2.6bn penalty settlement.
According to Bloomberg sources ‘US prosecutors and lawyers for Leumi are discussing a deferred-prosecution agreement, in which the Justice Department would file charges and later dismiss them if certain conditions are met. Such agreements involve a statement of facts outlining a corporation’s conduct’.
Leumi together with another Israeli bank, Mizrahi Tefahot Bank Ltd and other Swiss-based banks – referred to as Category 1 banks- are under investigation by the US Department of Justice (DoJ) in a tax dispute involving US clients.