Media Blackout as Israel’s Largest Banks Pay over $1 Billion in Fines for US Tax Evasion Schemes

[loyola llothta]

Media Blackout as Israel’s Largest Banks Pay over $1 Billion in Fines for US Tax Evasion Schemes

March 22. 2019

Similar revelations about other banks and offshore tax-evasion schemes — such as those contained in the Panama Papers — led to global protests and even the resignations of some world leaders

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Israel’s three largest banks — Hapoalim Bank, Leumi Bank and Mizrahi Tefahot Bank — have all been ordered to pay record fines, which collectively are set to total over $1 billion, to the U.S. government after the banks were found to have actively colluded with thousands of wealthy Americans in massive tax-evasion schemes.

The scandal, though it has been reported on in Israeli media, has garnered little attention in the United States. The media black-out has been so surprising it was even directly mentioned by the Times of Israel, given that similar revelations about other banks and offshore tax-evasion schemes — such as those contained within the Panama Papers — led to global protests and even the resignations of some world leaders.

The settlements are the end result of a series of Department of Justice (DOJ) probes that were related to the DOJ’s 2007 investigation targeting UBS AG, Switzerland’s largest bank. The focus of the probe turned to Israel a few years later in 2011, when it was determined that the Swiss subsidiaries of several of Israel’s largest banks had actively aided Americans seeking to launder their money.

As the probes advanced, the DOJ found that the three banks — Israel’s largest when ranked by net income and total assets — had a history of collaborating with wealthy Americans in tax evasion schemes, not just in their Swiss subsidiaries but in Israel as well. Most of those wealthy Americans were Jewish Americans or dual U.S.-Israeli citizens who hid their U.S. citizenship from the Israeli banks.

Money Laundering and The Drug Trade: The Role of the Banks
A year after the probes into Leumi, Hapoalim and Mizrahi Tefahot were made public, the U.S. State Department notably listed Israel as a “major money laundering country… whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking … or other serious crime.”

Settlements reached and pending

Bank Leumi was the first to admit to wrongdoing and reached a deferred prosecution agreement with the DOJ in 2014 that eventually resulted in the bank paying $400 million in fines to the U.S. government and the State of New York in order to avoid prosecution. According to the DOJ, the agreement marked “the first time an Israeli bank has admitted to such criminal conduct, which spanned over a 10 year period.”

The investigations into the other two banks, Mizrahi Tefahot and Hapoalim, continued until just last Wednesday, when Mizrahi Tefahot agreed to pay $195 million in fines for “conspiring” with U.S. clients to avoid taxes. Like Leumi Bank, Mizrahi Tefahot admitted its guilt.

A settlement with Hapoalim Bank, Israel’s largest bank, has yet to be reached. The bank had set aside $343 million for a potential settlement as of last February, though that figure has since ballooned to $616 million as of this week. Hapoalim CEO Arik Pinto told reporters on Monday that he “really hopes” that the DOJ probe will be resolved by the end of the year, a sentiment likely motivated by the fact that the probe has weighed on the bank’s profit performance.

The original source of this article is MintPress News
Copyright © Whitney Webb, MintPress News, 2019

 

[get these nets]

 

[Amestafuu (Emeritus)]

I'm just tryna stack paper like hebrews - antisemitism they said

I'll forever be about that jewish money... and their penny pinching ways

 

[Isaiah Bradley]

non-story. A few reparations payment from either Germany/US/company whose product a Germany solder used once, will offset this fine

 

[Concerned Citizen]

This is just big band doing what big banks do. I’m sure the media won’t report on this though because it would fit too many stereotypes about Jews. The total fine amount was heavy but I wonder how much profit the banks made off of this activity. That’s the only way to really gauge a fine against a bank.

 

[ball15life]

Don't Jews own most of the U.S. media? Of course they wouldn't out themselves

 

[™BlackPearl The Empress™]

I like how the article glosses over the drug part.

 

[truth2you]

That aint shyt, if they got drug money in the banks, trust me a billion dollars in fines aint hurting them. In fact I think they did this to make seem like they are stopping corruption when they really want more money to come in. It's no different from when police announce drug seizures on tv, and make it seem like a lot, but they fail to say the show is only a few times of year, drugs are being sold everyday all day, so what happened to those drugs, and money? It aint all going to buy police equipment, drug money is bigger then that

It's even worse for guns, they could easily stop illegal gun sales. All they have to do is find a snitch to let you know where the gunman is at, raid his spot, and get a lot of guns off the street. You do this for each areas of high gun crime, and its a wrap for gun crimes. Police find all the drug dealers from snitches, why you never hear about the gunmen selling the guns getting caught monthly? Guns are easier to find then drugs.

The truth is these things go on because they make the most money because they don't get taxed. That article is just a siren for those who need to see it, it aint stopping anything

 

[ORDER_66]

It's all about the Benjamin's...

 

[Michael's Black Son]

 

[get these nets]

It's all about the Benjamin's...

yes, the TRIBE of BENJAMIN