If, over the next three years, the bank continues to work with the DOJ on further investigations into hidden accounts, it will avoid prosecution. Once it has complied with all the provisions of the agreement, the bank`s fraud charges are dismissed, but customers of banks involved in using the bank to defraud the IRS are not protected by the agreement and may be subject to civil or criminal prosecution. Hapoalim Bank has agreed to a deferred order-keeping agreement. The bank said in a regulatory submission that it will increase its provision for tax control in the fourth quarter to $259 million $US, in addition to $US 611 million it had already set aside. According to court documents that were not sealed Thursday in Manhattan federal court, Hapoalim BM Bank reached a three-year reprieve agreement, while Swiss bank Bank Hapoalim Switzerland (BHS) pleaded guilty to tax evasion. Banks admitted to helping clients create secret accounts, house assets and income, and defray taxes for the period 2002-2014, according to court documents. „In recent times, the banking group and each of The DoJ regulatory teams and the banks conducting the investigations have negotiated at length the terms of the resolutions that, once approved and completed by the US authorities and the banking group, would close the investigations,“ Hapoalim said. BHBM will pay a total of $214.38 million, or three parts. First, BHBM agreed to pay $77,877,099 in $US reimbursement to the IRS, representing unpaid taxes resulting from BHBM`s involvement in the conspiracy. Second, bhBM agreed to pay $35,696,929 to the United States, representing gross fees (not earnings) that the bank earned from its unreported accounts between 2002 and 2014. Finally, BhBM agreed to pay a fine of $100,811,585. April 30, 2020 the U.S.
Department of Justice (DOJ), the Board of Governors of the Federal Reserve System (Federal Reserve) and the State Department of Financial Services of New York (DFS) announced penalties of nearly $875 million against Hapoa Bank B.M. („BHBM“), Israel`s largest bank, and its Swiss subsidiary, Hapoalim (Switzerland) AG , and in conjunction with BHBM , „Bank Hapoalim“ or „Bank“). These penalties were assessed in connection with Hapoalim Bank`s involvement in a conspiracy with U.S. taxpayers and others to conceal more than $7.6 billion from more than 5,500 secret Swiss and Israeli bank accounts and associated revenues from the U.S. Treasury`s Internal Revenue Service (IRS). The multi-page resolution includes the filing of criminal complaints against BHBM and a three-year deferred law agreement („DPA“) with the U.S. Attorney`s Office for the Southern District of New York, as well as the introduction of an admission of guilt by BHS.  The Bank also accepted the introduction of a cease and dese cessation injunction with the Federal Reserve and a civil fine of $37.35 million, as well as a separate approval order of $220 million with the DFS.  When BHS pleaded guilty to a single count of conspiracy following oral arguments with the DOJ, BHS agreed to pay a total of more than US$402 million, consisting of approximately US$139 million in restitution to the IRS; Recovery of approximately $124 million, which is the gross fee paid to BHS by U.S.
tax payers with unreported accounts under BHS; a fine of approximately $139 million. The amount of the fine reflects a 25% discount for BHS cooperation. Decisions made today include agreements with BHBM and BHS, under which the bank has agreed to take responsibility for its conduct by specifying the accuracy of the facts. BHBM also expressed its readiness to refrain from future criminal activity, implement corrective measures and cooperate fully in the continuation of investigations into hidden bank accounts. Assuming that BHBM continues to comply with its agreement, the government has agreed to postpone the BHBM lawsuit for three years, after which the government will attempt to file a complaint against BH