Bloomberg reports that Israeli banks are targets of ongoing investigations by the US authorities which are following the money deposited in Swiss banks by wealthy Americans seeking to evade US taxes.
Caroline Ciraolo, chief tax prosecutor at the US Department of Justice, told Bloomberg that disclosures made by 41 Swiss banks under amnesty agreements and by US citizens were giving US investigators intelligence to try to build new cases against individuals and institutions in other countries. Bloomberg quotes lawyers and prosecutors as saying that financial institutions in Singapore and Israel are possible targets.
"The money is moving out of Switzerland to a variety of jurisdictions," Ciraolo told Bloomberg, "We’re following leads and following the money, wherever that leads us."
Bloomberg reports that Societe Generale SA’s Swiss private banking unit admitted in its settlement that it transferred assets of US customers to "corporate and individual accounts at other banks in Switzerland, Hong Kong, Israel, Lebanon, Liechtenstein and Cyprus." The unit paid a $17.8 million fine. A bank spokesman declined to comment.
In its settlement document, Banque Pasche SA said that client money was transferred to banks located in Israel and Hong Kong "in an attempt to further escape detection." An e-mail and phone call from Bloomberg to the bank weren't returned.
Bloomberg says that Israeli banks have drawn special focus from the Justice Department. Last year then-Deputy Attorney General James M. Cole cited "an ongoing and extensive investigation" into hidden bank accounts in Israel. Bank Leumi (TASE: LUMI) agreed to pay $400 million to resolve its criminal case.
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2015
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