Bank Leumi (TASE: LUMI) is liable to receive heavy fines as a result of an investigation by the authorities in the US into the affairs of Leumi Switzerland, on suspicion of tax evasion by the bank's customers.
The Americans suspect that several non-US banks helped their clients to evade taxes. Leumi states in its third-quarter financial statements that the US authorities "have issued and continue to issue various orders to obtain information and documents pertaining to the US customers, and former customers and employees of banks within the group have been summoned to provide testimony and documents in connection with the US customers and banking services provided to them by the group."
Bank Leumi says that it is cooperating with the US authorities and handing over information to them. The bank points out that the investigation has not yet ended, but it estimates that the results are liable to cause it heavy expenditure.
"The results of the investigations by the US authorities are liable to occasion significant expense to the group, among other things through the imposition of a heavy monetary fine on the group," the bank's report states, and continues, "At this stage, it is not possible to make a reliable estimate of the damage to the group, because of the complexity of the matter and the stage at which the investigations stand."
Published by Globes [online], Israel business news - www.globes-online.com - on December 4, 2012
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