Mizrahi Deferred Prosecution Agreement

Both in the data protection authority registered by the BHBM and in the fundamental agreement signed by BHS, the DOJ found that at the beginning of its investigation, “the initial cooperation of the bank was insufficient”. [11] The Bank`s initial attempts at cooperation have been characterized, among other things, by insufficient internal investigation, the non-disclosure of relevant facts in a timely manner, and the provision of incomplete and, in some cases, inaccurate information and data to the DOJ. The DOJ also noted that hapoalim had not taken appropriate steps to receive emails, resulting in the removal of some relevant email boxes and backup tapes. Due to Hapoalim Bank`s lack of cooperation, the DOJ`s efforts to resolve its investigations in a timely manner have been hampered and its efforts to prosecute potentially guilty individuals have been thwarted. However, the DOJ acknowledged that during its investigation, the Bank intensified its efforts to cooperate fully. [12] In particular, the Bank replaced its external advisor, conducted an in-depth internal investigation, made regular presentations to the DOJ on a wide range of factual topics, provided relevant facts about the perpetrators of certain criminals, produced huge amounts of documents and facilitated interviews with persons involved in the DOJ. In the end, the DOJ assigned Hapoalim Bank a great deal of information related to the investigation. [13] This agreement is the second time that an Israeli bank has acknowledged similar criminal conduct. In December 2014, Bank Leumi Group entered into a CCA with the Department of Justice, in which it admitted to conspiring to help U.S. taxpayers prepare and file false tax returns with the IRS by hiding income and assets from offshore bank accounts in Israel and around the world. In accordance with the provisions of the Data Protection Authority, Mizrahi-Tefahot, UMBS and Mizrahi Trust Company will cooperate fully with the United States, the IRS and other U.S.

authorities in compliance with applicable laws and regulations. The data protection authority provides: That Mizrahi-Tefahot will ensure that all its overseas subsidiaries and other companies under their control, who provide financial services to clients under the Foreign Account Tax Compliance Act 26 U.S.C No. 1471-1474 (FATCA), continue to implement and maintain an effective program of internal controls regarding FATCA compliance in their subsidiaries and affiliates. The data protection authority also requires Mizrahi-Tefahot and its subsidiaries to confirm certain essential information that it may later disclose regarding accounts in the United States and to disclose certain information in accordance with the department`s Swiss banking program relating to accounts closed between January 1, 2009 and October 2017. According to the data protection office, the bank`s conspiracy charge was initially postponed for two years to allow Mizrahi-Tefahot, UMBS and Mizrahi Trust Company to comply with the data protection authority`s terms.

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