JERUSALEM, June 8 Bank Leumi, Israel's
second largest lender, said on Sunday it was close to reaching
an agreement with the U.S. Department of Justice, which has been
investigating possible tax evasion by the bank's American
The bank said it was setting aside an extra 460 million
shekels ($130 million), bringing its total provision for the
impending settlement to about 950 million Israeli shekels ($275
The charge would "significantly impact" second-quarter
results, it said in a statement.
Bank Leumi has urged U.S. clients to disclose information
about their accounts to the U.S. authorities, who are
investigating Leumi and other foreign banks in a wide-ranging
campaign to crack down on Americans using offshore banks to
The U.S. effort has been focused largely on banks in
Switzerland, but it has been known that banks in other
countries, including Israel, are under scrutiny. Leumi said the
investigation covered the period between 2002 and 2010.
"Leumi is the first bank in the Israeli banking system
expected to reach an agreement with the U.S. Justice
Department," the bank said.
(Reporting by Ari Rabinovitch; Editing by Steven Scheer, Greg