Discount Bank fined
צילום: עומר הכהן
U.S.: Israel’s Discount Bank fined
Israeli bank's New York branch fined for involvement in transferring illegal funds from Brazil, violating money laundering laws; District Attorney: Bank illegally transferred USD 2.2 billion
The New York District Attorney's Office announced that the New York branch of Discount Bank has agreed to pay a fine of up to USD 25 million to U.S. authorities due to the Israeli bank's involvement in transferring illegal funds from Brazil while violating money laundering laws.
The bank will pay USD 8.5 million to the District Attorney, and another USD 16 million will be paid to the U.S. Central Bank and to additional federal sources, the announcement said.
It was also agreed that the bank would appoint an external committee to examine the functioning of the bank's management.
According to the announcement, illegal sums totalling approximately USD 2.2 billion were transferred from Brazil through the bank's New York branch over the past five years.
According to the district attorney's report, a bank account of a company called Transmar Turismo was frozen after USD 158,000 was found in it.
Following the New York investigation, Brazilian police began searching the company's Sao Paulo offices. After documents were obtained in the offices, the police detained three of the company's employees on suspicion of money laundering.
Discount Bank mentioned the investigation held by the New York District Attorney's Office in its third-quarter financial reports. Discount Bank is the largest Israeli bank operating abroad.
Bank officials declined comment on the report.
