Bank Hapoalim hired the services of former president Shimon Peres, who will collect a paycheck of $30,000 a month to promote the bank's activities abroad, particularly in the United States.
Peres established a financial firm called "Peres and Associates" several months ago, which aims to work with Israeli companies to promote their activities in both existing and new markets across the world.
Sources close to the former president said any pay Peres receives for the company's services will go to charity.
"The consultant will provide the bank with services to promote its businesses in international markets, including the United States," the agreement signed between the two sides said. "The consultation will be done professionally and under the accepted standards."
Peres is being paid for his speaking at bank events, and the contract includes several events across the United States.
At the end of April, Peres is expected to attend a special event Bank Hapoalim is holding in New York to mark its 40 years of activity in the US.
The event, to be held at the Natural History Museum in New York City, will cost the bank some $1-1.5 million. Former New York mayor Rudy Giuliani and 700 other invitees will also be in attendance.
Bank Hapoalim is currently under investigation by American authorities on suspicion it aided its clients evade paying taxes.
Bank Hapoalim declined to comment on the story.