As previously reported on YWN, it was only a matter of time before certain Israeli banks would become subject to US Department of Justice (“DOJ”) scrutiny, with respect to their active participation in assisting US taxpayers with concealing assets offshore.

As the attached indictment indicates (link below), the shoe is about to fall on at least two very large (but for the time being unnamed) Israeli banks. The indictment, which is dated June 14, 2012, focuses on a California/Nevada based company called United Revenue Services, Inc. (“URS”). URS allegedly assisted its US clients with opening offshore shell entities that would own accounts at Swiss branches of the Israeli banks and, in at least one case, at a branch in Tel Aviv. While the indictment appears to focus more on URS than the Israeli Banks, it is very likely that the Israeli banks will soon become the key target. Indeed, this is what happened with UBS and Credit Suisse. The investigation of those banks began with audits of individual US taxpayers, the investigation then shifted to intermediaries, and culminated with enforcement actions against UBS and Credit Suisse. The enforcement action against UBS and Credit Suisse ultimately resulted in those banks disclosing the identity of thousands of US account holders to the United States. People who have accounts at Israeli banks should be concerned that they may suffer the same fate.

Click HERE to see the indictment.

Joseph Septimus is a tax and trusts and estate attorney with the law firm of Kostelanetz & Fink, LLP, and can be reached at (212) 808-8100 or [email protected]

(Joseph Septimus – YWN)