Fines and AML measures will cost Israel Discount Bank USD 46-47 million

This week it emerged that the price being paid by Israel Discount Bank subsidiary Israel Discount Bank of New York in order to settle the money laundering case goes on to climb.

According to the Bank’s financial report for the 3rd quarter of 2007, the cost will reach USD 46-47 million, spread over 2005-2007.

In accordance with the settlement between Discount New York with the Banking Department of the State of New York and the Federal Deposit Insurance Corporation (FDIC), Israel Discount Bank of New York paid a fine of USD 16.5 million to the New York State Banking Department, FDIC and Finance Crimes Enforcement Network, for which the bank made a provision in 2006. Also, the bank suggests that the cost to implement the improvements and examinations will be USD 16.1 million in 2006 and USD 11.4 million in January-September 2007, as well as additionally USD 2-3 million through the end of the year.

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