September 12, 2016
“Dear Customer,” it read, “We wish to inform you that in light of the increased exposure of Israeli banking corporations to compliance risks deriving from cross-border banking activities, and in accordance with Bank of Israel instructions in this matter, the Bank has concluded that it will not continue to maintain accounts of foreign residents with a balance of less that $50,000, or the equivalent thereof.”
Bank Leumi said in a statement that the step was part of the bank’s strategic plan to reduce its risk in light of regulatory changes of recent years. In fact, the Bank of Israel last year instructed all of Israel’s banks to reduce their risk vis-à-vis foreigners with bank accounts in Israel due to the recent crackdown by the United States and other governments on tax evasion and money laundering by their citizens abroad.