Things seem to be really heating up there. More fror Haaretz.
The impression I get is Israeli banks are probably at this point violating Israeli law. It is interesting the different responses from country on this issue.
In a move that some tax lawyers are calling a blatant violation of customer privacy, two Israeli banks are requiring current and prospective account holders with American citizenship to furnish portions of their U.S. tax returns, Anglo File has learned. Those who refuse to do so risk having their applications denied or existing accounts frozen.
For several months, two Israeli banks – Bank Leumi and Bank Hapoalim – have required customers to sign a waiver authorizing the banks to review a series of financial disclosure forms. One such form is the Schedule B – which shows dividend and interest income, including the names of all financial institutions paying out dividend and interest income – and a supplementary form known as a Foreign Bank and Financial Accounts form, or FBAR, for Americans with at least $10,000 in foreign bank accounts.