The New York financial regulator is seeking over $300 million from Bank Leumi as part of investigation into whether the Israeli bank helped its American clients evade taxes, according to Bloomberg.

The New York financial regulator is seeking over $300 million from Bank Leumi as part of an investigation into whether the Israeli bank helped its American clients evade taxes, reports Bloomberg.

The bank has been in negotiation in recent months with US authorities to settle a probe into alleged tax evasion by its US clients.

Citing a person familiar with the matter, Bloomberg said that Benjamin Lawsky, head of New York’s Department of Financial Services, was seeking more than what the bank has set aside to resolve a criminal investigation by the US Justice Department.

Leumi said in June that it had set aside 950 million shekels ($254 million) for the investigation, which would make it the first Israeli bank to settle a tax probe with the US.

The penalty from the New York’s Department of Financial Services is separate from the demands by federal authorities.

The Leumi investigation is part of an ongoing crackdown on offshore tax evasion by the US government.

Around 100 banks signed up to the US tax dispute program had received the draft non-prosecution agreement, requiring them to report any knowledge or information on US tax activity to US authorities in full.

Last year, the US and Swiss governments signed an accord under which Swiss banks can state whether they have, or have not, violated US laws on tax.

Around 100 Swiss banks have signed up to the US-Swiss pact. There are a number of different categories that firms can state they fall into, depending on whether they think they have violated laws about helping US tax evaders, or not.

Those which have signed up as Category 2 banks, which believe they may have committed tax offenses, will escape criminal charges if they admit to wrongdoing and pay fines.