Israeli tax authorities said Sept. 22 that they arrestedfour diamond dealers on accusations of holding unreported financial accounts inHSBC Private Bank (Suisse)SA, the Swiss unit of HSBC Holdings Plc, Reuters reported the same day.

The arrests were part of the ongoing investigation into taxevasion at HSBC's Swiss arm, according to the report. The four who were arrestedare alleged to have held a total of 100 million Israeli shekels that wentunreported to Israel's tax authority. A judge clearedtheir release after they posted bail.

Israeli law does not prohibit the holding of a Swiss bankaccount but does require disclosure to authorities and payment of any taxesdue, the newswire noted.

As of Sept. 22, US$1was equivalent to 3.76 Israeli shekels.