Israel's Mizrahi Tefahot Bank Ltd. agreed to settle a tax evasion case with the U.S. Department of Justice for $195 million.

The bank admitted that it conspired with U.S. taxpayers to help them avoid taxes from 2002 until 2012. The Justice Department said the $195 million penalty comprises $53 million in restitution, $24 million in disgorgement and a $118 million fine.

Under the deferred prosecution agreement, the bank and its units will be required to disclose certain information relating to its U.S. accounts and must implement and maintain an effective internal control program. The bank will not undergo prosecution for conspiracy for two years if it complies with the terms of the deal.

The bank had previously rejected the Justice Department's $342 million tax settlement proposal and later included a provision of $116.5 million in its second quarter 2018 financial results to account for a potential fine.