COMPLAINT FORM Public Communications Unit, Bank of Israel-Banking Regulation Tel: 1-212-200680 By fax: 02-666-9077

By email: "Attention Governor Stanley Fischer" <miriam.segal@boi.org.il>,"Stanley Fischer" <sfischer@bankisrael.gov.il> Complaint #3 against Bank HaPoalim, BM – in re: refusal to permit cash withdrawal from customer's own funds URGENT: Bank HaPoalim, BM, unlawfully seized about NIS 1,000,000 in customer's funds 1. Customer Name: Dr Joseph Zernik 2. Contact Information: PO Box 31440, Jerusalem 91313 3. Email: josephzernik@humanrightsalertngo.org 4. Financial Institution, subject of the Complaint: Bank HaPoalim, BM 5. Bank Code: 12 6. Branch Number: 694 7. Details of the Complaint: Recent Chronology i. The undersigned, Dr Joseph Zernik is a German and an Israeli citizen (no longer a US citizen). ii. On January 23, 2013, the undersigned provided Bank HaPoalim, BM, notice of intent to withdraw on January 24, 2013, cash from his funds, held by Bank HaPoalim in deposit accounts (copy enclosed below). The notice also requested that the Bank inform the undersigned in advance in case he would not be permitted to withdraw my own money. iii. On January 23, 2013, receipt of the undersigned notice was confirmed by the following Bank employees: Efrat Dahan, Mordechai Assouline (Deputy Branch Manager), Drora Bregman, Maya Amzallag (Branch Manager), Maya Shulyatsky, Shalom Barashi. iv. On January 24, 2013, in the early evening, the undersigned appeared in the Beit HaKerem Branch and asked to withdraw NIS 20,000 from his deposit accounts. The undersigned was made to wait for a while, and eventually Deputy Branch Manager Mordechai Assouline informed him that the undersigned was not permitted to withdraw any of his own money, held by the Bank. v. It should be noted that regardless of repeated requests, the Bank refuses to provide any written notice regarding the nature of its current conduct, its legal foundation (if any), and the status of the undersigned's account. Allegations It is by now evident that Bank HaPoalim's conduct in this matter, as detailed in Complaint #1, filed with Bank of Israel on August 25, 2012, in Complaint #2, filed with Bank of Israel on January 4, 2013, and in instant Complaint, is unlawful: i. Such conduct has no basis in the law of the State of Israel. ii. Such conduct has no basis in the law of the United States (as falsely claimed by the Bank) – opinion on this matter by a Washington, DC- based attorney, who specializes in FATCA-related matters, is available upon request. iii. Correspondence with the Bank's Chief Internal Auditor clarifies that the Bank's FATCA-related "new policy" is a fabrication as well – no such record exists. [1-4] Therefore, the undersigned alleges that Bank HaPoalim, BM, and its Chief Internal Auditor Jacob Orbach are engaged in various violations of the law of the State of Israel, including, but not limited to: i. Unlawful seizing of the undersigned's funds in deposit accounts: Conduct of the Bank has no basis in the law of the State of Israel. Moreover, it has no basis in the law of the United States either. The law

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of the United States, which the Bank purports to enact and enforce in the State of Israel, does not permit a bank to seize a customer's accounts. At most, the relevant United States law permits a bank to withhold 30% of interest gained on United States securities of the account holder. The undersigned holds no United States securities at all. ii. Unlawfully causing the undersigned to incur interest charges on his checking account. iii. Large-scale banking fraud: The Bank falsely claims to have adopted a FATCA-related "New Policy". The Bank's own response indicates that no such lawfully adopted Bank policy exists. Under such false and deliberately misleading statements, regarding the Bank's FACTA-related "New Policy", the Bank engages in unlawful, harmful conduct. iv. Entrapment: The Bank extorts filing of United States Internal Revenue (IRS) tax returns by the Bank's "US Persons" customers in Israel, while refusing to provide the same customers the necessary documentation, pursuant to the same IRS Regulations. Conduct of the Bank is likely to trigger IRS audits of such individuals, who submit to the Bank's extortion and cause them additional harm. v. Refusal of the Bank to report to the customer the total interest gained in his account (no reporting at all was provided for foreign currency accounts, and regarding NIS deposits the Bank refuses to provide a single total sum of interest gained during the calendar year, as required by IRS regulations), stands contrary to any notion of honest banking in the State of Israel. vi. Undermining the rule of law and publicity of the law in the State of Israel: The Bank falsely claims to have established a secret, unpublished "New Policy". The Bank's customers are left at the whim of the Bank's unlawful conduct, which is arbitrary and capricious. To the degree that Bank HaPoalim, BM, claims to establish and enforce the law of the United States in Jerusalem, the undersigned alleges that Bank HaPoalim, BM, and its Chief Internal Auditor Jacob Orbach are engaged in various violations of the law of the United States, including, but not limited to predicated acts, pursuant to RICO - Racketeer Influenced and Corrupt Organizations Act (18 USC § 1961–1968): i. Fraud ii. Financial institution fraud iii. Mail fraud iv. Wire fraud v. "…act or threat involving… extortion…" vi. Acts " relating to extortionate credit transactions" vii. Acts " relating to tampering with a witness, victim, or an informant" viii. Acts " relating to retaliating against a witness, victim, or an informant" Given the number of such predicated acts by Bank HaPoalim, BM, and the number of Bank's personnel involved, their conduct should be deemed a pattern of racketeering activity, or organized corporate crime. 8. Any specific requests: i. The undersigned requests that the Banking Regulation Unit of Bank of Israel immediate take action to restore the undersigned's access to his own deposit accounts, held by the Bank. ii. The undersigned requests that the Banking Regulation Unit of Bank of Israel initiate investigation of the conduct of Mr Jacob Orbach in this matter, relative to alleged violations of his lawful duties and obligations as the Bank's Chief Internal Auditor. iii. The undersigned requests that the Banking Regulation Unit of Bank of Israel accord the undersigned due process through timely written notice to the registration of instant complainant, response by the Bank on the instant complaint, and determination by Bank of Israel on instant complaint. Jerusalem, January 24, 2013 Joseph Zernik, PhD ‫דר' יוסף צרניק‬

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Attached:
[1] 13-01-02 Letter to Bank HaPoalim, BM, Chief Internal Auditor Jacob Orbach re: blocking of customer's accounts, failure to produce bank documents http://www.scribd.com/doc/118782435/ [2] 12-11-16 Letter to Bank HaPoalim Chief Internal Auditor Jacob Orbach Re: FATCA-related extortionist conduct request for the Bank's "new policy" s http://www.scribd.com/doc/113472942/ [3] 12-12-02 Reminder on FATCA-related request for Bank HaPoalim records from Chief Internal Auditor Jacob Orbach http://www.scribd.com/doc/115295169/ [4] 12-12-25 Bank HaPoalim response re FACTA-related new policy, interest gained http://www.scribd.com/doc/118918634/

Enclosed: [i] January 23, 2013 notice of intent to withdraw cash from account holder's funds Date: Wed, 23 Jan 2013 13:04:11 +0200 To: shalom.barashi@mailpoalim.co.il, Ms Maya Shulyatsky <maya.shulyatsky@mailpoalim.co.il>, david.zegen@mailpoalim.co.il, , drora.bregman@mailpoalim.co.il, maya.amzallag@mailpoalim.co.il, mordechai.assouline@mailpoalim.co.il, efrat.dahan@mailpoalim.co.il, From: "Joseph Zernik, PhD" <123456xyz@gmail.com> Subject: Beit HaKerem accounts: Notice of cash withdrawal up to NIS 20,000, or highest daily limit January 23, 2013 RE: Beit HaKerem accounts: Notice of cash withdrawal up to NIS 20,000, or highest daily limit Dear Sir/Madam: Following repeated requests, addressed to the Bank's Chief Internal Auditor, it was clarified that there is no record of the Bank's FATCA-related "new policy", which was purportedly imposed on my accounts on January 1, 2013, but of which the Bank refuses to notice me in writing. There is no basis for such conduct in the law of the State of Israel, and for that matter not in the law of the United States. Therefore, I am left to rely on the explanation of the "new policy" by the Private Banking clerk during my visit to the Beit HaKerem Branch in late August 2012 (at a time that the Bank threatened to impose such "new policy" on September 1, 2012): That even following the imposition of such "new policy", I would be permitted to withdraw in cash in the Branch up to the highest daily limit sum (NIS 20,000?). Therefore, I provide notice of my intent to visit the Beit HaKerem Branch tomorrow, January 24, 2013, and request to withdraw from one of my accounts in cash the sum of NIS 20,000, or highest daily limit sum. In case your Beit HaKerem Branch will not be able to honor such request, I would appreciate advance notice of that by return email. Truly, Joseph Zernik.

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