BNP Paribas nears up to $9 bln settlement with U.S. authorities: source

Mon Jun 23, 2014 11:09am EDT

An employee walks behind the logo of BNP Paribas in a company's building in Issy-les-Moulineaux, near Paris, June 2, 2014. REUTERS/Charles Platiau

An employee walks behind the logo of BNP Paribas in a company's building in Issy-les-Moulineaux, near Paris, June 2, 2014.

Credit: Reuters/Charles Platiau

Related Topics

(Reuters) - French bank BNP Paribas SA (BNPP.PA) is likely to pay $8 billion to $9 billion as part of a potential settlement with U.S. authorities over violations of sanctions, according to a person familiar with the matter.

U.S. authorities are probing whether BNP Paribas evaded U.S. sanctions relating primarily to Sudan between 2002 and 2009, and whether it stripped out identifying information from wire transfers so they could pass through the U.S. financial system without raising red flags, sources have said.

BNP Paribas has been negotiating on an almost daily basis with U.S. authorities for weeks.

The investigation has turned up more than $100 billion in books and records violations transactions involving Sudan, Iran and Cuba, one source said on Sunday. 

The potential settlement could include BNP Paribas pleading guilty to a criminal charge of violating the International Emergency Economic Powers Act, another source familiar with the matter has said. The potential settlement was first reported by the Wall Street Journal.

Earlier in the month, Reuters reported that U.S. authorities negotiating with BNP Paribas at one point suggested that France's biggest bank pay a penalty as high as $16 billion, although that was viewed as a negotiating tactic in response to an offer from BNP Paribas of about $1 billion.

The probes are being conducted by authorities including the U.S. Justice Department, the U.S. Attorney's office in Manhattan, the U.S. Treasury Department, the Manhattan District Attorney's office, and the New York Department of Financial Services.

The New York Department of Financial Services, which oversees certain banks in NY, has said it will not revoke the bank's license to operate in New York if BNP Paribas agrees to other stiff penalties, a source has said.

The state regulator also has sought the termination of more than a dozen employees as part of the settlement, at least some of whom have already left.

A BNP Paribas spokeswoman declined to comment.

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
Leras wrote:
Is anyone ever Gonna go to Jail?

I thought “Assisting Willingly to Money Laundering” is A Criminal Offense!!!!

Bankers are exempt from LAWS!!!

Then so should we!!!! Logically I should refuse to pay taxes…give my data to Corruption Surveillance Services and just REFUSE to OBEY THESE ILLEGAL LAWMAKERS AND JUSTICE SYSTEM WHO PROTECTS CLEARLY SPECIFIC INTERESTS!!!!!!

Jun 23, 2014 9:03am EDT  --  Report as abuse
jmcauliff wrote:
Who authorized the US to control other country’s banks and unilaterally punish them?

Some day we will wake up to discover that our arrogance has destroyed the preeminence of the dollar and of our financial system.

John McAuliff
Fund for Reconciliation and Development

Jun 24, 2014 6:34pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.