French lender BNP Paribas SA is expected to shell out $8-$9bn along with any other punishment set out by the US investigators as part of a potential settlement with authorities over violations of sanctions.
US investigators say that they have evidence of BNP Paribas hiding $30bn of financial transactions relating primarily to Sudan between 2002 and 2009, in clear violation of the sanctions imposed by the US on Sudan.
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Authorities are probing whether BNP Paribas left out identifying information from wire transfers to companies and government agencies in Sudan for easy clearing through the US financial system without raising alarm, as per a source familiar with the matter.
Sources further add that the investigation carried out by the US authorities into the activities of BNP Paribas has unraveled more than $100bn in books and records violations transactions involving Sudan, Iran and Cuba.
Investigators believe that a major chunk of these transactions were for Sudan’s oil business. But they were also attempting to connect the dots related to facilitation of weapons deals, allegations which proved unfounded.
BNP Paribas had been engaged in negotiations with the authorities for weeks over the matter.
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By GlobalDataA potential settlement agreed with the authorities could include BNP Paribas pleading guilty to a criminal charge of violating the International Emergency Economic Powers Act, reports the Wall Street Journal.
Earlier in the month, Reuters reported that the French lender could be asked to pay up to $16bn, in response to an offer from BNP Paribas of about $1bn.
If BNP Paribas agrees to other stiff penalties, the New York Department of Financial Services will not revoke the bank’s license to operate in New York.
The probes are being conducted by 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.
