The US regulators are seeking over US$5 billion in penalties from French banking giant BNP Paribas over their alleged violation of US sanctions on Iran, Sudan and other countries.
With US prosecutors pressing the bank for guilty plea, the fines to settle the charges against the bank are likely to be announced by June 2014, Bloomberg reported quoting a person familiar with the developments.
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BNP Paribas is holding negotiations with a panel including Manhattan US Attorney Preet Bharara, Manhattan District Attorney Cyrus Vance Jr., the Justice Department’s criminal division in Washington and New York’s Department of Financial Services superintendent Benjamin Lawsky.
Lawsky was quoted by the news agency that the authorities are keen to terminate some bank employees and wire-transfer ban in addition to the fine, which is touted to be the largest penalty for sanctions violations.
BNP, that had earlier claimed to have set aside US$1.1 billion to pay fines, could face a severe hit to its dividend, if the fines are in the excess of US$7 billion.
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By GlobalData
