BNP Paribas failed on ethical and legal counts by processing billions of dollars of transactions between 2002 and 2012 for groups in Sudan, Iran and Cuba that were allegedly involved in terrorism and genocide, the bank’s chairman Jean Lemierre conceded.
"There was a mistake and I even can say a big mistake which should not have happened in the culture of BNP Paribas. But it has," Lemierre in his first interview since replacing Baudouin Prot told the Financial times.
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"It has to do with the American situation but not only [that] and we need to be at the highest standards and address?.?.?.?the difficulties behind the American situation. We have to go much beyond this. That’s crucial."
Last year’s penalty was a wakeup call for the reorganization of the control functions of the group, he added.
He opined that banks need to make changes in its normal ethical standards, and refrain from a narrow, legalistic approach to complying with rules to sustain in the changing times.
Lemierre further added that BNP Paribas has become the first non-US lender to shift processing and compliance for offshore US dollar transactions to its New York operations.
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By GlobalDataLast year, US regulators imposed a fine of $8.9bn on the French bank fine for violating US sanctions.
The bank was also restricted from clearing dollar-denominated transactions for one year related to its oil and gas business where most of the criminal activity allegedly occurred.
