French authorities have warned US that the prospect of BNP Paribas being fined as much as US$10 billion could affect relations between the two countries and also scuttle transatlantic free-trade talks.
French president François Hollande said that he is expecting to raise this issue with his US counterpart Barack Obama.
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Laurent Fabius foreign minister France said: "If there is a violation of a rule, it is normal to have a penalty, but the penalty must be proportional and reasonable."
"We are in talks with the US for a transatlantic partnership. This trade partnership can only be established on a basis of reciprocity. One cannot imagine that reciprocity can be the rule if at the same time there is a decision of this type. Such a unilateral punishment would be "completely unreasonable", Fabius added.
In addition, French officials have raised issues that the case will increase legal uncertainties for companies trying to do business in the US.
French officials are concerned that a big fine and suspension of dollar trading would damage BNP’s capital base, limit its ability to lend to the French economy and lose it international customers.
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By GlobalDataThe bank is being investigated for allegedly violating US sanctions and anti-money laundering rules between 2002 and 2009 by disguising transactions in US dollars with countries including Iran, Sudan and Cuba.
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.
