BNP Paribas nears up to $9 billion settlement with US authorities -source

Monday 23 June 2014 18.12
US authorities are probing whether BNP Paribas evaded US sanctions relating mainly to Sudan between 2002 and 2009
US authorities are probing whether BNP Paribas evaded US sanctions relating mainly to Sudan between 2002 and 2009

French bank BNP Paribas is likely to pay $8 billion to $9 billion as part of a potential settlement with US authorities over violations of sanctions, according to a person familiar with the matter. 

US authorities are probing whether BNP Paribas evaded US sanctions relating mainly to Sudan between 2002 and 2009.

They are looking at it stripped out identifying information from wire transfers so they could pass through the US financial system without raising red flags, sources have said.

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

The investigation records violations transactions involving Sudan, Iran and Cuba, one source has said.

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 US 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 US Justice Department, the US Attorney's office in Manhattan, the US 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 New York, 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.