Marc Le Menestrel
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BNP Paribas and 2014 US sanctions

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by Marc Le Menestrel (26/11/2014)

BNP Paribas in its own words

BNP Paribas is a leading bank in the eurozone and a major global bank.

The Group is active in 75 countries with nearly 185,000 employee, more than 140,000 of whom are in Europe. BNP Paribas has key positions in its three main areas of activity:




In Europe, the Group has four domestic markets —Belgium, France, Italy and Luxembourg—and BNP Paribas Personal Finance is the leader in consumer finance. BNP Paribas is also developing its integrated retail banking model in countries around the Mediterranean basin, in Turkey and in Eastern Europe, and has a large network in the Western United States. Its Investment Solutions and Corporate & Investment Banking businesses are among the leaders in Europe and boast a solid foothold in the Americas, as well as a robust and rapidly-growing presence in Asia-Pacific.

Settlement of US Sanctions in BNP Paribas own words

On Jun 30, 2014, BNP Paribas announced a comprehensive settlement of the pending investigation relating to US dollar transactions involving parties subject to US sanctions [...].

The settlement includes guilty pleas entered into by BNP Paribas SA in relation to violations of certain US laws and regulations regarding economic sanctions against certain countries and related recordkeeping. BNP Paribas also agrees to pay a total of USD 8.97 billion (Euros 6.6 billion) [...].

In advance of the settlement, the bank designed new robust compliance and control procedures. Many of these are already in force and are working effectively, and involve important changes to the Group’s procedures. Specifically:

• a new department called Group Financial Security US, part of the Group Compliance function, will be headquartered in New York and will ensure that BNP Paribas complies globally with US regulation related to international sanctions and embargoes.

• all USD flows for the entire BNP Paribas Group will be ultimately processed and controlled via the branch in New York.

As a result of BNP Paribas’ internal review, a number of managers and employees from relevant business areas have been sanctioned, a number of whom have left the Group.

Jean-Laurent Bonnafe, CEO of BNP Paribas, said: “We deeply regret the past misconduct that led to this settlement. The failures that have come to light in the course of this investigation run contrary to the principles on which BNP Paribas has always sought to operate. We have announced today a comprehensive plan to strengthen our internal controls and processes, in ongoing close coordination with the US authorities and our home regulator to ensure that we do not fall below the high standards of responsible conduct we expect from everyone associated with BNP Paribas”.

Question for preparation:

What would you like to learn about BNP Paris and the settlement of US sanctions?

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