French bank BNP Paribas SA is likely to pay up to $9 billion as part of a potential settlement with U.S. authorities over violations of sanctions, the Wall Street Journal said.
According to a person familiar with the matter, the representatives of the bank agreed to plead guilty to a criminal charge of conspiring to violate the International Emergency Economic Powers Act that entitles the White House to impose economic sanctions against other countries. The terms of the settlement with the U.S. authorities include temporary ban on handling transactions in U.S. dollars as well as departures of some of its employees.
According to sources, the parties near the end of negotiations and final terms of the settlement.
In late May, the U.S. authorities claimed BNP Paribas hid transactions that violated U.S. sanctions over Cuba, Sudan, and Iran. According to the Wall Street Journal, the bank said it is ready to pay less than $8 billion, while the U.S. authorities demanded a $10 billion fine. Laurent Fabius, the foreign minister of France, called this amount unacceptable.
It is not the first time the U.S. seeks to fine international banks for similar cases. Previously, HSBC paid $1.9 billion in 2012 to settle the U.S. probe into sanctions violations. Credit Suisse, Switzerland’s second-largest bank, also agreed to plead guilty and pay $2.6 billion to settle charges it helped the U.S. tax evaders.
The bank was founded in 2000 following a merger of Banque Nationale de Paris and investment bank Paribas. Having its headquarters in Paris, London, and Geneva, BNP Paribas is one of the six strongest banks in the world and the Europe’s leading bank in terms of deposits.