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WASHINGTON. — BNP Paribas pleaded guilty Monday to US criminal charges of violating sanctions on Iran, Sudan and other countries and was fined a record US$8,9 billion to settle the case.
The US Justice Department said the French bank deliberately hid thousands of transactions with the two countries as well as Myanmar and Cuba during 2004 to 2012 in what officials called a “complex and pervasive scheme” and a “serious breach “ of US law.
Officials described the fine as the largest penalty ever obtained by the Justice Department in a criminal economic sanctions case, and the largest in any criminal case involving a bank.
“BNP went to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive United States authorities,” Attorney General Eric Holder said.
The violations aided countries involved in terrorism and human rights violations, Holder said, “in many cases to the detriment of United States national security”.
The bank agreed to plead guilty to one count of conspiring to violate sanctions, making it the first bank found guilty in a sanctions case.
Also as part of the settlement, BNP agreed to dismiss or let go 13 employees, including the chief operating officer, who resigned earlier this month.
Officials said the bank did not cooperate with early investigations into the problem, explaining in part the severity of the punishment.
“This landmark resolution demonstrates the justice department’s firm commitment to enforcing embargos and other measures designed to protect America’s security and our vital national interests,” said Holder.
“This outcome should send a strong message to any institution, any institution anywhere in the world, that does business with the United States, that illegal conduct will simply not be tolerated.”
BNP Paribas’ guilty plea and agreement to pay nearly US$9 billion for violating US sanctions is part of a larger US Justice Department shift in strategy that is expected to snare more major banks and other firms across the financial food chain. — AFP/Reuters.
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