BNP Paribas 'faces $5bn fine' over Iran sanctions

The French bank BNP Paribas may have to pay more than $5bn (£3bn) in fines over violating US sanctions on Iran, Sudan and other countries.

According to Bloomberg, US regulators are seeking far more than had previously been rumoured, and above what the bank had previously suggested it may have to pay.

The penalty would be the biggest ever for violating sanctions. Two years ago, the British bank Standard Chartered paid $327m to settle allegations of breaking sanctions against Iran, Sudan, Burma and Libya.

US sanctions forbid banks from processing transactions involing certain countries through the US financial system. Regulators are seeking a guilty plea from the bank, which had previously set aside just $1.1bn for the claims.

At its first-quarter results last month, the bank said "there is the possibility that the amount of the fines could be far in excess of the amount of the provision".

BNP Paribas did not comment on the potential fine. Shares in the bank were down around 1.6pc at midday on Wednesday.

The settlement, which could be announced as early as next month, comes after Credit Suisse agreed to pay $2.6bn in penalties for helping wealthy Americans to evade tax .

A hefty fine would be a major blow for BNP Paribas, which is preparing for financial stability tests from the European Central Bank this summer.

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