BNP Paribas has pleaded guilty to hiding tens of billions of dollars’ worth of transactions from Iran, Sudan and Cuba. In addition to the fine – which dwarfs the previous $1.9bn record paid by HSBC in 2012 – the bank will be prevented from clearing transactions in US dollars next year.
François Hollande, the French president, has pressed Barack Obama to encourage authorities to reduce the fine, at one point thought to be more than $10bn.
The fine and dollar ban follows weeks of negotiations over the settlement. BNP Paribas will be given until the end of 2014 to find another bank to make dollar payments on its behalf.
Both penalties will have a substantial impact on BNP’s finances. Although the bank is well-enough capitalised to withstand the fine, it equates to more than its entire annual profits last year.
Several individuals are also expected to be fired over the investigation, which has already claimed the scalps of three senior officials including chief operating officer. BNP Paribas did not comment ahead of the annnouncement.
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