Bank BNP Paribas pleads guilty to violating rules

Published on NewsOK Modified: July 9, 2014 at 6:26 pm •  Published: July 9, 2014
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NEW YORK (AP) — BNP Paribas, France's largest bank, pleaded guilty Wednesday to a federal charge of violating U.S. economic sanctions by processing transactions for clients in blacklisted countries, a development that a Manhattan judge said should show that no financial institution is "immune from the rule of law."

The plea to conspiring to violate the International Emergency Powers Act and the Trading with the Enemy Act came a week after the bank agreed to forfeit roughly $8.9 billion as it pleaded guilty to charges in state court in New York City.

The bank admitted processing billions of dollars in illegal transactions on behalf of clients in Sudan, Cuba and Iran as it violated U.S. trade sanctions imposed to block the participation of some countries in the global financial system.

U.S. District Judge Lorna G. Schofield accepted a plea agreement calling for the forfeiture and a criminal fine of $140 million, representing twice the amount the bank earned from transactions. The bank also must enhance compliance policies and procedures. Sentencing was set for Oct. 3.

"The defendant's actions not only flouted U.S. foreign policy, but also provided support to governments that threaten both our regional and national security, and in the case of Sudan, a government that has committed flagrant human rights abuses and has known links to terrorism," Schofield said.

The judge said the severity of conduct from 2004 through 2012 more than warranted a criminal charge, and the sizeable amount of the forfeiture "bears a direct correlation to the conduct at issue."

She added: "In addition, the forfeiture amount will surely have a deterrent effect on others that may be tempted to engage in similar conduct, all of whom should be aware that no financial institution is immune from the rule of law."