French bank BNP Paribas pleaded guilty Monday to breaching U.S. sanctions. The settlement concludes an ongoing criminal investigation of the major bank and will result in a penalty fine of almost $9 billion. Allegations were first lobbied against BNP Paribas years ago stating that the bank had violated U.S. money laundering laws by transferring billions of dollars on behalf of Sudan, Iran, and other countries blacklisted by the U.S. On Monday, they were found guilty of this crime. BNP hid the names of these clients when sending transactions through the American financial system. Not only did they breach sanctions, but the money laundering went on from 2002 - 2012, even after the investigation had started. As a result, BNP has been slapped with an $8.9 billion fine, as well as suspension of certain U.S. transaction services through it’s New York branch for the next year.
Although other banks have faced similar violations in the past, this is the largest penalty fine and the first bank to plead guilty, so it is considered one of the worst offenders. However, many argue that the severity of the punishment is “neither fair, just, nor proportionate.” This could carry heavy risks for the global banking system.
Source: CNN Money
