BNP Paribas has processed billions of dollars worth of illegal dealings for clients in Iran, Sudan, and Cuba, all countries against which the US has economic sanctions in place, which are meant to halt all financial dealings, particularly bulk cash transfers to the US, reports The South China Morning Post.
The bank has processed large transfers from each of the three sanctioned nations to various New York banks. The Times reports that after HSBC, Standard Chartered, ING Bank, Barclays Bank, Credit Suisse and Lloyds TSB Bank, BNP is the seventh large bank to be caught sidestepping U.S. sanctions.
Among 16 banks the Justice Department is investigating are two other French banks, Credit Agricole and Societe Generale (SocGen), which are suspected of money laundering in addition to possible sanction violations, reports Reuters. The Manhattan District Attorney’s office has joined the investigation of these two banks. Reuters reports that the banks are undergoing internal investigations as well
The Justice Department also is looking into Citigroup’s Banamex operation between the US and Mexico and whether it has been policing money transfers across the border, reports The South China Morning Post
Reuters states that as cases pile up, prosecutors has begun focusing more on financial institutions aiding illicit money flows rather than on individuals.
As the Justice Department closes cases against what are some of the world’s largest banks, there is fear that criminals will instead seek out mid-level financial institutions where there are fewer controls.
After lengthy negotiations, BNP Paribas has pleaded guilty to violating US sanctions against Iran, Sudan, and Cuba, put in place by the US Justice Department to trap other large firms and banks within the industry. The plea resulted in an US$8.9 billion penalty, reported The New York Times
