Written by Shari R. Pogach, Regulatory Paralegal
Foreign banks are under serious scrutiny by federal and state authorities and regulators for dealing with countries blacklisted by the United States. Almost $9 billion is what it’s costing BNP Paribas S.A. (BNP) for not obeying U.S. economic sanctions against Sudan, Iran and Cuba. The $8.9 billion penalty was to settle U.S. Department of Justice charges that BNP willfully continued to do business with nations and entities on the U.S. sanctions list. While a record fine, BNP is simply the latest among foreign banks that have collectively paid billions in settlements since 2009:
According to news sources, U.S. authorities have also begun initial settlement talks with Germany’s Commerzbank and Deutsche Bank over sanctions violations. There are reports of at least six banks in Germany, France, Italy or Japan that are under long-running investigations and could face fines or forfeitures for processing transactions with countries or entities the U.S. has designated.
BSA Blast – NAFCU members can read all about BNP’s settlement and penalty in the July issue of NAFCU’s BSA Blast. And, this issue also includes a new BSA quiz that’s oriented to Bank Secrecy Act (BSA) training for credit union board and volunteer members. Let us know what you think. Happy BSA reading!