The U.S. Justice Department is expected to announce on Monday a settlement with BNP Paribas involving a record fine of nearly $9 billion over alleged U.S. sanctions violations by France’s biggest bank, sources familiar with the matter said.
The penalties, which the sources said may also include a temporary ban on some dollar-clearing business, could hit BNP's dividend payout, regulatory capital ratios and its investment banking targets, analysts say.
BNP is expected to plead guilty to a criminal charge in both federal and state courts in Manhattan on Monday and the U.S. Justice Department is planning a news conference in Washington to announce a deal the same day, sources said.
However, the lender is expected to retain its banking license from the New York state banking regulator after negotiations which, according to sources close to the matter, at one point raised the prospect of an even bigger fine of up to $16 billion.
U.S. authorities have been examining whether BNP evaded U.S. sanctions relating primarily to Sudan between 2002 and 2009, sources have said.
"I want to say it clearly here: We will receive a heavy penalty," BNP Chief Executive Officer Jean-Laurent Bonnafe told staff in an internal message sent on June 27 and seen by Reuters. "However, the difficulties that we are currently experiencing must not affect our plans for the future."
The bank has not commented publicly on the case since it warned shareholders on May 14 that the fine could be stiffer than the $1.1 billion for which it originally provisioned.
A BNP spokeswoman declined to comment. Shares in the group ended 0.27 percent higher at 49.545 euros in Paris trade.
Source: Reuters
The penalties, which the sources said may also include a temporary ban on some dollar-clearing business, could hit BNP's dividend payout, regulatory capital ratios and its investment banking targets, analysts say.
BNP is expected to plead guilty to a criminal charge in both federal and state courts in Manhattan on Monday and the U.S. Justice Department is planning a news conference in Washington to announce a deal the same day, sources said.
However, the lender is expected to retain its banking license from the New York state banking regulator after negotiations which, according to sources close to the matter, at one point raised the prospect of an even bigger fine of up to $16 billion.
U.S. authorities have been examining whether BNP evaded U.S. sanctions relating primarily to Sudan between 2002 and 2009, sources have said.
"I want to say it clearly here: We will receive a heavy penalty," BNP Chief Executive Officer Jean-Laurent Bonnafe told staff in an internal message sent on June 27 and seen by Reuters. "However, the difficulties that we are currently experiencing must not affect our plans for the future."
The bank has not commented publicly on the case since it warned shareholders on May 14 that the fine could be stiffer than the $1.1 billion for which it originally provisioned.
A BNP spokeswoman declined to comment. Shares in the group ended 0.27 percent higher at 49.545 euros in Paris trade.
