BNP Paribas SA OFAC Settlement: $963.6M (2014)

For a number of years, up to and including 2012, BNPP processed thousands of transactions to or through U.S. financial institutions that involved countries, entities, and/or individuals subject to U.S. sanctions programs. BNPP appears to have engaged in a systematic practice, spanning many years and involving multiple BNPP branches and business lines, that concealed, removed, omitted, or obscured references to, or the interest or involvement of, sanctioned parties in U.S. Dollar Society for Worldwide Interbank Financial Telecommunication payment messages sent to U.S. financial institutions. The specific payment practices the bank utilized included omitting references to sanctioned parties; replacing the names of sanctioned parties with BNPP's name or a code word; and structuring payments in a manner that did not identify the involvement of sanctioned parties in payments sent to U.S. financial institutions.

The 3,897 apparent violations break down across four programs. BNPP processed 2,663 wire transfers totaling approximately $8,370,372,624 between September 6, 2005, and July 24, 2009, involving Sudan in apparent violation of the SSR. BNPP processed 318 wire transfers totaling approximately $1,182,075,543 between July 15, 2005, and November 27, 2012, involving Iran in apparent violation of the ITSR. BNPP processed 909 wire transfers totaling approximately $689,237,183 between July 18, 2005, and September 10, 2012, involving Cuba in apparent violation of the CACR. BNPP processed seven wire transfers totaling approximately $1,478,371 between November 3, 2005, and approximately May 2009, involving Burma in apparent violation of the BSR.

OFAC determined that BNPP did not voluntarily self-disclose these apparent violations, and that the apparent violations constitute an egregious case. Both the statutory maximum and base civil monetary penalties were $19,272,380,006. The base penalties by program were: $16,826,707,625 for the Sudan (SSR) violations; $2,382,634,677 for the Iran (ITSR) violations; $59,085,000 for the Cuba (CACR) violations; and $3,952,704 for the Burma (BSR) violations.

The settlement amount of $963,619,900 reflects OFAC's consideration of the facts and circumstances pursuant to the General Factors Affecting Administrative Action under OFAC's Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A. The obligation was deemed satisfied by payment of an equal or greater amount in satisfaction of penalties by the Department of Justice and the New York County District Attorney's Office arising out of the same pattern of conduct.

BNPP's settlement with OFAC was part of a global settlement that also included the U.S. Department of Justice, the New York County District Attorney's Office, the Federal Reserve Board of Governors, and the Department of Financial Services of the State of New York. The OFAC settlement obligation of $963,619,900 was deemed satisfied by payment of an equal or greater amount in satisfaction of penalties by the Department of Justice and the New York County District Attorney's Office arising out of the same pattern of conduct.

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