BNP Paribas handled more than US$586 million of transactions with a Dubai-based corporation controlled by Iran, according to US court filings.
The disclosure came as the bank agreed to pay a record $8.97 billion in fines after pleading guilty to a series of sanctions violations involving entities in Sudan, Iran and Cuba over an eight-year period,
The French bank, the fourth largest in the world, pleaded guilty to processing more than $8.8bn through the US financial system on behalf of Sudanese, Iranian and Cuban entities subject to US sanctions from 2004-12, and to falsifying business records.
As part of the settlement agreement, the bank will be barred from US dollar-clearing operations for one year for its oil and gas commodity finance business, starting from next January. In addition, 13 executives including its group chief operating officer, will be required to leave the bank.
“BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive US authorities,” said the US attorney general Eric Holder in a statement issued late on Monday.
“These actions represent a serious breach of US law,” he added. “Sanctions are a key tool in protecting US national security interests, but they only work if they are strictly enforced. If sanctions are to have teeth, violations must be punished.”
Jean-Laurent Bonnafe, the BNP Paribas chief executive, issued a repentant response. “We deeply regret the past misconduct that led to this settlement,” he said. “We have announced today a comprehensive plan to strengthen our internal controls and processes, in ongoing close coordination with the US authorities and our home regulator to ensure that we do not fall below the high standards of responsible conduct we expect from everyone associated with BNP Paribas.”
The bulk of the bank’s transactions with Iranian entities were processed via an unidentified Dubai-based corporation that was under Iranian control, according to court documents.
“[BNP Paribas] processed payments on behalf of a client registered as a corporation in Dubai … but controlled by an energy group in Iran, in connection with three letters of credit that facilitated the provision of liquefied petroleum gas to an entity in Iraq,” the filings read.
“[The bank’s] ‘know your customer’ documentation on the Iranian Controlled Company showed that it was owned by the Iranian energy group, which was in turn owned by an Iranian citizen.”
The transactions began at a time when certain US dollar transactions were permitted by the US under the so-called U-turn exemption, which was eventually revoked in 2008. BNPP continued transacting with the entity until 2012, despite agreeing to commence an internal investigation into its compliance with US sanctions and cooperate fully with New York state and US authorities in 2010.
BNP also processed about $100.5 million in US dollar payments involving an Iranian oil company following the revocation of the U-turn exemption. The payments were in connection with six letters of credit issued by BNPP that financed Iranian petroleum and oil exports.
The majority of BNP’s illegal transactions were made on behalf of sanctioned entities in Sudan, according to court filings.
The bank processed about $6.4bn through the US on behalf of Sudanese-sanctioned entities from July 2006 through June 2007, including approximately $4bn on behalf of a financial institution owned by the government of Sudan.
jeverington@thenational.ae
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Fixtures
Opening day Premier League fixtures for August 9-11
August 9
Liverpool v Norwich 11pm
August 10
West Ham v Man City 3.30pm
Bournemouth v Sheffield Utd 6pm
Burnley v Southampton 6pm
C Palace v Everton 6pm
Leicester v Wolves 6pm
Watford v Brighton 6pm
Tottenham v Aston Villa 8.30pm
August 11
Newcastle v Arsenal 5pm
Man United v Chelsea 7.30pm
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Stamp duty timeline
December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%
April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.
July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.
March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.
April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.
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SHAITTAN
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SPECS
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Company profile
Name: The Concept
Founders: Yadhushan Mahendran, Maria Sobh and Muhammad Rijal
Based: Abu Dhabi
Founded: 2017
Number of employees: 7
Sector: Aviation and space industry
Funding: $250,000
Future plans: Looking to raise $1 million investment to boost expansion and develop new products
OPENING FIXTURES
Saturday September 12
Crystal Palace v Southampton
Fulham v Arsenal
Liverpool v Leeds United
Tottenham v Everton
West Brom v Leicester
West Ham v Newcastle
Monday September 14
Brighton v Chelsea
Sheffield United v Wolves
To be rescheduled
Burnley v Manchester United
Manchester City v Aston Villa
PROFILE OF CURE.FIT
Started: July 2016
Founders: Mukesh Bansal and Ankit Nagori
Based: Bangalore, India
Sector: Health & wellness
Size: 500 employees
Investment: $250 million
Investors: Accel, Oaktree Capital (US); Chiratae Ventures, Epiq Capital, Innoven Capital, Kalaari Capital, Kotak Mahindra Bank, Piramal Group’s Anand Piramal, Pratithi Investment Trust, Ratan Tata (India); and Unilever Ventures (Unilever’s global venture capital arm)
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
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