At last, the headline-grabbing investigation concerning France’s BNP Paribas has come to an end. So, Paribas’ management agreed to pay $8.9 billion in fines. The spokesman for Paribas stated the bank is ready to pay the hefty amount as a penalty to settle the criminal charges brought by the U.S. Justice Department. For the reference, Paribas was pleaded guilty to concealing billions of dollars in transactions for clients in Sudan, Iran, Myanmar, and Cuba in violation of U.S. sanctions. Importantly, it has been the first case when such a large bank admitted guilt about the wrongdoing and breaching the U.S. sanctions. This outcome reveals the worldwide trend that international financial watchdogs have tightened greatly supervision over fulfillment of the International Emergency Economic Powers Act and the Trading with the Enemy Act. However, a huge fine is not the only penalty levied by the court for Paribas. As a part of the agreement with the U.S. banking regulator, BNP Paribas was required to fire 13 top managers involved in the scheme including Chief Operating Officer. Moreover, the bank is obligated to exercise administrative punishment concerning 32 more bank employees such as downgrading a job and reducing labor payment. “BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive U.S. authorities. These actions represent a serious breach of the U.S. law,” Attorney General Eric H. Holder said at a press conference. “Sanctions are a key tool in protecting U.S. national security interests, but they only work if they are strictly enforced. ” The stiff court’s ruling displays the U.S. commitment to control the obedience to the sanctions. U.S. Attorney General highlighted, “If sanctions are to have teeth, violations must be punished.” FBI Director James Comey advised Paribas’ shareholders to supervise their corporate management. He hinted that otherwise suspicious executives will come to the attention of the FBI.
