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France says BNP Paribas fine ‘unreasonable’

Top French officials, including President François Hollande, are pressuring the United States to sweeten a plea deal being offered to BNP Paribas bank over its dealings with blacklisted countries like Sudan and Cuba. On Tuesday France called a proposed multi-billion euro fine 'unreasonable'

France says BNP Paribas fine 'unreasonable'
France's leadership is pressuring the US prosecutors to give BNP Paribas a better deal. Photo: Pascal Pavani/AFP

France's foreign minister on Tuesday labelled as "unreasonable" a €7.3-billion-dollar fine the US is reportedly seeking from BNP Paribas bank on charges of violating sanctions on Iran, Sudan and Cuba.

In the first public comments by a senior French official on the high-profile case, Laurent Fabius said in a television interview that the figure sought by the US was not justified.

"If there was a fault, then it is normal that there be a sanction, but the sanction has to be proportionate and reasonable. These figures are not reasonable," he said.

Meanwhile the New York Times newspaper reported that the governor of the Bank of France, Christian Noyer, had visited New York last week to argue on behalf of BNP Paribas and to warn that such a big fine could have serious effects on the banking sector.

Noyer, who is the highest banking regulatory official in France and also sits on the policy-making body of the European Central Bank, met state and federal prosecutors in New York, the newspaper reported, citing people close to the matter.

Noyer stressed the case could have major repercussions both for BNP, the biggest French bank by capitalisation, and the global economy.

French officials are concerned that as part of a guilty plea, the bank might be forced to suspend a core business operation in New York, which could erode BNP's bottom line, the Times wrote.

It appears likely that the bank might be banned for a limited period from carrying out transactions in dollars, which could drive away part of its international client base.

Noyer was accompanied by the new French banking regulator Edouard Fernandez-Bollo who has been the head of the French prudential and control body ACPR since the beginning of this year.

Fernandez-Bollo had already visited New York the previous week but had been unable to change the attitude of the US authorities, the report said.

President Hollande has also recently raised concerns about a plea deal with the White House, the paper wrote.

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BANK

Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
   
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
   
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
   
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
 
   
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
   
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
   
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
   
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
   
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.
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