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FINE

French bank ‘ignored US warnings’ over embargo

French bank BNP Paribas was warned several times to stop violating US sanctions in countries like Iran, but it didn't and now faces a €7 billion fine, according to a report from French daily Le Monde.

Published: 13 June 2014 15:56 CEST
French bank 'ignored US warnings' over embargo
French bank BNP reportedly ignored warnings from US authorities, a new report claimed on Friday. Photo: Dierk Schaefer/Flickr

French banking giant BNP Paribas, under threat of a mega-fine from US regulators, was warned repeatedly that transactions it was conducting ran the risk of violating US sanctions, the daily Le Monde said Friday.

"From 2006 … BNP Paribas received several warnings against such transactions from the United States and large US law firms," the French newspaper said without citing its sources.

BNP Paribas is in talks with US regulators to settle the dispute, with some US media saying the fine could exceed €7.4 billion euros and that the French bank could also temporarily lose its US banking licence.

The bank is accused of breaking sanctions against Iran, Sudan and Cuba between 2002 and 2009 by carrying out dollar transactions with them.

Le Monde said a US Treasury official visited BNP Paribas' headquarters in September 2006 to warn its executives in a closed door meeting against dealings with Iran.

"The warning was clear," said Le Monde, that the bank should act with the greatest possible caution regarding the transactions.

BNP Paribas hired three US law firms to evaluate US laws, which had changed in the mid-2000s, to consider all transactions conducted in dollars to be subject to US sanctions, even if conducted outside of the United States.

Le Monde wrote that in 2006 they warned BNP Paribas of the risks it faced from the transactions. BNP Paribas did not have an immediate comment on the report.    

French officials have defended the bank, warning that "disproportionate" penalties could upset talks on a vast free-trade pact between the 28-member European Union and United States.

President Francois Hollande has raised the matter several times with US President Barack Obama, most recently over a dinner in Paris last week — even though Obama has made clear he cannot intervene in a judicial process.

France argued that the stakes are high also for the international financial system, bank lending and economic recovery in Europe and the knock-on effects of such penalties — which could also be applied to other banks under investigation — would be widespread.

The governor of the Bank of France, Christian Noyer, has said that the bank did nothing wrong as it did not violate EU or United Nations rules in place at the time.

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PUNISHMENT

Norwegian prime minister fined for Covid-19 rules breach

Erna Solberg has been fined 20,000 kroner for her role in planning a dinner party at a restaurant in Geilo, southern Norway, in February.

Published: 9 April 2021 14:38 CEST
Norwegian prime minister fined for Covid-19 rules breach
Instagram erna_solberg

The South East police district has finished its investigation into the episode and concluded that there was a breach of national infection control rules.

The Prime Minister broke infection control measures when 13 family members were gathered at the restaurant in Geilo, a popular skiing destination. At the time, only 10 people could gather in such settings.

“I take note of the police decision. I have previously said that if the restaurant visit is followed up with fines, then we will of course make up for it. I apologise for what happened and will pay the fine,” Solberg said in a statement .

Despite not being present at the meal, due to having an eye checkup in Oslo, Solberg is considered to be one of the event’s organisers as she participated in the decision to host the dinner and was involved in choosing a restaurant.

Despite police saying his role would also fall under that of an organiser, the prime minister’s husband, Sindre Finnes, will not be fined.

“The practical arrangements were made by Solberg’s husband, but Solberg was involved in the decision to eat out,” police chief Ole B. Sæverud said at a press conference.

The police said that such a case would not normally lead to punishment, unless special considerations dictate it.

They believe that this case meets the special considerations criteria as finding Solberg guilty without any punishment could have a negative impact on the population’s compliance with coronavirus restrictions.

“Even though the law is equal for everyone, not everyone is equal. Solberg is the country’s foremost elected official and has on a number of occasions fronted the government’s decisions on measures to counter the pandemic. It is therefore considered appropriate to react with punishment, in order to maintain the public’s trust in the infection control rules,” Sæverud said.

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The restaurant Solberg’s family ate at, Hallingstuene, will not receive a fine.

“If we had come across the incident while it was taking place, we would have clarified the regulations and, if necessary, given orders to end the event. A punitive response would only be considered if the event was carried out in a clearly contagious manner, or there was a case of repeated violation,” said Sæverud.

The prime minister’s family met twice over a weekend in late February as part of her 60th birthday celebrations in Geilo. On the Saturday there were more than 10 people present at an apartment they had rented. However, as the regulations were unclear at the time police said that this was not a criminal violation.

Solberg apologised for the breach when it was first reported in March.

“I, who every single day stand and speak about infection control to the Norwegian people, should have known the rules better. But the truth is that I have not checked the rules well enough, and thus not realiisd that when a family goes out together and there are more than ten persons, it is actually an event,” she said at the time.  

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