Nevertheless, criminal pleas could prompt supervisory authorities to revoke a bank`s license, the equivalent of Wall Street`s death penalty. To avoid this result, prosecutors and regulators coordinated their actions months in advance. The case marked the first time a world bank has pleaded guilty to violating U.S. economic sanctions, according to the Justice Department. The Justice Department said that manipulating conspiracy prices on an electronic trading platform by creating fake transactions, coordinated exchanges and price agreements to quote to some customers, among others. WASHINGTON – According to court documents, BNP Paribas S.A. (BNPP), a global financial institution based in Paris, has agreed to plead guilty to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and trade with the Enemy Act (TWEA) by exchanging billions of transactions through the U.S. financial system on behalf of Sudanese companies , U.S. economic sanctions. The French bank`s agreement to plead guilty is the first time a world bank has agreed to plead guilty to massive and systematic violations of U.S. economic sanctions. French banking giant BNP Paribas this week made an admission of guilt and a record comparison with the Justice Department above $8.9 billion for violations of economic sanctions. In a statement, Assistant Attorney General James Cole said BNP`s failure to cooperate fully with law enforcement „has significantly affected the government`s ability to charge those responsible, sanctioned entities and satellite banks.
This failure, combined with the BNP`s persistent misconduct, required a criminal plea and a fine of nearly $9 billion. Barclays Plc BARC. L, Citigroup Inc C.N, JPMorgan Chase and Co JPM. N, Royal Bank of Scotland Group Plc RBS. L and UBS Group AG UBSG. S also entered guilty pleas, the Department of Justice said. The six banks were collectively fined more than $2.8 billion. BNP`s conviction had been delayed for months while waiting to see if the U.S. Department of Labor would allow it to continue managing retirement plans despite the plea. The department granted BNP this exemption this month. The transaction represents the largest sentence ever imposed on the Department of Justice in an economic sanctions case, and the largest in a criminal proceeding involving a bank. It is also the first time a world bank has agreed to plead guilty to systematic and large-scale violations of U.S. economic sanctions.
BNPP will drop the charge and will be charged in a criminal code with a charge filed in federal court in the Southern District of New York, accused by BNPP of knowingly and deliberately committing offences against IEEPA and TWEA from 2004 to 2012. BNPP agreed to plead guilty, entered a written plea and took responsibility for his criminal conduct. On July 9, 2014, at 4:30 p.m. .m, the BNPP is scheduled to make an formal oral argument before U.S. District Judge Lorna Schofield. The conviction followed BNP Paribas` guilty plea last July, which conspired from 2004 to 2012 to violate the International Emergency Economic Powers Act and the Trading with the Enemy Act.