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French Bank’s Fate Being Negotiated by Benjamin Lawsky

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Benjamin Lawsky’s New York State Department of Financial Services work towards a settlement with BNP over the banks involvement with money laundering for terror nations.
Benjamin Lawsky’s New York State Department of Financial Services work towards a settlement with BNP over the banks involvement with money laundering for terror nations.
Benjamin Lawsky’s New York State Department of Financial Services along with other federal and state authorities are negotiating a settlement with BNP. The giant French bank faces allegations of transferring laundered money out of the terror state Sudan over seven years. BNP is accused of helping clients in the theorist nation to move billions of dollars to safety.

A U.S. investigation into BNP revealed that the bank altered transfers and covered up records in order to launder more than $100 billion. The majority of the money was out of Sudan during the years between 2002 and 2009.

Due to the harsh allegations, federal and state officials have lobbied for the dismissal of more than twelve bank executives as well as a potential $10 billion fine. An admission of guilt is also sought by the authorities, along with the temporary suspension of the bank’s ability to process transactions of U.S. dollars. There is a lot of protest from the French people over the harsh penalties facing the country’s largest bank.

Francois Hollande, the leader of France, plans to discuss the BNP matter at his meeting with President Obama on Thursday in Paris.  This meeting was already scheduled for this week as part of the 70th anniversary of D-Day.

Led by the Department of Justice, investigators are negotiating with BNP over the several allegations. One point alleges that BNP laundered money for clients in blacklisted nations, such as Iran, Cuba and Sudan. Sudan has been labeled as a terrorist regime even before the attacks of 9/11. Al-Qaeda had relocated to Sudan in 1991 when Osama bin Laden was ejected from Saudi Arabia.

BNP is not alone in the U.S. crackdown on the money laundering of big banks. HSBC was charged with turning a blind eye to the Mexican cartel’s flow of drug money; HSBC received a fine of $1.9 billion for the oversight.

U.S. officials believe BNP’s involvement to be beyond mere neglect. Officials believe BNP took an active part in working to avoid the suspicions of anti-terrorism authorities. Prosecutors have been unable to draw ties between laundered funds and terrorist groups because the bank cleaned out the information.

The alleged money laundering occurred before BNP’s current Chief Executive Officer Jean-Laurent Bonnafe came into the position in 2011. Despite this, a $10 billion fine may force BNP to raise capital and possibly dismiss Bonnafe. Many of the individuals specified in the investigation are no longer employed by the bank; and others still with the bank work in the U.S.

BNP and prosecutors are debating the length of suspension on dollar-clearing and trying to settle on the allowance of a phase-in period. Within weeks the bank’s settlement negotiations with Benjamin Lawsky’s New York State Department of Financial Services and other authorities of the Justice Department should come to a close.

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