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BNP Paribas strengthens its control system

On 30 June 2014, the Group reached an overall settlement regarding the investigation of a number of dollar-denominated transactions relating to countries subject to U.S. sanctions.

In connection with this settlement, BNP Paribas acknowledged its responsibility via a guilty plea for breaching a number of U.S. laws and regulations in respect of economic sanctions imposed against certain countries and the recording of related transactions. BNP Paribas also agreed to pay a total of $8.97 billion. In addition, BNP Paribas agreed to the temporary suspension, for a period of one year from 1 January 2015, of a number of direct offsetting transactions in U.S. dollars, falling primarily within the scope of the financing of international trade in commodities, specifically oil and gas, in a number of locations.

Compliance witnessed significant changes in its organisation in 2014. In H2, it was decided that the Compliance function would be reorganised into an integrated function and that its resources would be strengthened. These resources had already been significantly increased (+24% compared with 2013) to reach 2,051 full-time equivalent (FTE) staff in 2014.

1. SPECIFIC MEASURES IN THE UNITED STATES

The creation of a new department called “Global Financial Security-U.S.” in New York and which is part of Group Compliance. Its mission is to see that BNP Paribas respects, worldwide, United States regulations relating to international sanctions and embargoes. All of the Group’s dollar-denominated payments will eventually be handled and controlled by the bank’s New York branch.

2. SUPERVISION OF THE “REMEDIATION PLAN”

The Compliance function supervises the implementation of the “remediation plan” requested by the U.S. authorities which transposes the commitments made by BNP Paribas in connection with business carried out in U.S. dollars.