Cré dit Agricole to Pay $787 Million in U.S. Sanctions Case
October 20 2015 - 1:20PM
Dow Jones News
French bank Cré dit Agricole SA has agreed to pay $787 million
to U.S. and New York authorities to resolve allegations it violated
U.S. sanctions by handling transactions involving Iran, Sudan,
Myanmar and Cuba.
Federal prosecutors accused the bank of conspiring to defraud
the U.S. government by violating economic sanctions, according to a
complaint filed in federal court in Washington, D.C., Tuesday. As
part of the deal to resolve the allegations, the bank admitted
wrongdoing and the criminal charge is expected to be dropped after
three years if it abides by the settlement terms. The bank also
settled with a handful of other federal and state authorities.
A Cré dit Agricole spokeswoman declined to comment.
The settlement is the latest to stem from a crackdown by U.S.
authorities on European banks that allegedly did deals with
companies or people in countries under U.S. sanctions. In recent
years, U.S. authorities and New York state regulators have
aggressively pursued and fined banks active in Iran, Sudan, and
other sanctioned countries.
Commerzbank AG, Credit Suisse Group AG, HSBC Holdings, Barclays
PLC, and Standard Chartered, among others, have agreed to pay
billions of dollars in fines to settle allegations of sanctions
violations.
New York City prosecutors filed separate charges Tuesday that
Cré dit Agricole violated New York state law by falsifying business
records, a charge that will be dropped under the terms of a
separate settlement reached with the New York State Department of
Financial Services, Treasury Department's Office of Foreign Assets
Control, and the Board of Governors of the Federal Reserve System.
The Washington, D.C., U.S. attorney's office filed the federal
criminal charge.
The agreement should come as a relief to investors after U.S.
authorities last year ordered French peer BNP Paribas SA to pay a
record $9 billion fine in connection with sanctions violations,
raising fears Cré dit Agricole could face a similar fate.
Cré dit Agricole set aside €1.6 billion to cover total potential
litigation costs.
Write to Christopher M. Matthews at christopher.matthews@wsj.com
and Noemie Bisserbe at noemie.bisserbe@wsj.com
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(END) Dow Jones Newswires
October 20, 2015 13:05 ET (17:05 GMT)
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