BNP Paribas warned it might be hit with a U.S. fine 'far in excess' of the $1.1bn which the bank set aside last year to cover litigation costs linked to a potential breach of U.S. sanctions on countries including Iran.
Reuters reports that the global banking industry faces mounting legal woes due to investigations into a string of alleged misdeeds, including fixing benchmark interest rates and manipulating foreign-exchange markets.
'There is uncertainty with respect to the amount and the nature of penalties the U.S. will impose', BNP Chief Financial Officer Lars Machenil told Reuters Insider television.
'It's not impossible that the fine is far in excess of the ($1.1bn) provision'.
U.S. federal prosecutors are considering criminal charges against BNP for doing business with countries subject to U.S. sanctions such as Iran, Sudan and Cuba, according to a person with knowledge of the matter.
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