Posted April 09, 2018 04:30:00The world’s largest financial institution, BNP Paribas, has issued a statement in response to a recent report by the Financial Conduct Authority that said the company has not complied with anti-money laundering regulations.
In a statement issued Tuesday, Bnp Paribash said the “obvious and widely shared conclusion” was that the firm “has not been subject to anti-avoidance measures that it was required to comply with in order to continue operating as a regulated investment bank.”
“This is a result of a combination of a number of factors including our ongoing regulatory compliance, our compliance with other financial regulators and the fact that our core business is investing in and servicing private-equity and hedge funds,” the statement read.
“This includes a number that do not fit within the criteria of the CEA, and therefore do not qualify as financial services.”
The BNP statement said it has not yet had a chance to review the report.
“While we continue to assess the scope of the inquiry and its conclusions, we have concluded that there is no evidence to suggest BNP has engaged in a pattern of misconduct in relation to the activities of its investment banking unit,” the BNP said.
The BNB statement continued: “We are currently reviewing our internal procedures to ensure that they meet the standards of professional conduct and comply with all applicable laws, and that our actions meet the highest standards of transparency and accountability.”BNP Parabas said the FCA’s report “does not change our fundamental position that we continue our commitment to provide investment banking services to the private sector.”
The bank has a large portfolio of private-sector investments in sectors such as healthcare, energy and financial services, and the bank has been criticized for its poor performance in recent years.
In 2015, BNB Paribes announced it would pay out $11.2 billion in a settlement with the U.S. Justice Department to resolve allegations that the bank was improperly involved in helping clients avoid paying income taxes by routing funds through offshore accounts.BNP’s financial woes were highlighted in March, when BNP failed to pay $2.2 million to US regulators after it was accused of manipulating LIBOR rates in order, for years, to help its clients evade paying taxes.
Banca Monte dei Paschi di Siena and Credit Suisse were also fined for helping their clients avoid taxes in 2012 by routing large amounts of money through offshore tax havens.