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Three million euro fine: BNP Paribas bank hit with sanctions in Luxembourg

Three million euro fine: BNP Paribas bank hit with sanctions in Luxembourg

Three million euro fine: BNP Paribas bank hit with sanctions in Luxembourg

The Commission de Surveillance du Secteur Financier (CSSF) has fined the Luxembourg subsidiary of BNP Paribas €3 million for failing to meet its obligations to combat money laundering and terrorist financing. The sanction was announced on May 8 and made public this morning by the newspaper Les Échos.

“The CSSF has identified serious cases of non-compliance by the bank with its professional obligations” in this area, the Luxembourg government agency said in a press release.

BGL subsidiary BNP Paribas, in particular, is accused of violating its obligations to be vigilant regarding the origin of funds and monitoring transactions during inspections carried out between May and November 2021. Apparently, the Luxembourg authorities accuse the bank of closing some suspicious accounts without first informing the Financial Intelligence Unit, when there was “sufficient evidence within the company to raise suspicions of money laundering as such.”

The European banking giant’s subsidiary “accompanied the CSSF’s investigation in a spirit of full cooperation,” BNP responded in a statement sent to AFP: “The findings identified by the CSSF were the subject of an immediate response.

Sanctions already imposed in the past

Another BNP Paribas subsidiary suffered sanctions last year. Financière des Payments Electroniques (FPE), the company behind the “nickel” accounts available in tobacco shops, was fined €1 million by France’s banking watchdog, the Authority for Prudential Regulation and Resolution (ACPR), for similar shortcomings.

European regulators are keeping a close eye on banking players to combat money laundering and terrorist financing. In France, the law requires banks to report to Tracfin, an organization linked to Bercy, any transaction in which a customer attempts to conceal the fraudulent origin or destination of funds and which could constitute a terrorist financing operation.

Source: Le Parisien

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