The New York state banking regulator on Monday said BNP Paribas will suspend certain parts of its U.S. dollar clearing operations for one year, as part of a larger settlement for evading U.S. sanctions laws.
The French bank is also paying $8.9 billion to federal and state authorities and agreed to terminate some senior executives, the New York State Department of Financial Services said in a statement.
The temporary dollar-clearing ban is due to start on Jan. 1, 2015, and is an unprecedented punishment. It’s unclear if the French bank will lose a significant number of clients due to the ban. The ban largely impacts BNP’s oil and gas finance business.