Civil Enforcement Information - BNP Paribas SA

Date issued: Jun. 30 2014

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TURBOFAC Commentary (809 words)

Notes:

1) Largest OFAC-issued fine in history (at the time of issuance and up through at least 1/2021).

2) Further information provided in settlement and deferred prosecution agreements.

3) Paragraph 12 of the settlement agreement describes a series of transactions which is notable for OFAC's seeing through the "form" to classify the "substance" as a violation. The notion of "structural linkage" between a series of technically disparate transactions may be used to cobble together a single transaction which, when so viewed, would fall foul of the sanctions regulations. Here, the USD-EUR book transfer itself did not violate the sanctions laws (see e.g. the Letter From T. Maloney (Treasury) to Sen. M. Kirk re: Post-JCPOA Dollar Transactions). It was only when a transaction that had a sufficient nexus to that book transfer routed through the U.S. that a violation occurred. The line is...