Reuters: BNP may face one-year dollar clearing ban

|About: BNP Paribas (BNPQF)|By:, SA News Editor

BNP Paribas (BNPQF) may now face another penalty from U.S. authorities due to its money transfer sanction violations. The NY Department of Financial Services is now looking to impose a year suspension on the bank for currency conversions, Reuters reports.

The suspension will prohibit a service known as "dollar clearing," which will suspend the bank from converting foreign currencies to dollars in some businesses. BNP's New York branch clears hundreds of billions of dollars every day in trade finance, commodities businesses, custodian accounts and foreign exchange.

On top of its expected $9B fine, the suspension will cause a hefty hit to the bank's services, although it will allow BNP to retain its license to operate in New York. S&P has said earlier this month that the bank's long-term credit rating is at stake, as a result of the upcoming new penalties.