BNP Paribas (BNPP) has agreed a $246 million settlement with the Board of Governors of the Federal Reserve System (FRB) relating to past misconduct in its foreign exchange business.
The settlement will be covered by existing provisions. This follows the announcement by BNPP of a settlement with the New York State Department of Financial Services on the 24th May relating to the same issue.
In reaching this settlement, the FRB acknowledged the bank’s group-wide remediation initiatives and the full cooperation of BNPP in the investigation.
The conduct which led to this settlement occurred during the period from 2007 to 2013. Since this time, BNPP says that it has proactively implemented extensive measures to strengthen its systems of control and compliance. The bank has increased resources and staff dedicated to these functions, conducted extensive staff training and launched a new code of conduct which applies to all staff.
In a release announcing the settlement, BNPP says that it deeply regrets the past misconduct, which was a clear breach of the high standards on which the group operates. “Conducting its business in a responsible and ethical manner is a cornerstone of BNP Paribas’ values and the group will continue to make improvements to ensure that it delivers on its responsibilities to all its stakeholders,” says the French bank in the release.