…BNP’s disclosure of the $1.1 billion provision is “obviously very significant,” said Howard Mendelsohn, a former acting assistant secretary for the U.S. Treasury Department’s Office of Intelligence and Analysis and managing director in the Washington, D.C. office of the Camstoll Group, a consulting firm. But it remains uncertain whether the bank’s estimate is conservative, he said.
“An active and intense negotiation period likely still lies ahead,” said Mendelsohn.
Since 2009, the United States has imposed costly settlements on Barclays, Credit Suisse, Standard Chartered, Lloyds Bank and ING for stripping wire data. Most recently, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) penalized Royal Bank of Scotland $100 million for erasing details for transactions linked with Iran, Cuba, Myanmar and Sudan.