Exclusive: Credit Agricole may pay about $900 million in U.S. sanctions probes

Wed Sep 9, 2015 4:27pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Karen Freifeld

NEW YORK (Reuters) - France's Credit Agricole SA (CAGR.PA: Quote) is nearing an agreement to pay about $900 million to resolve investigations into whether it illegally moved funds through the United States for blacklisted individuals and countries such as Sudan and Iran, according to a person familiar with the matter.

Talks are ongoing and the total penalty, negotiated by multiple U.S. agencies, could change. A second source described the current settlement as in the "high hundreds of millions" and suggested it could reach $1 billion.

The bank, France's third-largest listed lender, is expected to reach an accord as soon as this month, the two people said.

A spokeswoman for Credit Agricole had no immediate comment.

Last month, Credit Agricole said it was in "very advanced talks" with U.S. authorities over the sanctions probes and it expected to reach a global settlement in autumn. It set aside an additional 350 million euros ($392 million) for a settlement.

In total, Credit Agricole has earmarked 1.6 billion euros ($1.79 billion) for litigation, but it is unclear how much of that is dedicated to a deal on sanctions.

The resolution focuses on misconduct that occurred between 2003 and 2008, one source said.

The sources did not want to be identified because negotiations are still underway.   Continued...

 
A traffic light shines red near a Credit Agricole logo, pictured on a bank branch in Paris, France, August 4, 2015. REUTERS/Stephane Mahe