After BNP, U.S. targets range of firms in crackdown on illicit money flows

Reuters ^ | 01 July 2014 | Aruna Viswanatha

[Lorianne]

BNP Paribas’ guilty plea and agreement to pay nearly $9 billion for violating U.S. sanctions is part of a larger U.S. Justice Department shift in strategy that is expected to snare more major banks and other firms across the financial food chain.

Two other major French banks, Credit Agricole CAGR.PA and Societe Generale SOGN.PA, Germany's Deutsche Bank AG DBKGn.DE, and Banamex USA, the U.S. arm of Citigroup Inc's C.N Mexican banking group Banamex, are among those being investigated for possible money laundering or sanctions violations, according to people familiar with the matter and public disclosures.

The Justice Department and other U.S. authorities, including the Manhattan District Attorney, are probing Credit Agricole and Societe Generale for potentially violating U.S. economic sanctions imposed against Iran, Cuba and Sudan, one of the sources said.

Credit Agricole and SocGen have disclosed that they are reviewing whether they violated U.S. sanctions. SocGen said in its latest annual report that it is engaged in discussions with the Treasury Department’s Office of Foreign Assets Control over potential sanctions violations.