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BNP Paribas pleads guilty to falsifying business records, conspiracy

The New York state banking regulator on Monday said BNP Paribas will suspend certain parts of its U.S. dollar clearing operations for one year, as part of a larger settlement for evading U.S. sanctions laws.

The French bank is also paying $8.9 billion to federal and state authorities and has agreed to terminate some senior executives, the New York State Department of Financial Services said in a statement.

The logo of the French bank BNP Paribas on June 24, 2014 in Lille, France.
Philippe Huguen | AFP | Getty Images
The logo of the French bank BNP Paribas on June 24, 2014 in Lille, France.

The temporary dollar-clearing ban is due to start on Jan. 1, 2015, and is an unprecedented punishment. It's unclear if the French bank will lose a significant number of clients due to the ban. The ban largely impacts BNP's oil and gas finance business.

The state regulator also said 13 individuals will leave the bank as part of the settlement, including chief operating officer Georges Chodron de Courcel.

French financial supervisor ACPR published the following statement on Monday on the agreement.

"ACPR, as the home supervisor of BNP Paribas, has examined the situation of BNP Paribas and has concluded that BNP Paribas Group has a solid solvency and liquidity position, which will allow it to absorb the anticipated consequences of these sanctions," the statement said.

"It has also considered that the present organization and controls enacted are adapted to the characteristics of its business, in particular its international activity. Thus with all licenses and authorizations maintained, the BNP Paribas Group is in a position to continue its business in full compliance with all applicable laws."

Earlier on Monday, BNP Paribas pleaded guilty to two criminal charges and agreed to forfeit $8.83 billion, as part of a broad investigation into allegations the French bank violated U.S. sanctions laws.

A lawyer for BNP briefly appeared in New York state court on Monday, to answer one count of falsifying business records, and one count of conspiracy.

One of the prosecutors said BNP engaged in a "long-term, multi-jurisdictional conspiracy" to violate sanctions laws by facilitating transactions involving Sudan, Cuba, and Iran.

Read MoreBNP Paribas board approves record $8.9B settlement

Earlier reports indicated that U.S. authorities planned for this suspension to last up to a year, and that BNP Paribas was able to negotiate a start date of January 2015 so as to have time to make arrangements.

BNP Paribas is France's largest bank by market capitalization.

Read MoreBNP Paribas bank facing heavy penalties: CEO

—By Reuters. CNBC contributed to this report.

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