Opening of an investigation into “potentially suspicious” financial flows hosted by a branch of BNP Paribas

A money laundering investigation was opened in Paris after the report of possibly suspicious flows from a Cypriot company, whose accounts were allegedly hosted by a branch of BNP Paribas, we learned on Tuesday from a source close to the matter. Confirming information from Le Monde, the Paris prosecutor's office indicated that it had opened an investigation following a report from Tracfin on May 17, received in June, denouncing suspicious flows from the Cypriot financial services company TCR International Limited.

“Over the period from 2019 to 2021, several hundred million euros and dollars would have circulated through his cash accounts in France, corresponding to funds of possibly dubious origin and/or flows without explicit economic logic” , we specified from the same source. The current preliminary investigation targets the offenses of money laundering aggravated by the habitual nature of assisting in placement, concealment or conversion of the proceeds of a crime, carrying a penalty of 10 years' imprisonment and 750,000 euros in fines. fine or half the value of the laundered property.

It was entrusted to the Judicial Financial Investigation Service (SEJF). According to a source close to the matter, the company BNP Paribas Securities Services appears to be the establishment that hosted the accounts of TCR International Limited. The investigations will have to verify that the various companies of the French bank BNP Paribas have respected their duty of vigilance.

“BNP Paribas is committed to meeting its regulatory obligations. The group has adopted and maintains a global compliance system based on a risk-based approach designed to comply with laws, rules and regulations relating to the fight against money laundering, corruption and the financing of terrorism,” said BNP. Paribas, specifying that it cannot comment on the investigation “in view of the obligations to which it is bound”. “Significant resources and a significant number of employees are dedicated to this purpose, particularly within the compliance function,” added BNP Paribas. The bank terminated the securities custody agreement with TCR International Limited in January 2022.

According to Le Monde, behind certain suspicious operations there are Russian and Ukrainian clients. According to a source close to the matter, at this stage, the French investigation does not make it possible to establish a link with the Russian paramilitary group Wagner nor with its founder and former leader Yevgeny Prigojine, who died in August. In a press release addressed to the evening daily and available online, TCR International Limited “categorically denies having had direct relations” with the Wagner group and its former leader, and claims to be “audited twice a year by two external firms”.