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The Morning Risk Report: BNP Paribas Could Face Thousands of Sudan Sanctions-Related Claims

By Max Fillion | Dow Jones Risk Journal

 

Good morning. BNP Paribas could face thousands of claims from Sudanese plaintiffs after a U.S. jury found the bank owed money to three individuals after helping an abusive regime there end-run U.S. sanctions, reports Risk Journal’s Richard Vanderford.

  • Liable: A Manhattan jury on Friday found Paris-based BNP liable for damages suffered by the men, who said the bank provided services to a U.S.-sanctioned regime that committed human rights violations. The jury said the bank must award the individuals a total of roughly $20 million.
     
  • Bellwether: The trial was intended to be a bellwether—a test case—and the legal team intends to continue to pursue claims, said Adam Levitt, a partner at law firm DiCello Levitt who represented the plaintiffs. A class action could ultimately encompass 23,000 additional people, he said.
     
  • Follow-on: The lawsuit, first filed in 2016, follows a criminal sanctions case that prosecutors brought against BNP Paribas more than a decade ago over its work moving money in defiance of sanctions on Sudan, Iran and Cuba. The bank in 2014 entered a guilty plea and agreed to pay $8.9 billion for moving billions of dollars through the U.S. financial system on behalf of entities in those countries.
     
  • Pending appeal: A spokesperson for BNP Paribas said it intends to continue fighting the case. “The verdict is specific to these three plaintiffs, and we strongly believe it should not have broader application beyond this decision,” the bank said. “We believe this verdict should be overturned on appeal.”
     

Also: BNP Paribas Shares Drop After U.S. Verdict Over Alleged Role in Sudan

 
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Compliance

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Runaway insurance costs bring back talk of price caps.

America is in a cost crisis when it comes to home and auto insurance. A number of states have a controversial answer: price controls.

Illinois lawmakers are considering a ban on home insurers hiking rates because of catastrophes in other states. Louisiana recently handed its regulator the power to strike down “excessive” premiums. New York legislators are investigating soaring home-insurance costs, with a view to potential new curbs. In Michigan, Democratic lawmakers this summer proposed a law to impose a 10% cut in auto-insurance rates.

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  • The U.K. Competition and Markets Authority said the $3.7 billion merger between Getty Images Holdings and stock-photo rival Shutterstock raises competition concerns.
     
  • Canada said it will launch a new financial crimes agency with the power to take on money laundering and fraud, and to change the law to force banks to have policies to prevent scams, reports Risk Journal.
     
  • Kenvue urged the Food and Drug Administration to deny a proposal to add further warnings to acetaminophen products after the Trump Administration linked Tylenol use during pregnancy to autism.
     
  • A U.K. financial regulator said corporate finance firms are failing to meet anti-money laundering requirements, Risk Journal reports. 
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10%

The percentage of respondents to a U.K. financial regulator’s survey that said they don’t retain documented evidence of customer due diligence.

 

Risk

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Customers ditched Disney+, Hulu after Kimmel suspension.

Customer cancellations for Disney’s Disney+ and Hulu streaming services jumped in September, after the company briefly suspended the ABC late-night show “Jimmy Kimmel Live!”.

The rate of customer defections for Disney+ doubled to 8% from 4% in August, while those for Hulu doubled to 10% from 5%, according to data from subscription-analytics company Antenna. The rate is calculated by dividing the number of cancellations in a given month by subscribers at the end of the prior month.

 
  • Senior U.S. officials are heading to Israel, hoping to keep a fragile cease-fire and peace process for Gaza on track after repeated clashes between Hamas and Israel.
     
  • China’s state security authorities accused the U.S. of a major cyberattack targeting the country’s National Time Service Center, saying the U.S. infiltrated the facility responsible for generating and broadcasting official “Beijing Time.”
     
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“It’s turned out to be nasty, because you have two leaders that truly hate each other... It makes it actually a little bit difficult.”

— President Trump on the latest in Russia-Ukraine peace talks
 

What Else Matters

  • The Supreme Court said it would decide whether drug users have a constitutional right to own a gun, a new showdown over the scope of the Second Amendment.
     
  • The Rashtriya Swayamsevak Sangh was once stigmatized but is now an influential force informing Indian leader Narendra Modi’s nationalist policies.
     
  • The morning after thieves broke into the Louvre Museum in broad daylight, making off with its crown jewels, an embarrassed nation is asking itself a question: How could France let this happen?
     
  • A federal appeals court will allow President Trump to deploy the National Guard to Portland, Ore., despite objections from state and local officials who say that no emergency exists to justify the federal show of force.
     
  • Fraudster Joe Sanberg’s bank got Los Angeles Clippers owner Steve Ballmer to invest, then struck a puzzling deal with the basketball team’s star. 
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About Us

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

You can also reach us by replying to any newsletter, or by emailing our editor David Smagalla at david.smagalla@wsj.com.

 
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