BNP Paribas Plea Agreement, Documents, and Non-Resolution of Tax Investigation (7/4/14)

Most readers have already read, at some level, about the BNP Paribas plea agreement for "conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions."  See the DOJ Press Release, dated 6/30/14, here.  Justice Dept press release in BNP Paribas case.  The key documents (plea agreement, etc.) may be found here.  The press release is unusually long, at least compared to press releases in tax crimes and tax crimes related cases. The plea agreement is long as well.  But there is a lot of ground to cover in them.

I include here only certain excerpts from the plea agreement related to tax (I have added the bold facing to emphasize my comment at the end)::

In consideration of the plea of BNPP to Count One of the Information, neither BNPP nor BNP Paribas (Suisse) S.A. shall be further prosecuted criminally by the Offices (except for criminal tax violations as to which the Offices cannot, and do not, make any agreement) for any violations by BNPP of United States economic sanctions laws and regulations, including TWEA and IEEPA, that occurred between 2002 and 2012, to the extent that BNPP has truthfully and completely disclosed such conduct to the Offices as of the date of this Agreement. 

* * * * 

BNPP agrees to pay the Stipulated Fine Amount in full no later than 90 days after the imposition of sentence. BNPP agrees that it shall not claim, assert, or apply for, either directly or indirectly, any tax deduction, tax credit, or any other offset with regard to any US. federal, state, or local tax or taxable income for any fine or forfeiture paid pursuant to this Agreement. 

Note specifically Than BNP Paribas has not resolved the tax investigation of BNP Paribas' Swiss affiliate, BNP Paribas (Suisse) S.A.