Bank charged with money-laundering
French bank Société Générale faces a new legal challenge with the start of a money-laundering trial in Paris.india Updated: Feb 04, 2008 13:21 IST
The French bank Société Générale faces a new legal challenge on Monday with the start of a money laundering trial in Paris.
Four banks, including Societe Generale, and 138 people, including the bank's chairman Daniel Bouton, are on trial over the multi-million dollar scam. The other banks include Societe Marseillaise de Credit, Barclays France and the National Bank of Pakistan.
The alleged money laundering took place between 1996 and 2001 in the Sentier area of the city and involved stolen or fraudulent cheques shuttled between France and Israel.
All four banks are charged with contributing to money laundering and profiting from the deals. However, the banks denied their involvement in the alleged crime. Societe Generale said it had not taken part in any money laundering activities.
Societe Generale revealed last month it had lost about $7 billion (nearly 5 billion euros) in the biggest rogue trading scandal in history. The loss was caused by Jerome Kerviel, a 31-year old employee at the bank, who is under investigation.