Disclosure Notices
CCAR and DFAST Disclosures
BNP Paribas USA participates in the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR), which is an annual exercise by the Federal Reserve to assess whether the largest bank holding companies operating in the United States have sufficient capital to continue operations throughout times of economic and financial stress.
2018 Mid-Year Dodd-Frank Act Company-Run Capital Stress Test Disclosure
US Customer Due Diligence Requirements for Financial Institutions
The Customer Due Diligence Rule (“CDD Rule”) issued by the US Department of the Treasury Financial Crimes Enforcement Network (“FinCEN”) requires covered US financial institutions to identify and verify Ultimate Beneficial Owners (“UBOs”), as well as one Control Person, of a legal entity when opening new accounts, unless the entity falls within a listed exception under the rule. Such information must include name, street address, and date of birth. A US person must provide a Social Security Number, and a non-US person must provide either a passport number and country of issuance or other similar identification number. To verify this information, the customer may be asked to provide a copy of valid government-issued identification (such as a driver’s license or passport).
When is the rule applicable?
- From May 11, 2018 for all legal entity customers opening a new account
What is the definition of UBO and Control Person?
- UBO: Any individual who directly or indirectly owns 25% or more of the legal entity customer
- Control Person: An individual with significant responsibility to control, manage, or direct the legal entity customer, such as a Chief Executive Officer or Chief Operating Officer
Most US publicly-traded, regulated, and government entities are excluded from these CDD Rule requirements. The requirements and exceptions are described in detail in the CDD Rule, 31 CFR 1010.230.
For more information:
Visit FinCEN.gov
Public 606(a) & 605 Reporting
US Executive Order 13959
US Executive Order 13959 – Prohibiting Transactions in Securities of Certain “Communist Chinese military companies”
August 2, 2021
Beginning at 12:01 a.m. eastern standard time (“EST”) on Monday, August 2, 2021 (hereafter, the “Effective Date”), US persons are prohibited from engaging in the purchase or sale of publicly traded securities, or any publicly traded securities that are derivative of such securities, or are designed to provide investment exposure to such securities of Chinese Military-Industrial Complex companies (“CMICs”). The term ‘‘publicly traded securities’’ includes any ‘‘security,’’ as defined in section 3(a)(10) of the Securities Exchange Act of 1934, Public Law 73–291 (as codified as amended at 15 U.S.C. 78c(a)(10)), denominated in any currency that trades on a securities exchange or through the method of trading that is commonly referred to as ‘‘over-the-counter,’’ in any jurisdiction.
In addition, US persons are also prohibited from performing services commonly associated with “intermediary functions” such as execution, clearing, custody, settlement, and back office operations, if those services are provided to a US person in connection with activities prohibited under the Order.
- A CMIC is any person (individual or entity) that is identified and listed as such by the US Treasury Department pursuant to various statutory provisions of US Federal law, or other entity with a name that exactly matches the name of the listed CMIC. Please refer to the current list of Non-SDN Chinese Military-Industrial Complex Companies List.
- The term “US persons” includes US citizens, permanent residents, and US legal entities located outside of the United States, as well as any individuals or entities located in the United States or its territories.
- A “transaction” is defined as “the purchase or sale of publicly traded securities”.
BNP Paribas will implement controls on August 2, 2021 that restrict US. Person clients from trading in CMIC Covered Securities other than transactions for the purposes of divesting existing holdings by the end of the permitted divestiture period. Non-US. Person clients may generally continue trading in the Covered Securities, except that transactions by non-US. Person clients and permitted divestment transactions by US. Person clients will both be excluded from straight-through processing and will be suspended until due diligence checks can be performed. If BNP Paribas is able to determine based on information ordinarily available that the transaction is permitted under the Executive Order then the transaction will be released from suspension and allowed to continue to be processed. If BNP Paribas cannot determine that the transaction falls within the permitted scope of the Executive Order, then the transaction will not be processed.
Please note that BNP Paribas clients and counterparties are responsible for ensuring that they comply with applicable provisions of Executive Order 13959, as amended (and any subsequent official guidance).
To continue placing orders (long sell and/or purchase) and/or requesting the clearing and/or settlement of transactions in the Covered Securities with BNP Paribas, please provide express written representations (“Representations”) prior to placing the order and/or requesting clearing and/or settlement of a transaction that the order and/or transaction is solely for divestment purposes and will not result in additional investment exposure to such Covered Securities.
If you place orders and/or request clearing and/or settlement of a transaction with us in the Covered Securities without prior Representations, BNP Paribas reserves the right to take action, as we deem necessary to comply with the provisions of EO 13959, as amended (and any subsequent official guidance).
For the avoidance of doubt, your order will continue to be acknowledged, however completion of such order will be subject to internal controls as required under the Executive Order.
Representations can either be made on an order and/or transaction level or using the attached template which will be subject to regular refresh as and when we deem necessary.
Please reach out to your BNP Paribas relationship manager with any further questions.
Please refer to the following links for additional details:
Executive Order 14032 of June 3, 2021
Disclaimer
This communication is provided for informational purposes only and does not purport to constitute legal or regulatory advice. In all cases, recipients should conduct their own investigation and analysis of the information contained in this document and should consult their own professional advisers.
State-Specific Disclosures: California Voluntary Carbon Market Disclosures Act
Under the Voluntary Carbon Market Disclosures Act AB 1305, Section 44475, Part 10 of Division 26 of the California Health and Safety Code (“the VCMDA”), a business entity that is marketing or selling voluntary carbon offsets within the state of California is required to disclose on its website specified information notably about the applicable carbon offset projects and details regarding accountability measures if a project is not completed or does not meet the projected emissions reductions or removal benefits.
The VCMDA also requires an entity that purchases or uses voluntary carbon offsets that makes claims regarding the achievement of net zero emissions, claims that the entity, related entity, or a product is “carbon neutral,” or makes other claims implying the entity, related entity, or a product does not add net carbon dioxide or greenhouse gases to the climate or has made significant reductions to its carbon dioxide or greenhouse gas emissions, to disclose on its website specified information as detailed in the VCMDA. This section does not apply to entities that do not operate within the state of California or do not purchase or use voluntary carbon offsets sold within the state of California.
In addition, the VCMDA requires an entity that makes claims regarding the achievement of net zero emissions, claims that the entity, a related or affiliated entity, or a product is “carbon neutral,” or makes other claims implying the entity, related or affiliated entity, or a product does not add net carbon dioxide or greenhouse gases, as defined in Section 38505, to the climate or has made significant reductions to its carbon dioxide or greenhouse gas emissions, as described in Section 38505, to disclose on its website specified information which notably include, information documenting how, if at all, a “carbon neutral,” “net zero emission,” or other similar claim was determined to be accurate or actually accomplished and whether there is independent third-party verification of the company data and claims listed. This section does not apply to entities that either do not operate within the state of California, or that do not make claims within the state of California.
“Voluntary carbon offset” means any product sold or marketed in the state of California that claims to be a “greenhouse gas emissions offset,” a “voluntary emissions reduction,” a “retail offset,” or any like term, that connotes that the product represents or corresponds to a reduction, not required by any law or regulation, in the amount of greenhouse gases present in the atmosphere or that prevents the emission of greenhouse gases into the atmosphere that would have otherwise been emitted.
Pursuant to the VCMDA described above, please find below BNP Paribas’s disclosures.
This information is provided for the sole purpose of disclosure under the VCMDA and is not intended, nor can it be relied on, to create legal relations, rights, or obligations.
BNP Paribas decided to gradually align its loan portfolio with the objectives of the 2015 Paris Agreement, and committed to setting intermediary alignment targets for the most carbon-intensive sectors. To date, it has published targets for nine sectors – Oil and Gas, Power generation, Automotive, Steel, Aluminium, Cement, Shipping, Aviation, Commercial Real Estate. Alignment targets are informed by science-based and industry-endorsed scenarios, published by reputable organizations
BNP Paribas has also set the target to reduce greenhouse gas emissions in its operation scope (scopes 1,2 and 3.6 related to business travel) to a maximum of 1.85 tCO2 equivalent per FTE by 2025, i.e. a reduction of 25% compared to 2018, and has been increasing its share of low-carbon electricity into its electricity mix. Information on these targets and on BNP Paribas emissions in its operational scope can be found in BNP Paribas’ 2023 Universal registration document (URD) pages 692 to 695.
Within its operating scope (direct emissions, indirect emissions related to energy purchase and emissions from business travels), BNP Paribas annually purchases voluntary carbon credits for an amount equivalent to the residual greenhouse gas emissions emitted the previous year within its operating scope. In 2023, all of the Group’s 2022 emissions within its operating scope (241,855 tCO₂ equivalent) were offset via four projects described page 695 of BNP Paribas’ 2023 Universal registration document.
BNP Paribas 2023 Universal registration document
The Universal Registration Document (URD) is a document filed with the Autorité des Marchés Financiers in France. Information concerning the economic, social, civic and environmental responsibility of BNP Paribas is presented in the Chapter 7 of this document (2023 URD). Report of one of the Statutory Auditors, appointed as independent third party, on the verification of the consolidated non-financial performance statement can be found in Section 7.11. BNP Paribas appointed Deloitte to provide assurance of selected environmental and social data reported in its annual 2023 URD pages 766 to 768. Deloitte performed their work in accordance with their audit verification programme in application of Articles A.225-1 et seq. of the French Commercial Code, the professional guidance issued by the French Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) relating to this engagement and with the international standard ISAE 3000 (revised – Assurance engagements other than audits or reviews of historical financial information).
BNP Paribas 2024 Climate report
The sector-specific methodologies followed by BNP Paribas to measure the gradual alignment of its loan portfolio with the objectives of the Paris Agreement are disclosed in BNP Paribas 2024 Climate report (published in May 2024) in Chapter IV (‘Metrics, Targets & alignment process: Monitoring the acceleration to Net Zero by 2050’) of this document.
For more information on our overall carbon credit position and activity please refer to BNP Paribas Position on Voluntary Carbon Credits.
For fullest of reports and publications: Search & Documents | Financial reports | Investors & Shareholders | BNP Paribas Bank
This information may be updated without notice.
Updated as of: December 16th, 2024