WASHINGTON - The U.S. Justice Department is set to unveil on Monday its settlement with French bank BNP Paribas, including a record fine reaching nearly US$9 billion for allegedly going against US sanctions.

Analysts say the penalties could affect the bank's dividend payout, investment banking targets, and regulatory capital ratios. Some of BNP's dollar-clearing operations could also be suspended temporarily, according to unnamed sources cited by Reuters.

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France's biggest bank is expected to enter a guilty plea to a criminal charge filed against it in a Manhattan Federal Court on Monday. The negotiations had at one point raised the possibility of a fine reaching $16 billion, but the lending firm is now expected to keep its banking license.

Sources said U.S. authorities are trying to determine if BNP evaded U.S. sanctions for Sudan from 2002 to 2009.

The US$9 billion fine would be the biggest fine that a European bank has paid for U.S. sanctions violations, Morgan Stanley analysts said. The sanctions allegedly violated were imposed by the Office of Foreign Assets Control.

BNB said that it is currently in talks with U.S. authorities about the dollar payments that could have been included in the economic sanctions. Last month, the French lender said it had beefed up its control processes to make sure the mistakes are not repeated.

French President Francois Hollande appealed to U.S. President Barack Obama for a fair penalty that will not affect Europe's economy. However, Obama responded by saying it is in the hands of the judiciary.

One source said the investigation has revealed billions of dollars' worth of BNP's transactions that clearly violated the U.S. sanctions.

Last month, the New York State Department of Financial Services reportedly sought the suspension of BNP's dollar-clearing operations as a condition for the bank to retain its license. Other sources told Reuters that BNP will most likely have a year-long suspension for its dollar-converting operations.

On Sunday, two other sources said the ban would not take effect for another six months to allow BNP to set up alternate plans with its clients. The settlement would also involve the departure of a dozen employees and the implementation of disciplinary measure for others, a source added.

BNP's shares have slumped 17% since it first announced the fine in February because of concerns that the penalties could have a negative impact on its dividends and capital ratio.

TagsBNP Paribas, US sanctions, US fines BNP Paribas