"Nevertheless, despite these warnings -- and despite claiming to be cooperating fully with the Government's investigation into sanctions violations -- BNPP continued to process US dollar transactions for Iranian Controlled Company until November 2012," the Justice Department said.

However, the DoJ document did not name the Indian bank, neither the 'Iranian Controlled Company'.

As a result of these and many violations, BNP Paribas will pay USD 8.97 billion to federal and state authorities, terminate senior executives, and suspend US dollar clearing operations for one year at business lines in which the misconduct centered.

This is the biggest ever fine paid by a bank for violations of the U.S. economic sanctions, while the Indian-origin U.S. Attorney Preet Bharara said the bank "perpetrated what was truly a Tour de Fraud."

BNP Paribas has a presence in 75 countries, including in India, with more than 180,000 employees and its businesses include retail, corporate and investment banking.

Commenting on the settlement BNP Paribas CEO Jean-Laurent Bonnafe said, "We deeply regret the past misconduct that led to this settlement. The failures that have come to light in the course of this investigation run contrary to the principles on which BNP Paribas has always sought to operate.

He also announced a comprehensive plan to strengthen the bank's internal controls and processes.

Also read: FIIs Pour In 32,000 Crore In Indian Equities And Debt

               Money Saving Ideas That Can Cost You More