2012 Registration document and annual financial report - BNP Paribas

4CONSOLIDATEDFINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statements4On 27 June 2008, the Republic of Iraq filed a lawsuit in New York againstapproximately 90 international companies that participated in the oilfor-food(“OFF”) programme and against BNP Paribas as holder of theOFF account on behalf of the United Nations. The complaint alleges,notably, that the defendants conspired to defraud the OFF programme,thereby depriving the Iraqi people of more than USD 10 billion in food,medicine and other humanitarian goods. The complaint also contendsthat BNP Paribas breached purported fiduciary duties and contractualobligations created by the banking services agreement bindingBNP Paribas and the United Nations. The complaint is pleaded underthe US Racketeer Influenced and Corrupt Organisations Act (“RICO”) whichallows treble damages if damages are awarded. The complaint has beenserved and the defendants, including BNP Paribas, moved to dismissthe action in its entirety on a number of different legal grounds. Thecomplaint has been served and the defendants, including BNP Paribas,moved to dismiss the action in its entirety on a number of different legalgrounds. Oral arguments took place in October 2012. On 6 February 2013,the complaint was dismissed by the United States District Court SouthernDistrict of New York (which means that the plaintiff does not have theopportunity to re-file an amended complaint). On 15 February 2013, theRepublic of Iraq filed a notice of appeal before the United States Court ofAppeals for the Second Circuit.The Bank and certain of its subsidiaries are defendants in several actionspending before the United States Bankruptcy Court Southern District ofNew York brought by the Trustee appointed for the liquidation of BernardL. Madoff Investment Securities LLC (“BLMIS”). These actions, knowngenerally as “clawback claims”, are similar to those brought by the BLMISTrustee against numerous institutions, and seek recovery of amountsallegedly received by the BNP Paribas entities from BLMIS or indirectlythrough BLMIS-related “feeder funds” in which BNP Paribas entities heldinterests. The BLMIS Trustee claims in these actions that the amountswhich BNP Paribas entities received are avoidable and recoverable underthe U.S. Bankruptcy Code and New York state law. In the aggregate,the amounts sought to be recovered in these actions approximates$1.2 billion. BNP Paribas has substantial and credible defenses to theseactions and is defending against them vigorously.Various legal disputes and enquiries are ongoing relating to therestructuring of the Fortis Group, now Ageas, of which BNP Paribas Fortisis no longer part, and to events having occurred before BNP ParibasFortis became part of the BNP Paribas Group. Among these disputes arelitigations brought by shareholder groups in The Netherlands and Belgiumagainst (among others) Ageas and BNP Paribas Fortis, in the context ofthe capital increase of Fortis (now Ageas) completed in October 2007in connection with the acquisition of ABN Amro Bank N.V.. The Bank isvigorously defending itself in these proceedings.There are no other government, legal or arbitration proceedings of whichthe Company is aware that are likely to have or have had within the last12 months a significant impact on the financial position or profitabilityof the Company and/or Group.8.j FEES PAID TO THE STATUTORY AUDITORSIn 2012Deloitte PricewaterhouseCoopers Mazars TotalExcluding tax, in thousands of eurosTotal % Total % Total % Total %AuditStatutory audits and contractual audits, includingIssuer 3,242 20% 3,359 19% 1,539 16% 8,140 19%Consolidated subsidiaries 8,801 55% 9,391 54% 7,393 79% 25,585 60%Other reviews and services directly related to the statutory audit engagement, includingIssuer 1 0% 564 3% 93 1% 658 2%Consolidated subsidiaries 1,472 9% 2,920 17% 227 2% 4,619 11%Sub-total 13,516 84% 16,234 93% 9,252 99% 39,002 91%Other services provided by the networks to fully- or proportionally-consolidated subsidiariesTax and legal 97 1% 77 0% - 0% 174 0%Others 2,518 16% 1,183 7% 77 1% 3,778 9%Sub-total 2,615 16% 1,260 7% 77 1% 3,952 9%TOTAL 16,131 100% 17,494 100% 9,329 100% 42,954 100%2122012 Registration document and annual financial report - BNP PARIBAS