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Report: Citi, BNP Paribas named as 'victims' in US case against Huawei CFO

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Report: Citi, BNP Paribas named as 'victims' in US case against Huawei CFO

U.S.-based Citigroup Inc. and France's BNP Paribas SA have been named in the 13-count indictment brought by the U.S. against Huawei Technologies Co. Ltd. CFO Meng Wanzhou, who is facing charges of wire fraud and breaking sanctions against Iran, Reuters reported, citing newly available documents.

Both lenders, which are reportedly among at least four financial groups that had banking relationships with Huawei, are being considered as "victim" institutions for allegedly being misled by the company and Meng about business dealings in Iran despite the U.S. sanctions.

The banks were named in documents following an Aug. 20 hearing in the British Columbia Supreme Court, where Meng is facing extradition charges. HSBC Holdings PLC and Standard Chartered PLC are the other two financial institutions, according to previous reports.

U.S. prosecutors have claimed that Meng and other Huawei officials defrauded HSBC and other lenders by misrepresenting the firm's relationship with Iran-based firm Skycom Tech, where Meng was a member of the board of directors between February 2008 and April 2009. The prosecutors said Huawei controlled Skycom's Iranian operations from at least 2007 until 2014, according to the newswire.

The newly available documents stated that executives from HSBC, StanChart and Citigroup will be witnesses for the U.S. prosecution, while an FBI forensic accountant is expected to testify about documents, which show BNP Paribas provided financial services for Huawei between 2013 and 2018, Reuters wrote.

The U.S. Justice Department has been investigating Huawei since 2016 for allegedly sending U.S. technology to countries including Syria, Iran and North Korea. In May, the U.S. blacklisted the Chinese telecommunication equipment provider. However, in August the country's Commerce Department granted a temporary license for Huawei to buy supplies from U.S. firms to limit disruption for local customers and to wind down business links.