WASHINGTON: The United States authorities have imposed a fine of $55 million on the National Bank of Pakistan (NBP) for repeated compliance failures and anti-money laundering violations.
According to details, the US Federal Reserve Board announced a $20.4 million penalty against the National Bank of Pakistan for anti-money laundering violations. The Board will also require the firm to improve its anti-money laundering program.
As detailed in the consent cease and desist order against the National Bank of Pakistan, the firm s US banking operations did not maintain an effective risk management program or controls sufficient to comply with anti-money laundering laws.
Meanwhile, Superintendent of Financial Services Adrienne A. Harris announced Thursday that the National Bank of Pakistan and its New York branch have agreed to pay $35 million in penalties pursuant to a Consent Order entered into with the New York State Department of Financial Services (DFS). The Consent Order resolves the Department’s investigation into compliance deficiencies at the Branch with respect to Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) requirements.
“The National Bank of Pakistan allowed serious compliance deficiencies in its New York branch to persist for years despite repeated regulatory warnings,” said Superintendent Harris.
“Foreign banks that enjoy the privilege of operating in New York have an obligation to maintain effective controls, and the Department will continue to promote financial transparency and take action to protect the global financial system when those obligations are not met.”
