US imposes fine of over USD 55 mn on National Bank of Pakistan for anti-money laundering violations

Washington [US], Feb 25: The United States federal authorities have fined the National Bank of Pakistan (NBP), a foreign bank operating in the US, more than USD 55 million for anti-money laundering violations and for repeated compliance failures.
The Federal Reserve Board (FRB) on Thursday announced a USD 20.4 million penalty against the National Bank of Pakistan for anti-money laundering violations.

“As detailed in the consent cease and desist order against the National Bank of Pakistan, the firm’s U.S. banking operations did not maintain an effective risk management program or controls sufficient to comply with anti-money laundering laws,” the Federal broader added
The Feb Board said its action is in conjunction with an action by the New York State Department of Financial Services.
Superintendent of Financial Services Adrienne A. Harris announced that the National Bank of Pakistan and its New York branch have agreed to pay USD 35 million in penalties pursuant to a Consent Order entered into with the New York State Department of Financial Services (NYDFS).
“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,” NYDFS said in a press release.
Superintendent Harris said the National Bank of Pakistan allowed serious compliance deficiencies in its New York branch to persist for years despite repeated regulatory warnings.
“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,” she added. (AGENCIES)