NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / World News / US fines National Bank of Pakistan for anti-money laundering violations
    Next Article
    US fines National Bank of Pakistan for anti-money laundering violations
    (Photo courtesy: Wikimedia Commons/@Muhammadirfan385)

    US fines National Bank of Pakistan for anti-money laundering violations

    By Pratyush Deep Kotoky
    Feb 25, 2022
    07:03 pm

    What's the story

    The United States federal regulators imposed fines worth $55 million on the National Bank of Pakistan (NBP) for non-compliance and anti-money laundering violations.

    The fines have been imposed by the US Federal Reserve--the central bank of the country--and by the state of New York's Superintendent of Financial Services Adrienne A Harris.

    The regulators will require the bank to improve its anti-money laundering program.

    Context

    Why does this story matter?

    This is the second Pakistani bank that has been fined by US regulators for non-compliance with anti-money laundering laws.

    Pakistan's largest bank, HBL, also faced a similar fine in 2017, where US regulators imposed a penalty of $225 million over violation of anti-money laundering laws.

    Notably, Pakistan is already on the "grey list" of the global anti-money laundering watchdog--the Financial Action Task Force--since 2018.

    Details

    Federal Reserve imposed a $20.4 million fine

    The Federal Reserve imposed a $20.4 million fine after the regulatory bodies in its examination on March 4, 2021, found "significant deficiencies" in the NBP's New York branch's "risk management and compliance with federal laws, rules, and regulations."

    The Reserve further noted that the deficiencies were related to anti-money laundering (AML) compliance and the Bank Secrecy Act (BSA) of the US.

    Information

    NBP failed to fulfil its agreement to correct deficiencies

    Notably, NBP had entered into a "written agreement" with the authorities on March 16, 2016, to correct the "deficiencies." However, the bank failed to "achieve full compliance with each and every provision of the written agreement," the Federal Reserve's order said.

    Federal Reserve

    Reserve asks NBP to implement its recommendation within 60 days

    The Reserve has ordered NBP to take "affirmative action" on Corporate Governance and Management Oversight, Bank Secrecy Act, and AML Compliance Programme, Customer Due Diligence; Suspicious Activity Monitoring and Reporting; Transaction Monitoring System.

    It also tasked NBP to implement its recommendations within 60 days of the order and asked it to designate an officer for "coordinating and submitting" to the Reserve its written plans.

    2nd penalty

    $35 million penalty by state of New York

    NBP has also agreed to pay $35 million pursuant to a consent order it entered into with the New York State Department of Financial Services.

    It resolves the department's investigation into compliance deficiencies in NBP's New York branch with respect to BSA/AML requirements.

    NBP allowed "serious compliance deficiencies in its New York branch to persist for years despite repeated regulatory warnings," Superintendent Harris said.

    NBP

    No findings of improper transaction, willful misconduct: NBP

    In a notice to Pakistan Stock Exchange on Friday, NBP said there were no findings of improper transactions or willful misconduct.

    NBP said the New York branch was under new management since May 2020, and it has substantially enhanced its compliance program, which the bank added had also been recognized by U.S. regulators.

    The development also triggered an over 7% drop in NBP's shares.

    Information

    Pakistani state owns over 75% of NBP

    Notably, NBP is a foreign bank operating in the US. It has its headquarters in Pakistan. According to Reuters, it is one of the largest commercial banks in the country, and the Pakistani state owns 75.20% of NBP.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    New York City
    United States of America
    Federal Reserve
    Pakistan News

    Latest

    The Wire website blocked in India on government orders  Delhi
    Rohit Sharma praises Indian Army amid escalating India-Pakistan tensions Rohit Sharma
    New Delhi on high alert; raid sirens testing at 3pm  Delhi
    Cannes 2025 to screen Satyajit Ray's classic 'Aranyer Din Ratri'  Cannes Film Festival

    New York City

    #ComicBytes: Five Marvel characters who have broken Captain America's shield Marvel
    Five of the best reality shows on Netflix right now Netflix
    Nicki Minaj's brother sentenced to 25-yrs to life for rape DNA
    Model testifies against Weinstein; says he masturbated while groping her Hollywood

    United States of America

    AstraZeneca's antibody cocktail Evusheld effective against Omicron, finds study Coronavirus
    Omicron: United States sees surge as NYC battles variant COVID-19
    Omicron cases in US surge from 3% to 73% COVID-19
    Pakistan joined America's 'War on Terror' for dollars: Imran Khan Afghanistan

    Federal Reserve

    US Federal Reserve hikes benchmark interest by 0.25% United States of America
    US Federal Reserve hikes interest rate, plans balance sheet reduction Janet Yellen
    Sensex closes above the 32,000 for the first time ever Janet Yellen
    Is the US drug crisis linked to 'jobs market'? Janet Yellen

    Pakistan News

    Classified documents from Afghanistan transferred to Pakistan in three aircraft Afghanistan
    Pakistan harbors Taliban members, says US; to reassess relationship Afghanistan
    Delhi Police busts Pakistan-organized terror module; two terrorists arrested Inter-Services Intelligence (ISI)
    Afghan female footballers evade Taliban, reach Pakistan Afghanistan
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025