$55m penalty imposed on local bank

Fine slapped due to violation of AML laws

KARACHI:

The US authorities have imposed a fine of $55 million on a local bank for alleged violation of anti-money laundering (AML) laws and repeated failure to operate its New York branch in compliance of the US laws.

The US imposed the fine on the National Bank of Pakistan (NBP) on the day Prime Minister Imran Khan paid a scheduled visit to Russia that remains an old rival of Washington. “The Federal Reserve Board on Thursday announced a $20.4 million penalty against the National Bank of Pakistan for anti-money laundering violations,” said a statement issued by the Federal Reserve.

“The board will also require the firm to improve its anti-money laundering program.”

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The board’s action is in conjunction with an action by the New York State Department of Financial Services (DFS) which “announces $35 million penalty for repeated compliance failures,” said a statement issued by Superintendent of Financial Services Adrienne A Harris. The DFS acknowledged the bank’s cooperation with the investigation and its ongoing remedial efforts.

The department coordinated this investigation with the FRBNY which has reached a separate settlement with the bank.

Published in The Express Tribune, February 25^th, 2022.

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