US slaps $20.4m fine on National Bank of Pakistan for violating laws

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US slaps $20.4m fine on National Bank of Pakistan for violating laws

The United States Federal Reserve Board has announced $20.4 million penalty against the National bank

 of Pakistan on Thursday owing to “anti-money laundering violations”, reported 24NewsHD TV channel.

According to an official statement released by the US Federal Reserve, “The board has announced a $20.4 million penalty against the national bank of Pakistan, a foreign bank operating in the United States and headquartered in Pakistan, for anti-money laundering violations.”

The US authorities said that as given in the consent cease and desist order against the National bank of Pakistan, the NBP’s US banking operations did not adhere to an effective risk management program or controls sufficient to comply with anti-money laundering laws.

Apart from the fine, the FRB has also required the firm to improve its anti-money laundering program. “The Board’s action is in conjunction with an action by the New York State Department of Financial Services,” added the statement.

The FRB has ordered the bank and its branch [in the US] to jointly submit to it a written plan to enhance oversight in order to make their operations acceptable to the US Federal Reserve Bank.