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.