US imposes heavy fines on Pakistan National Bank

The US Federal Reserve has announced a ڈالر 20.4 million fine against the National Bank of Pakistan for money laundering violations.

The fines were imposed on Thursday by the US Federal Reserve and Adrian A. Harris, New York State Superintendent of Financial Services. The BP branch was fined 20 20.4 million for “significant shortcomings in risk management and compliance with federal laws, rules and regulations.” And compliance with the US Bank Secrecy Act (BSA).

The order said the NBP had entered into a “written agreement” with the authorities on March 16, 2016 to address the “deficiencies”. A recent inspection found that the NBP had “failed to fully comply with every provision of the written agreement.” Under the action, the US Federal Reserve has ordered the NBP to take “positive action” on “corporate governance and administrative oversight”. The Federal Reserve has directed the NBP to implement the recommendations within 60 days of the order. The US Federal Reserve has also asked the NBP to nominate an officer within 10 days.

Separately, Adrian A. Harris, New York State Superintendent of Financial Services, announced that the NBP had agreed to pay 35 35 million for compliance deficiencies at its New York branch. Superintendent Harris said, “The National Bank of Pakistan has allowed serious compliance shortcomings in its New York branch to persist for years despite repeated regulatory warnings.”

It may be recalled that the National Bank was not fined for the first time but was also fined in the last days of 2021 in which the SBP had imposed a fine of Rs. 28 crore on the National Bank of Pakistan.

According to a statement issued by the SBP, a fine of Rs 280 million has been imposed on the National Bank of Pakistan. The statement said that fines were imposed on National Bank for identifying customers, violating anti-money laundering rules and regulations, foreign exchange, asset standards and non-compliance with rules and regulations in general banking operations. The SBP also directed the National Bank to conduct an internal inquiry in the branches and take action against the officers involved in violating the rules and regulations. The SBP said that during July-September 2021, fines of more than Rs 47 crore were imposed on four banks.

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