The National Bank of Pakistan has agreed to pay $55m in fines imposed on its New York branch by three US regulators.
According to Reuters, the Federal Reserve Board, the Federal Reserve Bank of New York and the New York State Department of Financial Services recently announced the NBP will be fined the amount due to non-compliance and anti-money laundering violations.
The National Bank of Pakistan’s shares dropped by 7.2% following the announcement. However, the bank said there were no findings of improper transactions or wilful misconduct and that it has substantially enhanced its compliance programme.
The NBP is one of the largest commercial banks in the country and is 75.20%-owned by the Pakistani government.
The Financial Action Task Force recently placed Pakistan on its ‘grey list’ for deficiencies in its counter-terror financing and anti-money laundering regimes since June 2018.