US slaps $55 million fine on National Bank of Pakistan for money laundering

The Federal Reserve Board of America and the New York State Department of Financial Services have fined the National Bank of Pakistan a total of $55 million for violating money laundering prevention regulations.

The Federal Reserve Board has imposed a fine of $20 million, while the New York State Department of Financial Services has fined the National Bank of Pakistan $35 million for repeated violations. The National Bank of Pakistan and its New York branch have agreed to pay $35 million, the agency said in a tweet.

The Federal Reserve Board’s decision states that the National Bank of Pakistan, which operates in the United States and whose headquarters is in Pakistan, will pay a fine of $20.4 million for anti-money laundering violations. The Federal Reserve Board has directed the National Bank of Pakistan to formulate a programme to prevent money laundering.

The Federal Reserve Board’s decision said the National Bank of Pakistan did not develop an effective system for implementing laws to prevent money laundering for its operations in United States. The Federal Reserve Board’s decision is in accordance with the actions of the New York State Department’s Financial Services. The Federal Reserve Board wrote in its order that on March 14, 2016, the National Bank of Pakistan and its branch in New York met with the Reserve Bank and the New York State Department of Financial Services to address shortcomings in the anti-money laundering program. The Federal Board’s decision said a recent investigation has revealed that the implementation of all provisions of the agreement was not made untimely.

In order for the National Bank of Pakistan to continue its operations, it will have to develop a program to implement the regulations to prevent money laundering within two months of the Federal Reserve Board’s decision.

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