Pakistan slapped with $35 million penalty by US when Imran Khan was in Russia
The United States has imposed a penalty of $35 million on Pakistan after its bank violated the anti-money laundering laws and also repeated failure to operate its New York branch in compliance with the country's laws.
FollowThe day when Pakistan Prime Minister Imran Khan visited its arch-rival Russia, the United States has imposed a penalty of $35 million on Pakistan after its bank violated the anti-money laundering laws and also repeated failure to operate its New York branch in compliance with the country's laws.
The National Bank of Pakistan has agreed to pay the penalty. Â
Superintendent of Financial Services Adrienne A Harris had announced today that the National Bank of Pakistan and its New York branch have agreed to pay $35 million in penalties to the New York State Department of Financial Services.
"The National Bank of Pakistan allowed serious compliance deficiencies in its New York branch to persist for years despite repeated regulatory warnings," said Superintendent Harris.Â
"Foreign banks that enjoy the privilege of operating in New York have an obligation to maintain effective controls, and the Department will continue to promote financial transparency and take action to protect the global financial system when those obligations are not met," he said.
In 2014 and 2015, the Department of Financial Services and the Federal Reserve Bank had conducted an investigation and found the New York branch of having inadequate compliance programs, serious issues with its transaction monitoring system, and significant shortcomings in managerial oversight.
In 2016, the United Nations took enforcement action. The bank acknowledged its oversight and compliance deficiencies and agreed to remediate them, an official statement said.
In the wake of the bank's deteriorating conditions, a settlement was reached to pay $35 million. The US department said that the bank cooperated with the investigation and its ongoing remedial efforts.
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