Pakistan's National Bank Shocked by U.S. Money Laundering Fine $55 Millions
- Capitol Times
- Feb 25, 2022
- 1 min read
Following two U.S. regulators' fines of $55 million for violations of anti-money laundering laws by two Pakistani lenders, the share price of National Bank of Pakistan fell the most in a year from the regulators Thursday.
The Federal Reserve Board announced Thursday that it would be imposing a $20 million penalty on Pakistan's second-largest bank and $35 million on Pakistan's second-largest bank, according to statements from the regulators.
Despite being on the Financial Action Task Force monitoring list since 2018 for similar shortcomings, the fine represents a fresh blow for the nation. Similar issues were encountered by Habib Bank and United Bank in the U.S. Both banks closed their branches in the New York region.
The NBP shares plunged 7.4% at 9:28 a.m. Friday in Karachi, the worst performance in more than a year.
As a result of a management change in May 2021, NBP's New York branch has significantly enhanced its compliance program. "We fully intend to satisfy regulator expectations," it said.
25 Feb 2022
