FED terminates enforcement actions against NBP’s headquarters and New York branch

The Federal Reserve (FED) has terminated enforcement actions against the National Bank of Pakistan (NBP), the bank notes in a stock filing.

FED has terminated the ‘Cease and Desist Order’ dated February 22, 2022 against the bank’s headquarters and its New York branch, which was officially terminated on December 2, 2024.

Moreover, the ‘Written Agreement’ dated March 14, 2016, involving NBP’s Karachi operations and its New York branch, were terminated on December 17, 2024.

In February 2022, the US Federal Reserve Board announced a $20.4 million penalty against the bank for anti-money laundering violations.

FED had also advised the bank to improve its anti-money laundering program. The action was in conjunction with an action by the New York State Department of Financial Services (NYDFS), which imposed a penalty of $35 million for compliance failures.

NBP and its NY branch had agreed to pay the penalty.