The New York State Department of Financial Services (“NYDFS” or “the Department”) published a press release on February 24, 2022 announcing the issuance of a Consent Order (“the Consent Order”) to the National Bank of Pakistan (“NBP” or “the Bank”), which will require the Bank to pay $35 million in penalties to NYDFS. In conjunction with the Department’s enforcement action, the Federal Reserve Bank of New York (“FRBNY”) also announced a $20.4 million penalty against NBP for its alleged Anti-Money Laundering (“AML”) violations.
The Consent Order describes NBP as a “multinational commercial bank incorporated in Pakistan in 1949 that is majority owned by the Pakistani government, with more than $20 billion in assets as of June 30, 2021.” The Department’s issuance of the Consent Order marks the first major fine against a bank since Adrienne A. Harris was confirmed as New York’s top financial regulator (Superintendent of NYDFS) in January 2022. In November 2021, while still leading the Department on an acting basis, Harris issued a consent order to Dubai-based Mashreqbank for sanctions violations requiring the bank to pay $100 million in penalties.
As we will discuss, the Department’s and the NYFRB’s actions sends a clear message confirming that repeated findings of violations over multiple examinations is a sure-fire way to become subject to enforcement.
Continue Reading National Bank of Pakistan Fined $55.4 Million for Alleged Repeated AML and Compliance Deficiencies