Karachi, December 27, 2024 – The Federal Reserve Board of the United States has officially terminated enforcement actions against the National Bank of Pakistan (NBP). This decision marks a major step forward for the bank’s operations, both domestically and internationally.
In a statement shared with the Pakistan Stock Exchange (PSX), the National Bank of Pakistan confirmed the termination of two key enforcement actions previously imposed by the US Federal Reserve. These include:
1. The Cease and Desist Order dated February 22, 2022, against the National Bank of Pakistan’s Karachi headquarters and its New York branch, which was officially terminated on December 2, 2024.
2. The Written Agreement dated March 14, 2016, involving the National Bank of Pakistan’s Karachi operations and its New York branch, terminated on December 17, 2024.
The resolution of these enforcement actions underscores the National Bank of Pakistan’s efforts to address compliance issues and enhance its regulatory framework. The termination follows consistent improvements in the bank’s operational standards and its adherence to international banking regulations.
The National Bank of Pakistan, one of the largest and most influential financial institutions in the country, has faced scrutiny in recent years regarding compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) standards. This milestone reflects the bank’s commitment to meeting global regulatory expectations and restoring its reputation in international markets.
The NBP’s New York branch plays a critical role in facilitating trade and financial transactions between Pakistan and the United States.
The National Bank of Pakistan’s management expressed gratitude to stakeholders and regulators for their support during the compliance improvement process. The bank aims to continue prioritizing governance, transparency, and robust risk management practices to avoid similar issues in the future.
This positive development is expected to enhance the confidence of international partners and customers in the National Bank of Pakistan, paving the way for greater collaboration and growth opportunities in the global banking sector.
