March 24, 2016
Contact: Richard Loconte, 212-709-1691
NATIONAL BANK OF PAKISTAN AGREES TO ENHANCE ANTI-MONEY LAUNDERING COMPLIANCE AND CONTROLS
The New York State Department of Financial Services (DFS) today announced that the National Bank of Pakistan (the Bank) has entered into a Written Agreement with DFS and the Federal Reserve Bank of New York (FRBNY) to strengthen compliance with Bank Secrecy Act/anti-money laundering (BSA/AML) requirements, as well as the regulations issued by the Office of Foreign Assets Control (OFAC) at the bank’s New York Branch.
The agreement was reached after an examination of the Branch identified significant breakdowns relating to its risk management and compliance with New York State and federal laws, rules and regulations concerning BSA/AML and OFAC.
“The Bank’s agreement with DFS and the FRBNY highlights the critical issues that demand strong compliance enforcement,” said Department of Financial Services Acting Superintendent Maria T. Vullo. “DFS is committed to ensuring that financial institutions are in full compliance with existing laws and regulations, and when necessary mandating additional safeguards and reporting requirements that reinforce anti-money laundering controls.”
The agreement requires the Bank to submit written plans to DFS and the FRBNY within 60 days documenting how its BSA/AML/OFAC compliance, monitoring, oversight, and suspicious activity reporting will be improved. Any breach of the terms of the agreement by the Bank will result in additional enforcement action.
Written plans are required to include enhancements of internal controls for correspondent accounts. Additionally, the plans are to include measures to ensure that those with compliance responsibilities possess appropriate subject matter expertise, and that adequate resources are allocated to ensure compliance with BSA/AML/OFAC requirements. Under the agreement, National Bank of Pakistan is also required to submit quarterly progress reports to the regulators.
To view a copy of the Written Agreement with National Bank of Pakistan, please visit, link.