The National Bank of Pakistan (NBP) and its New York branch were fined $55 million by two US authorities just hours after Pakistan Prime Minister Imran Khan met Russian President Vladimir Putin in the Kremlin on Thursday, amid the ongoing “special military operation” by Russian troops in eastern Ukraine.
Fine imposed on National Bank of Pakistan
The US Federal Reserve, the country’s central bank, and the state of New York’s Superintendent of Financial Services fined Pakistan’s central bank for shortcomings and noncompliance with federal rules.
After regulators discovered “severe shortcomings” in the NBP branch’s “risk management and compliance with federal laws, rules, and regulations,” the Federal Reserve imposed a $20.4 million fine. In addition, the New York State Department of Financial Services demanded that NBP pay $35 million.
The inadequacies were connected to anti-money laundering (AML) compliance and the Bank Secrecy Act (BSA) of the United States, according to the order of the US Federal Reserve. NBP has been ordered to reform by the US Federal Reserve.
The reserve has demanded that the NBP put its recommendations into action within 60 days of receiving the order. Also, NBP needs to appoint an official within ten days who will be “responsible for coordinating and submitting” written proposals to the Reserve Bank.
An interesting thing about penalty
Pakistan’s NBP was sanctioned barely hours after Prime Minister Imran Khan met with Russian President Vladimir Putin in the Kremlin on Thursday. Putin’s meeting took place just as Russia began a specific military campaign in eastern Ukraine.
Meanwhile, Russia takes control of the war
President Vladimir Putin of Russia announced limited military strikes against Ukraine on Thursday. According to Ukraine’s border guard service, the Russian military entered Ukraine through Belarus. Russian troops have launched an attack on Ukraine’s northern border forces.
Russian President Vladimir Putin had ordered Ukrainian soldiers to lay down their arms during his statement proclaiming military action against Ukraine. Those who complied with his demand, he claimed, would be allowed to leave the battleground and return home to their families.
