NBP Avoids Potential Bankruptcy with Major Win in New York Court

In a major victory, Pakistan has won a high-profile terror-financing case filed against the National Bank of Pakistan (NBP) in New York’s Federal Court, reported a local media outlet.

The case against the National Bank of Pakistan (NBP) was withdrawn by — Harold Brown Sr, the plaintiff. As a result, the bank won the case.

The bank was accused of facilitating the transfer of funds that were used in planning and executing an attack on a U.S. base in Afghanistan. The attack had resulted in the killing of nine American soldiers.

The bank faced the grim prospect of going into bankruptcy if the decision went against it as it would have faced fines worth billions of dollars. Any decision against the bank would have also pushed Pakistan into deeper trouble with the Financial Action Task Force (FATF). The country is currently on FATF’s grey list.

The case against the National Bank of Pakistan was being handled by the International Disputes Unit of the Attorney General’s Office.

It is pertinent to mention here that Federal Reserve Board had announced a $20.4 penalty against the National Bank of Pakistan earlier in the year. The New York Department of Financial Services also fined NBP $35 million for repeated compliance failures, taking the combined penalties to $55 million.