Updated: June 15, 2022 10:21 p.m. STI
Islamabad [Pakistan]Jun 15 (NNA): The National Bank of Pakistan (NBP) nearly escaped potential bankruptcy as a high-profile terrorism financing case filed against it in federal court in New York was dropped, a news outlet reported on Tuesday. Pakistani citing the sources at Pakistan’s Attorney General’s Office.
According to media reports, plaintiff Harold Brown Sr, withdrew the case against the NBP, allowing the national bank to win the case.
The national bank has been accused of facilitating the transfer of funds that were used to plan and execute an attack on a US military base in Afghanistan that killed nine US soldiers, Geo News reported.
The bank would have faced bankruptcy if it lost the case and would have been hit with fines worth billions of dollars, the report said adding that sources from the Attorney General’s office said Pakistan would have faced serious problems within the Financial Action Task. Force (FATF).
In its filing, the plaintiff alleged that the NBP provided financial support and banking services to several notorious terrorist groups and terrorist fundraisers, including Al-Qaeda.
The case against the NBP was being handled by the International Conflicts Unit of the Attorney General’s Office.
The report says the judge dismissed the complaint with leave to reply and ordered the parties to appear for the initial case management conference on April 2, 2021, after which the plaintiff agreed to drop the charges, DAWN reported.
Earlier this year, the US Federal Reserve announced a $20.4 million sanction against the NBP.
The New York Department of Financial Services also fined the bank $35 million for repeated compliance failures, bringing the combined penalties to $55 million.
The bank also fined the New York Department of Financial Services $35 million for repeated compliance failures, bringing the combined penalties to $55 million, DAWN reported. (ANI)