The National Bank of Pakistan (NBP) has officially closed its branches in New York and Paris, marking the end of an era for the state-owned lender’s international footprint, according to its latest annual report. The move is part of a broader strategy to streamline operations and cut losses from underperforming overseas branches.
After nearly five decades of service, NBP’s Paris branch has been shuttered due to persistent financial losses. The accounts of Pakistan’s Embassy and overseas Pakistanis in France have been transferred to a local French bank, with all legal and regulatory requirements completed.
Similarly, the bank has concluded the closure of its New York branch, which was the only Pakistani bank branch on Wall Street. The exit followed full compliance with regulatory directives, ensuring a smooth and structured withdrawal. The New York branch had faced scrutiny from local authorities as far back as 2015, with repeated warnings over regulatory deficiencies, particularly in anti-money laundering compliance. Despite several management changes and attempts to address these issues, the branch continued to face challenges.
In 2022, US regulators—the Federal Reserve Bank and the New York State Department of Financial Services—imposed a hefty $55 million penalty on NBP’s New York branch for historical compliance weaknesses and delays in implementing necessary reforms. While there were no findings of improper transactions or willful misconduct, the branch’s compliance program was found lacking. The bank later made significant improvements, which US regulators acknowledged, and by December 2024, the Federal Reserve Board terminated its key enforcement actions against the branch.
At the time of closure, the New York branch held assets exceeding $110 million. Following the board of directors’ directive, NBP voluntarily surrendered its license and ended its six-decade presence in New York.
Looking ahead, NBP is also preparing to close three more branches in Central Asia, Almaty (Kazakhstan), Bishkek (Kyrgyzstan), and Baku (Azerbaijan), as it continues to consolidate its international operations. Once these closures are complete, NBP’s overseas network will shrink from 23 to 16 locations worldwide.
