Karachi – June 2, 2025: The National Bank of Pakistan (NBP) has officially closed its branches in New York and Paris as part of its ongoing global restructuring strategy aimed at reducing low-yielding international operations, according to the bank’s recently released annual report.
The closure of NBP’s Paris branch marks the end of nearly five decades of operation in France. The branch had reportedly become financially unsustainable, prompting the management to shut it down. Accounts maintained by Pakistan’s Embassy and overseas Pakistanis were transferred to a local French bank, and all legal and regulatory requirements were fully completed before the closure.
Simultaneously, NBP has concluded operations at its New York branch, previously located on Wall Street. The branch, which was the only Pakistani banking presence in New York, was voluntarily shut down following full compliance with regulatory directives and board-level approval. This decision follows a long-standing history of regulatory scrutiny dating back to 2015, when US authorities highlighted significant deficiencies in the branch’s compliance and anti-money laundering (AML) frameworks.
Despite several attempts by successive management teams to rectify compliance issues—including changes in staff and enhancements to internal systems—US regulators remained unsatisfied. In 2022, the Federal Reserve Bank of the United States and the New York State Department of Financial Services (NYDFS) imposed a combined penalty of $55 million on the New York branch. The penalties were related to historical compliance weaknesses and delays in corrective action, although there were no findings of willful misconduct or improper transactions.
The then-management of NBP stated that substantial improvements were made to the compliance infrastructure, a claim acknowledged by US regulators. By December 2024, the Federal Reserve Board terminated two key enforcement actions previously imposed on the bank. As of 2024, the New York branch held assets and liabilities exceeding $110 million.
Following the board’s directive, NBP voluntarily surrendered its license and formally concluded six decades of banking operations in New York.
Further Downsizing in Central Asia
NBP is also preparing to shut down three more overseas branches located in Central Asia—specifically in Almaty (Kazakhstan), Bishkek (Kyrgyzstan), and Baku (Azerbaijan). The bank is currently working through regulatory processes to complete these closures.
With these changes, NBP’s global footprint will be reduced from 23 international branches to 16, as the bank seeks to optimize operations and focus on more profitable markets.
