USA packs off Pak's top Habib Bank for terrorist financing

New York branch of Pak bank allowed transactions by persons on US terror watch lists

The banking regulator further announced a fine of Dollars 225 million on the bank and its NY branch for failure to comply with NY laws and regulations designed illicit financial transactions.

Habib Bank, Pakistan's biggest lender, will also allow DFS to investigate transactions processed by its NY branch from October 2013 to September 2014, and from April 2015 to July 2017.

HBL disclosed it was in negotiations with the DFS last month and said the potential fine and closure of its NY branch would have no material impact on its business outside the United States.

In addition the bank improperly used a "good guy" list to rubber stamp at least $250m in transactions, including those by an identified terrorist and an global arms dealer, regulators said.

Habib Bank has been operating in the United States since 1978.

U.S. banking regulators have ordered Pakistan's leading Habib Bank to pull the shutter on its NY office after almost 40 years, for repeatedly failing to heed concerns over possible terrorist financing and money laundering, officials said.




Officials also said Habib has repeatedly failed to correct "glaring deficiencies" in its internal safeguards meant to prevent money laundering and terror financing.

The order came after Habib Bank repeatedly failed to pay heed to concerns over possible terrorist financing and money laundering, officials were quoted as saying in an AFP report.

The fine, which is the largest ever imposed upon a Pakistani bank is liable to be paid within 14 days. The amount, however, is much smaller than the penalty initially imposed on the bank- $629.6 million.

On the other hand, Nausheen Ahmad, the bank's company secretary, confirmed in a letter that HBL has settled the earlier penalty after which the charges are being dismissed. DFS says that Habib Bank has to surrender its license and it cannot go from the stealthy America.

The regulator said the bank, known as HBL, agreed to pay just over a third of that sum as part of a broader settlement in which it will shutter its NY branch, subject to conditions. Since the matter had been resolved, the hearing in court, which was scheduled for September 27, has been cancelled. In 2015, the bank was asked to hire an independent consultant to review its dollar-clearing activities, the regulator said. "The terms of this Consent Order and the Surrender Order now agreed to by the bank will ensure that Habib's misconduct will no longer occur on USA soil and that DFS will still investigate the bank's prior activities".

Related news:

Hot News

isis-killer-beheading-video-story-top Death announced of country singer Don Williams
Sep 10, 2017 - 14:31
He wasn't attempting to chase trends - he made mature music for an adult audience, which is an essential element to his appeal. Williams first found musical success at the age of three, winning a talent contest in his hometown of Portland, Texas.

isis-killer-beheading-video-story-top Eric Bolling's son found dead
Sep 10, 2017 - 14:28
The Los Angeles Times , which also first broke the story of Payne's suspension , first reported news of the host's return . Several TV commentators, including Fox News' Sean Hannity , took to the social media to express their condolences.

isis-killer-beheading-video-story-top Naveen expresses 'doubts' over BJP's mission 120 in Odisha
Sep 08, 2017 - 00:51
The Indigenous Nationalist Party of Twipra (INPT) has chose to form electoral alliance with BJP to fight against the the CPM in 2018 Assembly polls.

isis-killer-beheading-video-story-top Florida sheriff promises a "safe" shelter for those with outstanding warrants: prison
Sep 08, 2017 - 00:51
Sex offenders seeking refuge from Hurricane Irma in Florida have been warned by police they will be turned away from shelters. If this was about sexual predators, you'd be out hunting for them every single day if they had outstanding warrants.

isis-killer-beheading-video-story-top Manchester City 'taking legal advice' over La Liga president's claims
Sep 08, 2017 - 00:49
When asked if Girona cooked the books, Tebas said: "They were trying to but they didn't manage to do it". La Liga has been notoriously strong to stop its own clubs breaking financial rules.

isis-killer-beheading-video-story-top Mumbai blasts convict Abu Salem may not spend entire life in jail
Sep 08, 2017 - 00:49
All the accused were facing multiple charges like criminal conspiracy, waging war against the government and murder of people. Tahir Merchant and Firoz Khan were sentenced to death, while Riyaz Siddiqui was given 10 years' rigorous imprisonment.

isis-killer-beheading-video-story-top Terror funding case: NIA raids 11 places in J&K, NCR
Sep 08, 2017 - 00:49
Meanwhile NIA also raided the residence of Hurriyat-G General Secretary Ghulam Nabi Sumji at Bijbehara in South Kashmir. Watali, who is considered as a political broker, was arrested by the NIA last month.

isis-killer-beheading-video-story-top Cleveland Co Animal Shelter waving adoption fees before Hurricane Irma
Sep 08, 2017 - 00:46
She plans to fill up the empty crates from Paws 4 Life with food donations to take back to Louisiana. Once all 40 dogs and puppies arrive at Animal Friends, they will be examined.

isis-killer-beheading-video-story-top Katie Holmes And Jamie Foxx Finally Confirm Relationship
Sep 07, 2017 - 02:06
Obviously, there could be many possibilities as to why Katie and Jamie are holding hands like some romantic couple on a beach. Foxx refused to comment on his relationship with actress Katie Holmes as he was spotted out in Los Angeles on Wednesday.

isis-killer-beheading-video-story-top Kylian Mbappe Says Arsenal Was 'Real Option' for Him Before PSG Transfer
Sep 07, 2017 - 02:05
I have cultivated very good relations with the player and his parents, particularly with his father, who also acts as his agent".

isis-killer-beheading-video-story-top Prince George starts primary school this week
Sep 07, 2017 - 02:02
But, if he or she is just as adorable as Prince George or Princess Charlotte , it'll be worth the wait. When she goes into labour a press release will be sent out to the media.

isis-killer-beheading-video-story-top Lucasfilm drops Star Wars director
Sep 07, 2017 - 02:01
The announcement gave no indication as to whether the shakeup would affect Episode IX's previously set release date of May 2019. Apart from the prequels, all the touchstones that make something feel like Star Wars have to do with griminess and dirt.

isis-killer-beheading-video-story-top Harvey helped push gas prices to new heights. What could Irma do?
Sep 06, 2017 - 13:54
The national average has increased 23.8 cents per gallon in the last week to $2.64 per gallon. In Ann Arbor the average price is $2.65 per gallon, up 11.4 cents per gallon from last week.

isis-killer-beheading-video-story-top Senior journalist Gauri Lankesh shot dead in her home in Bangalore
Sep 06, 2017 - 13:51
Senior journalist Gauri Lankesh on Tuesday was shot dead at her residence in Bengaluru's Rajarajeshwari Nagar. The CCTV footage shows the entire incident of how the journalist was followed and shot just outside her house.

isis-killer-beheading-video-story-top National Football League files opposition to NFLPA motion
Sep 06, 2017 - 13:45
Per a source , Elliott was hopeful of success in the federal lawsuit, but also felt it was uphill battle against the NFL. District Judge Amos Mazzant said he would rule on Elliott's request for a temporary restraining order by Friday.