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Pakistan's biggest bank kicked out of US, fined over terror financing charge

Discussion in 'South Asia & SAARC' started by Agent_47, Sep 8, 2017.

  1. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

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    NEW YORK: US banking regulators ordered Pakistan's Habib Bank to shutter its New York office after nearly 40 years, for repeatedly failing to heed concerns over possible terrorist financing and money laundering, officials said Thursday.

    Habib, Pakistan's largest private bank, neglected to watch for compliance problems and red flags on transactions that potentially could have promoted terrorism, money laundering or other illicit ends, New York banking officials said.

    The state's Department of Financial Services, which regulates foreign banks, also slapped a $225 million fine on the bank, although that is much smaller than the $629.6 million penalty initially proposed.

    Habib has operated in the United States since 1978, and in 2006 was ordered to tighten its oversight of potentially illegal transactions but failed to comply.

    New York regulators said Habib facilitated billions of dollars of transactions with Saudi private bank, Al Rajhi Bank, which reportedly has links to al Qaeda, and failed to do enough to ensure that the funds were not laundered or used for terrorism.

    "DFS will not tolerate inadequate risk and compliance functions that openthe door to the financing of terrorist activities that pose a grave threat to the people of this State and the financial system as a whole," DFSSuperintendent Maria Vullo said in a news release.

    "The bank has repeatedly been given more than sufficient opportunity to correct its glaring deficiencies, yet it has failed to do so."

    Habib permitted at least 13,000 transactions that were not sufficiently screened to ensure they did not involve sanctioned countries, the agency said.

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

    In an August letter to the Pakistan Stock Exchange, Habib company secretary Nausheen Ahmad called the proposed fine of $629.6 million "outrageous" and "capricious" and said the bank had decided to close its New York operations "in an orderly manner."

    But DFS said Habib will have to surrender its license after it meets the agency's requirements.

    "DFS will not stand by and let Habib Bank sneak out of the United States," Vullo said.

    http://economictimes.indiatimes.com...ror-financing-charge/articleshow/60420232.cms
     
  2. GuardianRED

    GuardianRED Lieutenant FULL MEMBER

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    "DFS will not stand by and let Habib Bank sneak out of the United States," Vullo said.

    hehe !

    Funny part is that in PDF ... only one reply is that it is not Habib Bank pakistan! talk about living in denial
     
  3. zebra7

    zebra7 Captain FULL MEMBER

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    Ehem-Dul-ah !!!! Walla Walla Alah Hu Akbar !!!!

    Disintegration Process started and is aproved by Allah himself
     
    mirage and Wolfpack like this.
  4. Satendra kumar

    Satendra kumar FULL MEMBER

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    At last United States made suggestive submission to close one of the Pakistan largest private bank.Habib Bank,for terrorist organising,financing,money lauderung,admitting corrupt practices arent't welcome,to safeguard own interest.
     
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  5. Angel Eyes

    Angel Eyes 2nd Lieutant FULL MEMBER

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    Now they should open Habib Bank in Beijing
     
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  6. Wolfpack

    Wolfpack Lieutenant FULL MEMBER

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    Thats what they thought initially, until this happened.
    "DFS will not stand by and let Habib Bank sneak out of the United States," Vullo said.
    :cray:
     

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