Colossal civil fine on Pakistan HBL by US DFS finds the Pakistan to close its operations in US. DFS penalty is being imposed in relation to “significant breakdowns” in the top Pakistani bank’s New York Branch’s risk management and compliance with the applicable federal laws, including anti-money laundering regulations in the U.S. which also culminate into unfulfilled compliance with an earlier-written agreement between the Bank and the Federal Reserve in 2006, resulting in a “compliance program violation.”
Pakistan’s largest bank Habib Bank Limited (HBL) shut down its operations in the United States on Monday after the New York State Department of Financial Service (DFS) slapped a hefty civil penalty worth 66 billion Pakistani rupees (629.6 million U.S. dollars).
HBL announced in a statement to contest the hefty fine in the court of law in the U.S. It further decided to close its operations in New York and the DFS has allowed the bank to submit an application of withdrawal which is expected to commence shortly.
“Despite HBL’s sincere and extensive remediation measures, DFS is still not appreciating or recognizing the significant progress that HBL has made at its branch in New York and HBL has received a notice from DFS in terms of which DFS seeks to impose and outrageous civil monetary penalty of up to 629.62 million U.S. dollars,” the statement said. Media agencies