ISLAMABAD (Reuters) – The New York State Department of Financial Services (DFS) said it is seeking to fine Habib Bank Ltd, Pakistan’s biggest lender, up to $630 million for “grave” compliance failures relating to anti-money laundering rules and sanctions at its only U.S. branch.
If imposed, the penalty on Habib Bank (HBL) would be the largest-ever faced by a Pakistani financial institution.
Karachi-listed HBL plans to surrender the foreign bank license for its New York branch, according to the DFS, which intends to expand its review of the bank’s transactions.
The DFS said in a filing that HBL’s compliance was “dangerously weak” and that “serious and persistent” failings found at its New York branch appeared to affect the entire Habib banking enterprise, posing “grave risks” to the banking system.
Source: Reuters
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