Pakistan bank faces $629m penalty in US

AFP, KARACHI:  Pakistan’s largest private bank is facing a $629 million penalty in the United States over accusations of non-compliance with financial standards and practices at its New York branch.

HBL, formerly known as Habib Bank Limited, came under the radar of New York’s state Department of Financial Services (DFS) over the bank’s financial practices in December 2015.

A press release from US financial authorities identified significant breakdowns in the branch’s risk management and compliance with applicable federal laws, rules, and regulations relating to anti-money laundering compliance, including the Bank Secrecy Act.

In a letter to the Pakistan Stock Exchange on Monday, the bank accused the DFS of “still not appreciating or recognising the significant progress that HBL had made at its branch.”

Its company secretary Nausheen Ahmad said the hefty fine—which if imposed would be the largest ever penalty handed out to a Pakistan bank—was “unjustified, capricious and unreasonable”.

 

Pakistan bank faces $629m penalty in US

AFP, KARACHI: Pakistans largest private bank is facing a $629 million penalty in the United States over accusations of non-compliance with financial standards and practices at its New York branch. HBL, formerly known as Habib Bank Limited, came under the radar of New Yorks state Department of Financial Services (DFS) over the banks financial practices in December 2015. A press release from US financial authorities identified significant breakdowns in the branchs risk management and compliance with applicable federal laws, rules, and regulations relating to anti-money laundering compliance, including the Bank Secrecy Act. In a letter to the Pakistan Stock Exchange on Monday, the bank accused the DFS of still not appreciating or recognising the significant progress that HBL had made at its branch. Its company secretary Nausheen Ahmad said the hefty finewhich if imposed would be the largest ever penalty handed out to a Pakistan bankwas unjustified, capricious and unreasonable.