HBL agrees to pay $225m fine after settlement with United States regulator

The logo of Habib Bank Limited is seen on a building in Karachi

The New York State Department of Financial Services (DFS) said in a statement that the Habib Bank had consistently failed to correct its "glaring deficiencies", and that the bank's misconduct will "no longer occur on U.S. soil".

"The bank has repeatedly been given more than sufficient opportunity to correct its glaring deficiencies, yet it has failed to do so", Financial Services Superintendent Maria Vullo said in the statement.

The bank was also ordered to surrender its license to operate in the state, effectively removing it from the USA financial system.

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

The New York State Department of Financial Services on Thursday said Pakistan's Habib Bank had agreed to pay $225 million to settle an enforcement action brought against it for infringing laws created to combat illicit money transfers.

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.

DFS said that this opens the way to financing activities and threatens the financial system as well as the American people. In 2006, the bank was ordered to stay alert on potentially illegal transactions.

The review showed HBL had failed to properly screen thousands of transactions and had processed payments for known criminals and sanctioned entities, among other failings.

"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", said the Superintendent of DFS.

It also showed that the bank used a "good guy" list - a list of customers regarded low risk - to rubber stamp at least US$250 million in transactions.

He also added that shutting down New York's branch will not adversely affect the overall balance sheet as it was an, "immaterial part of the balance sheet and profitability".

HBL had become the target of an enforcement action by DFS for 53 separate violations allegedly committed between 2007 and 2017.

Earlier, the bank facing a possible $630 million fine over compliance failures by its NY branch, admitted mistakes but denied any wrongdoing and said the penalty sought by USA regulators was disproportionate. The DFS press release suggests that all foreign transactions through the bank will be examined thoroughly.

Related News:

  • Apple's iPhone 8 'could be a flop', analyst warns

    Apple's iPhone 8 'could be a flop', analyst warns

    The iPhone X is expected to come in three storage choices such as 64 GB, 256 GB and 512 GB . A "Pro" version of the iPhone seems logical.
    Republican leaders annoyed' over Ivanka visit during meeting

    Republican leaders annoyed' over Ivanka visit during meeting

    The White House says she's concerned about how the estate tax may affect her children when they inherit the operation. Tom Cole, R-Okla., noting that it would give conservatives another opportunity to argue for spending cuts.
    SpaceX launches hush-hush space plane (probably)

    SpaceX launches hush-hush space plane (probably)

    The last mission lasted nearly two years and ended with a May touchdown at the runway formerly used by Nasa's space shuttles . At the end of the landing burn in Stage 1, the rocket landed at Cape Canaveral successfully, amid cheers from the team.
  • Apple's 10th Anniversary Celebration May Prove to be Sour (AAPL)

    Apple's 10th Anniversary Celebration May Prove to be Sour (AAPL)

    The iPhone 7 launch event was hosted in 2016 on September 7, a Wednesday and it opened for pre-booking from September 9, a Friday. Apple gave a quarterly income of $45.4 Billion, up 7% as compared to the previous year, for the quarter three of this year.
    Pope Francis Visits Colombia

    Pope Francis Visits Colombia

    Children on the stage then abandoned their positions to throw their arms around Francis in a series of unscripted embraces. He also called for legislation to correct what he said were the structural causes of poverty that sparked the conflict.

    Analysts Ratings for Bristol-Myers Squibb Company (BMY)

    It dropped, as 86 investors sold BMY shares while 529 reduced holdings. 88 funds opened positions while 331 raised stakes. The firm owned 77,400 shares of the biopharmaceutical company's stock after selling 47,600 shares during the quarter.
  • Lilly to streamline business, axe 3500 jobs; shares up 1%

    Lilly to streamline business, axe 3500 jobs; shares up 1%

    LLY has a net profit margin of 11.10% and is less profitable than the average company in the Drug Manufacturers - Major industry. Massachusetts-based Forbes J M & Com Limited Liability Partnership has invested 0.06% in Eli Lilly and Co (NYSE: LLY ).
    Samsung unveils the Galaxy C8 in China

    Samsung unveils the Galaxy C8 in China

    Hancom's Office S app was also provided for the Galaxy S8 when this flagship smartphone was released earlier this year in April. Samsung , as well as carriers in the US , have received high numbers of preorders for the phone.
    Isaiah Thomas acknowledges trade in Instagram video

    Isaiah Thomas acknowledges trade in Instagram video

    Who knows, maybe they can convince James to stay by adding another star to the roster. If you haven't by now, read " This Is for Boston " by Isaiah Thomas .
  • Rush Limbaugh escapes Hurricane Irma after calling it fake news

    And then there's Rush Limbaugh , resident of Palm Beach, Fla., from which he also broadcasts his increasingly freaky radio show. If not, you need to use food-grade water containers, thoroughly cleaned and sanitized, and replace them every six months.
    Richard Branson's Necker Island home 'destroyed' after being struck by Hurricane Irma

    Richard Branson's Necker Island home 'destroyed' after being struck by Hurricane Irma

    We took shelter from the strongest hurricane ever inside the concrete cellar on Necker and very, very fortunately it held firm. The National Rifle Association (NRA) is threatening legal action to stop a seizure of guns and ammunition by U.S.
    Very, very happy as a captain says Virat Kohli

    Very, very happy as a captain says Virat Kohli

    With the Indian team in good form, their next challenge will be stiffer, when they lock horns with the mighty Australians at home. Batting first, two solid knocks from Dilshan Munaweera and Ashan Priyanjan steered Sri Lanka to 170 in the given 20 overs.


Most liked

India's first no-fly list norms out, aims to make flying safer
A passenger barred from flying can approach an appellate committee constituted by the Ministry within a period of 60 days. Minister of State for Civil Aviation Jayant Sinha today announced the finalisation of the country's first no-fly list.

Bihar Congress on verge of splitting; 19 MLAs seek breakup with RJD
A Congress worker can not approve of this because what Nitish did is not only opportunism but also a compromise with ideology. However, Congress spokesman Premchandra Mishra said JD (U)'s efforts to engineer a split in the party have turned futile.

Don Williams Dies: Country Music Hall of Famer Was 78
The Texas native, who as known as the " Gentle Giant " for his soft vocal style, was 78 at the time of his death on September 8. Williams was a Texan, born in the tiny Panhandle town of Floydada and raised in Portland near Corpus Christi.

Defiance County man becomes first 2017 OH death from West Nile virus
The very young, the elderly and people with other conditions, such as cancer or diabetes, are at higher risk. To guard against the virus, the district urges residents to take precautions to avoid mosquito bites.

Flipkart announces annual 'Big Billion Days' sale on Sept 20-24
Flipkart has launched a host of new features to take on Amazon, including buy-now-pay-later, EMI for debit card purchases. It created the e-commerce market in India, and it will aid the millions of people from small towns and villages.

Kashmiri separatist leader Yasin Malik arrested by NIA
The NIA raided senior Hurriyat-G leader and prominent Shia cleric Aga Syed Hassan's residence in Budgam. Besides, the NIA team also raided and searched the house of JKLF leader Showkat Ahmad Bakshi.

Hurricanes Jose, Katia gain strength
As Irma bears down on the U.S. mainland, two other tropical storms have been upgraded to hurricanes within minutes of each other. Jose has sustained winds of 85 miles per hour , and it is moving west-northwest at 17 miles per hour .

Sex of Kim Kardashian and Kanye West's baby
Kardashian had suffered from early-onset pre-eclampsia and delivered her first child, daughter North , 4, nearly six weeks early. As Nicki Swift previously reported , Kardashian and West hired a 20-something-year-old surrogate to carry their child.

Kohl's partners up with Amazon for new Amazon Smart Home experience
This is in the hopes of keeping Alexa users in the Amazon ecosystem as well as help increase revenue for the company. For Amazon, the Kohl's deal offers another distribution channel to support its rapid expansion.

Betsy DeVos Moves to End Obama's Guidelines for Campus Sexual Assault Investigations
That organization has participated in a lawsuit against the Department of Education over its Title IX guidance. To those tracking the Title IX issue, the announcement on Thursday was not surprising.

Myles Garrett to miss at least two weeks with ankle injury
The Browns play the Pittsburgh Steelers on Sunday, followed by the Baltimore Ravens in Week 2. Big Ben was just joking, as he's always been surrounded by open lockers.

Russian Federation reserves right to further cut number of U.S. diplomats
The Russian president also slammed the "useless" sanctions imposed on North Korea, and called the U.S. Russian President Vladimir Putin has condemned North Korea's latest nuclear test as provocation.

Honor 6 Play with quad-core MediaTek SoC launched
On the front, we can notice the 5-megapixel shooter and it has the f/2.4 aperture and we can use it for capturing the selfies. The V9 Play is supposed to be a budget smartphone with a big battery and Android Nougat based EMUI 5.1.

Mickelson handed Presidents Cup spot
The players on Team USA boast an average world ranking of 15.6, less than half of their worldwide counterparts (31.9). Price's second pick, however, drew criticism too, as he took Anirban Lahiri for his team over some younger options.

Putin threatens to expel 155 more United States diplomats from Russian Federation
Moscow already instructed American missions to bring down personnel numbers to the same level as Russian diplomats in the U.S.by September 1.