On September 29, 2020, the US Federal Reserve Board announced thetermination of enforcement actions with Habib Bank Limited Pakistan andHabib Bank Limited New York Branch, dating from 2015 as per the FederalReserve Board Press Release.
Earlier this year, in February, Habib Bank Limited (HBL) had announced thatit will complete the voluntary closure of its New York branch in March incompliance with the US banking regulations, but continue to usecorrespondent banking network for foreign transactions.
“On March 31, 2020, Habib Bank Limited (HBL) will complete the orderlywind-down and voluntary closure of its New York branch,” the bank said in astatement. “The wind-down has been undertaken in coordination with the NewYork state banking regulators, subject to the New York banking laws andregulations.”
HBL said the bank agreed to regulators in the US to conduct a systematicwind-down of the bank’s affairs in New York. “Following the voluntaryclosure of its New York Branch, HBL will no longer operate any bank branchin the United States,” it added. “However, the bank will continue toservice its clients’ US dollar banking requirements, in Pakistan and othercountries where it operates, through its network of correspondent banks.”
HBL, the country’s biggest bank in terms of assets, agreed to pay $225million fine to a US authority in 2017 for not complying with the rulesrelated to reporting of transactions.
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Today (Wednesday), another press release issued by the bank said, HBLwishes to thank the Federal Reserve Board, the New York State Department ofFinancial Services (NYDFS) and the State Bank of Pakistan, for theirsupport in bringing this matter to a close.
HBL has worked diligently to improve its control and compliance processesand systems as part of its business transformation program, that began inearly 2018. The Bank is committed to ongoing focus on compliance protocolsto ensure adherence to international standards, including the Wolfsbergprinciples. Compliance with these standards and protocols is not just aone-off project but a sustained effort that governs the way we do business.
