Pakistan based Habib Bank New York Branch Closed Fined $225 Millions

Habib Bank New York

US banking regulators have ordered to shut down Pakistan based Habib Bank’s official branch of New York. The branch was working for almost 40 years. The decision was taken after the regulators found that bank was repeatedly failing to heed concerns over possible terrorist financing and money laundering.

Habib, is the largest private bank of Pakistan. Officials said that the bank neglected all the compliance problems and red flags on transactions that potentially could have promoted terrorism, money laundering or other illicit ends. So there was no other option than to shut down the bank.

A fine of $225 million has also been imposed on the bank. The ban is imposed by the state’s Department of Financial Services, the authority responsible for regulating foreign banks. Initially the penalty of $629.6 million was decided but later on it was reduced to $225 million.

Habib bank had started its operations in Network in 1978. The bank was warned and ordered to stop illegal transactions which were occurring through the bank but bank failed to comply. As per the regulators, bank had done transactions of total amount equal to billions with banks such as Saudi private bank, Al Rajhi Bank. These banks have their connections with al Qaeda.

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