Pakistan’s Habib Bank disclosed it was in negotiations with the DFS last month and said the potential fine and closure of its New York branch would have no material impact on its business outside the US. Photo: AFPWashington: The New York state department of financial services (DFS) on Thursday said Pakistan’s Habib Bank (HBL) had agreed to pay $225 million to settle an enforcement action brought against it for infringing laws designed to combat illicit money transfers. The DFS said in a legal filing last month it was seeking to fine the bank, Pakistan’s biggest lender, up to $630 million for “grave” compliance failures over anti-money laundering and sanctions rules at its only US branch. In a statement, HBL said it “remains committed to strengthening its compliance processes, operations and controls” across its 1,700 branches. Shares of HBL surged 5%, to Rs160.58 per share, amid investor relief that the fine was not larger than $225 million.

Source: Mint September 08, 2017 12:00 UTC