US DFS seeks to impose an extreme civil monetary penalty on Pakistan’s Habib Bank

in Business

ISLAMABAD: The New York State Department of Financial Services (DFS) is seeking to put fine on Pakistan’s Habib Bank nearly $630 million over what it calls “deficiencies associating to compliance with state and federal laws” at the bank’s only US branch, according to reports.

The action is being labeled as an attack on Pakistan’s financial institutions following US President Donald Trump’s August 22 speech, in which he disregarded Pakistan’s sacrifices in the war on terror and instead blamed Pakistan of “sheltering terrorists”.

The penalty, if imposed, would be the largest ever faced by a Pakistani financial institution.

The compliance issues date to 2015 when the DFS told Karachi-listed Habib Bank Limited (HBL) to institute a series of reforms pertaining to the bank’s policies for preventing “illegal money transfers”.

Leave a Reply

Your email address will not be published.