NEW YORK: US banking regulators ordered Pakistan’s Habib Bank to shutter its New York office after nearly 40 years, for repeatedly failing to heed concerns over possible terrorist financing and money laundering, officials said Thursday.
Habib, Pakistan’s largest private bank, neglected to watch for compliance problems and red flags on transactions that potentially could have promoted terrorism, money laundering or other illicit ends, New York banking officials said.
The state’s Department of Financial Services, which regulates foreign banks, also slapped a $225 million fine on the bank, although that is much smaller than the $629.6 million penalty initially proposed.
Habib has operated in the United States since 1978, and in 2006 was ordered to tighten its oversight of potentially illegal transactions but failed to comply.
New York regulators said Habib facilitated billions of dollars of transactions with a Mideast private bank, which reportedly has links to Al-Qaeda, and failed to do enough to ensure that the funds were not laundered or used for terrorism.
“DFS will not tolerate inadequate risk and compliance functions that open the door to the financing of terrorist activities that pose a grave threat to the people of this State and the financial system as a whole,” DFS Superintendent Maria Vullo said in a news release.
“The bank has repeatedly been given more than sufficient opportunity to correct its glaring deficiencies, yet it has failed to do so.”
Habib permitted at least 13,000 transactions that were not sufficiently screened to ensure they did not involve sanctioned countries, the agency said.
And the bank improperly used a “good guy” list to rubber stamp at least $250 million in transactions, including those by an identified terrorist and an international arms dealer, regulators said.
In an August letter to the Pakistan Stock Exchange, Habib company secretary Nausheen Ahmad called the proposed fine of $629.6 million “outrageous” and “capricious” and said the bank had decided to close its New York operations “in an orderly manner.”
But DFS said Habib will have to surrender its license after it meets the agency’s requirements.
“DFS will not stand by and let Habib Bank sneak out of the United States,” Vullo said.
US shuts down Pakistani bank over terror-financing and money laundering concerns
US shuts down Pakistani bank over terror-financing and money laundering concerns
Pope Leo XIV calls for global truce on Christmas Day
- Pope Leo expressed “great sadness” that “apparently Russia rejected a request” for truce
CASTEL GANDOLFO: Pope Leo XIV on Tuesday called for a global truce on Christmas Day, expressing “great sadness” that “apparently Russia rejected a request” for one.
“I am renewing my request to all people of good will to respect a day of peace — at least on the feast of the birth of our Savior,” Leo told reporters at his residence in Castel Gandolfo near Rome.
Russia invaded Ukraine in February 2022 and has repeatedly rejected calls for a ceasefire saying it would only give a military advantage to Ukraine.
“Among the things that cause me great sadness is the fact that Russia has apparently rejected a request for a truce,” the pope said.
Referring to conflicts in general, Leo said: “I hope they will listen and there will be 24 hours of peace in the whole world,” he added.
Ukraine on Tuesday pulled out troops from a town in the east of the country after fierce battles with Russian forces as relentless strikes by Moscow killed three civilians and cut power to thousands in freezing winter temperatures.
There was no sign of an imminent breakthrough after top negotiators from both Russia and Ukraine were in Miami last weekend for separate meetings with US officials seeking a deal to end almost four years of fighting.
Pope Leo met with Ukrainian President Volodymyr Zelensky earlier this month.
Asked if he would accept Zelensky’s invitation to visit Ukraine, Leo later said “I hope so,” but cautioned it was not possible to say when such a trip would be possible.
He also said that seeking peace in Ukraine without European diplomatic involvement was “unrealistic” and warned US President Donald Trump’s proposed peace plan risked a “huge change” in the transatlantic alliance.
