DUBAI/KARACHI: The United Arab Emirates’ central bank is investigating Pakistan’s largest bank to ascertain if it violated anti-money- laundering and terrorism-financing laws, the regulator said on Wednesday.
The inquiry comes as Pakistan is under examination by a Paris unit of the Financial Action Task Force, a global financial watchdog, for not adequately complying with global regulations on money laundering and terrorism financing.
The FATF will decide this week whether to put Pakistan on a list of countries on non-compliant with global financial regulations, which would carry significant sanctions.
The Central Bank of UAE (CBAUE) said in a statement on Wednesday that it was in “close contact” with Pakistan’s banking regulator to verify reported irregularities of a Pakistani bank in UAE.
A spokeswoman of the CBAUE confirmed to Reuters that the statement referred to Habib Bank Ltd. (HBL), Pakistan’s largest bank.
The bank, which is largely owned by the Aga Khan Fund for Economic Development and Pakistan government, had total assets of 3.1 trillion Pakistani rupees ($20.1 billion) at the end of September 2019.
The statement by the UAE banking regulator added it “will take appropriate regulatory action once we have verified the findings reported in the media to confirm if there was any violation of UAE’s Anti-Money Laundering and Combat of Financing of Terrorism (AML/CFT) laws and procedures.”
In a report last week, Bloomberg said that Pakistan’s banking regulator in 2018 had found irregularities in HBL’s UAE operations and dealings with politically exposed clients.
HBL responded to that report by admitting that a “few weaknesses” were identified in 2017 in its UAE operations that contravened its processes and standards.
“We have transformed our control and compliance process to ensure that they are in line with international standards,” an HBL statement said.
The State Bank of Pakistan, the country’s banking regulator, did not immediately respond to queries by Reuters on its communication with UAE regulator.
HBL also faced action in the United States in 2017 when the New York State Department of Financial Services said it was seeking to fine HBL up to $630 million for “grave” compliance failures on anti-money laundering and sanctions rules. The bank agreed to pay $225 million to settle enforcement action.
In a filing to Pakistan Stock Exchange on Monday the bank said it would complete a “voluntary closure” of its US operations in coordination with the New York State banking regulator on or before March 31.
UAE regulator to investigate Pakistan bank for money laundering
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UAE regulator to investigate Pakistan bank for money laundering
- The inquiry comes as Pakistan is under scrutiny by global anti-money laundering watchdog in Paris
- Pakistan’s central bank highlighted irregularities in HBL’s UAE operations in its 2019 report
US, Japan hold joint air exercise after China-Russia patrols
TOKYO: Japan said Thursday it held a joint air exercise with the United States in a show of force, days after Chinese-Russian patrols in the region and following weeks of diplomatic feuding between Tokyo and Beijing.
The Japanese joint chiefs of staff said Wednesday’s exercise with the US Air Force was conducted in “an increasingly severe security environment surrounding our country.”
Tokyo said Wednesday that two Russian Tu-95 nuclear-capable bombers flew a day earlier from the Sea of Japan to rendezvous with two Chinese H-6 bombers in the East China Sea, then conducted a joint flight around the country.
Japan said that it scrambled fighter jets in response.
Prime Minister Sanae Takaichi angered Beijing last month by suggesting that Japan would intervene with military force in any Chinese attack on Taiwan.
Thursday’s announcement by Japan’s chiefs of staff said: “We confirmed the strong resolve of Japan and the United States not to allow any unilateral change of the status quo by force, as well as the readiness of the Self-Defense Forces and the US military.”
In a separate statement it said that the “tactical exercises” over the Japan Sea involved two US B52 bombers, three Japanese F-35 fighter jets and three Japanese F-15s.
The joint exercise came as the United States criticized Beijing for the first time on Wednesday after Chinese military aircraft locked radar onto Japanese jets on Saturday.
The J-15 jets from China’s Liaoning aircraft carrier twice locked radar on Japanese aircraft in international waters near Okinawa, according to Japan, which scrambled jets in response.
“China’s actions are not conducive to regional peace and stability,” a US State Department spokesperson told AFP on Wednesday.
“The US-Japan Alliance is stronger and more united than ever. Our commitment to our ally Japan is unwavering, and we are in close contact on this and other issues.”
Fighter jets use their radar for fire control to identify targets as well as for search and rescue operations.
Tokyo also summoned Beijing’s ambassador following the radar incident, over which the two countries offer differing accounts of events.
Japan said it scrambled its F-15 jets because it was worried about possible “airspace violations.”
Guo Jiakun, spokesman for the ministry of foreign affairs, accused Japan Wednesday of sending the jets “to intrude into the Chinese training area without authorization, conduct close-range reconnaissance and harassment, create tense situations, and continue to maliciously hype up the situation.”
Takaichi’s comments about intervening in any Taiwan emergency enraged Beijing as China claims the self-ruled island as its own and has not ruled out seizing it by force.
Tokyo was forced to deny a Wall Street Journal report that said US President Donald Trump had advised Takaichi not to provoke China over Taiwan’s sovereignty.
But Tokyo is apparently frustrated at the lack of public support from top officials in Washington and has urged the US to be more vocal, the Financial Times reported on Sunday.
- ‘Regrettable’ -
NATO chief Mark Rutte said on Wednesday that the radar incident and the joint Chinese-Russian patrols were “regrettable,” Japan’s Defense Minister Shinjiro Koizumi said on X.
The statement followed a 15-minute video conference between Rutte and Koizumi, the defense ministry said in a statement.
Rutte “affirmed that security in the Indo-Pacific and Euro-Atlantic regions is completely inseparable,” Koizumi said.
South Korea said Tuesday that Russian and Chinese warplanes also entered its air defense zone, with Seoul also deploying fighter jets that same day.
Beijing confirmed later on Tuesday that it had organized drills with Russia’s military according to “annual cooperation plans.”
Moscow also described it as a routine exercise, saying it lasted eight hours and that some foreign fighter jets followed the Russian and Chinese aircraft.
The Japanese joint chiefs of staff said Wednesday’s exercise with the US Air Force was conducted in “an increasingly severe security environment surrounding our country.”
Tokyo said Wednesday that two Russian Tu-95 nuclear-capable bombers flew a day earlier from the Sea of Japan to rendezvous with two Chinese H-6 bombers in the East China Sea, then conducted a joint flight around the country.
Japan said that it scrambled fighter jets in response.
Prime Minister Sanae Takaichi angered Beijing last month by suggesting that Japan would intervene with military force in any Chinese attack on Taiwan.
Thursday’s announcement by Japan’s chiefs of staff said: “We confirmed the strong resolve of Japan and the United States not to allow any unilateral change of the status quo by force, as well as the readiness of the Self-Defense Forces and the US military.”
In a separate statement it said that the “tactical exercises” over the Japan Sea involved two US B52 bombers, three Japanese F-35 fighter jets and three Japanese F-15s.
The joint exercise came as the United States criticized Beijing for the first time on Wednesday after Chinese military aircraft locked radar onto Japanese jets on Saturday.
The J-15 jets from China’s Liaoning aircraft carrier twice locked radar on Japanese aircraft in international waters near Okinawa, according to Japan, which scrambled jets in response.
“China’s actions are not conducive to regional peace and stability,” a US State Department spokesperson told AFP on Wednesday.
“The US-Japan Alliance is stronger and more united than ever. Our commitment to our ally Japan is unwavering, and we are in close contact on this and other issues.”
Fighter jets use their radar for fire control to identify targets as well as for search and rescue operations.
Tokyo also summoned Beijing’s ambassador following the radar incident, over which the two countries offer differing accounts of events.
Japan said it scrambled its F-15 jets because it was worried about possible “airspace violations.”
Guo Jiakun, spokesman for the ministry of foreign affairs, accused Japan Wednesday of sending the jets “to intrude into the Chinese training area without authorization, conduct close-range reconnaissance and harassment, create tense situations, and continue to maliciously hype up the situation.”
Takaichi’s comments about intervening in any Taiwan emergency enraged Beijing as China claims the self-ruled island as its own and has not ruled out seizing it by force.
Tokyo was forced to deny a Wall Street Journal report that said US President Donald Trump had advised Takaichi not to provoke China over Taiwan’s sovereignty.
But Tokyo is apparently frustrated at the lack of public support from top officials in Washington and has urged the US to be more vocal, the Financial Times reported on Sunday.
- ‘Regrettable’ -
NATO chief Mark Rutte said on Wednesday that the radar incident and the joint Chinese-Russian patrols were “regrettable,” Japan’s Defense Minister Shinjiro Koizumi said on X.
The statement followed a 15-minute video conference between Rutte and Koizumi, the defense ministry said in a statement.
Rutte “affirmed that security in the Indo-Pacific and Euro-Atlantic regions is completely inseparable,” Koizumi said.
South Korea said Tuesday that Russian and Chinese warplanes also entered its air defense zone, with Seoul also deploying fighter jets that same day.
Beijing confirmed later on Tuesday that it had organized drills with Russia’s military according to “annual cooperation plans.”
Moscow also described it as a routine exercise, saying it lasted eight hours and that some foreign fighter jets followed the Russian and Chinese aircraft.
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