Acting tough on Pakistan a state, US has accused of supporting and funding terrorism, New York’s state Department of Financial Services (DFS) imposed a fine of $225 million on Pakistan’s “Habib Bank” after failing to pay attention on possible terrorist connections, Money laundering.
Banking regulators ordered bank to shut down it’s New York office and surrender its license to operate there. Habib bank is Pakistan’s largest private bank serving in US since 1978.
During investigations DFS found that Habib Bank simplified transactions of billions of dollars with Al Rajhi Bank, Saudi private bank, which reportedly has links with the terrorist organization “Al-Qaeda” and failed to ensure that the transactions were not laundered or used for any terrorism purposes.
In 2006 an agreement was made between DFS and Habib bank and ordered to improve its internal controls but the bank violated the terms of the agreement.
“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,” The Express Tribune quoted DFS Superintendent Maria Vullo as saying.
“The bank has repeatedly been given more than sufficient opportunity to correct its glaring deficiencies, yet it has failed to do so.”
Habib Bank is Headquarted in Karachi, Pakistan.