New York Regulator kicks Pakistan’s Habib Bank out of United States

habib bank

New York: On the issue of terrorism, the US has again given a big blow to Pakistan. US Banking Regulators have ordered the closure of its office in New York, the largest bank of Pakistan, ‘Habib Bank’, which has been in New York for 40 years. This action has been taken because of terrorist funding on this Pakistani bank. Apart from this, the State Department of Financial Services (DFS), the governing body of foreign banks, has imposed a penalty of approximately $ 225 million (Rs 14,371 crore) on the bank for violating the rules.

DFS had said last month that he is considering imposing a fine of about Rs 40,000 crore on Habib Bank. In a legal filing, DFS has alleged that the bank has failed to work according to the rules in anti money laundering cases. This was the only branch of Habib Bank in America. New York Banking officials said that the bank ignored many instructions. This bank is suspected of having transactions that have been used in terrorism, money laundering or other illegal activities.

Regardless of the warning, the bank not considered

According to reports, despite repeated warnings, Habib was not able to fund the financing of terrorists and money laundering in his favor. DFS did not have to take this tough step due to the lack of instructions from the Pakistani bank. After being suspected of some potential illegal transactions in 2006, the bank was instructed to be strict on such transactions, but the bank failed to do so.

Bank was helping the terrorists

Habib has approved at least 13 thousand such transactions which encourage terrorist activities. According to regulators, the bank has incorrectly approved transfers of $ 25 million, including terrorists and international arms dealers. DFS said that this opens the way to financing activities and threatens the financial system as well as the American people. DFS says that Habib Bank has to surrender its license and it can not go from the stealthy America.