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Clifford Chance

Clifford Chance


Habib Bank to Pay $225M Fine and Close Its New York Branch for Anti-Money Laundering and Sanctions Compliance Failures

18 September 2017

On September 7, 2017, the New York State Department of Financial Services issued a consent order against Pakistan's largest bank, Habib Bank, pursuant to which Habib Bank consented to pay a civil money penalty in the amount of US $225 million and to close its New York branch.  The Consent Order alleges that Habib Bank and the NY Branch failed to comply with New York laws and regulations designed to combat money laundering and terrorist financing, failed to maintain true and adequate books, accounts and records in violation of the New York Banking Law, conducted their business in an unsound and unsafe manner, and violated multiple provisions of a 2006 Written Agreement and a 2015 Consent Order.

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