October 01, 2020 (MLN): The US Federal Reserve Board has terminated its enforcement actions with Habib Bank Limited Pakistan (HBL) and Habib Bank Limited New York Branch.
Earlier this year, HBL voluntarily closed its New York branch which had some regulatory issues. It made serious efforts to comply with the regulatory requirements of the New York State Department of Financial Services (NYDFS).
Taking its social media account, HBL announced that FED ended action against bank dating from 2015, as per the Federal Reserve Board Press Release.
In this regard, HBL thanked FED, NYDFS, and SBP for their support in bringing this matter to a close.
HBL had worked diligently to improve its control and compliance processes and systems as part of its business transformation program began in early 2018, HBL said.
According to the HBL statement, ‘the bank is also committed to an ongoing focus on compliance protocols to ensure adherence to international standards, including the Wolfsberg principles. Compliance with these standards and protocols is not just a one-off project but a sustained effort that governs the way we do business.’
As per research note by Taurus Securities, it expects HBL’s operating costs to normalize as New York-related costs shall drop significantly, boding well for the bottom-line.
