Pakistan’s Habib Bank kicked out of US over terror financing charge

Karachi headquartered Pakistan’s biggest lender Habib Bank has been slapped with a $225 million fine before shutting down in US by New York state’s banking regulator, the Department of Financial Services (DFS). Habib Bank has neglected to watch for compliance problems and red flags on transactions that potentially could have promoted terrorism, money laundering or other illicit activity. The enforcement action by the Department of Financial Services (DFS) on Habib Bank is the first time in the history of New York state when a bank has been ordered to shut down, besides being ordered to pay a hefty fine on charges of suspicious transactions relating to terror funding. The Pakistani government is the majority owner of Habib Bank. Habib has operated in the United States since 1978.