Monday Aug 28, 2017
ISLAMABAD: The foreign policy of the United States should not affect a private corporate body, former foreign minister of Pakistan Khurshid Kasuri said while speaking about the fine levied on Habib Bank Limited’s New York branch.
“I hope the matter is not linked to the current tension between Pakistan and the US,” he said while speaking on Geo News’ show Capital Talk on Monday. “There are institutes in the US that control the banking sector, where lack of transparency [to this extent] is not expected.”
However, he added, the incident of Bank of Credit and Commerce International (BCCI) is an example of brunt being borne by a third world organisation.
The former foreign minister said BCCI faced consequences as it was a bank belonging to a third world country and was swiftly prospering.
“American banks were threatened by the progress of BCCI,” he said, implying which is why the bank collapsed.
While speaking on the show, Federal Minister for Ports and Shipping Mir Hasil Bizenjo said he does not expect a body of the Habibs to falter. However, he added, economic relations with the US should not be hampered.
The New York branch of Habib Bank has been sent a fine notice of over $620 million by the New York State Department of Financial Services (NYDFS).
The fine is going to be imposed for violation of the compliance programme, according to the NYDFS.
The bank management has informed the Pakistan Stock Exchange of the incident and pledged to immediately seek recourse from the concerned authorities. After the decision of imposing the fine, the bank has decided to voluntarily close down its operations in New York.
HBL said it has a right of appeal against the order of the regulator.