- Bizenjo says economic relations with US should not be hampered
Speaking about the fine levied on Habib Bank Limited’s branch in New York, former foreign affairs minister Khurshid Mahmud Kasuri has said that the US foreign policy should not affect a private corporate body.
“I hope the matter is not linked to the current tension between Pakistan and the US,” he said in a private TV talk show. He said that there were institutions in the US that control the banking sector, where lack of transparency to this extent was not expected.
However, Kasuri said that the incident of the Bank of Credit and Commerce International (BCCI) was an example of brunt being borne by a third world organisation. The BCCI faced consequences as it was a bank belonging to a third world country and was swiftly prospering, he said.
Taking part in the show, Federal Minister for Ports and Shipping Mir Hasil Bizenjo said that he does not expect a body of the Habibs to falter. However, the economic relations with the US should not be hampered, he said. The bank’s branch 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 department. The bank management has informed the Pakistan Stock Exchange of the incident and pledged to immediately seek recourse from the authorities concerned. After the decision of imposing the fine, the bank has decided to voluntarily close down its operations in New York.
