United Bank Limited (UBL) has made the announcement that it will voluntarily wind-up & close its branch in New York. The bank has decided to surrender its banking license in New York following the rules and regulations.
UBL sent a notification to the Pakistan Stock Exchange and said, “As part of its global realignment strategy, UBL intends to voluntarily liquidate and surrender its license pursuant to New York Banking Law 605.11(c).”
Adding, “This is a commercial decision keeping in view the commercial viability of NY Branch and is subject to all regulatory approvals.”
UBL further said that it has explained its reasons to the New York Department of Financial Services (NYDFS) and the bank will continue to work closely with the U.S. controllers in its voluntary liquidation process to make sure that its branch in New York is closed in a proper manner, following all federal rules.
Federal Reserve Bank of New York (FRBNY) directed UBL back in July to improve its policies on anti-money laundering. The U.S regulator felt that UBL was not doing enough to track such doubtful activities.
Previously, almost five years back Federal Reserve Bank of New York told UBL to monitor the remittances sent from New York to Karachi.
Previously the bank stated, UBL and its New York branch have entered into a written agreement (WA 2018) with the Federal Reserve Bank of New York (FRBNY), effective July 2, 2018, upon termination of the earlier Written Agreement entered into on 28 October 2013 (WA 2013), which was primarily related to the New York branch’s international remittance services.”
Adding, “The WA 2018 requires UBL to take steps to strengthen its Bank Secrecy Act and Anti Money Laundering Compliance, Customer Due Diligence and Suspicious Activity Monitoring and Reporting Programmes. Although it imposes no civil penalty on UBL, the disclosure regarding the signing of WA 2018 is being made as an update to the Written Agreement earlier signed on 28 October 2013 (WA 2013.”
Now according to the announcement by the bank itself they are planning to close their branch in New York.