Habib Bank Limited (HBL) on Monday announced the voluntary closure of its New York branch. Upon such closure, HBL will no longer operate any bank branch in the US.

According to an announcement by the bank, HBL will complete the orderly wind-down and voluntary closure of its New York branch with effect from March 31, 2020. The wind-down has been undertaken in coordination with the New York State banking regulators, subject to the New York banking laws and regulations.

The bank voluntarily agreed, in coordination with the regulators in New York, to conduct a systematic wind-down of the bank's affairs in New York. Following the voluntary closure of its New York branch, HBL will no longer operate any bank branch in the United States.

However, the bank will continue to service its clients' US Dollar banking requirements, in Pakistan and other countries where it operates, through its network of correspondent banks.

According to the bank, it has proactively initiated a business transformation program, in early 2018, focused on its control and compliance processes and systems to further strengthen its adherence to international standards, including the Wolfsberg principles.

As part of the program, HBL made substantial and effective investments in management time and resources to further strengthen its AML and CFT protocols and functions and also engaged the services of international experts to ensure that such functions were brought in line with international standards.

Since 2018 HBL has made significant progress in terms of the strengthening of its compliance and control functions, processes and culture.

For HBL, adhering to the international compliance standards and protocols is not just a one-off project but a sustained effort that governs the way we do business.

HBL says that it remained committed to engaging in progressive banking practices while ensuring compliance with international and local laws and regulations across its network.

HBL has also thanked the State Bank of Pakistan, the New York State Department of Financial Services, and the Federal Reserve Bank of New York for their consistent support and cooperation throughout the process of winding down and closing of the New York branch.