UBL to wind down New York branch as part of ‘global realignment strategy’

 
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Islamabad, Nov 22 (TNS): The United Bank Ltd (UBL) has announced its plans to wrap up its operations in New York, saying the decision has been taken considering the commercial viability of the branch.

“As part of its global realignment strategy, UBL intends to voluntarily liquidate and surrender its license pursuant to New York Banking Law,” the bank said in a letter to the Pakistan Stock Exchange (PSX).

“This is a commercial decision keeping in view the commercial viability of NY Branch and is subject to all regulatory approvals,” it added.

The bank has notified its intent to wind up operations to the New York Department of Financial Services (DFS), the filing said.

“UBL will continue to work closely with its US regulators throughout the voluntary liquidation process to ensure that the New York branch is wound down in an orderly manner, complying with all applicable Federal and State Laws, Rules, and Regulations.”

The bank revealed that it already has “well-established multiple correspondent banking relationships” which provide US dollar clearing services to its customers.

The announcement comes months after the US Federal Reserve Bank ordered UBL to toughen its anti-money laundering policies as the regulator faulted the Pakistani bank for not doing enough to track suspicious transactions.

UBL had subsequently signed an agreement with the Federal Reserve Bank of New York in July to comply with laws and regulations of United States.