Pakistan’s largest commercial bank in the private sector, HBL, faces allegations of facilitating terror financing during the 2010-19 period, a charge that the bank said it is contesting “fully and vigorously” in a US court. Media reports suggested that some 370 individual complainants had demanded compensation from HBL. This subsequently triggered a big fall in the bank’s share price on the Pakistan Stock Exchange (PSX) on Thursday.
The Southern District Court of New York has alleged that the alleged terror financing led to the injuries or killing of 370 individuals, and their family members, in the landlocked country.
Reports suggest that some 370 complainants demanded compensation from the bank, adding that the court had agreed to dismiss primary liability claims but denied dismissal of secondary liability claims against the bank.
The cases apparently gained momentum around the time when Paris-based global financial transaction watchdog – Financial Action Task Force (FATF) – considered upgrading Pakistan to its white list.
In its reply, HBL said that the public record is clear that it is unwavering in its commitment to combating the financing of terrorism, and—as has been well documented—it’s extensive global implementation of anti-money laundering compliance controls has been highly successful and lauded by regulators around the world.
Source: Express Tribune