A 2015 cease-and-desist order with a Pakistan bank and its New York City branch citing risk management and Bank Secrecy Act-related concerns was terminated last week by the Federal Reserve, the central bank announced Tuesday.
The Fed in 2015 entered into a cease-and-desist order with Habib Bank Limited, Karachi, Pakistan, and Habib Bank Limited New York Branch, New York, noting examination findings of “significant breakdowns” in the branch’s risk management and compliance with applicable federal laws, rules, and regulations relating to anti-money laundering (AML) compliance, including the Bank Secrecy Act (BSA). The order prescribed measures to correct those.
Also on Tuesday, the Fed said it had terminated its 2010 written agreement with Persons Banking Company, Inc., Macon, Ga., then the holding company for The Peoples Bank, Covington, Ga.; The Bank of Perry, Perry, Ga.; Farmers Bank, Forsyth, Ga.; and Spivey State Bank, Swainsboro, Ga. The agreement focused on the holding company’s serving as a source of strength for its subsidiary banks and ensuring their compliance with any supervisory action taken by federal or state regulators.
Both enforcement orders were terminated Sept. 22, the Fed said.