United Bank Limited (UBL) is facing compliance issues at its New York Branch but states that there are no worries of a financial penalty on the bank.
In its annual report issued today, UBL added a paragraph regarding its issues with Federal Reserve Bank of New York (FRBNY). The statement started off rumors and the share trading of the bank on the PSX was affected.
UBL opened at Rs 201.90 and closed at Rs. 192.73 with a dip of Rs. 7.99 in a single day. A total of 3,105,900 shares were traded.
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UBL added following compliance related statement in its report:
UBL & its New York Branch have entered into a written Agreement in 2013 with the Federal Reserve Bank of New York (FRBNY) to address certain compliance and risk management matters relating primarily to compliance with Anti Money Laundering Regulations including the Banking Secrecy Act.
Management is in the process of addressing the matters highlighted in the Written Agreement and in the subsequent inspections.
While the Bank seeks to comply with all possible laws and regulations and at this stage there is no indication of any financial impact, it is not possible to ascertain the eventual outcome of these matters.
UBL, in a statement shared with ProPakistani, said bank has sound financial standing and it is evident from the financial results of the bank for the year 2017.
“The bank has announced final cash dividend of Rs.4 per share (40%) which is in addition to the interim dividends of Rs.9/- per share (90%)”, read the statement.
It further said that the bank is following the prudent policies and is mindful of safeguarding the interests of all the stakeholders.
“We reiterate our position as mentioned in our financial statement that our compliance status is in accordance with the best practices and there is no material regulatory risk which in our view at this point could negatively impact our financial position”, said the statement.
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Please check the spelling of “Penalty” in second last paragraph.