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UNITED STATES OF AMERICA
BEFORE
THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
THE FEDERAL DEPOSIT INSURANCE CORPORATION
WASBINGTON, D.C.
FRB Docket Nos. 97-029-CMP-FB
97-029-CMP-FBR
FDIC Docket No. 98-015K
In the Matter of
;
HABIB BANK AG ZURICH,
Zurich, Switzerland
HABIB BANK AG ZURICH,
LOS ANGELES BRANCH
Los Angeles California
;
1
1
;
i
)
Order of Assessment of
Civil Money Penalty
Issued Upon Consent
Pursuant to the Federal
Deposit Insurance Act,
as Amended, the Bank
Holding Company Act
of 1956, as Amended, and
the International Banking
Act of 1978, as Amended
a.
WHEREAS, as of the date of this Order of Assessment
of a Civil Money Penalty
Switzerland
(the "Order"), Habib Bank AG Zurich,
("Habib Bank") is a foreign bank doing business in
the United States through a Los Angeles, California Branch
(the "Branch") subject to the jurisdiction of the Board of
Governors of the Federal Reserve System
(the "Board of
Governors') under the International Banking Act of 1978, as
amended
(12 U.S.C. 5 3101 et seq.) ("IBA"), the Bank Holding
Company Act of 1956, as amended
(12 U.S.C. § 1841 et seq.)
(the "BHC Act"), and section 8 of the Federal Deposit Insurance
Act, as amended
(12 U.S.C. 5 1818) (the "FDI Act");
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WHEREAS, Habib Bank is subject to the jurisdiction of
the Federal Deposit Insurance Corporation
("FDIC") pursuant to
section 8 of the FDI Act;
WHEREAS, the Board of Governors issues this Order
pursuant to section 16(c) of the IBA (12 U.S.C. § 3110(c)),
section 8 of the BHC Act
the FDI Act
(12 U.S.C. § 18471, and section 8(i) of
(12 U.S.C. § 1818(i)) in settlement of certain
proceedings relating to Habib Bank's alleged violations of the
BHC Act as a result of its failure to file complete and accurate
P.R. Y-7 reports with the Federal Reserve for the years 1990
through 1993;
WHEREAS, the FDIC issues this Order pursuant to
sections 5(a) and (b) of the FDI Act
(12 U.S.C. §§ 1815(a)
and (b)), secti'on 303.1 of the FDIC's Rules and Regulations
(12 C.F.R. § 303.1), and section 8(i) of the FDI Act in
settlement of certain proceedings relating to Habib Bank's
alleged violations of the FDI Act and the FDIC's Rules and
Regulations as a result of its failure to file a complete and
accurate application for federal deposit insurance;
WHEREAS, on
20th Februarv
, 1998, the board of
directors of Habib Bank adopted a resolution
directing
Hyder
M.
Habib Bank's behalf;
Usman
Ghani
Habib
(1) authorizing and
to enter into this Order on
(2) authorizing and directing
to enter into this Order on behalf of
the Branch; and (3) consenting to compliance with each and every
-
3 -
provision of this Order by Habib Bank and the Branch and their
respective institution-affiliated
parties, as such term is
defined in sections 3(u) and 8(b) (4) of the FDI Act
(12 U.S.C. §§ 1813(u) and 1818(b) (4)); and (4) waiving, on
behalf of Habib Bank and the Branch, any and all rights that they
might have pursuant to 12 U.S.C. §§ 1818, 1847, and 3110 and
12 C.F.R. Parts 263 and 308 or otherwise (a) to the issuance of a
notice of assessment of a civil money penalty, (b) to a hearing
for the purpose of taking evidence on any matter implied or set
forth in this Order,
(c) to obtain judicial review of this Order
or any provision thereof, and (d) to challenge or contest in any
manner the basis, issuance, validity, terms, effectiveness,
collectibility or enforceability
of this Order or any provision
P
thereof.
NOW, THEREFORE,
solely for the purpose of this
proceeding and before the taking of any testimony or adjudication
of or finding on any issue of fact or law herein, and without
admitting or denying any violations of
law and regulations for
which a civil money penalty may be assessed by the Board of
Governors and the FDIC in connection with this proceeding:
IT IS HEREBY ORDERED, pursuant to section 16(c) of
the IBA, section 8 of the BHC Act, and section 8(i) of the
FDI Act, that:
1.
Habib Bank and the Branch are jointly assessed and
shall pay as hereinafter provided a civil money penalty in the
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amount of $15,000 to the Board of Governors and the FDIC.
2.
The payment required by this Order shall be
remitted in full, at the time of Habib Bank's and the Branch's
execution of this Order, payable to the "Board of Governors of
the Federal Reserve System" and forwarded to William W. Wiles,
Secretary of the Board, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551, who shall make remittance of the
same to the Treasury of the United States as required by statute.
3. The provisions of this Order shall be binding upon
Habib Bank, the Branch, and their successors and assigns.
4.
The provisions of this Order shall not bar, estop
or otherwise prevent the Board of Governors, the FDIC, or any
other agency or department of the U.S. government or any state
government from taking any other action affecting Habib Bank or
the Branch or any of their subsidiaries, affiliates or
institution-affili,eted parties, which they would otherwise be
entitled to take in the absence of this Order; provided, however,
that neither the Board of Governors nor the FDIC shall take any
further action against Habib Bank or the Branch or any of their
subsidiaries, affiliates, or institution-affiliated parties based
on any information currently known to the Board of Governors or
the FDIC.
5.
Nothing in this Order is intended to prevent Habib
Bank or the Branch from complying with applicable foreign law or
with valid, binding, and lawful contractual obligations.
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By order of the Board of Governors of the Federal
Reserve System and the Federal Deposit Insurance Corporation,
effective this
25th
day of
March
,
Habib Bank AG Zurich
1998.
Board of Governors of
the
Federal Reserve Svstem
Hyder M. Habib
President
Habib Bank AG Zurich,
Los Angeles Branch
Wiles
Secretary of the Board
Federal Deposit Insurance
Corporation
BY
Mark' S.
Schmidt
AssociateDirector
Divisionof Supervision