[QODLink]
Archive
US slaps curbs on Arab Bank branch
A US bank regulator has ordered Palestinian-managed Arab Bank Group to convert its New York branch to a federal banking agency, ending the branch’s wire transfer business.
Last Modified: 25 Feb 2005 23:38 GMT
The bank's wire transfer business in New York has been shut down
A US bank regulator has ordered Palestinian-managed Arab Bank Group to convert its New York branch to a federal banking agency, ending the branch’s wire transfer business.

The US Office of the Comptroller of the Currency (OCC) on Friday said it determined the bank's branch had internal control weaknesses, especially in its international funds transfer activities.
   
Arab Bank, by far the largest bank operating in the Palestinian territories, has had several lawsuits brought against it on behalf of relatives of US citizens killed or injured in violence in the Middle East, accusing the bank of helping move money to families of bombers.
   
The Jordan-based bank has denied that it helped transfer such funds and said it had made extensive investments to promote peace by financing projects in Palestinian territories. 

Directive 

On Friday OCC said Arab Bank agreed to convert the branch to an agency office, maintain asset levels and take some steps to improve its compliance programme and internal controls. 

Bob Chlopak, a spokesman for the bank, said the OCC order forces Arab Bank to exit the wire transfer business in New York, but allows it to continue activities in trade and corporate finance at the branch.
   
The wire transfer business has historically accounted for about 9% of the bank's New York branch profit, Arab Bank said.
   
Chlopak said the shortcomings cited by the OCC were not related to problems with specific transactions but to inadequacies in the bank's information system, such as information gathering, monitoring, auditing and filing suspicious activity reports.

Source:
Agencies
Topics in this article
Country
City
Organisation
Featured on Al Jazeera
Mother of jailed Al Jazeera journalist Abdullah Elshamy says her son's ordeal highlights the value of press freedom.
French Jews and Muslims say recent National Front victories in mayoral races reflect rising xenophobia.
Western fighters have streamed into the Middle East to help 'liberate' Arab countries such as Syria and Libya.
The Pakistani government is proposing reform of the nation's madrassas, which are accused of fostering terrorism.
Featured
Survivors of Bangladesh garment factory collapse say they received little compensation and face economic hardship.
As Iraq prepares to vote, deadly violence is surging. But at the site of one bomb attack, people insist life must go on.
French Jews and Muslims say recent National Front victories in mayoral races reflect rising xenophobia.
Up to 23,000 federal prisoners could qualify for clemency under new Justice Department initiative.
After years of rapid growth, Argentina is bracing for another economic crisis as inflation eats up purchasing power.
join our mailing list