62-988: Habib Bank may refer to: Habib Bank Limited , the oldest commercial bank in Pakistan Habib Bank Plaza , headquarters of Habib Bank Limited Habib Bank Limited cricket team Habib Bank AG Zurich , originally founded as a branch of HBL in 1967 and independent since HBL's 1974 Nationalization Habib Bank Zurich (Pakistan) Pakistani Branch Habib Bank Zurich (Hong Kong) , Hong Kong subsidiary founded in 1979 Habib Bank Zurich plc , British subsidiary founded in 2016 Habib Canadian Bank , Canadian subsidiary founded in 2001 Habib Metropolitan Bank , Pakistani subsidiary founded in 1992 HBZ Bank , South African subsidiary founded in 1995 Habib Credit and Exchange Bank , founded in 1997 Bank AL Habib , founded in Pakistan in 1991 Topics referred to by
124-590: A payment system , such as TARGET2 in Europe. In the context of cross-border transactions, this step often takes place through correspondent banking accounts that financial institutions have with each other. SWIFT means several things in the financial world: Under 3 above, SWIFT provides turn-key solutions for members, consisting of linkage clients to facilitate connectivity to the SWIFT network and CBTs or "computer-based terminals" which members use to manage
186-714: A Russian alternative to SWIFT, was developed by the Central Bank of Russia as a backup measure. During the prelude to the 2022 Russian invasion of Ukraine , the United States developed preliminary possible sanctions against Russia, but excluded banning Russia from SWIFT. Following the 2022 Russian invasion of Ukraine , the foreign ministers of the Baltic states Lithuania, Latvia, and Estonia called for Russia to be cut off from SWIFT. However, other EU member states were reluctant, both because European lenders held most of
248-600: A distributed architecture with a two-zone model for storing messages (see § Operations centres ) . Concurrently, the European Union negotiated an agreement with the United States government to permit the transfer of intra-EU SWIFT transaction information to the United States under certain circumstances. Because of concerns about its potential contents, the European Parliament adopted
310-704: A group known as the Shadow Brokers released files allegedly from the NSA which indicate that the agency monitored financial transactions made through SWIFT. In January 2012, the advocacy group United Against Nuclear Iran (UANI) implemented a campaign calling on SWIFT to end all relations with Iran's banking system, including the Central Bank of Iran . UANI asserted that Iran's membership in SWIFT violated US and EU financial sanctions against Iran as well as SWIFT's own corporate rules. Consequently, in February 2012,
372-500: A monumental new head office building in La Hulpe , designed by Ricardo Bofill Taller de Arquitectura . SWIFT's shareholding structure is adjusted every three years in proportion to volumes of activity incurred by the members, ensuring that the most active members get the most voice irrespective of geography; additional rules are aimed at ensuring some geographical diversity within the board of directors. The 25 directors are elected by
434-661: A position statement in September 2009, demanding to see the full text of the agreement and asking that it be fully compliant with EU privacy legislation, with oversight mechanisms emplaced to ensure that all data requests were handled appropriately. An interim agreement was signed without European Parliamentary approval by the European Council on 30 November 2009, the day before the Lisbon Treaty —which would have prohibited such an agreement from being signed under
496-458: A public system involving manual writing and reading of messages. SWIFT was set up out of fear of what might happen if a single private and fully American entity controlled global financial flows – which before was First National City Bank (FNCB) of New York – later Citibank. In response to FNCB's protocol, FNCB's competitors in the US and Europe pushed an alternative "messaging system that could replace
558-522: A shared data processing system and worldwide communications network designed by Logica and developed by the Burroughs Corporation . Fundamental operating procedures and rules for liability were established in 1975, and the first message was ceremonially sent by Prince Albert of Belgium on 9 May 1977. SWIFT's first non-European operations centre was inaugurated by Governor John N. Dalton of Virginia in 1979. In 1989 SWIFT completed
620-624: A subsidiary in Ürümqi , Xinjiang , becoming the first Pakistani bank to operate in China . It became the first Pakistani bank and one of three banks from South Asia & MENA Region to open branches in China, with permission to trade in local currency, the Renminbi Yuan (CNY). In February 2018, HBL appointed senior banker Muhammad Aurangzeb (formerly CEO of Global Corporate Bank – Asia Pacific at JP Morgan ) as its President & CEO following
682-578: A wider group of central banks." Purported alternatives to the SWIFT system include: Swift has been criticised for inefficiency. In 2018, the London-based Financial Times noted that transfers frequently "pass through multiple banks before reaching their final destination, making them time-consuming, costly and lacking transparency on how much money will arrive at the other end". Swift has since introduced an improved service called "Global Payments Innovation" (GPI), claiming it
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#1732787547354744-476: A wrapper around all messages legacy or contemporary. The communication protocols can be broken down into: InterAct FileAct Browse SWIFT provides a centralized store-and-forward mechanism, with some transaction management. For bank A to send a message to bank B with a copy or authorization involving institution C, it formats the message according to standards and securely sends it to SWIFT. SWIFT guarantees its secure and reliable delivery to B after
806-828: Is based in Geneva , Switzerland. HBL is the largest domestic multinational company in Pakistan in terms of assets , and has repeatedly ranked as the top Pakistani company in the Forbes Global 2000 . It is also Pakistan's largest private sector bank, with over 1,700 branches and more than 2,000 ATMs. All HBL ATMs are linked to Visa and Mastercard , China UnionPay , and to the domestic 1LINK , MNET , and PayPak switches. IBFT (Interbank Funds Transfer) facility and utility bill payment capability are also provided at HBL ATMs. HBL branches also exchange foreign currency, initiate SWIFT and FEDWIRE transfers, and facilitate RAAST real-time money transfer transactions. Habib Bank Limited
868-590: Is different from Wikidata All article disambiguation pages All disambiguation pages Habib Bank Limited Habib Bank Limited ( Urdu : حبیب بینک ) commonly known as HBL , is a Pakistani commercial bank based at Habib Bank Plaza , Karachi , Pakistan. Established in 1941 by the Habib Family , HBL is Pakistan's oldest, largest and the first commercial bank. In 1951, it opened its first international branch in Colombo , Sri Lanka . In 1972,
930-632: The Los Angeles Times revealed a program, named the Terrorist Finance Tracking Program , which the US Treasury Department , Central Intelligence Agency (CIA) , and other United States governmental agencies initiated after the 11 September attacks to gain access to the SWIFT transaction database. After the publication of these articles, SWIFT quickly came under pressure for compromising
992-590: The Council of the European Union and the Council's subsequent ruling, SWIFT disconnected all Iranian banks that had been identified as institutions in breach of current EU sanctions from its international network and warned that even more Iranian financial institutions could be disconnected from the network. In February 2016, most Iranian banks reconnected to the network following the lift of sanctions due to
1054-753: The Government of Pakistan and subsequently the bank was delisted from the Karachi Stock Exchange . On 13 June 2002, Pakistan's Privatisation Commission announced that the Government of Pakistan would grant the Aga Khan Fund for Economic Development (AKFED), a subsidiary of the Aga Khan Development Network , majority ownership of HBL against AKFED's investment in the bank. In 2002, HBL's UK operation came close to being shut down due to regulatory issues with
1116-745: The Joint Comprehensive Plan of Action . In 2014, SWIFT rejected calls from pro-Palestinian activists to revoke Israeli banks ' access to its network owing to the Israeli occupation of Palestinian territory. Similarly, in August 2014 the UK planned to press the EU to block Russian use of SWIFT as a sanction due to Russian military intervention in Ukraine . However, SWIFT refused to do so. SPFS ,
1178-568: The National Security Agency (NSA) widely monitors banking transactions via SWIFT, as well as credit card transactions. The NSA intercepted and retained data from the SWIFT network used by thousands of banks to securely send transaction information. SWIFT was named as a "target", according to documents leaked by Edward Snowden . The documents revealed that the NSA spied on SWIFT using a variety of methods, including reading "SWIFT printer traffic from numerous banks". In April 2017,
1240-484: The U.S. Senate Banking Committee unanimously approved sanctions against SWIFT aimed at pressuring it to terminate its ties with blacklisted Iranian banks. Expelling Iranian banks from SWIFT would potentially deny Iran access to billions of dollars in revenue using SWIFT but not from using IVTS . Mark Wallace , president of UANI, praised the Senate Banking Committee. Initially SWIFT denied that it
1302-808: The United Kingdom , the Federal Reserve Board and the Federal Reserve Bank of New York for the U.S. and the European Central Bank ) started acting as joint overseers, with the National Bank of Belgium (NBB) in a lead role. The oversight focuses primarily on systemic risk, confidentiality, infrastructure security, and business continuity. It is formalized in bilateral documents between the NBB and SWIFT on
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#17327875473541364-468: The data privacy of its customers by allowing governments to gain access to sensitive personal information. In September 2006, the Belgian government declared that these SWIFT dealings with American governmental authorities were a breach of Belgian and European privacy laws . In response, and to satisfy members' concerns about privacy, SWIFT began a process of improving its architecture by implementing
1426-536: The title sponsor of the Pakistan Super League (PSL) since the league's first edition in 2016. In November 2021, the sponsorship deal was renewed for another four-year cycle until 2025. SWIFT The Society for Worldwide Interbank Financial Telecommunication ( Swift ), legally S.W.I.F.T. SC , is a cooperative established in 1973 in Belgium ( French : Société Coopérative ) and owned by
1488-552: The Aga Khan Fund for Economic Development (51%), and the remaining 49% of shares are in free float. CDC Group holds 4.99%, and the International Finance Corporation holds 0.87%, while individuals, institutions, and funds hold the rest of the shares. In June 2015, the bank acquired Barclays 's Pakistan operations and absorbed the staff. On 18 April 2016, HBL received a licence to operate
1550-522: The DFS told Karachi-listed Habib Bank (HBL) to institute a series of reforms about the bank's policies for preventing illicit money transfers. In a December 2015 statement, the DFS identified issues in the bank's anti-money laundering compliance. Habib also allegedly cleared transactions to a cybercriminal wanted by the US Federal Bureau of Investigation and a Chinese weapons manufacturer that
1612-585: The EU. On 20 March 2023, the Russian Federation banned the use of SWIFT. The European Union issued the first set of sanctions against Belarus - the first was introduced on 27 February 2022, which banned certain categories of Belarusian items in the EU, including timber, steel, mineral fuels and tobacco. After the Lithuanian prime minister proposed disconnecting Belarus from SWIFT, the European Union , which does not recognise Lukashenko as
1674-456: The European zone. SWIFT moved to its current IP network infrastructure, known as SWIFTNet, from 2001 to 2005, providing a total replacement of the previous X.25 infrastructure. The process involved the development of new protocols that facilitate efficient messaging, using existing and new message standards. The adopted technology chosen to develop the protocols was XML , which now provides
1736-482: The Financial Services Authority. The problem was resolved by converting the operations to a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its six branches and Allied its four branches) into a new bank, called Habib-Allied International Bank, in which Habib Bank has a 90.5% shareholding, while Allied Bank has 9.5%. In December 2003,
1798-643: The G10 central banks, the SWIFT Oversight Forum included the national central banks of Argentina , Australia , Brazil , China , Hong Kong , India , Indonesia , Korea , Mexico , Russia , Saudi Arabia , Singapore , South Africa , Spain , and Turkey . According to SWIFT, the Oversight Forum "provides a forum for the G-10 central banks to share information on Swift oversight activities with
1860-594: The Government of Pakistan granted AKFED rights to 51% of the shareholding in the bank against an investment of PKR 22.409 billion (US$ 389 million). In February 2004, Government of Pakistan handed over management control of Habib Bank to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO, and three Government of Pakistan nominees. In 2013,
1922-774: The Muslim League, subsequently serving as the appointed banker for the Muslim League Fund, the Pakistan Fund, and the Quaid-e-Azam Bihar Relief Fund. Relations between Jinnah and Mahomedali Habib, a key figure in the bank, were notably close. In 1937, under Mahomedali's influence, the Habib family converted from Isma'ilism to Isnasheri Shia Islam , aligning religiously more closely with Jinnah. In early 1947, at Jinnah's request,
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1984-707: The Republic of Tajikistan, describes that the leading cause for the late Swift Go adoption in Tajikistan was the Core Banking System itself. To connect to Swift Go, he adds, banking system interfaces needed to be upgraded and integrated with their software to be fully compatible; this hindered many banks from adopting the technology earlier. A series of articles published on 23 June 2006 in The New York Times , The Wall Street Journal , and
2046-579: The Swift network, and in 2015, Swift linked more than 11,000 financial institutions in over 200 countries and territories, who were exchanging an average of over 32 million messages per day (compared to an average of 2.4 million daily messages in 1995). Swift is headquartered in La Hulpe near Brussels . It hosts an annual conference, called Sibos , specifically aimed at the financial services industry. Before SWIFT's establishment, international financial transactions were communicated over Telex ,
2108-588: The U.S. data centre. European zone messages are stored in the Netherlands and in part of the Swiss operating centre; Trans-Atlantic zone messages are stored in the United States and in another part of the Swiss operating centre that is segregated from the European zone messages. Countries outside of Europe were by default allocated to the Trans-Atlantic zone but could choose to have their messages stored in
2170-593: The US by 378 to 196 votes. One week earlier, the parliament's civil liberties committee had already rejected the deal, citing legal reservations. In March 2011, it was reported that two mechanisms of data protection had failed: EUROPOL released a report complaining that requests for information from the US had been too vague (making it impossible to make judgments on validity) and that the guaranteed right for European citizens to know whether their information had been accessed by US authorities had not been put into practice. Der Spiegel reported in September 2013 that
2232-574: The United States, the Netherlands, and Switzerland. These centres share information in near real-time . In case of a failure in one of the data centres, another is able to handle the traffic of the complete network. SWIFT uses submarine communications cables to transmit its data. Shortly after opening its third data centre in Switzerland in 2009, SWIFT introduced a new distributed architecture with two messaging zones, European and Trans-Atlantic, so data from European SWIFT members no longer mirrored
2294-625: The acquisition of Credit Suisse ), as well as the Association of Banks in Singapore . Swift acts as a carrier of the "messages containing the payment instructions between financial institutions involved in a transaction". However, the organisation does not manage accounts on behalf of individuals or financial institutions, and it does not hold funds from third parties. It also does not perform clearing or settlement functions. After payment has been initiated, it must be settled through
2356-423: The appropriate action by C. SWIFT guarantees are based primarily on high redundancy of hardware, software, and people. During 2007 and 2008, the entire SWIFT network migrated its infrastructure to a new protocol called SWIFTNet Phase 2. The main difference between Phase 2 and the former arrangement is that Phase 2 requires banks connecting to the network to use a Relationship Management Application (RMA) instead of
2418-496: The bank acquired Citibank Pakistan consumer business for Rs. 2 billion . In April 2015, the Government of Pakistan sold its 41.5% stake or 609 million shares in the bank for $ 1.02 billion. According to the finance ministry, the strike price of Rs. 168 per share (compared to the floor price of Rs. 166 per share) was recommended by the Privatisation Commission Board. The bank's owners now comprise
2480-529: The bank moved its headquarters to the Habib Bank Plaza , which became the tallest building in South Asia at the time. The Government nationalised the bank in 1974 and privatised it in 2004; at that time, the Aga Khan Fund for Economic Development acquired a controlling share and management control. HBL significant shareholding lies with the Aga Khan Fund for Economic Development (AKFED) which
2542-559: The bank's headquarters were relocated to Karachi on August 7, 1947, just before the Partition of India . It was done to facilitate the transfer of Muslim assets to Pakistan, aiding both individual depositors and larger accounts. The bank played a crucial role in the economic framework of newly independent Pakistan. The Habib family owned and managed the bank until the Pakistan government nationalised it on 1 January 1974. The Habib family received compensation of PKR 36.31 per share from
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2604-430: The banks and other member firms that use its service. SWIFT provides the main messaging network through which international payments are initiated. It also sells software and services to financial institutions, mostly for use on its proprietary "SWIFTNet", and assigns ISO 9362 Business Identifier Codes (BICs), popularly known as "Swift codes". As of 2018, around half of all high-value cross-border payments worldwide used
2666-412: The delivery and receipt of their messages. Some of the more well-known interfaces and CBTs provided to their members are: There are four key areas that SWIFT services fall under in the financial marketplace: securities , treasury & derivatives , trade services, and payments & cash management. Securities Treasury and derivatives Cash management Trade services Swift Ref,
2728-465: The early retirement of Nauman K. Dar on 31 December 2017, after the bank was marred by a penalty of $ 225 Million (USD) for its non-compliance with risk management and anti-money laundering rules. In 2020, HBL was designated one of the domestic systemically important banks (D-SIB) of the year by the State Bank of Pakistan . In the 1950s, HBL started its international expansion. In 1951, it opened
2790-516: The fine was not larger than $ 225 million. The penalty, however, is the largest ever imposed upon a Pakistani financial institution. HBL had already agreed to surrender its licence to operate a branch in New York that had been operational since 1978. The DFS had earlier sought up to $ 630m in penalties from HBL for failing to comply with state and federal laws at its only U.S. branch. According to The Nation , compliance issues dated back to 2015 when
2852-678: The first three branches in Sri Lanka . The following year, HBL established Habib Bank (Overseas). Then, in 1956, HBL opened the first of five branches in Kenya . In September 2017, HBL agreed to pay a fine of $ 225 million in an out-of-court settlement with the New York State Department of Financial Services (DFS) against 53 separate violations allegedly committed between 2007 and 2017. Following this, HBL shares surged 5 percent, to ₨.160.58 per share, amid investor relief that
2914-478: The former bilateral key exchange (BKE) system. According to SWIFT's public information database on the subject, RMA software should eventually prove more secure and easier to keep up-to-date; however, converting to the RMA system meant that thousands of banks around the world had to update their international payment systems to comply with the new standards. RMA completely replaced BKE on 1 January 2009. SWIFT has become
2976-440: The global payment reference data utility, is SWIFT's unique reference data service. Swift Ref sources data directly from data originators, including central banks, code issuers and banks making it easy for issuers and originators to maintain data regularly and thoroughly. SWIFTRef constantly validates and cross-checks data across the different data sets. The SWIFT secure messaging network is run from three data centres , located in
3038-445: The industry standard for syntax in financial messages. Messages formatted to SWIFT standards can be read and processed by many well-known financial processing systems, whether or not the message travelled over the SWIFT network. SWIFT cooperates with international organizations to define standards for message format and content. SWIFT is also a registration authority (RA) for the following ISO standards: In RFC 3615 urn:swift:
3100-457: The nearly $ 30 billion in foreign banks' exposure to Russia and because Russia had developed the SPFS alternative. The European Union, United Kingdom, Canada, and the United States finally agreed to remove a few Russian banks from the SWIFT messaging system in response to the 2022 Russian invasion of Ukraine; the governments of France, Germany, Italy and Japan individually released statements alongside
3162-554: The one hand, and between the NBB and each of the other G10 central banks on the other hand. In 2018, the International Monetary Fund has recommended that "the National Bank of Belgium should consider enhancing oversight with additional regulatory and supervisory powers." In 2012, this framework was complemented by a "SWIFT Oversight Forum" including additional central banks. As of 2024, in addition to
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#17327875473543224-488: The person who committed such an act of international terrorism". The plaintiff claimed that between 2010 and 2019, the bank had aided and abetted Al-Qaeda terrorism and had participated in a conspiracy to launch attacks in Afghanistan that killed or injured 370 people. In response, HBL released a statement claiming the accusations were "meritless" and that the bank was fiercely and thoroughly contesting them. HBL
3286-618: The public providers and speed up the payment process". SWIFT was founded in Brussels on 3 May 1973. Individuals who played a key role in its creation included bankers Jan Kraa (at AMRO Bank ) and François Dentz (at the Banque de l'Union Parisienne ) as well as Carl Reuterskiöld and Bessel Kok , who became respectively its first two chairmen and chief executives. It was initially supported by 239 banks in 15 countries. It soon started to establish common standards for financial transactions and
3348-417: The same term [REDACTED] This disambiguation page lists articles associated with the title Habib Bank . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Habib_Bank&oldid=1237199449 " Category : Disambiguation pages Hidden categories: Short description
3410-578: The shareholders, on three-year terms with the renewal of one-third of the board every year; all directors are member representatives. As of May 2024, the members directly represented on the board of directors were JPMorgan Chase (chair), Lloyds Bank (deputy chair), Bank of China , BNP Paribas , BPCE , Citi , Clearstream , Commerzbank , Commonwealth Bank of Australia , Deutsche Bank , Euroclear , FirstRand , HSBC , ING , Intesa Sanpaolo , KBC , MUFG , NatWest , Nordea , Royal Bank of Canada , Santander , SEB , UBS (2 representatives following
3472-404: The terms of the codecision procedure —formally came into effect. While the interim agreement was scheduled to come into effect on 1 January 2010, the text of the agreement was classified as "EU Restricted" until translations could be provided in all EU languages and published on 25 January 2010. On 11 February 2010, the European Parliament decided to reject the interim agreement between the EU and
3534-428: Was acting illegally, but later said that "it is working with U.S. and European governments to address their concerns that its financial services are being used by Iran to avoid sanctions and conduct illicit business". Targeted banks would be—amongst others— Saderat Bank of Iran , Bank Mellat , Post Bank of Iran and Sepah Bank . On 17 March 2012, following an agreement two days earlier between all 27 member states of
3596-468: Was adopted by 165 banks and was completing half its payments within 30 minutes. The new standard which included Swift Go was supposed to be utilised in receiving and transferring low-value international payments. One of the significant changes was the transaction amount, which would not differ from start to end. However, as of 2023 , uptake was mixed. For instance, Alisherov Eraj, Alif Bank Treasury Department Swift Transfers & Banking Relationship Expert in
3658-423: Was defined as Uniform Resource Names (URNs) for SWIFT FIN. SWIFT is not a payment system and thus neither regulated nor supervised as such, but is nevertheless deemed to be systemically important and thus under the "oversight" of public authorities. In 1998, the so-called Group of Ten central banks (those of Belgium , Canada , France , Germany , Italy , Japan , the Netherlands , Sweden , Switzerland ,
3720-430: Was established as a public limited company in Bombay in 1941 by the Habib family , previously engaged in internal trade and private banking . The bank's founding was influenced by the revitalization of Muslim politics by Muhammad Ali Jinnah in 1936, prompting the Habibs to challenge the existing Hindu-British dominance in the banking industry . Supported by Jinnah and the All India Muslim League , Habib Bank aided
3782-449: Was named in FinCEN leak, published by Buzzfeed News and the International Consortium of Investigative Journalists (ICIJ). It had one suspicious transaction flagged. HBL got State Bank of Pakistan approval to inject Rs500mn in its wholly owned subsidiary namely HBL Asset Management Limited. In 2024, HBL announced an equity investment of 6 billion Pakistani rupees in its subsidiary HBL Microfinance Bank . HBL has also served as
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#17327875473543844-469: Was subject to US sanctions. Since Habib's New York operations were used to clear dollar-denominated transactions, the bank is required to follow US "know your customer" rules and sanctions law. On 28 September 2022, a New York district court passed an order under the Justice Against Sponsors of Terrorism Act placing secondary liability on Habib Bank Limited as a party that "aids and abets, by knowingly providing substantial assistance, or who conspires with
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