The New York state government on Thursday said Pakistan’s Habib Bank had agreed to pay $225 million (Rs 1,436 crore) in settlement for infringing laws designed to combat illicit transfers of money, Reuters reported. The New York branch of the bank will also be shut down as part of the settlement.

Habib Bank, Pakistan’s biggest lender, will also allow DFS to investigate transactions processed by its New York branch from October 2013 to September 2014, and from April 2015 to July 2017.

In a review in 2016, the New York Department of Financial Services had found that Habib Bank did not adequately screen thousands of transactions, and processed payments for known criminals and entities on the sanctioned list. Subsequently, the DFS said in a regulatory filing in August this year that it wanted to fine the bank up to $630 million (Rs 4,022 crore) for “grave failures” in complying with anti-money laundering rules at its New York branch. “The bank has repeatedly been given more than sufficient opportunity to correct its glaring deficiencies, yet it has failed to do so,” Financial Services Superintendent Maria Vullo said.

Habib Bank claimed on Thursday that the fine and the closure of its New York operations would have no impact on its businesses in other countries. “Habib Bank is pleased to have this matter behind it and has begun the orderly wind-down of its New York operations,” Matthew Biben, the bank’s lawyer in the US, said in a statement.