United Bank Ltd moved to assuage market concerns following news of fresh action by the US Federal Reserve Bank on its operations in the New York branch.

In a press release, the bank said "no civil penalty has been imposed" and fears of a fine on the bank are ungrounded.

The release was transmitted to the bank's shareholders at 9am on Friday.

"United Bank Limited (UBL) and its New York branch have entered into a new Written Agreement (WA 2018) with the Federal Reserve Bank of New York (FRBNY) effective 02 July 2018", the release said.

"This follows upon the termination of Written Agreement earlier signed on 28 October 2013 (WA 2013) which was primarily related to the New York branch’s international remittance services. "

The bank reiterated that it is "committed and focused on the successful completion and implementation" of the latest written agreement with the Federal Reserve Bank of New York.

The agreement "requires UBL to take steps to strengthen its Bank Secrecy Act and Anti Money Laundering Compliance, Customer Due Diligence and Suspicious Activity Monitoring and Reporting programmes.

As stated in the WA 2018, it is the common goal of the FRBNY, UBL and the New York branch that the New York branch operates in compliance with all applicable federal and state laws, rules and regulations."