The State Bank of Pakistan (SBP) has levied substantial fines on ten banks for contravening its regulations, amounting to a total penalty of Rs465.081 million, as outlined in a document from SBP’s Banking Supervision Department.
These banks were found in violation of Know Your Customer (KYC), Anti-Money Laundering (AML), asset quality, foreign exchange, and general banking operation standards.
The SBP clarified that the penalties were imposed due to deficiencies in regulatory compliance and did not necessarily reflect the financial stability of the entities involved.
United Bank Limited (PSX: UBL) incurred a fine of Rs114.193 million for breaching regulatory instructions related to Customer Due Diligence (CDD)/KYC, Asset Quality, FX, and General Banking Operations. The SBP advised UBL to implement necessary measures to prevent the recurrence of such violations.
Habib Bank Limited (PSX: HBL) faced a fine of Rs113.367 million for violating instructions related to AML/CFT, CDD/KYC, FX, and General Banking Operations. The bank was instructed to avoid similar violations in the future.
Standard Chartered Bank Pakistan Limited (PSX: SCBPL) was fined Rs58.375 million for non-compliance with regulatory instructions regarding CDD/KYC, FX, and General Banking Operations. SBP advised SCBPL to enhance its internal processes and controls to prevent similar instances in the future.
Meezan Bank Limited (PSX: MEBL) received a fine of Rs44.705 million for violations related to CDD/KYC, FX, and General Banking Operations. The SBP urged the bank to ensure meticulous compliance with regulatory instructions to prevent future violations.
Askari Bank Limited (PSX: AKBL) faced a fine of Rs36.4054 million for violating instructions related to CDD/KYC. The central bank instructed the bank to ensure strict compliance with regulatory instructions to prevent future occurrences.
JS Bank Limited (PSX: JSBL) incurred a fine of Rs27.009 million for violating instructions related to CDD/KYC and General Banking Operations. The bank was advised to improve its systems and controls to prevent the recurrence of such violations.
MCB Bank Limited (PSX: MCB) violated instructions related to CDD/KYC, FX, and General Banking Operations, resulting in a fine of Rs23.554 million. The SBP directed the bank to enhance its processes to prevent future violations.
Dubai Islamic Bank Limited received a fine of Rs22.1 million for violating instructions related to CDD/KYC. In addition to the penalty, the bank was advised to ensure strict compliance with regulatory instructions to prevent future occurrences.
Mobilink Microfinance Bank Limited and Bank Alfalah Limited (PSX: BAFL) were fined Rs14.643 million and Rs10.73 million, respectively, for violating instructions related to CDD/KYC and General Banking Operations. Both banks were instructed to conduct internal inquiries into regulatory violations in Branchless Banking and take appropriate actions.
It’s important to note that the SBP has directed these banks to address the issues promptly.
