The State Bank of Pakistan (SBP) has imposed heavy fines on ten banks for violating its rules and regulations, totaling Rs 465.081 million, a document issued by the Banking Supervision Department of the SBP said. According to
Banks were found guilty of violating Know Your Customer (KYC), Anti-Money Laundering (AML), asset quality, foreign exchange, and general banking operations standards.
The SBP said the penalties were based on lapses in compliance with regulatory guidelines and did not reflect the financial stability of the institutions.
United Bank Limited (PSX: UBL) was fined Rs 114.193 million for violating regulatory guidelines related to CDD/KYC, asset quality, FX and general banking operations. State Bank advised the bank to take corrective measures including implementation of necessary systems and controls to avoid recurrence of such violations.
Habib Bank Limited (PSX: HBL) was fined Rs 113.367 million for violating regulatory guidelines related to AML/CFT, CDD/KYC, FX and general banking operations. State Bank has advised the bank to avoid repetition of such violations in future. Standard Chartered Bank Pakistan Limited (PSX: SCBPL) has been fined 58,375 for violating regulatory guidelines related to CDD/KYC, FX and general banking operations. A fine of Rs. SBP advised SCBPL to improve its internal processes and controls to avoid such incidents in future.
Meezan Bank Limited (PSX: MEBL) was fined Rs 44.705 million for violating regulatory guidelines related to CDD/KYC, FX and general banking operations. The State Bank advised the bank to ensure careful compliance with the regulatory directives to avoid such violations in future.
Askari Bank Limited (PSX: AKBL ) was the next to face a fine of Rs 36.4054 million for violating regulatory guidelines related to CDD/KYC. The central bank has advised the bank to ensure careful compliance of regulatory directives to avoid recurrence of such incidents in future.
SBP imposed a further penalty of Rs 27.009 million on JS Bank Limited (PSX: JSBL ) for violating regulatory guidelines related to CDD/KYC and general banking operations and asked JSBL to improve its systems and controls so that To avoid repetition of such violations in future. .
MCB Bank Limited (PSX: MCB) also violated regulatory guidelines related to CDD/KYC, FX and general banking operations. Accordingly, State Bank imposed a penalty of Rs 23.554 million and asked the bank to improve its processes to avoid future violations.
Dubai Islamic Bank Limited was the eighth bank to be fined Rs 22.1 million for violating regulatory guidelines related to CDD/KYC. Apart from the punitive action, the bank has been advised to ensure careful compliance with the regulatory guidelines to avoid recurrence of such incidents in future.
Mobilink Microfinance Bank Limited and Bank Al Falah Limited (PSX: BAFL) were the last two banks to be fined Rs 14.643 million and Rs 10.73 million respectively.
Both the banks were responsible for violating regulatory guidelines related to CDD/KYC and general banking operations.
He further asked the central bank to conduct an internal inquiry and take appropriate action in light of the regulatory violations of branchless banking by the two institutions.
It is worth noting that the Central Bank has directed these individual banks to resolve these issues immediately.
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