SBP imposes over Rs465m Penalties on Banks

Muhammad Haris

The State Bank of Pakistan (SBP) has imposed over Rs. 465 million penalties on banks for deficiencies in complying with regulatory instructions during the quarter ending December 31, 2023.

As per the SBP notification on its website, United Bank Limited faced a penalty of Rs. 114.193 million for violating regulatory instructions related to CDD/KYC, Asset Quality, FX, and General Banking Operations. The bank is also instructed to take corrective measures, including the implementation of necessary systems and controls to prevent future violations.

Habib Bank Limited incurred a fine of Rs. 113.367 million for breaching regulatory instructions on AML/CFT, CDD/KYC, FX, and General Banking Operations. The bank has been advised to prevent the recurrence of such violations.

Standard Chartered Bank Pakistan Limited was fined Rs. 58.375 million for non-compliance with regulatory instructions regarding CDD/KYC, FX, and General Banking Operations. SBP has recommended the bank enhance its internal processes and controls to prevent similar instances in the future.

Meezan Bank Limited faced a penalty of Rs. 44.705 million for violating regulatory instructions concerning CDD/KYC, FX, and General Banking Operations. SBP advises the bank to ensure strict adherence to regulatory instructions to prevent future violations.

Askari Bank Limited received a fine of Rs. 36.405 million for regulatory breaches related to CDD/KYC. The bank is instructed to ensure meticulous compliance with regulatory instructions to avoid recurrence.

JS Bank Limited was fined Rs. 27.009 million for violating regulatory instructions on CDD/KYC and General Banking Operations. The bank is urged to enhance its systems and controls to prevent the recurrence of such violations.

MCB Bank Limited was penalized Rs. 23.554 million for breaching regulatory instructions on CDD/KYC, FX, and General Banking Operations. The bank is also advised to improve its processes to avoid future violations.

Dubai Islamic Bank Limited faced a fine of Rs. 22.1 million for non-compliance with regulatory instructions concerning CDD/KYC. The bank is advised to ensure meticulous compliance with regulatory instructions to prevent future occurrences.

Mobilink Microfinance Bank Limited received a fine of Rs. 14.643 million for violating regulatory instructions related to AML/CFT, CDD/KYC, and General Banking Operations. The bank is advised to conduct an internal inquiry and take appropriate actions regarding regulatory violations in Branchless Banking. Multi-billion Rupees Banks Scam Exposed

Bank Alfalah Limited incurred a fine of Rs. 10.730 million for violating regulatory instructions on CDD/KYC and General Banking Operations. In addition to the penalty, the bank is advised to conduct an inquiry into regulatory violations in Branchless Banking and take appropriate actions.

The SBP emphasizes that these actions are based on deficiencies in compliance with regulatory instructions and do not reflect the financial soundness of these entities.