The State Bank of Pakistan (SBP) has taken significant actions by imposing substantial fines amounting to Rs465.081 million on ten banks. This move comes in response to violations of the SBP’s rules and regulations, as outlined in a document released by the SBP’s Banking Supervision Department.
The penalties are attributed to various breaches, including non-compliance with Know Your Customer (KYC) standards, Anti-Money Laundering (AML) regulations, issues related to asset quality, foreign exchange operations, and general banking practices. It’s crucial to note that these fines are not indicative of the financial stability of the banks but are linked to identified shortcomings in regulatory adherence.
The banks facing fines include United Bank Limited, Habib Bank Limited, Standard Chartered Bank Pakistan Limited, Meezan Bank Limited, Askari Bank Limited, JS Bank Limited, MCB Bank Limited, Dubai Islamic Bank Limited, Mobilink Microfinance Bank Limited, and Bank Alfalah Limited. The fines range from Rs10.73 million to Rs114.193 million for each bank.
In response, the central bank has advised remedial measures and urged improvements in internal processes and controls for each bank to prevent future regulatory violations. Furthermore, Mobilink Microfinance Bank Limited and Bank Alfalah Limited have been directed to conduct internal inquiries specific to regulatory violations in Branchless Banking, with instructions to take appropriate actions promptly. This comprehensive approach reflects the SBP’s commitment to maintaining a robust and compliant banking sector.
