Allied Bank faces Rs 20 million fine for regulatory violations
Allied Bank has been fined Rs20 million by State Bank of
Pakistan (SBP) for non-compliance with regulatory rules. The SBP's
investigation revealed weaknesses in ABL's system and a failure to take
adequate remedial actions against the violations, alongside other commercial
banks.
The banking regulator has instructed Allied Bank to improve its
internal processes and controls. Serious violations were identified, including
failures in Customers Due Diligence (CDD) and Know Your Customer (KYC)
procedures, as well as non-compliance with regulations concerning asset
quality. The bank, like others in the industry, was also found to have flouted
Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT)
measures related to foreign exchange operations.
This is not the first time Allied Bank has faced such penalties.
In 2019, the State Bank imposed fines totaling over Rs60 million for violating
its regulations. The bank was directed to conduct an internal inquiry into
regulatory breaches and take disciplinary action against the responsible
officials.
The central bank is closely monitoring the banking operations of
ABL and other commercial banks to safeguard the interests of customers and
maintain the stability of the financial sector.
Source: Pakistan Observer