State Bank of Pakistan (SBP) imposes fine of Rs 465 million on banks for violations
State Bank of Pakistan (SBP) has taken decisive action to
reinforce regulatory compliance in the banking sector, imposing a substantial
total penalty of Rs 465 million on 10 commercial banks during the quarter
ending December 31, 2023.
The SBP's regulatory measures targeted institutions found in
violation of various regulatory instructions, covering areas such as Customer
Due Diligence/Know Your Customer (CDD/KYC), Anti-Money Laundering/Counter
Financing of Terrorism (AML/CFT), Foreign Exchange (FX), and General Banking
Operations.
State
Bank of Pakistan (SBP) imposes heavy fines on four banks
The following banks faced penalties along with specific
corrective actions:
United Bank Limited (UBL):
Nature of Offence: Violation of regulatory
instructions related to CDD/KYC, Asset Quality, FX, and General Banking
Operations.
Action Taken: In addition to penalization, UBL has
been advised to implement necessary systems and controls to prevent recurrence.
Monetary Penalty: Rs 114.193 million.
Habib Bank Limited (HBL):
Nature of Offence: Violation of regulatory
instructions related to AML/CFT, CDD/KYC, FX, and General Banking Operations.
Action Taken: HBL faces penalization and has been
advised to prevent the recurrence of similar violations.
Monetary Penalty: Rs 113.367 million.
State
Bank imposes Rs. 350 Million fine on six banks
Standard Chartered Bank Pakistan Limited:
Nature of Offence: Violation of regulatory
instructions related to CDD/KYC, FX, and General Banking Operations.
Action Taken: Standard Chartered Bank has been
penalized and advised to enhance internal processes and controls to avoid
future instances.
Monetary Penalty: Rs 58.375 million.
The remaining banks on the list, including Meezan Bank
Limited, Askari Bank Limited, JS Bank Limited, MCB Bank Limited, Dubai Islamic
Bank Limited, Mobilink Microfinance Bank Limited, and Bank Alfalah Limited,
faced penalties ranging from Rs 10.730 million to Rs 44.705 million for various
regulatory violations.
In addition to the monetary penalties, the SBP has
instructed each penalized bank to take specific corrective actions, such as
implementing systems and controls, improving internal processes, ensuring
strict compliance with regulatory instructions, and conducting internal
inquiries where necessary.
President
imposes fine on UBL on irresponsible representation
The SBP's proactive stance in penalizing non-compliant banks
underscores the significance of maintaining a robust regulatory framework in
the financial sector. This approach aims to promote transparency, accountability,
and adherence to regulatory standards, ultimately safeguarding the integrity of
Pakistan’s banking system.
As the affected banks diligently work to rectify their
deficiencies, these regulatory measures are anticipated to contribute to a more
resilient and trustworthy banking environment in Pakistan. The SBP remains
committed to its pivotal role in ensuring the stability and integrity of the
country’s financial system through effective regulatory oversight and
enforcement.
Source: pkrevenue.com