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SBP Slaps Fine of Rs. 465 Million on 10 Major Banks

The State Bank of Pakistan (SBP) slapped penalties of over Rs. 465 million on ten banks over deficiencies in the compliance of regulatory instructions during the quarter ended December 31, 2023.

According to details of significant enforcement actions by the central bank during the quarter ended December 31, 2023, penalties of Rs. 465.081 on ten banks.

United Bank Limited was fined Rs. 114.193 million over the violation of regulatory instructions pertaining to CDD/KYC, Asset Quality, FX, and General Banking Operations. In addition to penal action, the bank has been advised to take remedial measures including the implementation of necessary systems and controls to avoid the recurrence of such violations.

Habib Bank Limited was fined Rs. 113.367 million over the violation of regulatory instructions pertaining to AML/CFT, CDD/KYC, FX, and General Banking Operations. The bank has also been advised to avoid the recurrence of such violations in the future.

Standard Chartered Bank Pakistan Limited was fined Rs. 58.375 million for violating regulatory instructions about CDD/KYC, FX, and General Banking Operations. SBP also advised SCBPL to improve its internal processes and controls to avoid similar instances in the future.

Meezan Bank Limited was fined Rs. 44.705 million for violating the regulatory instructions about CDD/KYC, FX, and General Banking Operations. SBP advised the bank to ensure meticulous compliance with the regulatory instructions to avoid such violations in the future.

Askari Bank Limited was fined Rs. 36.405 million for the violation of regulatory instructions pertaining to CDD/KYC. The bank has been advised to ensure meticulous compliance with the regulatory instructions to avoid the recurrence of such instances in the future.

The central bank also imposed a fine of Rs. 27.009 million on JS Bank Limited due to violation of regulatory instructions pertaining to CDD/KYC and General Banking Operations and it to improve its systems and controls to avoid the recurrence of such violations in the future.

MCB Bank Limited was fined Rs. 23.554 million for violation of regulatory instructions pertaining to CDD/KYC, FX, and General Banking Operations. The bank has also been advised to improve its processes to avoid violations in the future.

Dubai Islamic Bank Limited was fined Rs. 22.1 million over the violation of regulatory instructions pertaining to CDD/KYC. The bank has been advised to ensure meticulous compliance with the regulatory instructions to avoid the recurrence of such instances in the future.

Mobilink Microfinance Bank Limited faced a fine of Rs. 14.643 million over violation of regulatory instructions pertaining to AML/CFT, CDD/KYC and General Banking Operations. The bank has been advised to conduct an internal inquiry in light of regulatory violations about Branchless Banking and take appropriate actions.

Bank Alfalah Limited faced a fine of Rs. 10.730 million due to the violation of regulatory instructions pertaining to CDD/KYC and General Banking Operations. In addition to penal action, the bank has been advised to conduct an inquiry in light of regulatory violations pertaining to Branchless Banking and take action accordingly.

The central bank pointed out that the actions are based on deficiencies in compliance with regulatory instructions and do not constitute a comment on the financial soundness of these entities.

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