ISLAMABAD: The State Bank of Pakistan (SBP) has imposed penalties worth nearly Rs350.8 million on six banks during the quarter ending June 30, 2023, for non-compliance with legal or regulatory requirements.
The SBP takes supervisory enforcement actions against those institutions that fail to comply with legal or regulatory requirements. These actions may range from imposing penalties, and administrative and financial sanctions, to referring the matter to concerned law enforcement/prosecution agencies.
Additionally, As per the details issued by the SBP, the National Bank of Pakistan (NBP) faced the highest penalty of Rs144.207 million for violating regulatory instructions related to Customer Due Diligence (CDD)/Know Your Customer (KYC) and asset quality.
Bank Alfalah Limited came second on the list with a penalty of Rs125.253 million for violating regulatory instructions pertaining to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), CDD/KYC, foreign exchange (FX), and general banking operations.
Meezan Bank Limited ranked third on the list with a penalty of Rs38.03 million for violating regulatory instructions related to CDD/KYC, FX, and general banking operations.
The central bank also imposed a penalty of Rs20.66 million on Allied Bank Limited for violating regulatory instructions. Pertaining to CDD/KYC, FX, and general banking operations.
However, Punjab Provincial Cooperative Bank Limited was the fifth bank on the list, facing a penalty of Rs12.229 million. For violating regulatory instructions related to CDD/KYC, asset quality, and general banking operations.
Lastly, Bank Al Habib Limited was penalized Rs10.42 million for violations of regulatory instructions pertaining to CDD/KYC, FX, and general banking operations. The bank has also been advising to monitor the usage of card-based transactions.
