ISLAMABAD: During the quarter ending on March 31, 2024, the State Bank of Pakistan (SBP) imposed significant fines totaling Rs775 million on nine banks for various breaches of its regulations, as revealed in a document released by SBP’s Banking Supervision Department.
The fines were levied due to violations in Know Your Customer (KYC), Anti-Money Laundering (AML), asset quality, foreign exchange, and general banking operations standards.
SBP clarified that these penalties were imposed based on deficiencies in regulatory compliance and do not necessarily reflect the financial stability of the institutions, Mettis Global reported today.
Bank Alfalah Limited incurred a fine of Rs187.65 million for contravening regulatory instructions on FX and General Banking Operations. SBP recommended that the bank enhance its internal processes to prevent similar violations in the future.
Habib Bank Limited faced a fine of Rs143.37 million for breaches related to AML/CFT, CDD/KYC, FX, and General Banking Operations regulations. SBP advised HBL to ensure strict adherence to regulatory instructions to prevent recurrence.
Bank Al Habib Limited was fined Rs117.23 million for violations concerning CDD/KYC and FX regulations. SBP urged BAHL to bolster its systems and controls for better compliance and avoidance of future breaches.
Meezan Bank Limited received a fine of Rs106 million for breaches in FX regulations. SBP recommended that the bank strengthen its internal processes to minimize future violations.
Habib Metropolitan Bank Limited was fined Rs70.91 million for FX-related violations and was advised to enhance its internal processes to prevent recurrence.
SBP imposed a fine of Rs52 million on MCB Bank Limited for violations in FX and General Banking Operations regulations, urging MCB to strengthen its internal processes to avoid future breaches.
MCB Islamic Bank Limited incurred a fine of Rs38.54 million for breaches in AML/CFT, CDD/KYC, and FX regulations, with SBP advising meticulous compliance to avoid future enforcement actions.
Bank of Khyber faced a fine of Rs30.74 million for violations in CDD/KYC, Asset Quality, and General Banking Operations regulations. The bank was advised to ensure strict compliance with regulations to prevent future enforcement actions.
Lastly, Royal Exchange Company was fined Rs27.97 million during the first quarter of 2024 for regulatory breaches.
