September 26, 2019 (MLN): Ahead of FATF review in October 2019, State Bank of Pakistan (SBP) is heavily penalising Banks on weakness observed in CDD/AML/CFT controls and non-completion of biometric verification of active portfolio.

As per the sources within banks, SBP has imposed monetary penalty of Rs 10 million each on 12 banks for non-completion of biometric verification.

Earlier, in the month of August, SBP imposed penalty of Rs.805.10 million on different financial institutions for various infractions during the month.

The reason behind such aggressive action is that SBP needs to demonstrate its actions to FATF members in Oct 2019 meeting, while New SBP Governor is not willing to show any leniency.

However, much stricter actions taken by SBP would definitely create problems for Banking industry that is facing many hurdles in present economic conditions.

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