August 9, 2019 (MLN): The State Bank of Pakistan (SBP) for the first time has officially disclosed significant enforcement actions taken in the month of July against the financial institutions that involved in violation of SBP’s rules and regulations.
As per the announcement, SBP has imposed over Rs 184.64 million fines on four banks for violation of SBP’s guidelines.
Among four banks, the highest penalty of Rs 55.483 million was imposed on Soneri Bank Limited on July 25, 2019 against the violation in areas of AML/KYC, Asset Quality and Foreign exchange operations. In addition to penal action, the bank has been advised for improvements in the areas of AML/KYC and Credit risk monitoring.
The same day, Rs 51.750 million fine was imposed on Bank Al Habib Limited against the violation in areas of AML/KYC and Foreign exchange operations. Moreover, SBP has also advised the bank to update its system and processes and provide appropriate trainings to the concerned officials.
On July 23, 2019, Rs 48.2 million fine was faced by JS Bank Limited against the violations in the areas of AML/KYC. In addition to penal action, the bank has been advised to conduct a thorough review of relationship accounts.
The Bank of Punjab faced two penalties of Rs 16 million on July 18, 2019 against the violation of AML/KYC and unclaimed deposits and penalty of Rs 13 million on July 15, 2019 in violation in areas of Foreign exchange operations. SBP has also advised the bank to improve its internal processes and for improvements in the areas of AML/KYC.
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