SBP penalizes five banks for Rs224m over regulatory breaches

May 24, 2023 (MLN): The State Bank of Pakistan (SBP) has imposed hefty fines on five banks for violating its rules and regulations in the first quarter of 2023, with the total amount of penalties worth Rs223.987 million, according to a document released by SBP's Banking Supervision Department.

The banks were found guilty of breaching the standards of customer due diligence, anti-money laundering, foreign exchange and general banking operations. SBP said that the penalties were based on deficiencies in the compliance of regulatory instructions and did not reflect the financial soundness of the entities.

Askari Bank Limited was fined Rs83.415m for violating the regulatory instructions pertaining to customer due diligence, foreign exchange and general banking operations. SBP advised the bank to strengthen its controls and processes in the identified areas.

Sindh Bank Limited was fined Rs55.393m for violating the regulatory instructions pertaining to customer due diligence and general banking operations. SBP advised the bank to enhance the oversight of its board of directors and senior management in matters related to anti-money laundering and counter-terrorism financing risk, and to strengthen the control functions.

Zarai Taraqiati Bank Limited was fined Rs37.263m for violating the regulatory instructions pertaining to customer due diligence, asset quality and general banking operations. SBP advised the bank to strengthen its controls and processes in the identified areas.

Soneri Bank Limited was fined Rs27.449m for violating the regulatory instructions pertaining to customer due diligence and asset quality. SBP advised the bank to strengthen its controls and processes in the identified areas.

Mobilink Microfinance Bank Limited was fined Rs20.467m for violating the regulatory instructions pertaining to anti-money laundering, asset quality and general banking operations. SBP advised the microfinance bank to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

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