SBP penalizes six banks for Rs351m over compliance issues

July 27, 2023 (MLN): The State Bank of Pakistan (SBP) has imposed hefty fines on six banks for violating its rules and regulations, with the total amount of penalties worth Rs350.799 million, according to a document released by SBP's Banking Supervision Department.

The banks were found guilty of having compliance issues with regard to Know Your Customer (KYC) and FX obligations.

National Bank of Pakistan (NBP) was fined Rs144.207m for violation of regulatory instructions pertaining to CDD/KYC and asset quality.

Bank Alfalah Limited was fined Rs125.253m for violation of regulatory instructions pertaining to AML/CFT, CDD/KYC, FX, and General Banking Operations.

Meezan Bank Limited was fined Rs38.03m for violation of regulatory instructions pertaining to CDD/KYC, FX, and General Banking Operations.

Allied Bank Limited was fined Rs20.66m for violation of regulatory instructions pertaining to CDD/KYC, FX, and General Banking Operations.

Punjab Provincial Cooperative Bank Limited was fined Rs12.229m for violation of regulatory instructions pertaining to CDD/KYC, Asset Quality, and General Banking Operations.

Bank Alhabib Limited was fined Rs10.42m for violation of regulatory instructions pertaining to CDD/KYC, Asset Quality, and General Banking Operations.

In addition to penal action, all banks have been advised to enhance their internal processes and controls.

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