State Bank of Pakistan inflicts huge penalties on three Pakistani banks over FATF violations

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State Bank of Pakistan inflicts huge penalties on three Pakistani banks over FATF violations

ISLAMABAD - State Bank of Pakistan inflicts huge penalties on three Pakistani banks over Financial Action Task Force rules violations, media reports have revealed.

State Bank of Pakistan (SBP) has punished three banks with heavy penalties of Rs. 133.3 million for the violation of its prescribed rules and regulations last month. These banks are Meezan Bank, Askari Bank, and MCB Islamic Bank.

Stern action was taken against these banks as part of the steps taken by the government to be removed from the grey list of Financial Action Task Force (FATF). Penalizing banks is the routine process of the State Bank but it is being made public on a monthly basis for different international agencies concerned about Pakistan’s financial system.

The central bank has imposed a penalty of Rs. 63.805 million on Meezan Bank for procedural violation of rules and regulations in the areas of Know Your Customers (KYC) and Customers Due Diligence (CDD).

The bank has been advised to strengthen its process related to KYC/CDD, in order to avoid the occurrence of similar violations in the future.

Askari Bank has been slapped with a penalty of Rs. 56.61 million for infringement for Know Your Customers (KYC) and Customers Due Diligence (CDD) regulations.

The bank has been advised to strengthen its process related to KYC/CDD, in order to avoid the occurrence of similar violations in the future.

MCB Islamic Bank received a penalty of Rs. 12.90 million due to infringement of rules and regulations in areas of Know Your Customers (KYC) and Customers Due Diligence (CDD) as well.

The bank has been advised to strengthen its process related to KYC/CDD, in order to avoid the occurrence of similar violations in the future.