State Bank of Pakistan warns all commercial banks

State Bank of Pakistan warns all commercial banks
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ISLAMABAD - State Bank of Pakistan (SBP) has warned all the commercial banks across Pakistan.

SBP has observed that customers’ information is being accessed by unauthorized persons within the banking system. It has ordered commercial banks to ensure the secrecy of customers and their data to reinforce the control and checks of the banking system as per law.

The centralization of core banking systems of banks has now made customers’ data accessible across the bank. This access, however, needs to be suitably managed to ensure that only authorized officials access this confidential data for specified purposes.

Instances of accessing customer related information by irrelevant bank officials and divulging of same to unauthorized persons have been noted. Such practices on part of banks/DFIs are not appropriate and have been viewed seriously.

Section 33A of the Banking Companies Ordinance, 1962, inter alia, requires that a bank/financial institution shall not divulge any information relating to the affairs of its customers.

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