ISLAMABAD – State Bank of Pakistan (SBP) has slapped heavy penalties ofover Rs. 219 million on five major banks failing in compliance with variousrules and regulations in December 2019.
According to the enforcement orders, these banks are Bank Alfalah, NationalBank of Pakistan, MCB Bank, Habib Metropolitan Bank and Summit Bank.——————————Bank Alfalah Limited
Bank Alfalah Limited has been on the radar of the central bank, which foundgross procedural violations on the account of Know Your Customer/Combatingthe Financing of Terrorism. Hence, the bank has faced a huge penalty of Rs.96.095 million.
In addition to penal action, the bank has been advised to conduct aninternal inquiry on certain breaches/violations of regulatory requirements.The bank has also been advised to strengthen its process related to KYC/CDDin order to avoid the recurrence of such violations in the future.MCB Bank
MCB Bank Limited was once again found in procedural violations in areas offoreign exchange operations. The regulator has imposed a penalty of Rs.49.499 million. The bank was examined and found with deficiencies in thearea of foreign trade operations.National Bank of Pakistan
National Bank of Pakistan was penalized to the tune of Rs. 21.544 millionagainst procedural violations in the area of customer due diligence andKnow Your Customer requirement, which means that the bank failed tomaintain a proper record of the customers while providing them bankingservices.
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In addition to the penal action, the bank has been advised timelines tobring improvements in its systems/controls to avoid the same in the future.Habib Metropolitan Bank
Habib Metropolitan Bank was also slapped with a penalty of Rs. 34.578million due to procedural violations found in the areas of customer duediligence and Know Your Customer by the banking regulator.Summit Bank
Summit Bank reportedly had procedural violations in foreign exchangeoperations. It was imposed a penalty of Rs. 17.422 million. The bank wasexamined and found with deficiencies in foreign trade operations.
