ISLAMABAD – State Bank of Pakistan imposed huge penalty on leadingPakistani Bank over serious violation.
Habib Bank Limited has been slapped with a Rs. 12.8 million penalty forpoor compliance of operations.
State Bank of Pakistan (SBP) penalized the bank in January as it foundprocedural violations at the bank in the areas of Customer Due Diligenceand Know your Customers (CDD/KYC).
In addition to penal action, the bank has been advised to improve in theareas of CDD/KYC as per SBP’s notification.
The bank failed to comply with mandatory rules in its dealings with thecustomers hence the poor compliance of rules was not tolerated by thebanking regulator.
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The management of HBL has been passing through a crunch time these days.Recently, the central bank’s findings revealed significant irregularitiesin the operations of the bank at its branches located in UAE.
Moreover, the bank formally made the announcement of its complete closureand exit from New York. The bank faced heavy penalties by US authorities afew years back due to various irregularities in the overseas business.
