The State Bank of Pakistan (SBP) imposed fines totaling Rs. 747.57 million on eight banks during the quarter ended March 31, 2024, citing violations of its rules and regulations. These penalties were levied due to deficiencies in regulatory compliance, with the SBP clarifying that they do not reflect on the financial stability of the penalized entities.
Bank Alfalah Limited incurred a fine of Rs. 187.652 million for breaching regulatory instructions concerning FX and General Banking Operations. The SBP advised the bank to enhance its internal processes to prevent similar violations in the future.
Habib Bank Limited faced a penalty of Rs. 143.376 million for non-compliance with regulatory instructions related to AML/CFT, CDD/KYC, FX, and General Banking Operations. The bank received guidance to ensure strict adherence to regulatory directives to avert future infractions.
Bank Al Habib Limited was fined Rs. 117.239 million for deficiencies in adhering to regulatory instructions concerning CDD/KYC and FX. The SBP recommended the bank reinforce its systems and controls to ensure meticulous compliance and prevent recurrence of similar violations.
Meezan Bank Limited was fined Rs. 106.2 million for contravening regulatory instructions regarding FX, with the SBP advising the bank to bolster its internal processes to minimize the likelihood of future violations.
Habib Metropolitan Bank Limited incurred a fine of Rs. 70.915 million for violating regulatory instructions pertaining to FX, with the SBP recommending internal process enhancements to mitigate the risk of recurrence.
MCB Bank Limited was penalized Rs. 52.9 million for breaching regulatory instructions concerning FX and General Banking Operations. The SBP advised the bank to strengthen its internal processes to prevent such violations in the future.
MCB Islamic Bank Limited faced a fine of Rs. 38.544 million for violating regulatory instructions related to AML/CFT, CDD/KYC, and FX. The SBP urged the bank to ensure meticulous compliance with regulatory directives to avoid enforcement actions in the future.
Bank of Khyber was fined Rs. 30.741 million for violating regulatory instructions concerning CDD/KYC, Asset Quality, and General Banking Operations. The SBP advised the bank to ensure strict compliance with regulatory directives to prevent future enforcement actions.
Additionally, besides the eight banks, the SBP imposed a fine of Rs. 27.975 million on Royal Exchange Company for contravening regulatory instructions related to CDD/KYC and General Banking Operations.