The State Bank of Pakistan (SBP) imposed fines totaling Rs. 747.57 millionon eight banks during the quarter ended March 31, 2024, citing violationsof its rules and regulations. These penalties were levied due todeficiencies in regulatory compliance, with the SBP clarifying that they donot reflect on the financial stability of the penalized entities.
Bank Alfalah Limited incurred a fine of Rs. 187.652 million for breachingregulatory instructions concerning FX and General Banking Operations. TheSBP advised the bank to enhance its internal processes to prevent similarviolations in the future.
Habib Bank Limited faced a penalty of Rs. 143.376 million fornon-compliance with regulatory instructions related to AML/CFT, CDD/KYC,FX, and General Banking Operations. The bank received guidance to ensurestrict adherence to regulatory directives to avert future infractions.
Bank Al Habib Limited was fined Rs. 117.239 million for deficiencies inadhering to regulatory instructions concerning CDD/KYC and FX. The SBPrecommended the bank reinforce its systems and controls to ensuremeticulous compliance and prevent recurrence of similar violations.
Meezan Bank Limited was fined Rs. 106.2 million for contravening regulatoryinstructions regarding FX, with the SBP advising the bank to bolster itsinternal processes to minimize the likelihood of future violations.
Habib Metropolitan Bank Limited incurred a fine of Rs. 70.915 million forviolating regulatory instructions pertaining to FX, with the SBPrecommending internal process enhancements to mitigate the risk ofrecurrence.
Read Top Stories
MCB Bank Limited was penalized Rs. 52.9 million for breaching regulatoryinstructions concerning FX and General Banking Operations. The SBP advisedthe bank to strengthen its internal processes to prevent such violations inthe future.
MCB Islamic Bank Limited faced a fine of Rs. 38.544 million for violatingregulatory instructions related to AML/CFT, CDD/KYC, and FX. The SBP urgedthe bank to ensure meticulous compliance with regulatory directives toavoid enforcement actions in the future.
Bank of Khyber was fined Rs. 30.741 million for violating regulatoryinstructions concerning CDD/KYC, Asset Quality, and General BankingOperations. The SBP advised the bank to ensure strict compliance withregulatory directives to prevent future enforcement actions.
Additionally, besides the eight banks, the SBP imposed a fine of Rs. 27.975million on Royal Exchange Company for contravening regulatory instructionsrelated to CDD/KYC and General Banking Operations.