ISLAMABAD – State Bank of Pakistan inflicts huge penalties on threePakistani banks over Financial Action Task Force rules violations, mediareports have revealed.
State Bank of Pakistan (SBP) has punished three banks with heavy penaltiesof Rs. 133.3 million for the violation of its prescribed rules andregulations last month. These banks are Meezan Bank, Askari Bank, and MCBIslamic Bank.
Stern action was taken against these banks as part of the steps taken bythe government to be removed from the grey list of Financial Action TaskForce (FATF). Penalizing banks is the routine process of the State Bank butit is being made public on a monthly basis for different internationalagencies concerned about Pakistan’s financial system.
The central bank has imposed a penalty of Rs. 63.805 million on Meezan Bankfor procedural violation of rules and regulations in the areas of Know YourCustomers (KYC) and Customers Due Diligence (CDD).
The bank has been advised to strengthen its process related to KYC/CDD, inorder to avoid the occurrence of similar violations in the future.
Askari Bank has been slapped with a penalty of Rs. 56.61 million forinfringement for Know Your Customers (KYC) and Customers Due Diligence(CDD) regulations.
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The bank has been advised to strengthen its process related to KYC/CDD, inorder to avoid the occurrence of similar violations in the future.
MCB Islamic Bank received a penalty of Rs. 12.90 million due toinfringement of rules and regulations in areas of Know Your Customers (KYC)and Customers Due Diligence (CDD) as well.
The bank has been advised to strengthen its process related to KYC/CDD, inorder to avoid the occurrence of similar violations in the future.
