July-September: SBP imposes penalties of Rs465 million on banks

The State Bank of Pakistan (SBP) said that it has imposed penalties to the tune of Rs465 million on four banks during the quarter ended September 30, 2021, for non-compliance with legal or regulatory requirements.

The SBP takes supervisory enforcement actions against those institutions that fail to comply with legal or regulatory requirements and these actions may range from the imposition of penalties, administrative and financial sanctions, and reference to concerned law enforcement/prosecution agencies.

As per details of significant enforcement actions by SBP during the quarter ended Sep 30, 2021, National Bank of Pakistan faced the highest penalty of Rs280.509 million in violation of regulatory instructions pertaining to AML/CFT, asset quality, FX & general banking operation.

In addition to penal action, the SBP has advised the bank to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

April-June 2021: SBP imposes penalties of over half-a-billion rupees on banks

Silk Bank Limited was second on the list with a penalty of Rs132.437 million for violation of regulatory instructions pertaining to AML/CFT, asset quality, FX & general banking operations. In addition to penal action, the bank has been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

United Bank Limited was third on the list with the penalty of Rs38.554 million for violation of regulatory instructions pertaining to asset quality, CDD/KYC & general banking operation. In addition to penal action, the bank has been advised to strengthen its processes with respect to identified areas.

Lastly, Industrial and Commercial Bank of China-Pakistan faced a monetary penalty of Rs13.542 million for violation of regulatory instructions pertaining to CDD/KYC & general banking operations.