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Business & Finance

SBP fines six banks Rs290mn over regulatory, operational violations

  • Bank Al Habib Limited slapped with highest penalty of Rs140.03 million
Published October 28, 2022

The State Bank of Pakistan (SBP) has imposed penalties of Rs290.363 million on six major banks for violating various regulatory laws during the quarter ended September 30, 2022.

Among these banks, Bank Al Habib Limited was slapped with the highest penalty of Rs140.03 million in the latest action by the regulator for violating regulatory instructions pertaining to CDD/KYC (Know Your Customer/Customer Due Diligence, asset quality, FX (Foreign Exchange) and general banking operations.

In addition to penal action, the bank has been advised to strengthen its controls/processes in the identified areas.

Meezan Bank Limited was penalised to the tune of Rs81.72 million. The bank was found to be in violation of rules pertaining to CDD/KYC, asset quality and general banking operations, said SBP.

SBP fines four banks Rs 108mn over AML, operational violations

National Bank of Pakistan was fined Rs25.875 million for violating rules related to asset quality and general banking operation. MCB Bank Limited has also been hit with a penalty of Rs19.223 million and been advised to strengthen its controls/processes in the identified areas.

Moreover, JS Bank Limited and Faysal Bank Limited have been penalised Rs13.490 million and Rs10.025 million, respectively.

“These actions are based on deficiencies in the compliance of regulatory instructions and does not constitute a comment on the financial soundness of the entities,” added the SBP.

Comments

Comments are closed.

Javed Mir Oct 28, 2022 08:45pm
Surprisingly even the National Bank failed to comply with the basic verification about the account holders' source of income !!
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Anonymous Oct 28, 2022 09:11pm
yet, it wont even make a dent in their earnings
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Ashfaq Oct 28, 2022 09:11pm
what happened to that action SBP was supposed to take on alleged currecny manipulation?
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Aziz Ur Rahman Oct 28, 2022 10:53pm
The banks have to be kept on tight leash Banks in Pakistan are not very well aquainted with the rules and regulations I have worked as a Chief Credit Officer of a bank in New York and know how one has to be on ones toes to keep up with regulatory requirements
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Ardl Oct 29, 2022 02:51am
NBP violation is mere eye wash and cosmetics news for SBP to pretend credibility as unbiased watchdog
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Atif Oct 29, 2022 04:57am
Will SBP Compensate the victims who paid this cost of misery?
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Amber Oct 29, 2022 06:17am
I think they have much earned by up down dollars price by own their desire rate!
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Abdulrasheed Oct 29, 2022 06:39am
احساس راشن کب چلےگا
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Amin khan Oct 29, 2022 11:47am
Dear concern banks played a role of Economic Terrorism aagainst Pakistan during the time when Pakistan was at the verge of default.Strict action and heavey penalties to the tune of their entire annual income and subsequent cancellation of their. I suggest the the Govt. to withdraw alll their funds from these banks, down grade their ratings and keep them on Terrorist watch list.
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Zaheer Abbas Oct 29, 2022 12:22pm
How this fine will recover the loss of a common man in the society that was done by these banks?
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Muhammad Kashif Oct 29, 2022 02:01pm
The business recorder has done a good job by disclosing the names of the banks involved in irregularities. On the other hand the express tribune newspaper hides the names.
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Abdul Latif Qureshi Oct 29, 2022 06:53pm
It is must those involved in this mega scame,penalty is punishment given the institutions.SO,it is necessary all those involved names should dis-close and all those involved removed.
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Khawar Waseem Khan. Oct 29, 2022 09:18pm
SBP should move ahead from merely penalizing. Should take actions against officials and recurring branches must b closed or b jept under watch.
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Asim Iqbal Oct 30, 2022 03:29am
@Abdulrasheed , ehsaas rashan start ho gaya hai
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Qureshi Oct 30, 2022 06:33am
What a rubbish talk you all are doing, which is meaningless and useless. You comments doesnt make any sense. You all are layman and doesn't know any thing about regulatory compliance and penalizing structure if SBP. First find a job in a bank than talk. Because of you financial institutions are penalised.
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Ali Abbas Oct 30, 2022 02:09pm
@Ardl, nbp is always penalized, it is their favorite.
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Sajjad Muggo Oct 30, 2022 06:31pm
Appreciate this move by SBP, but have never about penalizing banks with their behavior towards customers,why
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Ayub Oct 31, 2022 10:46am
SBP in desperate need of cash.
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Tahir Oct 31, 2022 11:10am
I hope SBP is also following local banks to speed up their digital transformation to provide customers 21st century digital products n services. Currently provided digital banking in most banks is of 2nd generation (2005-2010) whereas most of the world is enjoying 4th generation digital banking services. These banks are simply avoiding to invest in fintech.
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Muhammad Nawaz Oct 31, 2022 01:59pm
good
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Shubair Nov 01, 2022 11:06pm
Sbp, Penalty procedures Js bank ( Jahangir sidiqi a friend of Zardari) MCB bank ( friend of PM and nawaz sharif to help money laundering) National bank ( a worst bank in every counter) Faisla bank (parents ksa who is chariting pak always) Bank Al Habib ( a best bank, by birth bank of pak,non political and meet nearly all facilities to their customer) Meezan bank ( a best 100 % pakistani islamic bank which meets best services to their customer and a non-political bank)
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