The State Bank of Pakistan (SBP) has imposed penalties of Rs 108.93 million on four major banks for violating various regulatory laws during the quarter ended March 31, 2022.

Among these banks, Albaraka Bank (Pakistan) Limited was slapped with the highest penalty of Rs 40.901 million in the latest action by the banking watchdog for violating regulatory instructions pertaining to AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism), asset quality, foreign exchange and general banking operations.

Askari Bank Limited was penalized to the tune of Rs 38.501 million. The bank was found to be in violation of rules pertaining to CDD/KYC (Know Your Customer/Customer Due Diligence), asset quality and general banking operations, said SBP.

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

National Bank of Pakistan was fined Rs 19.26 million for violating rules related to asset quality. U Microfinance Bank Limited has also been hit with a penalty of Rs 10.26 million and been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against delinquent officials.

“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 SBP.