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SBP Fines Banks: The imposition of Significant fines totaling Rs465.081 million on ten banks by the State Bank of Pakistan (SBP) marks a significant move in response to violations of the SBP’s rules and regulations, as detailed in an official document from the SBP’s Banking Supervision Department.
These penalties are a result of various breaches, encompassing non-compliance with Know Your Customer (KYC) standards, Anti-Money Laundering (AML) regulations, concerns related to asset quality, foreign exchange operations, and general banking practices. Importantly, the fines do not reflect the financial stability of the banks but rather point to identified shortcomings in regulatory adherence.
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Among the banks facing fines are United Bank Limited, Habib Bank Limited, Standard Chartered Bank Pakistan Limited, Meezan Bank Limited, Askari Bank Limited, JS Bank Limited, MCB Bank Limited, Dubai Islamic Bank Limited, Mobilink Microfinance Bank Limited, and Bank Alfalah Limited. The fines range from Rs10.73 million to Rs114.193 million for each respective bank.
In response, the central bank has recommended remedial measures and emphasized the need for improvements in internal processes and controls for each bank to prevent future regulatory violations. Additionally, Mobilink Microfinance Bank Limited and Bank Alfalah Limited have been instructed to conduct internal inquiries specifically addressing regulatory violations in Branchless Banking, with directives to take prompt and appropriate actions. This comprehensive approach underscores the SBP’s commitment to maintaining a robust and compliant banking sector.