SBP Penalizes 4 Banks for Violating Anti-Money Laundering Rules

State Bank of Pakistan (SBP) has imposed heavy penalties, amounting to Rs. 184 million, on four banks for violation of its prescribed rules and regulations.

These banks are Soneri Bank, Bank Al-Habib, JS Bank, and Bank of Punjab.

The stern action is part of the steps needed to get off the Greylist of Financial Action Task Force (FATF).

Below are the details of penalties slapped on these banks by the State Bank of Pakistan.

Soneri Bank

The central bank has imposed a penalty of Rs. 55.48 million on Soneri Bank for violation of rules and regulations related to Anti Money Laundering (AML) and Know Your Customers (KYC), Asset Quality, Forex Operations.

It ordered the bank to improve its operation on the account of AML/KYC and credit risk monitoring.

Bank Al-Habib

Bank Al-Habib was slapped with a penalty of Rs. 51.75 million due to infringement of rules and regulations related to Anti Money Laundering (AML) and Know Your Customers (KYC) and FX Operations.

In addition to the penalty, the central bank advised the bank’s management to update their systems and processes, and provide appropriate training to the concerned officials.

JS Bank

SBP slapped a penalty of Rs. 48.22 million on JS Bank as it found that this bank also violated the rules and regulation related to AML/KYC.

The central bank, after its assessment of the bank’s operations and compliance of rules and regulations, advised the bank to conduct a thorough review of relationship accounts.

Bank of Punjab

Among banks facing penalties, Bank of Punjab was penalized twice on two different accounts by the central bank.

It faced a penalty of Rs. 16.11 million on violation of Anti Money Laundering (AML) and Know Your Customers (KYC) regulations, Unclaimed Deposits and another penalty of Rs. 13 million for violating rules and regulations of in areas of FX operations.

SBP ordered the bank to improve its internal processes and AML/KYC regulation implementation.

Recently, Pakistan’s central bank has announced that it will publicize the significant enforcement measures against banks to improve their performance.

Enforcement actions are an integral part of a regulatory regime which involves the imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time.

  • Its a stunt only. Let it remain with law enforcing institutuons. Our higher executives dont have courage to speak on it. It has destroyed the beautiful face of banking and being followed by closed eyes.

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