SBP Hammers Three Banks With Penalties of Rs. 133 Million

The State Bank of Pakistan (SBP) has punished three banks with heavy penalties of Rs. 133.3 million for the violation of its prescribed rules and regulations last month. These banks are Meezan Bank, Askari Bank, and MCB Islamic Bank.

Stern action was taken against these banks as part of the steps taken by the government to be removed from the grey list of Financial Action Task Force (FATF). Penalizing banks is the routine process of the State Bank but it is being made public on a monthly basis for different international agencies concerned about Pakistan’s financial system.

Meezan Bank

The central bank has imposed a penalty of Rs. 63.805 million on Meezan Bank for procedural violation of rules and regulations in the areas of Know Your Customers (KYC) and Customers Due Diligence (CDD).

The bank has been advised to strengthen its process related to KYC/CDD, in order to avoid the occurrence of similar violations in the future.

Askari Bank

Askari Bank has been slapped with a penalty of Rs. 56.61 million for infringement for Know Your Customers (KYC) and Customers Due Diligence (CDD) regulations.

The bank has been advised to strengthen its process related to KYC/CDD, in order to avoid the occurrence of similar violations in the future.

MCB Islamic Bank

MCB Islamic Bank received a penalty of Rs. 12.90 million due to infringement of rules and regulations in areas of Know Your Customers (KYC) and Customers Due Diligence (CDD) as well.

The bank has been advised to strengthen its process related to KYC/CDD, in order to avoid the occurrence of similar violations in the future.

Enforcement is 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.


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