State Bank of Pakistan (SBP) continued to take strict measures against the commercial banks for their infringement of regulatory compliance penalizing four commercial banks with a fine of Rs. 271.6 million during the period of July to September.
Instead of the big banks, which were usually top of the list of regulatory violations, this time the small and medium-sized banks came on the radar of the central bank.
According to the SBP’s notification, the enforcement significant actions taken upon the following banks:
BankIslami
BankIslami was found in procedural violations in the areas of CDD/KYC, general banking operations and asset quality that were charged a fine of Rs. 116.26 million. Bank’s management was advised to strengthen its processes to avoid recurrence of such violations.
Albaraka Bank
The bank was investigated with the violations in the areas of AML/CFT, FX operations and general banking operation that caused a penalty of Rs.86 million as a penalty. The bank was advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.
Soneri Bank
Soneri Bank was found to have procedural violations in the areas of CDD/KYC. It was imposed a penalty to the tune of Rs. 59.23 million. Bank’s management was advised to strengthen its processes to avoid the recurrence of such violations.
Bank of Punjab
Bank of Punjab was found in procedural violations in the areas of general banking. It was imposed a penalty to the tune of Rs. 10 million. Bank’s management was advised to strengthen its processes to avoid the recurrence of such violations.
I feel that it was a good step from SBP. There are serious issues in these banks.