State Bank of Pakistan has slapped heavy penalties of nearly Rs. 98 million on three country’s most profitable big banks namely Habib Bank Limited, MCB Bank, and United Bank Limited on the account of violation of its rules and regulations.
According to the enforcement order issued by the central bank, the three banks were slapped with separate penalties of Rs. 97.5 million in the first quarter of January to March 2021.
This is the sad state of affairs as these top commercial banks could not ensure the compliance of the banking laws within their operations while repeating the violation time and again.
Habib Bank Limited, the biggest and the most profitable bank in the country, was hammered with a penalty of Rs.39.7 million for violations of regulatory instructions pertaining to foreign exchange and general banking operations.
MCB Bank, another well-known name, also received a penalty of Rs. 10 million for violations of regulatory instructions pertaining to foreign exchange and general banking operations.
The banking regulator asked the banks’ management to strengthen its processes with respect to identified areas.
MCB Islamic Bank, the subsidiary of the MCB Bank also faced a tough penal action of Rs. 37.09 million from the banking regulator for violations of regulatory instructions pertaining to AML/CFT, FX, and general banking operations.
SBP directed the bank’s management to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.
United Bank Limited, another bank with huge profitability and a wide network, was also slapped a penalty of Rs. 10 million by the banking watchdog for violations of regulatory instructions pertaining to CDD/KYC and general banking operations. The bank’s management was asked to avoid the recurrence of such violations again.
The consistent violation by these banks is an extremely embarrassing situation for the top brass leadership of these giants which make tall claims of innovations but have failed to control the wrongdoing in their operations again and again.