The State Bank of Pakistan (SBP) slapped fines of Rs. 747.57 million on eight banks during the quarter ended March 31, 2024, for violating its rules and regulations.
The central bank said that these actions are based on deficiencies in the compliance of regulatory instructions and do not constitute a comment on the financial soundness of these entities.
List of Banks That Have Been Fined
Bank Alfalah Limited was fined Rs. 187.652 million for violating the regulatory instructions on FX and General Banking Operations. SBP advised the bank to improve its internal processes to avoid the recurrence of such violations.
Habib Bank Limited was fined Rs. 143.376 million for violating the regulatory instructions about AML/CFT, CDD/KYC, FX, and General Banking Operations. The bank was advised to ensure meticulous compliance with the regulatory instructions to avoid the recurrence of similar instances in the future.
Bank Al Habib Limited was fined Rs. 117.239 million for regulatory instructions about CDD/KYC and FX. The bank was advised to strengthen its systems and controls to ensure meticulous compliance with the regulatory instructions and avoid the recurrence of similar violations.
Meezan Bank Limited was fined Rs. 106.2 million for violating the regulatory instructions pertaining to FX. The bank was advised to strengthen its internal processes in order to minimize the recurrence of such violations.
Habib Metropolitan Bank Limited was fined Rs. 70.915 million for the violation of regulatory instructions pertaining to FX. The bank was advised to strengthen its internal processes to minimize the recurrence of such violations.
MCB Bank Limited was fined Rs. 52.9 million due to a violation of regulatory instructions pertaining to FX and General Banking Operations. The bank was advised to strengthen its internal processes in order to avoid the recurrence of such violations.
MCB Islamic Bank Limited was fined Rs. 38.544 million for Violation of regulatory instructions pertaining to AML/CFT, CDD/KYC, and FX. The bank was further advised to ensure meticulous compliance with regulatory instructions to avoid enforcement actions in the future.
Bank of Khyber was fined Rs. 30.741 million on account of violation of regulatory instructions of CDD/KYC, Asset Quality, and General Banking Operations. The bank was advised to ensure meticulous compliance with regulatory instructions to avoid enforcement actions in the future.
Exchange Company
Moreover, in addition to the eight banks, the central bank also imposed a fine of Rs. 27.975 million on Royal Exchange Company over violation of regulatory instructions pertaining to CDD/KYC and General Banking Operations.
Despite of been fined they have earned a much more by violating the regulations.!