For violating regulatory orders, the State Bank of Pakistan (SBP) has imposed penalties totaling Rs 97.577 million on Pakistan’s major banks.
The SBP takes supervisory compliance measures against entities that do not comply with legal or regulatory requirements, which can include imposing fines, administrative and financial restrictions, and referring the matter to the appropriate law enforcement/prosecution agency.
According to State Bank, Habib Bank Limited received the maximum penalty of Rs 39.772 million for violating regulatory instructions about FX and General Banking Operations. In addition to disciplinary action, the bank has been instructed to improve its procedures in the areas that have been found.
The second bank on the list, MCB Islamic Bank Limited, was fined Rs 37.095 million for violating regulatory instructions relating to AML/CFT, FX, and general banking operations. In addition to monetary penalties, the bank has been advised to conduct an internal investigation into regulatory violations and take disciplinary measures against the violators.
For violations of regulatory directives about CDD/KYC and General Banking Operations, United Bank Limited was fined Rs 10.71 million. In addition to monetary penalties, the bank has been recommended to improve its procedures to prevent future breaches.
Finally, MCB Bank Limited came in third with a penalty of Rs 10.00 million for violating regulatory orders relating to general banking operations. In addition to disciplinary action, the bank has been instructed to improve its procedures in the areas that have been found.