KARACHI – State Bank of Pakistan has fined at least eight commercial banks for violating rules and regulations.
According to State Bank, these measures were implemented as a result of noncompliance with regulatory guidelines and have no bearing on the companies’ capacity to maintain their financial stability.
| Bank | Fine Amount (PKR) | Violation | Regulatory Instructions |
|---|---|---|---|
| Bank Alfalah Limited | 187.652 million | FX and General Banking Operations | Improve internal processes to avoid recurrence of violations |
| Habib Bank Limited | 143.376 million | AML/CFT, CDD/KYC, FX, and General Banking Operations | Ensure meticulous compliance with regulatory instructions to avoid similar instances in the future |
| Bank Al Habib Limited | 117.239 million | CDD/KYC and FX | Strengthen systems and controls for meticulous compliance with regulatory instructions |
| Meezan Bank Limited | 106.2 million | FX | Strengthen internal processes to minimize recurrence of violations |
| Habib Metropolitan Bank Limited | 70.915 million | FX | Strengthen internal processes to minimize recurrence of violations |
| MCB Bank Limited | 52.9 million | FX and General Banking Operations | Strengthen internal processes to avoid recurrence of violations |
| MCB Islamic Bank Limited | 38.544 million | AML/CFT, CDD/KYC, and FX | Ensure meticulous compliance with regulatory instructions to avoid enforcement actions in the future |
| Bank of Khyber | 30.741 million | CDD/KYC, Asset Quality, and General Banking Operations | Ensure meticulous compliance with regulatory instructions to avoid enforcement actions in the future |
The central bank fined Bank Alfalah Limited Rs187.65 million for violating regulatory guidelines about foreign exchange and general banking operations. SBP advised the private banks to enhance their internal processes to prevent such violations in the future.
Habib Bank Limited was fined Rs143.37 million for violating rules about general banking operations, FX, CDD/KYC, and AML/CFT. It was recommended that the private bank follow these guidelines in the letter to avoid future infractions.
A fine of Rs. 117.23 million was imposed on Bank Al Habib Limited for failing to follow regulatory guidelines about FX and CDD/KYC. The bank received instructions to enhance its controls and procedures to guarantee complete adherence and prevent future infractions.
Meezan Bank got a fine of Rs106.20 million for violating regulatory instructions concerning FX. The bank was advised to strengthen its internal processes to reduce the likelihood of such violations happening again.
State Bank also fined Rs.70.91 million to Habib Metropolitan Bank Limited for not following regulatory instructions related to FX. The bank was instructed to enhance its internal processes to prevent similar violations in the future.
MCB Bank Limited got a penalty of Rs52.9 million for breaching regulatory instructions regarding FX and General Banking Operations. The bank was advised to improve its internal processes to avoid such violations in the future.
MCB Islamic Bank Limited was fined Rs. 38.544 million for not complying with regulatory instructions regarding AML/CFT, CDD/KYC, and FX. The bank was advised to ensure strict compliance with these instructions to avoid enforcement actions.
State Bank imposed a Rs30.74 million fine on Bank of Khyber for violating regulatory instructions related to CDD/KYC, Asset Quality, and General Banking Operations. The bank was advised to ensure strict compliance with these instructions to avoid enforcement actions.
Besides the commercial banks, State Bank imposed a fine of Rs27.97 million on Royal Exchange Company for violating regulatory instructions regarding CDD, KYC, and General Banking Operations.
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