Last Updated on: 2nd July 2023, 09:37 pm
SBP Imposes Penalties Worth Rs. 500 mln on 8 Major Banks
The State Bank of Pakistan (SBP) implemented its strict regulatory measures against banks that did not comply with the rules and regulations of the banking sector, as eight banks faced additional prosecutions totaling 500 million rupees in the second quarter of 2021.
As per the SBP, banks were fined separately 525,244 million rupees from April to July 2021.
MCB Bank received the highest fine of Rs 289 million for violating regulatory instructions regarding AML / CFT, including banking operations in general.
In addition to criminal measures, the bank was asked to carry out an internal investigation in case of violations of official instructions and to initiate disciplinary measures against non-compliant officials.
SBP also fined Zarai Taraqiati Bank more than 75 million rupees for the same violations as MCB.
The bank was instructed to follow similar instructions to crack down on the officials responsible.
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Sindh Bank has been fined 62 million rupees for violating compliance with foreign exchange transactions, general banking, and AML / CFT-related regulatory orders.
The Punjab Provincial Cooperative Bank was fined Rs 32 million from the SBP for failing to comply with regulatory instructions regarding AML / CFT.
First Women Bank Limited has also been fined Rs 31.5 million for violating government instructions regarding asset quality, CDD / KYC, and general banking.
These two banks were asked to strengthen their processes in relation to the identified areas.
Soneri Bank and Bank Alfalah were also fined Rs 12.5 million and Rs 11.1 million, respectively, for failing to comply with government regulations on asset quality, foreign exchange, and general banking.
Pak Brunai Investment Bank was fined Rs 10.4 million for violating government orders regarding CDD / KYC, asset quality, and general banking operations.
These banks were asked to strengthen their processes in relation to the identified areas.
The SBP should continue to sanction commercial banks for breaking the law. Banks that have repeatedly violated the rules should be closely monitored, including additional penalties.
The banking regulator should also use enforcement orders to sanction banks that do not provide quality services to their clients.
Also Read: SBP to create the bank account opening facility for mentally retarded people