In the course of its regular business of monitoring compliance and taking enforcement actions against banking institutions that do not comply, the State Bank of Pakistan (SBP) has fined five banks a total of roughly Rs. 224 million.
The banking regulator fined four commercial banks and one microfinance institution separately with a total penalty of Rs. 223.987 million during the first quarter of January to March 2023, according to enforcement orders that were issued.
For breaking regulatory rules relating to CDD/KYC, FX, and General Banking Operations, Askari Bank Limited (AKBL) was hit with the highest fine of Rs. 83.415 million.The bank has been encouraged to tighten its policies and controls in the areas mentioned, along with considering legal action.
The regulator fined Sindh Bank Limited Rs. 55.393 million for breaking rules pertaining to CDD/KYC and general banking operations.
The bank has been recommended to take severe action as well as strengthen control procedures and increase the BOD and senior management’s oversight of AML/CFT risk.
The Zarai Taraqiati Bank Limited (ZTBL) was fined Rs. 37.263 million by the SBP for breaking regulatory rules relating to CDD/KYC, Asset Quality, and General Banking Operations during the previous quarter.
The bank has been urged to tighten its procedures and controls in the highlighted areas.
A fine of Rs. 27.449 million was imposed on Soneri Bank Limited (SNBL) for breaking regulatory guidelines relating to CDD/KYC and Asset Quality. The bank has been urged to tighten its controls and procedures in the highlighted areas in addition to facing penalties.
SBP also fined Mobilink Microfinance Bank (MFB) Limited Rs. 20.467 million for breaking rules governing general banking operations as well as regulations governing asset quality and AML/CFT guidelines.
The regulatory body also suggested that MFB look internally at instances of regulatory instruction violations and discipline any at-fault employees.
