Eight Pakistani banks fined Rs75million over irregularities. The State Bank of Pakistan has taken action against several commercial banks, imposing fines for violations of regulatory instructions.
These fines were attributed to deficiencies in compliance with regulatory guidelines and were not indicative of any concerns regarding the financial stability of the banks involved.
Bank Alfalah Limited Faces Fine for FX:
Bank Alfalah Limited was fined Rs187.65 million for failing to comply with regulatory instructions related to Foreign Exchange (FX) and General Banking Operations.
The State Bank advised the private bank to enhance its internal processes to prevent future violations.
Habib Bank Limited Penalized for Breaches in AML/CFT and FX:
Habib Bank Limited received a fine of Rs143.37 million for breaching regulatory instructions concerning Anti-Money Laundering (AML)/Counter Financing of Terrorism (CFT), Customer Due Diligence (CDD)/Know Your Customer (KYC), FX, and General Banking Operations.
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The leading private bank was instructed to strictly adhere to these instructions to avoid similar violations in the future.
Bank Al Habib Limited Fined for Non-Compliance with FX Rules:
Bank Al Habib Limited faced a fine of Rs117.23 million for non-compliance with regulatory instructions related to Customer Due Diligence (CDD)/Know Your Customer (KYC) and FX.
The bank was urged to improve its systems and controls to ensure full compliance in the future.
Meezan Bank Penalized for Violating FX Regulations:
Meezan Bank was penalized Rs106.20 million for violating regulatory instructions concerning Foreign Exchange (FX).
The bank was advised to strengthen its internal processes to reduce the likelihood of future violations.
Habib Metropolitan Bank Limited Receives Fine for FX Violations:
Habib Metropolitan Bank Limited was fined Rs70.91 million for not following regulatory instructions related to Foreign Exchange (FX).
The bank was instructed to enhance its internal processes to prevent similar violations.
MCB Bank Limited and MCB Islamic Bank Limited Also Fined:
MCB Bank Limited faced a penalty of Rs52.9 million for breaching regulatory instructions regarding FX and General Banking Operations.
Similarly, MCB Islamic Bank Limited was fined Rs38.544 million for non-compliance with AML/CFT, CDD/KYC, and FX regulations.
Both banks were advised to improve internal processes for future compliance.
Bank of Khyber and Royal Exchange Company Among Other Entities Fined:
The State Bank imposed a fine of Rs30.74 million on Bank of Khyber for violating regulatory instructions related to Customer Due Diligence (CDD)/Know Your Customer (KYC), Asset Quality, and General Banking Operations.
Additionally, the Royal Exchange Company was fined Rs27.97 million for violations concerning Customer Due Diligence (CDD), Know Your Customer (KYC), and General Banking Operations.
As eight Pakistani banks fined Rs75million over irregularities, check more details:
| 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 |
