Banks come under SBP radar; Over Rs525 million penalty imposed

Shahnawaz AkhterWeb Editor

05th Aug, 2021. 03:11 pm
State Bank

KARACHI: The central bank has imposed a monetary penalty of over Rs525 million on eight commercial banks for regulatory violations, including anti-money laundering (AML) and counter financing of terrorism (CFT).

The State Bank of Pakistan (SBP) issued details of the enforcement measures taken against the commercial banks by imposing monetary penalties during the quarter ended June 30, 2021.

The highest amount of penalty of Rs289.10 million has been imposed on the MCB Bank Limited for violation of regulatory instructions pertaining to AML/CFT and general banking operations.

In addition to the penal action, the SBP directed the bank to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

Similarly, a penalty of Rs75.76 million has been imposed on Zarai Tarraqiati Bank Limited. The bank also violated regulations pertaining to AML/CFT and other general banking operations.

The central bank also directed it to take strict action against the officials involved in the breach of regulations.

Third major penalty of Rs62.17 million has been imposed on the Sindh Bank Limited. The bank has also breached the laws in the field of AML/CFT. Besides, the central bank found discrepancies in asset quality, foreign exchange and general banking operations.

The central bank also imposed penalty on other banks, which included Bank Alfalah, Rs11.1 million; First Women Bank Limited, Rs31.57 million; Soneri Bank Limited, Rs12.59 million; the Punjab Provincial Cooperative Bank Limited, Rs32.50 million; and Pak-Brunei Investment Company Limited, Rs10.44 million.

The State Bank said that the actions are based on the deficiencies in the compliance of regulatory instructions and does not constitute a comment on the financial soundness.

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