October 25, 2023 (MLN): The State Bank of Pakistan (SBP) has imposed hefty fines on four banks for violating its rules and regulations, with the total amount of penalties worth Rs83.157 million, according to a document released by SBP's Banking Supervision Department.
The banks were found guilty of breaching the standards of Know Your Customer (KYC), foreign exchange, and general banking operations.
SBP said that the penalties were based on deficiencies in the compliance of regulatory instructions and did not reflect the financial soundness of the entities.
United Bank Limited (PSX: UBL) was fined Rs26.5m for violating the regulatory instructions pertaining to FX and General Banking Operations. SBP advised the bank to strengthen its controls and ensure meticulous compliance with the regulatory instructions.
The Bank of Punjab was fined Rs21.569m for violating the regulatory instructions pertaining to general banking operations. SBP advised the bank to strengthen its systems and controls to avoid the recurrence of regulatory violations.
JS Bank Limited (PSX: JSBL) was fined Rs18.51m for violating regulatory instructions pertaining to CDD/KYC, FX, and General Banking Operations. SBP advised JSBL to strengthen its systems and controls to avoid the recurrence of regulatory violations.
Allied Bank Limited (PSX: ABL) was fined Rs16.578m for violating the regulatory instructions pertaining to General Banking Operations. SBP advised the bank to improve its internal processes in order to avoid violations in the future.
Moreover, the central bank has instructed these individual banks to address these issues immediately.
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Posted on:2023-10-25T11:05:11+05:00
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