In its periodic oversight of compliance and enforcement actions against non-compliant banking institutions, the State Bank of Pakistan (SBP) has fined five banks a total of roughly Rs. 224 million.
According to enforcement orders, the banking regulator fined four commercial banks and one microfinance institution individually for the first quarter of January to March 2023, totaling Rs. 223.987 million.
Banks That Are Being Fined by SBP
The biggest fine of Rs. 83.415 million was levied against one of the known commercial banks i.e., Askari Bank Limited (AKBL) for breaking regulatory rules relating to CDD/KYC, FX, and general banking operations.
The bank has been urged to tighten its controls and procedures in the highlighted areas in addition to facing penalties.
The regulator assessed a Rs. 55.393 million fine against Sindh Bank Limited for breaking rules relating to CDD/KYC and general banking operations.
In addition to taking punitive action, the bank has been urged to tighten the control functions and increase the BOD and senior management’s oversight of AML/CFT risk-related issues.
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.
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