Banking

Four Pakistani banks faced massive penalties

Islamabad, August 9, 2019: Some four leading Pakistani banks have faced a cumulative fine of Rs 184.7 million for violation of State Bank of Pakistan’s (SBP) rules and regulations.

As a part of steps taken to overcome from Grey List of Financial Action Task Force (FATF), recently the Pakistan’s central bank has announced that it will disclose the significant enforcement measures against banks to improve their performance.

According to details made available to thebizupdate.com, the center bank has imposed a cumulatively some Rs 184.76 million on four Pakistani banks in violation of rules and regulation.

The Bank of Punjab has faced two penalties of amounted to Rs 29 million, while Soneri Bank Limited faced highest Rs 55 million fine during the last month ( July 19).

Pakistan’s central bank has imposed a penalty of Rs 13.072 million on The Bank of Punjab on July 15th, in violation in foreign exchanges areas. In addition to penal action, the bank has been advised to improve its internal processes.

The Bank of Punjab faced another fine of Rs 16.119 million on July 18, for noncompliance of unclaimed deposits, Anti Money Laundering (AML) and Know Your Customers (KYC) rules. In addition to penal action, the bank has been advised for improvements in the areas of AML/KYC.

On July 23, JS Bank Limited was penalised with Rs 48.221 million in violation in areas of AML and KYC. In addition to penal action, the bank has been advised to conduct a thorough review of relationship accounts.

On July 25, the SBP imposed a fine of Rs 51.75 million on Bank AL Habib Limited for violations in areas of AML/KYC, FX Operations.

In addition to penal action, the bank has been advised to update its systems and processes, and provide appropriate trainings to the concerned officials.

A fine of Rs 55.483 million was imposed on Soneri Bank Limited for violations in areas of AML/KYC,Asset Quality, FX Operations.

In addition to penal action, the bank has been advised for improvements in the areas of AML/KYC and credit risk monitoring.

It may be mentioned here that from July 2019 onward, the SBP will publish the data of significant enforcement measures against banks on it website.

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