Banking

Rs 1.68 billion penalty on 15 Pakistani banks

KARACHI, July 12, 2020: Some Rs 1.68 billion penalty has been imposed by the central bank on 15 bank for on deficiencies in regulatory compliance and does not constitute a comment on the financial Soundness Of the entity.

These fines were imposed on United Bank Ltd, JS Bank Ltd, Meezan Bank Ltd, Faysal Bank Ltd, The Bank of Punjab, Habib Bank Ltd, MCB Bank Ltd, National Bank Of Pakistan, Bank Alhabib Ltd, Habib Metropolitan Bank Ltd, Bank Alfalah Ltd, Askari Bank Ltd, Bank Islami Ltd, Punjab Provincial Cooperative Bank Ltd and Zarai Taraqiati Bank Ltd.

Most of violations were witnessed in area of Customer Due Diligence (CDD), Know Your Customer (KYC), FC operation and Corporate Governance.

During the July 2020, highest penalty of Rs 286.333 million was faced by Bank of Punjab (BoP) on procedural violations in the areas of CDD/KYC, Asset Quality, FX Operations and Corporate Governance. In addition to penal action, SBP has directed the bank has been advised to strengthen its processes to avoid recurrence of such violations.

National Bank of Pakistan (NBP) ranked second with Rs 270 million for procedural violations in the areas of CDD/KYC, Asset Quality and FX Operations. In addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.

Habib Bank Limited faced Rs 204.217 million penalties for procedural violations in the area of CDD/KYC. In addition to penal action the bank has been advised to strengthen its processes related to CDD/KYC, to avoid recurrence of such violations in future.

SBP has imposed Rs 137 million fine on United Bank Limited for procedural violations in the areas of CDD/KYC, Asset Quality, FX Operations, Corporate Governance and in addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.

JS bank faced Rs 71.417 million penalty on procedural Violations in the areas of CDD/KYC and FX Operations. In addition to penal action the bank has been advised to strengthen its processes related to CDD/KYC, to avoid recurrence of such violations in future.

A fine of Rs 81 million was imposed on Meezan Bank Ltd for violations in the area of CDD/KYC and in addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violation.

Some Rs 96 billion fine Faysal Bank Ltd has been advised to strengthen its processes to avoid recurrence of such violations.

MCB Bank Ltd was penalized with Rs 158.474 million on procedural violations in the area of CDD/KYC and in addition to penal action the MCB Bank has been advised to strengthen its processes related to CDD/KYC, to avoid recurrence of such violations in future.

Bank Alhabib Ltd also violated CDD/KYC and faced RS 46.802 million fine. In addition to penal action the bank has been advised to strengthen its processes related to CDD/KYC, to avoid recurrence of such violations in future.

Habib Metropolitan Bank Ltd and Bank Alfalah Ltd were penalized Rs 40.3 million and Rs 29.8 million for procedural violations in the area of CDD/KYC.

Some Rs 29.5 million fine was faced by Askari Bank Ltd and the bank has been advised to strengthen its processes related to CDD/KYC, to avoid recurrence of such violations in future.

SBP imposed Rs 11.517 million fine on Bank Islami Ltd for noncompliance of procedures of FX operation and advised to strengthen its process related to FX operations, in order to avoid recurrence of such violations in future.

Punjab Provincial Cooperative Bank Ltd and Zarai Taraqiati Bank Ltd were penalized by Rs 81.500 and Rs 147.250 million fine for violations in the area of AML/CFT Penal and administrative action taken against the bank. Moreover, these two bank has been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

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