SBP Fines 6 Banks for Violating Rules

The State Bank of Pakistan (SBP) has fined six large commercial banks a total of Rs. 350.7 million for violations of its rules and regulations from April to June 2023.

The banking watchdog stated in the quarterly enforcement order that these institutions were observed for breaking regulatory instructions related to CDD/KYC and asset quality, AML/CFT, CDD/KYC, FX, and general banking activities.

The central bank has penalised the following banks:

1. National Bank of Pakistan (NBP) faced a penalty of Rs. 144.207 million.
2. Bank Alfalah was fined Rs. 125.253 million.
3. Meezan Bank also faced a penalty of Rs. 38.030 million.
4. Allied Bank was penalized with a fine of Rs. 20.660.
5. Punjab Provincial Cooperative Bank was fined Rs. 12.229 million.
6. Bank Al- Habib faced a penalty of Rs. 10.420 million.

The banking regulator has encouraged these institutions, in addition to criminal measures, to improve internal systems and controls.