The State Bank of Pakistan (SBP) has wielded its regulatory hammer, imposing hefty penalties totaling Rs755.542 million on eight banks and one exchange company for failing to comply with legal and regulatory requirements during the quarter ending March 31, 2024.
The enforcement actions come as part of the SBP's vigilant oversight to ensure adherence to regulatory guidelines, ranging from financial and administrative sanctions to potential referrals to law enforcement agencies.
Leading the list of penalised institutions is Bank Alfalah Limited, facing the highest penalty of Rs187.652 million for breaches related to regulatory instructions concerning foreign exchange (FX) and general banking operations.
Following closely is Habib Bank Limited, incurring a penalty of Rs143.376 million for violations regarding Customer Due Diligence/Know Your Customer (CDD/KYC), FX, and general banking operations. The bank has been directed to bolster compliance mechanisms to forestall future infractions.
Bank AL Habib Limited ranks third on the list, bearing a penalty of Rs117.239 million for breaches concerning CDD/KYC and FX. The institution has received instructions to fortify its systems and controls to ensure stringent compliance.
Meezan Bank Limited occupies the fourth spot, facing a penalty of Rs106.2 million for FX-related violations. The SBP has advised the bank to fortify internal processes to mitigate the recurrence of such infractions.
Habib Metropolitan Bank Limited finds itself fifth, with a penalty of Rs70.915 million for FX-related breaches. The SBP has urged the bank to reinforce its internal processes to prevent reoccurrences.
Additionally, MCB Bank Limited faces a penalty of Rs52.9 million for non-compliance with FX and general banking operation regulations. The bank has been instructed to strengthen its internal mechanisms to preclude future breaches.
MCB Islamic Bank Limited has been penalized Rs38.544 million for contraventions related to Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT), CDD/KYC, and FX regulations. The SBP has emphasized the need for meticulous compliance to avert future enforcement actions.
Lastly, Bank of Khyber and Royal Exchange Company have been penalized Rs30.741 million and Rs27.975 million, respectively, for regulatory breaches concerning CDD/KYC, asset quality, and general banking operations. Both entities have been advised to ensure rigorous compliance with regulatory instructions to evade further enforcement actions.
