SBP slapped PKR 224 million penalty on Five Banks

May 25, 2023

According to a document released by the State Bank of Pakistan (SBP)’s Banking Supervision Department, five banks have been subjected to substantial fines for non-compliance with rules and regulations during the first quarter of 2023. The total penalties amount to Rs223.987 million. The fines were imposed due to violations in customer due diligence, anti-money laundering, foreign exchange, and general banking operations. It is important to note that these penalties are based on regulatory compliance shortcomings and do not reflect the financial stability of the banks involved.

Askari Bank Limited faced a fine of Rs83.415 million for non-compliance with regulatory instructions regarding customer due diligence, foreign exchange, and general banking operations. The SBP advised the bank to reinforce its controls and processes in the identified areas.

Sindh Bank Limited was fined Rs55.393 million for violations related to customer due diligence and general banking operations. The SBP recommended that the bank enhance board of directors and senior management oversight in anti-money laundering and counter-terrorism financing risk matters, as well as strengthen control functions.

Zarai Taraqiati Bank Limited was fined Rs37.263 million for non-compliance with regulatory instructions regarding customer due diligence, asset quality, and general banking operations. The SBP advised the bank to strengthen its controls and processes in the identified areas.

Soneri Bank Limited faced a fine of Rs27.449 million for violations related to customer due diligence and asset quality. The SBP recommended that the bank strengthen its controls and processes in the identified areas.

Mobilink Microfinance Bank Limited was fined Rs20.467 million for non-compliance with regulatory instructions on anti-money laundering, asset quality, and general banking operations. The SBP advised the microfinance bank to conduct an internal inquiry into regulatory breaches and take disciplinary action against the responsible officials.