The State Bank of Pakistan (SBP) has fined major banks in Pakistan a total of Rs.97.577 million for breaching regulatory instructions.
The SBP conducts supervisory compliance proceedings against entities that violate legal or regulatory requirements, which may include the application of fines, administrative and financial restrictions, and referral to appropriate law enforcement/prosecution agencies.
According to State Bank details, Habib Bank Limited faced the highest penalty of Rs.39.772 million for violating regulatory instructions pertaining to foreign exchange and general banking operations. Along with disciplinary action, the bank has been urged to improve its processes in specific areas.
MCB Islamic Bank Limited was ranked second on the list, having been fined Rs.37.095 million for violating regulatory requirements relating to AML/CFT, foreign exchange, and general banking operations. Along with monetary penalties, the bank has been directed to launch an internal investigation into regulatory compliance violations and to take disciplinary measures against delinquent officials.
United Bank Limited was fined Rs.10.71 million for violating regulatory requirements governing CDD/KYC and general banking operations. Along with disciplinary action, the bank has been urged to improve its internal controls to prevent future breaches.
Finally, MCB Bank Limited came in third place with a Rs.10.00 million penalty for violating regulatory orders relating to General Banking Operations. Along with disciplinary action, the bank has been urged to improve its processes in specific areas.
