“SBP Slaps Rs. 224 Million Fine on 5 Major Banks.”

The State Bank of Pakistan (SBP) has imposed penalties of nearly Rs. 224 million on five banks in its routine operations of overseeing compliance and enforcement actions against non-compliance banking institutions.

According to enforcement orders issued, the banking regulator penalized four commercial banks and one microfinance separately with an overall penalty of Rs. 223.987 million during the first quarter of January to March 2023.

Askari Bank Limited (AKBL) has been slapped with the highest penalty of Rs. 83.415 million for violating regulatory instructions pertaining to CDD/KYC, FX, and General Banking Operations. In addition to penal action, the bank has been advised to strengthen its controls/processes in the identified areas.

Sindh Bank Limited faced a penalty of Rs. 55.393 million by the regulator for violation of regulatory instructions pertaining to CDD/KYC, and general banking operations.

In addition to penal action, the bank has been advised to enhance the oversight of BOD and senior management in matters pertaining to AML/CFT risk and strengthen the control functions.

The Zarai Taraqiati Bank Limited (ZTBL) was slapped with a penalty of Rs. 37.263 million by the SBP during the outgoing quarter for violating regulatory instructions pertaining to CDD/KYC, Asset Quality, and General Banking Operations.

The bank has been advised to strengthen its controls/processes in the identified areas.

Soneri Bank Limited (SNBL) was slapped with a penalty of Rs. 27.449 million for violation of regulatory instructions pertaining to CDD/KYC and Asset Quality. In addition to penal action, the bank has been advised to strengthen its controls/processes in the identified areas.

SBP also penalized Mobilink Microfinance Bank (MFB) Limited Rs. 20.467 million for non-compliance with General Banking Operations regulations and violation of regulatory instructions pertaining to AML/CFT rules and Asset Quality.

The regulator also advised MFB has been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.