SBP Imposes Heavy Fines on Four Banks

The State Bank of Pakistan (SBP) has imposed heavy fines of over Rs. 100 million on four banks for violating rules and regulations set by the central banking body. According to the details, the SBP has imposed penalties on Askari Bank Limited, Albaraka Bank (Pakistan) Limited, National Bank of Pakistan, and U Microfinance Bank Limited.

According to the State Bank of Pakistan (SBP), these banks were issued penalties as part of the central bank’s Significant Enforcement Action during the Quarter ended March 31, 2022. The four banks were slapped heavy fines (Rs. 108.935 million in total) over violations of rules and regulations of various natures.

Askari Bank Limited has been imposed a penalty of Rs. 38.501 million for violation of regulatory instructions pertaining to CDD/KYC, Asset Quality and General Banking Operations. In addition to penal action, advised to strengthen its controls/processes in the identified areas.

Meanwhile, the State Bank of Pakistan (SBP) has imposed a fine of Rs. 40.901, which the highest amongst the four banking institutions, for violation of regulatory instructions pertaining to AML/CFT, Asset Quality, Foreign Exchange (FX) and General Banking Operations. In addition to penal action, the bank has been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

National Bank Limited or NBL, which is a public sector banking institution, has been penalized by Rs. 19.268 million for violation of Violation of regulatory instructions pertaining to Asset Quality. In addition to penal action, the bank has been advised to strengthen its controls/processes in the identified areas.

Furthermore, U Microfinance Bank Limited has been charged a penalty of Rs. 10,265, the lowest amongst the four banks, for violation of of regulatory instructions pertaining to AML/CFT, Asset Quality & General Banking Operations. In addition to penal action, the bank has been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

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