SBP Imposes Penalty on Four Banks Rs 108 Million in Fines Over AML, Operational Violations

Punishments of Rs 108.93 million have been levied on four major banks by the State Bank of Pakistan (SBP) for violations of several regulatory regulations during the quarter ending March 31, 2022.

With regard to the most recent action by the banking watchdog, Albaraka Bank (Pakistan) Limited received the maximum penalty of Rs 40.901 million for breaching regulatory directives on AML/CFT, asset quality, foreign currency, and general banking activities.

As a result of the investigation, Askari Bank Limited was fined Rs 38.501 million. According to SBP, the bank was found in breach of norms governing CDD/KYC (Know Your Customer/Customer Due Diligence), asset quality, and basic banking activities.

The National Bank of Pakistan has been penalised Rs 19.26 million for breaching asset quality guidelines. There was also a Rs 10.26 million penalty levied on U Microfinance Bank Limited, and the bank was directed to undertake an internal investigation into regulatory directives and to take disciplinary action against guilty individuals.

“These measures are based on non-compliance with regulatory requirements and do not represent a judgement on the firms’ financial soundness,” SBP noted.