SBP Slaps Fines on Eight Major Banks; Totaling Over Rs. 747 Million

The State Bank of Pakistan (SBP) has taken stringent measures against several banks, imposing fines amounting to Rs. 747.57 million for breaches of regulatory guidelines during the quarter ended March 31, 2024.

These penalties, as stated by the central bank, are a direct consequence of lapses in compliance with regulatory instructions and are not reflective of the financial stability of the penalized entities.

Here’s a breakdown of the fines levied on the errant banks:

Bank Alfalah Limited incurred a fine of Rs. 187.652 million for breaching regulatory instructions concerning FX and General Banking Operations. The SBP has advised the bank to enhance its internal processes to prevent future violations.

Habib Bank Limited faced a penalty of Rs. 143.376 million for contravening regulatory instructions related to AML/CFT, CDD/KYC, FX, and General Banking Operations. The bank has been urged to ensure meticulous adherence to regulatory guidelines to prevent similar occurrences in the future.

Bank Al Habib Limited was fined Rs. 117.239 million for non-compliance with CDD/KYC and FX regulations. The bank has been instructed to fortify its systems and controls to ensure strict compliance with regulatory instructions and prevent repeat violations.

Meezan Bank Limited was fined Rs. 106.2 million for flouting regulatory instructions pertaining to FX. The bank has been advised to bolster its internal processes to minimize the likelihood of future violations.

Habib Metropolitan Bank Limited incurred a fine of Rs. 70.915 million for violating regulatory instructions regarding FX. The bank has been directed to enhance its internal processes to mitigate the risk of recurrence of such violations.

MCB Bank Limited faced a penalty of Rs. 52.9 million for breaching regulatory instructions concerning FX and General Banking Operations. The bank has been instructed to reinforce its internal processes to prevent similar infractions in the future.

MCB Islamic Bank Limited was fined Rs. 38.544 million for contravening regulatory instructions related to AML/CFT, CDD/KYC, and FX. The bank has been advised to ensure strict compliance with regulatory instructions to avoid future enforcement actions.

Bank of Khyber was fined Rs. 30.741 million for violating regulatory instructions concerning CDD/KYC, Asset Quality, and General Banking Operations. The bank has been urged to ensure meticulous compliance with regulatory instructions to prevent future enforcement actions.

In addition to the banks, the SBP also imposed a fine of Rs. 27.975 million on Royal Exchange Company for violating regulatory instructions pertaining to CDD/KYC and General Banking Operations.