KARACHI: State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs272 million on four commercial banks for violating regulatory instructions related to Know Your Customer (KYC) and AML/CFT.
According to details of significant enforcement action by the central bank issued on Wednesday, the SBP imposed penalty on the four banks during first quarter (July – September) 2020/2021.
The SBP imposed the highest amount of penalty of Rs116.27 million imposed on Bank Islami Limited for procedural violations in the areas of CDD/KYC, General Banking Operations & Asset Quality. The SBP directed the bank to strengthen its processes to avoid recurrence of such violations.
The central bank imposed an amount of Rs 59.23 million as penalty on Soneri Bank Ltd for procedural violations in the area of CDD/KYC. In addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.
The SBP imposed an amount of Rs10 million as penalty on The Bank of Punjab for procedural violations in the area of General Banking Operations. In addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.
The central bank imposed Rs86.12 million as monetary penalty on Albaraka Bank (Pakistan) Ltd for violations in the areas of AML/CFT,FX Operations &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.
