KARACHI: The investment in premium prize bonds of Rs40,000 denomination has increased sharply by 115 percent following the ban imposed by the government on bearer instrument of same denomination.
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SBP imposes Rs805 million penalty on 10 banks for violating AML, due diligence, forex regulations
KARACHI: State Bank of Pakistan (SBP) has imposed penalty amounting Rs805.1 million on 10 banks for violating anti-money laundering, due diligence of customers and foreign exchange regulations during the month of August 2019.
The central bank issued details on Friday about action taken by the SBP against banks in order to plug loopholes in the banking system.
The SBP initiated to make public the action taken by the central bank from July 2019 against commercial banks for violating prevailing rules and regulations and amount of penalty imposed on such banks.
In the latest release of enforcement measures by the SBP also included action against leading banks including Habib Bank Limited and MCB Bank etc.
The highest amount of penalty of Rs320.08 million has been imposed on Habib Bank Limited followed by MCB Bank of Rs159.152 million, Dubai Islamic Bank of Rs77.97 million.
Following of are the significant enforcement actions by SBP during August-2019.
01. Dubai Islamic Bank dated August 01 & 02, 2019:
Violations in the areas of AML/CFT, Asset Quality
Monetary penalty of Rs77.974 million was imposed mainly on deficiencies in the areas of AML/CFT. Moreover the bank has been advised timelines to rectify the operational lapses and improve the control environment to avoid recurrence of such lapses/violations in future.
02. Habib Bank Limited dated August 02 & 03, 2019:
Violations in the areas of AML/CFT, Consumer Protection
Monetary penalty of Rs320.08 million was imposed mainly on deficiencies in the areas of AML/CFT and erroneous deduction of service charges from customers. The bank has been advised timelines to bring improvements in its systems/controls to avoid recurrence of such lapses/violations in future.
03. MCB Bank Limited dated August 03, 2019:
Violations in the areas of AML/CFT, Asset Quality
Monetary penalty of Rs159.152 million was imposed mainly on deficiencies in the areas of AML/CFT. The bank has been advised timelines to improve the KYC/CDD processes and integrate eKYC system with core banking system.
04. Silkbank Limited dated August 03, 2019:
Violations in the areas of AML/KYC, Asset Quality
Monetary penalty of Rs53.879 million was imposed mainly on violations of non-surrendering of unclaimed deposits, non-classification of loans and adjustment lending. Moreover, the bank has been advised timelines to classify advances & create provision there against and conduct
05. Bank Alfalah Limited dated August 03, 2019
Violations in the areas of FX Operations
Monetary penalty of Rs52.795 million was imposed mainly on violations of foreign exchange regulations such as restrictions to remit import advance payments, export documentation and non-submission of documents against advance payments.
06. Allied Bank Limited dated August 03, 2019
Violations in the areas of AML/KYC, Asset Quality
Monetary penalty of Rs32.755 million was imposed on breach of various limits of Equity Investment/related party and deficiencies in customer due diligence process. The bank has been advised timelines to bring equity Investment and exposure to related party group within the prescribed limit and revise KYC/CDD process.
07. Sindh Bank Limited dated August 03, 2019
Violations in the areas of AML/KYC, Asset Quality, FX Operations
Monetary penalty of Rs15.088 million was imposed mainly on deficiencies in customer due diligence practices, imprudent lending practices, non-classification of loans. Moreover, in view of the strategic deficiencies in Transaction monitoring system & name screening process, the bank has been advised an action plan/timelines for replacement of their existing TMS and acquiring of name screening solution.
08. Summit Bank Limited dated August 03, 2019
Violations in the areas of AML/KYC, Asset Quality
Monetary penalty of Rs13.072 million was imposed mainly on deficiencies in customer due-diligence process, mis-utilization of loans and non classification of loans. The bank has been advised to timely update customer profiles & properly document the reasons of large value transactions.
09. JS Bank Limited dated August 05, 2019
Violations in the areas of AML/KYC, Asset Quality, Corporate Governance
Monetary penalty of Rs70.307 million was imposed mainly on deficiencies in customer due-diligence process, mis-utilization and non classification of loans etc. The bank has been advised timelines to enhance its systems/process for customer risk profiling (CRP), transaction monitoring and identification of Politically Exposed Persons (PEPs).
10. Habib Metropolitan Bank Limited dated August 19, 2019
Violations in the areas of FX Operations
Monetary penalty of Rs10 million was imposed mainly on a violation of foreign exchange regulations relating to splitting of the import advance payments into smaller transactions.
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Bank holiday
KARACHI: State Bank of Pakistan (SBP) on Thursday announced bank holiday on account of Ashura on Muharram 9 and 10.
The SBP will remain closed on 9th and 10th September, 2019 (Monday and Tuesday) being 9th & 10th Moharram-ul-Haram, 1441 A.H. on the occasion of Ashura.
The SBP also announced to celebrate Defence Day and Kashmir Solidarity Day.
The Government of Pakistan has decided to commemorate Friday, September 6, 2019 as “Defence Day” as well as “Kashmir Solidarity Day”.
Accordingly, office hours on Friday, September 6, 2019 will be from 9:00 a.m. to 3:00 p.m. to facilitate all employees to participate in the following activities:
Commemorate the Defence Day of Pakistan;
Observe Solidarity with the people of Kashmir; andVisit families of Martyrs (Shuhada) and monuments.
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Foreign exchange reserves flat at $15.619 billion
KARACHI – The State Bank of Pakistan (SBP) reported a marginal shift in the country’s liquid foreign exchange reserves, indicating stability in the economic landscape.
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Floating rate of PIBs to be auctioned: SBP
KARACHI: State Bank of Pakistan (SBP) on Tuesday announced that floating rate of Pakistan Investment Bonds (PIBs) will be auctioned.
The central bank sand that it had issued detailed guidelines on May 07, 2018 through a notification under which details of Floating Rate PIBs have been specified.
Government of Pakistan (GOP) has decided that Floating Rate PIBs may also be auctioned as re-opening of previously issued Floating Rate PIBs.
The re-opening auction mechanism of Floating Rate PIBs will be as under:
Re-opening auctions of Floating Rate PIBs will be conducted through uniform price competitive bidding auction process.
PDs will submit competitive bids in terms of price (up to four decimal points).
The cut-off price, at which GOP decides to accept bids, in the re-opening auction will apply uniformly to all accepted bids.
Coupon rate on Floating Rate PIBs offered in re-opening auctions will be the same as determined in the first auction of respective issue of the bond and reset at the start of each coupon period, in accordance with instructions issued vide DMMD Circular no 16 of 2019.
The successful bidders will make the settlement on settlement date at the amount calculated as per accepted price plus accrued interest for the number of days lapsed since start of the coupon period based on respective coupon rate.
All other auction rules and procedures will remain the same.
All other instructions on the subject will remain unchanged.
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SBP urges business community to discourage cash transactions
Dr. Reza Baqir, the Governor of the State Bank of Pakistan (SBP), has called on the business community to reduce cash transactions to aid economic growth. Speaking to members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday, Dr. Baqir emphasized the importance of promoting transactions through the banking system.
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SBP issues banknotes bearing Reza Baqir’s signature
KARACHI: State Bank of Pakistan (SBP) will issue bank notes bearing signature of SBP Governor Dr. Reza Baqir from August 30, 2019.
A statement issued by the central bank on Thursday said that it will start issuing banknotes bearing the signature of SBP Governor Dr. Reza Baqir with effect from August 30, 2019 from the field offices of SBP Banking Services Corporation.
The banknotes bearing the signatures of his predecessors will continue to remain in circulation as legal tender, the SBP said.
Dr. Reza Baqir on May 05, 2019 assumed the charge of Governor State Bank of Pakistan after President of Pakistan appointed him as Governor State Bank of Pakistan for a period of three years in pursuance of Section 10(3) of the State Bank of Pakistan Act 1956.
Dr. Reza Baqir has eighteen years of experience with the IMF and two years with the World Bank.
He was the Head of the IMF’s Office in Egypt and Senior Resident Representative since August 2017.
He has also held positions as IMF Mission Chief for Romania and Bulgaria, Division Chief of the IMF’s Debt Policy Division, Head of the IMF delegation to the Paris Club, Deputy Division Chief of the IMF’s Emerging Markets Division, IMF Resident Representative to the Philippines, and numerous other positions.
Dr. Baqir’s research has been published in top journals of the economics profession, including the Journal of Political Economy and the Quarterly Journal of Economics.
Dr. Baqir holds a Ph.D in Economics from the University of California at Berkeley and an A.B. (Magna cum Laude) in Economics from Harvard University.
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Foreign exchange reserves increase by $25 million to $15.63 billion
Karachi – The State Bank of Pakistan (SBP) has reported an increase of $25 million in the country’s liquid foreign exchange reserves, bringing the total to $15.63 billion for the week ending August 23, 2019.
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SBP warns public against sale, purchase of foreign exchange with illegal money exchanges
KARACHI: State Bank of Pakistan (SBP) has warned general public against dealing of sale and purchase of foreign currency with illegal money exchanges.
The central bank in an information to general public said that sale, purchase and transfer of foreign currency through Hawala/Hundi operators is illegal.
The SBP said that people unknowingly may become part of money laundering and terrorism financing offence by dealing with illegal foreign exchange operators.
The money laundering and terrorism financing offences are punishable under Anti Money Laundering (AML) Act, 2010 and Anti Terrorism Act (ATA), 1997.
The SBP advised the general public to carry foreign currency sale, purchase and remittance transactions with only State Bank authorized banks and exchange companies.
The central bank also advised to collect system generated official receipt of transactions. The general public has been urged to report any illegal foreign exchange sale/purchase and Hawala/Hundi Operators to Federal Investigation Agency (FIA).
The SBP said that the business of foreign exchange in Pakistan is regulated under Foreign Exchange Regulations Act (FERA), 1947. The SBP issues authorization to banks and exchange companies to conduct foreign exchange business.
Any person (individual or entity) other than those authorized by the SBP are doing illegal foreign exchange business which is punishable offence under FERA 1947 and AMLA 2010.
All such operators are informed in their own interest not to indulge in illegal foreign exchange sale/purchase and hawala/hundi business.
The SBP said that extensive action against illegal currency exchange and hawala/hundi operators is being carried out by relevant law enforcement agencies.
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Foreign exchange reserves increase by $27 million to $15.604 billion
KARACHI: The liquid foreign exchange reserves of the country have increased by $27 million to $15.604 billion by week ended August 17, 2019 as compared with $15.577 billion a week ago, State Bank of Pakistan (SBP) on Thursday.
The official reserves held by SBP fell by $26 million to $8.238 billion by week ended August 17, 2019 as compared with $8.264 billion week ago.
The central bank said that its official reserves were declined due to external debt servicing and other official payments.
The foreign exchange reserves held by commercial banks have increased by $53 million to $7.366 billion from $7.313 billion.
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Foreign exchange reserves increase by $557 million to $15.577 billion