SBP Slaps Rs. 109 Million Fine on 4 Major Banks

The State Bank of Pakistan (SBP) has imposed penalties of over Rs. 100 million on four banks including a public sector bank, an Islamic bank, and a microfinance bank against violations of rules and regulations of various nature. According to enforcement orders issued, the banking watchdog penalized three commercial banks and one microfinance separately with an overall penalty of Rs. 108.9 million during the first quarter of January to March 2022. Albaraka Bank has been slapped with a penalty of Rs. 40.90 million on the violation of regulatory instructions pertaining to AML/CFT, asset quality, foreign reserves, 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. Askari Bank Limited was fined Rs. 38.5 million for the violation of regulatory instructions pertaining to CDD/KYC, asset quality, and general banking operations. National Bank of Pakistan also faced a penalty of Rs. 19.28 million against violation of regulatory instructions pertaining to asset quality. In addition to penal action, the SBP advised the bank to strengthen its controls and processes in the identified areas. U Microfinance Bank was slapped with a fine of Rs. 10.2 million against violation of regulatory instructions pertaining to AML/CFT, Asset Quality & General Banking Operations.