Six banks face Rs350.8m penalty from SBP for rule violations

By Staff Reporter

KARACHI: Pakistan’s central bank said on Thursday it had fined six banks a total of Rs350.8 million for failing to comply with rules on anti-money laundering, customer due diligence and other areas.

The State Bank of Pakistan (SBP) said the penalties were imposed in the quarter ending June 30 after inspections of the banks’ operations and systems.

The largest fine of Rs144.2 million rupees was imposed on the state-owned National Bank of Pakistan for violations of customer due diligence, asset quality, and other requirements, the SBP said in a statement.

Bank Alfalah Limited, a private lender, was fined 125.3 million rupees for breaches of anti-money laundering, customer due diligence, foreign exchange, and general banking rules.

Meezan Bank Limited, Allied Bank Limited, Punjab Provincial Cooperative Bank Limited, and Bank Al Habib Limited were fined between Rs10.4 million and Rs38 million rupees each for similar violations, the SBP said.

The central bank said it had advised the banks to improve their internal processes and controls and ensure compliance with the regulatory instructions.