KARACHI: The State Bank of Pakistan (SBP) has imposed a Rs 525.244 million penalty on eight banks during the quarter ended June 2021 for noncompliance of its instructions.
The State Bank on Thursday issued details of significant enforcement actions taken during the April to June 2021. The penalty was imposed for violation of regulatory instructions pertaining to Asset Quality & General Banking Operations, violation of regulatory instructions pertaining to Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT)& General Banking Operations and violation of regulatory instructions pertaining to Customer Due Diligence (CDD) or Know Your Customer (KYC), FX & General Banking Operations.
In addition to penal action, the banks have been advised to strengthen their processes with respect to identified areas.
In some cases, the banks have also been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.
Copyright Business Recorder, 2021
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