Enforcement action: SBP imposes over Rs83mn in penalties on four banks

The State Bank of Pakistan (SBP) imposed penalties worth Rs83.2 million on four banks during the quarter ending September 30, 2023, for non-compliance with legal or regulatory requirements.

The SBP takes supervisory enforcement actions against those institutions that fail to comply with legal or regulatory requirements and these actions may range from the imposition of penalties, administrative and financial sanctions, and reference to concerned law enforcement/prosecution agencies.

According to details issued by the central bank on Wednesday, United Bank Limited (UBL) faced the highest penalty of Rs26.5 million in violation of regulatory instructions pertaining to foreign exchange (FX) and general banking operations.

In addition to penal action, the bank has been advised to strengthen its controls and ensure meticulous compliance with the regulatory instructions.

The Bank of Punjab was second on the list with a penalty of Rs21.569 million in violation of regulatory instructions pertaining to general banking operations.

In addition to penal action, the bank has been advised to strengthen its systems and controls to avoid recurrence of regulatory violations.

JS Bank Limited was third on the list with a penalty of Rs18.51 million for violation of regulatory instructions pertaining to CDD/KYC (Customer Due Diligence/ Know Your Customer), FX and general banking operations.

In addition to penal action, the bank has been advised to strengthen its systems and controls to avoid the recurrence of regulatory violations.

Lastly, Allied Bank Limited was penalised Rs16.578 million for violations of regulatory instructions pertaining to general banking operations.

In addition to penal action, the bank has been advised to improve its internal processes in order to avoid violations in future.