The State Bank of Pakistan (SBP) has enforced penalties amounting to Rs 97.577 million on major banks of Pakistan for violating regulatory instructions.

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 State Bank, among the banks' Habib Bank Limited faced the highest penalty of Rs 39.772mn in violations of regulatory instructions pertaining to FX & General Banking Operations. In addition to penal action the bank has been advised to strengthen its processes with respect to identified areas.

MCB Islamic Bank Limited was second on the list with the penalty of Rs 37.095mn for violations of regulatory instructions pertaining to AML/CFT, FX & 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.

The United Bank Limited was penalized Rs 10.71mn for violations of regulatory instructions pertaining to CDD/KYC & General Banking Operations. In addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.

Lastly, MCB Bank Limited was third on the list with a penalty of Rs 10.00mn in violations of regulatory instructions pertaining to General Banking Operations. In addition to penal action the bank has been advised to strengthen its processes with respect to identified areas.