The State Bank of Pakistan (SBP) has imposed penalties of Rs290.363 million on six major banks for violating various regulatory laws during the quarter ended September 30, 2022.

Among these banks, Bank Al Habib Limited was slapped with the highest penalty of Rs140.03 million in the latest action by the regulator for violating regulatory instructions pertaining to CDD/KYC (Know Your Customer/Customer Due Diligence, asset quality, FX (Foreign Exchange) and general banking operations.

In addition to penal action, the bank has been advised to strengthen its controls/processes in the identified areas.

Meezan Bank Limited was penalised to the tune of Rs81.72 million. The bank was found to be in violation of rules pertaining to CDD/KYC, asset quality and general banking operations, said SBP.

SBP fines four banks Rs 108mn over AML, operational violations

National Bank of Pakistan was fined Rs25.875 million for violating rules related to asset quality and general banking operation. MCB Bank Limited has also been hit with a penalty of Rs19.223 million and been advised to strengthen its controls/processes in the identified areas.

Moreover, JS Bank Limited and Faysal Bank Limited have been penalised Rs13.490 million and Rs10.025 million, respectively.

“These actions are based on deficiencies in the compliance of regulatory instructions and does not constitute a comment on the financial soundness of the entities,” added the SBP.