Three banks have been penalized by the State Bank of Pakistan (SBP). Meezan Bank, Askari Bank, and MCB Islamic Bank have been punished with heavy penalties worth Rs. 133.3 million. The penalties are given for violation of the prescribed rules and regulations of SBP.
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A penalty of Rs. 63.805 million is imposed on Meezan Bank. This is for procedural violation of rules and regulations in Know Your Customers (KYC) and Customers Due Diligence (CDD) areas.
SBP has advised Meezan Bank to strengthen its process related to KYC/CDD.
A penalty of Rs. 56.61 million is imposed on Askari Bank for violation Know Your Customers (KYC) and Customers Due Diligence (CDD) regulations. Askari Bank has also been advised to strengthen its process related to KYC/CDD so that such penalties can be avoided in the future.
A penalty of Rs. 12.90 million is imposed on MCB Islamic Bank for violation of rules and regulations in areas of Know Your Customers (KYC) and Customers Due Diligence (CDD) as well. In order to avoid the occurrence of similar incidents, the bank is also advised to strengthen its process related to KYC/CDD.
The imposition of penalties and its enforcement is an important part of the regulatory regime against infringement of SBP issued rules, regulations, guidelines, and laws.
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