Heavy penalties have been imposed by State Bank of Pakistan (SBP) on four leading banks of Pakistan for violating its prescribed rules and regulations. The penalties amount to PKR.184 million.
The banks on which penalties are imposed are Soneri Bank, Bank Al-Habib, JS Bank, and Bank of Punjab. Action has been taken against these banks as part of the steps to get off the Greylist of Financial Action Task Force (FATF).
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State Bank has imposed a penalty on Soneri Bank, Bank Al-Habib, JS Bank, and Bank of Punjab of Rs. 55.48 million, Rs. 51.75 million, Rs. 48.22 million, and Rs. 16.11 million respectively.
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All these banks violated and infringed the rules and regulations of Anti Money Laundering (AML) and Know Your Customers (KYC), Asset Quality, Forex Operations. This is why they have been penalized.
The central bank ordered Soneri Bank to bring betterment in its operations on AML/KYC and credit risk monitoring.
Bank Al-Habib has been asked to update its systems and processes. JS Bank has been ordered to carry out a thorough review of relationship accounts. As for the Bank of Punjab, it has been asked to improve its internal processes and AML/KYC regulation execution.
It was announced by State Bank of Pakistan that it will publicly reveal the enforcement measures in order to ensure that banks improve their performance.