SBP Imposes Heavy Fines on Four Banks For Regulatory Violations

The State Bank of Pakistan (SBP) has issued heavy fines on four banks for violation of the central bank’s directives regarding CDD/KYC, foreign exchange, and general banking operations.

According to the details, the SBP has imposed a total fine of Rs. 83.157 million on United Bank Limited (UBL), The Bank of Punjab (BoP), JS Bank Limited (JSBL), and Allied Bank Limited (ABL).

The banks were penalized due to violation of rules pertaining to know your customer (KYC) and customer due diligence (CDD), foreign exchange trading and general banking operations and activities.

SBP issued following fines to these banks:

• United Bank Limited (UBL) – Rs. 26.500 million
• The Bank of Punjab (BoP) – Rs. 21.569 million
• JS Bank Limited (JSBL) – Rs. 18.510 million
• Allied Bank Limited (ABL) – Rs. 16.578 million

In addition to the heavy fines and penal action, the SBP has advised these banks to strengthen their systems and controls to prevent future regulatory infractions.

The SBP added that actions taken against these banks are based on deficiencies in the compliance of regulatory instructions and do not constitute a comment on the financial soundness of these entities.

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