KARACHI: State Bank of Pakistan (SBP) imposed penalties of Rs 465 million on four banks mainly due to violations of regulatory instructions regarding anti-money laundering (AML) and other banking operations .

The SBP on Friday imposed the highest sanction of 280.5 million rupees on the National Bank of Pakistan (NBP) for violating regulatory instructions relating to AML, asset quality, foreign exchange and general banking operations (GBO ).

“In addition to criminal measures, the bank has been asked to conduct an internal investigation into breaches of regulatory instructions and to take disciplinary action against those responsible for the delinquency,” the SBP said.

The SBP imposed 132.4 million rupees on the Silk Bank for the same reason mentioned for the NBP and asked the bank to conduct an internal investigation into the branches of regulatory instructions. The bank has been advised to take disciplinary action against the responsible officials.

United Bank Limited has been fined 38.55 million rupees for violating regulatory instructions relating to Asset Quality, Know Your Customers (KYC) and GBO. In addition to criminal actions, the bank was asked to strengthen its processes in the areas identified. The SBP imposed 13.54 million rupees on branches of the Industrial and Commercial Bank of China-Pakistan for violating regulatory instructions relating to KYC and GBO.

The SBP said it was closely monitoring banks mainly due to money laundering, as the country was unable to get off the gray list despite the significant achievements required to get rid of the gray list.

Posted in Dawn, October 30, 2021