The State Bank of Pakistan (SBP) has imposed fines amounting to Rs131.42 million on three banks for violating regulatory instructions related to customer due diligence (CDD)/know your customer (KYC) policy, among other things.
The penalties were part of significant enforcement actions taken by the central bank during the quarter that ended on June 30.
The highest fine of Rs85.148m was imposed on JS Bank Limited for “violation of regulatory instructions pertaining to CDD/KYC, asset quality, FX and general banking operations”, according to details available on the SBP’s website.
Separately, Habib Bank Limited was also fined Rs29.035m for “violation of regulatory instructions pertaining to CDD/KYC”. The third bank penalised on the same grounds, as well as asset quality, was the Bank of Punjab, which will have to pay a fine of Rs17.242m.
“In addition to penal action, the banks have been advised to strengthen controls/processes in the identified areas,” the SBP said.
In the previous quarter that ended on March 31, the central bank had imposed fines totalling Rs108.93 on four banks — Askari Bank Limited, Albaraka Bank (Pakistan) Limited, National Bank of Pakistan and U Microfinance Bank Limited — for violating regulations.
