KARACHI – The State Bank of Pakistan (SBP) has penalised four banks with massive fines for violating its policies.
The Banking Supervision Department of SBP released a document on Wednesday stating that the total amount of fines was Rs83.157 million.
Document revealed that criteria of Know Your Customer (KYC), foreign exchange, and general banking activities were broken by the banks.
The State Bank said that the fines did not accurately represent the financial stability of the firms and were based on failures to comply with regulatory directives.
A Rs26.5 million fine was imposed on United Bank Limited for breaking regulatory guidelines concerning foreign exchange and general banking operations. The SBP recommended the bank to tighten its controls and make sure that all legal requirements are strictly followed.
The regulatory guidelines governing general banking activities were broken by the Bank of Punjab, which resulted in a punishment of Rs21.569 million. The SBP suggested that the bank improve its procedures and controls to prevent repeat regulatory violations.
A Rs18.51 million fine was imposed on JS Bank Limited for breaking regulatory guidelines concerning FX, general banking operations, and CDD/KYC. The SBP recommended that JSBL fortify its protocols and oversight mechanisms in order to prevent future transgressions of regulations.
A Rs16.578 million fine was imposed on Allied Bank Limited for breaking the regulations governing general banking operations.
The SBP guided the bank to strengthen internal controls to prevent violations in the future.
Additionally, the aforementioned institutions have received instructions from the State Bank to deal with these problems right now.
Pakistani rupee remains stable against US dollar in the open market on February 25, 2024 (Sunday).
In the open market, the US dollar was being quoted at 279.5 for buying and 282.55 for selling.
Euro currently stands at 302 for buying and 305 for selling while British Pound rate stands at 352.5 for buying, and 356 for selling.
UAE Dirham AED hovers at 76.1 whereas the Saudi Riyal saw slight increase, with new rates at 74.35.
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