KARACHI: The State Bank of Pakistan (SBP) has imposed fine on four Pakistani banks including United Bank Limited (UBL), JS Bank Limited (JSBL), The Bank of Punjab (BoP) and Allied Bank Limited (ABL) for violating the banking laws.
These four entities were fined a total of Rs83.157 million in the first quarter (July-September) of the current fiscal year for violating the central bank’s directives regarding customer due diligence, foreign exchange and general banking operations.
According to the details the SBP posted on its website, UBL was slapped the largest fine, amounting to Rs26.500 million, followed by BoP (Rs21.569 million), JS Bank (Rs18.510 million) and ABL (Rs16.578 million).
The banks have been penalised for breaking rules pertaining to ‘know your customer’ and ‘customer due diligence’, foreign exchange trading and general banking activities.
The SBP has also advised these banks to strengthen their systems and controls to prevent future regulatory breaches. The central bank, however, clarified that the penal actions are based on deficiencies in the compliance of regulatory instructions and do not constitute a comment on the financial soundness of these banks.
