SBP slaps over Rs775mn in fines on eight banks, one exchange company

The State Bank of Pakistan (SBP) has slapped a fine of Rs 775.5 million against eight banks and one foreign exchange for regulatory violations.

As per a report shared by the SBP, these fines were imposed due to non-compliance with foreign exchange transactions, customer due diligence, and general banking operations during the first quarter (Q1) of 2024.

Bank Alfalah Limited faced the highest fine of Rs187.652 million for violations in foreign exchange and general banking rules from January to March. The bank has been instructed to improve its internal controls to prevent future violations.

Habib Bank Limited was fined Rs143.376 million for failing to adhere to regulations related to foreign exchange, customer due diligence, and general banking activities. 

Bank Al Habib Limited faced a fine of Rs117.239 million for violations concerning foreign exchange and customer due diligence. It has also been directed to tighten its systems and controls.

Other penalised financial institutions include Meezan Bank Limited (Rs106.200 million), Habib Metropolitan Bank Limited (Rs70.915 million), MCB Bank Limited (Rs52.900 million), MCB Islamic Bank Limited (Rs38.544 million), the Bank of Khyber (Rs30.741 million), and the Royal Exchange Company (Rs27.975 million).

The SBP clarified that these penalties reflect compliance failures and do not imply concerns about the financial stability of these institutions.