KARACHI – The State Bank of Pakistan takes supervisory enforcement actions against those banks that fail to comply with legal or regulatory requirements.
These actions may range from imposition of penalties, administrative & financial sanctions and reference to concerned law enforcement/prosecution agencies.
In a recent move, the central bank has imposed penalties on eight banks, including MCB Bank Limited and MCB Islamic Bank Limited.
MCB Bank Limited
The bank was fined Rs52.90 million for violating the regulatory instructions pertaining to FX and General Banking Operations. Further, the bank has been advised to strengthen its internal processes in order to avoid recurrence of such violations.
MCB Islamic Bank Limited
A penalty of Rs38.544 million was imposed on MCB for violation of regulatory instructions pertaining to AML/CFT, CDD/KYC and FX. The bank has been further advised to ensure meticulous compliance with regulatory instructions to avoid enforcement actions in future.
These actions are based on deficiencies in the compliance of regulatory instructions and do not constitute a comment on the financial soundness of these entities, SBP said in a statement.
