The State Bank of Pakistan (SBP) has taken stringent action against regulatory non-compliance, sanctioning four commercial banks with heavy fines totalling Rs83.15 million.
According to a report from the Banking Supervision Department of SBP, penalized banks for violation of the banking norms and regulations. These infringements pertain primarily to lapses in the banks’ Know Your Customer (KYC) protocols, foreign exchange dealings, and overarching banking operations.
The fines underscore the SBP’s commitment to upholding regulatory standards, stressing that these penalties are imposed due to non-compliance issues and do not necessarily denote any instability in the penalized banks’ financial standings. The central authority has mandated prompt corrective action from the implicated banks.
Recent Regulatory Actions by SBP
This recent enforcement action aligns with the SBP’s broader regulatory efforts. Earlier in the month, the financial regulator revoked the operating authorizations of five Exchange Companies, categorically suspending their business activities due to severe regulatory breaches.
The suspended entities include:
- International Exchange Company –B (Pvt) Limited
- World Wide Exchange Company –B (Pvt) Limited
- World Exchange Company –B (Pvt) Limited
- Universal Exchange Company –B (Pvt) Limited
- United Exchange Company –B (Pvt) Limited