KARACHI: The State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs85 million on JS Bank Limited for violating regulatory instructions.
The central bank said that JS Bank Limited had violated regulatory instructions pertaining to Customer Due Diligence (CDD) / Know Your Customer (KYC), Asset Quality, foreign exchange and general banking operations.
The SBP directed the bank to strengthen its controls/processes in the identified areas.
The central bank on Tuesday issued details of enforcement actions against banks during the quarter ended June 30, 2022.
The SBP imposed a total amount of Rs131.42 million on three banks during the quarter.
An amount of Rs29.03 million as penalty has been imposed on Habib Bank Limited for violating regulatory instructions pertaining to CDD/KYC. The SBP also directed Habib Bank to strengthen its controls / processes in the identified areas.
Furthermore, the SBP imposed an amount of Rs17.24 million as penalty on the Bank of Punjab for violating regulatory instructions pertaining to Asset Quality and CDD/KYC. In addition to penal action, the bank has been advised to strengthen its controls / processes in the identified areas.
The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of the regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.
In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions.