SBP penalizes banks for flouting anti-money laundering laws

KARACHI: The State Bank of Pakistan has penalized 10 banks for ignoring anti-money laundering laws. This decision came at the time when the Financial Action Task Force is finalizing a draft to decide Pakistani economy’s fate. 

“Monetary penalty was imposed mainly on deficiencies in the areas of AML/CFT (anti-money laundering / combating the financing of terrorism),” the State Bank of Pakistan’s (SBP) said in a document, in regards to a fine imposed on Habib Bank Limited (HBL). The bank got the biggest monetary penalty of Rs320.08 million among all the other banks. The SBP found violations in the areas of AML / CFT and consumer protection.

“The bank (HBL) has been advised timelines to bring improvements in its systems/controls to avoid recurrence of such lapses/violations in future,” the SBP said.

The following banks were penalized by the Central Bank:

BanksAmount fined
Muslim Commercial Bank159.152 million
Dubai Islamic Bank77.974 million
JS Bank70.307 million
Silk Bank53.879 million
Bank Alfalah52.795 million
Allied Bank32.755 million
Sindh Bank15.088 million
Summit Bank13.072 million
Habib Metropolitan Bank10 million


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