Karachi, October 25, 2023 (PAKONOMY):  In a move aimed at reinforcing the importance of regulatory compliance in the banking sector, the State Bank of Pakistan (SBP) has imposed penalties totaling Rs83.2 million on four banks. These penalties were issued during the quarter ending on September 30, 2023, and reflect the SBP’s commitment to upholding legal and regulatory requirements.

Penalties for Non-Compliance

During the third quarter of 2023, the SBP took action against four banks for their failure to adhere to legal and regulatory requirements. These penalties are part of the SBP’s supervisory enforcement actions against institutions that do not comply with these standards.

United Bank Limited (UBL) – Highest Penalty

UBL faced the highest penalty of Rs26.5 million. The bank was penalized for violations related to regulatory instructions concerning foreign exchange (FX) and general banking operations. The SBP has also advised UBL to strengthen its controls and ensure strict adherence to regulatory instructions.

The Bank of Punjab – Second on the List

The Bank of Punjab was second on the list, with a penalty of Rs21.569 million. This penalty was a result of violations in relation to general banking operations. Similar to UBL, the bank has been urged to bolster its internal systems and controls to prevent any recurrence of regulatory violations.

JS Bank Limited – Third on the List

JS Bank Limited received a penalty of Rs18.51 million, ranking third among the penalized banks. The violations in this case pertained to regulatory instructions related to Customer Due Diligence/Know Your Customer (CDD/KYC), foreign exchange (FX), and general banking operations. The bank has been advised to enhance its systems and controls to prevent future regulatory breaches.

Allied Bank Limited – Penalized Rs16.578 Million

Allied Bank Limited found itself with a penalty of Rs16.578 million for violations connected to general banking operations. The bank has also been urged to make improvements in its internal processes to avoid regulatory violations in the future.

These penalties underscore the SBP’s unwavering commitment to maintaining compliance within Pakistan’s banking sector. The enforcement actions can serve as a deterrent to other financial institutions, emphasizing the importance of strict adherence to regulatory requirements.


The penalties imposed by the State Bank of Pakistan on these four banks are a clear demonstration of the regulatory authority’s determination to uphold compliance in the banking sector. This action not only holds the banks accountable for non-compliance but also sends a strong signal to the industry that adherence to legal and regulatory requirements is non-negotiable. The SBP’s vigilant supervision is vital in ensuring the stability and integrity of Pakistan’s financial system.

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