KARACHI – The State Bank of Pakistan has found MCB guilty of regulatory breaches regarding Know Your Custom (KYC), and charged a fine of Rs 23.5 million.
The State Bank of Pakistan found numerous commercial banks guilty of regulations regarding the Know Your Customer domain.
Several commercial banks including MCB have been fined for these breaches as numerous customers have been victims of fraudulent activities.
SBP stated that these fines are not due to any financial regulations or weaknesses of the firms but due to the negligence of compliance with numerous regulations regarding customers.
A total of Rs 465 million in penalties was charged by SBP from 10 commercial banks for failure to comply with its stern and strict regulations.
In 2022, MCB was also fined Rs 19.223 million for violations in regulations surrounding KYC, trading, and asset quality as well.
This is not the first time that MCB has incurred a heavy fine as well as even back in 2020, MCB incurred the second-highest penalty of Rs 49 million for violations of guidelines regarding Foreign Exchange trading.
The Bank had been told numerous times to investigate the matters regarding fraudulent activities and charge the corrupt officials inside MCB responsible for this.