Habib Bank Receives Another Penalty of Rs. 12.8 Million

Habib Bank Limited has been in the headlines for all the wrong reasons lately. In a fresh move, the bank has been slapped with a Rs. 12.8 million penalty for poor compliance of operations.

State Bank of Pakistan (SBP) penalized the bank in January as it found procedural violations at the bank in the areas of Customer Due Diligence and Know your Customers (CDD/KYC).

In addition to penal action, the bank has been advised to improve in the areas of CDD/KYC as per SBP’s notification.

The bank failed to comply with mandatory rules in its dealings with the customers hence the poor compliance of rules was not tolerated by the banking regulator.

The management of HBL has been passing through a crunch time these days. Recently, the central bank’s findings revealed significant irregularities in the operations of the bank at its branches located in UAE.

Moreover, the bank formally made the announcement of its complete closure and exit from New York. The bank faced heavy penalties by US authorities a few years back due to various irregularities in the overseas business.