News

Pakistan searches banks in suspected fee fixing conspiracy

February 16, 2012

The Competition Commission of Pakistan this week conducted a search and inspection of the Pakistan Banks’ Association in Karachi to collect proof of the association's suspected role in providing a platform for its members to use to fix ATM charges, said a news story at pakistantoday.com.

The commission earlier carried out a search and inspection of 1-Link, the country’s shared ATM financial network, which is also suspected of participating in the conspiracy. Several of the banks involved in the fee fixing case are members of 1-Link and eleven major banks form the organization’s board.

The CCP became suspicious about ATM cash withdrawal charges because a majority (i.e. 26 banks), were charging the identical amount of Rs15 ($0.17) for ATM cash withdrawal transactions. 

The CCP's suspicions were strengthened by the fact that 31 banks are member of 1-Link, which could provide banks a forum to discuss and agree on ATM charges. Since the banks vary in terms of ATMs installed and transactions carried, ATM charges should also vary from each other under competitive conditions. 

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