MORNBFI Vol. 1 - Planters Development Bank

§§ 4810Q - 4899Q11.12.31F. BSP Authority and EnforcementActionsSec. 4810Q BSP Authority to ExamineDeposits and Investments; AdditionalException to the Bank Secrecy Act;Annual Testing of Numbered AccountsTo ensure compliance with the AMLA, asamended, its RIRR, and this Part, the BSPmay inquire into or examine any depositor investment with any banking institutionor NBFI and their subsidiaries andaffiliates when the examination is madein the course of a periodic or specialexamination, in accordance with theRules of Examination of the BSP.The BSP may likewise conduct annualtesting solely limited to the determinationof the existence and true identity of theowners of numbered and similar accounts.In the course of the periodic andspecial examination for purposes ofcomplying with the provisions of theAMLA, as amended, its RIRR, and this Part,the covered institutions, their officers andemployees and the BSP shall not bedeemed to have violated the provisions ofR. A. No. 1405, as amended, R.A. No.6426, as amended, R.A. No. 8791 andother similar laws and Subsec. 4807Q.6,when disclosing information to BSPrelative to covered and suspicioustransaction reports filed with the AMLC.(Circular No. 706 dated 05 January 2011)Sec. 4811Q - 4898Q (Reserved)Sec. 4899Q Sanctions and Penalties. In linewith the objective of ensuring that coveredinstitutions maintain high anti-moneylaundering standards in order to protect itssafety and soundness as well as protectingthe integrity of the national banking andfinancial system, violation of this Part shallconstitute a major violation subject to thefollowing enforcement actions against theboard of directors, senior management andline officers, not necessarily according topriority:a. Written reprimand;b. Suspension or removal from theoffice they are currently holding; and/orc. Disqualification from holding anyposition in any covered institution.In addition to the non-monetarysanctions stated above, BSP may alsoimpose monetary penalties computed inaccordance with existing regulations andin coordination with the Anti-MoneyLaundering Council.Enforcement actions shall be imposedon the basis of the over-all assessment ofthe covered institution’s AML riskmanagement system. Whenever a coveredinstitution’s AML compliance system isfound to be grossly inadequate, this maybe considered as unsafe and unsoundbanking practices that may warrantinitiation of prompt corrective action.(Circular No. 706 dated 05 January 2011)Q RegulationsPart VIII - Page 24Manual of Regulations for Non-Bank Financial Institutions