MORNBFI Vol. 1 - Planters Development Bank

§§ 4180Q.1 - 4180Q.411.12.31b. A constructive working relationship withregulatory agencies.The QB, through its compliance officer, mayconsult the regulatory agencies for additionalclarification on specific provisions of laws andregulations and/or discuss compliance findingswith the regulatory authorities. A dialogue mayalso be initiated with respect to borderlineissues.c. A clear and open communicationprocess within the QB to educate and addresscompliance matters.Officers and staff shall be trained on theregulatory requirements through regularmeetings, distribution of manuals anddissemination of regulatory issuance.d. Continuous monitoring and assessmentof the compliance program.The program shall provide for the periodicreview of the compliance function to measureits effectiveness. The review may be carried outby the internal audit department of the QB.The compliance program may operateparallel to or as part of a QB’s internal controland auditing program.§ 4180Q.2 (2008 - 4191Q.2) Complianceofficera. The principal function of the complianceofficer is to oversee and coordinate theimplementation of the compliance system. Hisresponsibility shall include the identification,monitoring and controlling of compliancerisk.b. The appointment/designation of acompliance officer shall require prior approvalof the Monetary Board. The bio-data of theproposed compliance officer shall besubmitted to the appropriate department of theSES.c. The compliance officer shall havethe skills and expertise to provideappropriate guidance and direction to thebank on the development, implementationand maintenance of the complianceprogram.d. QBs with total resources of P500million and above shall appoint an independentfull-time compliance officer, who shall have arank of at least a vice president or its equivalent.e. For QBs with total resources of belowP500 million, an incumbent senior officer maybe designated concurrently as the QB’scompliance officer: Provided, That suchdesignation will not give rise to any conflict ofinterest situation and that the main function ofthe senior officer shall be that of a complianceofficer.The internal auditor of a QB may also bedesignated as its compliance officer subject tothe condition that his main function shall be thatof a compliance officer.Transitory provision. Compliance officersconcurrently holding the position of Head ofInternal Audit or Internal Auditor shall be givenone (1) year from 02 February 2008 within whichto comply with this Subsection.The documentary requirements on theapproval of the appointment of trust andcompliance officers of NBQBs and trustcorporations are listed in Appendix Q-57a.(As amended by CL-2011-045 dated 01 July 2011 and Circular No.598 dated 11 January 2008)§ 4180Q.3 (2008 - 4191Q.3) Compliancerisk. Compliance risk is the risk of legal orregulatory sanctions, financial loss, or loss toreputation a QB may suffer as a result of its failureto comply with all applicable laws, regulations,codes of conduct and standards of good practice.§ 4180Q.4 (2008 - 4191Q.4)Responsibilities of the board of directors andsenior management on compliance. Aside fromthe duties and responsibilities of the board ofdirectors mentioned under Subsec. 4141Q.3, theboard should oversee the implementation of thecompliance policy and ensure that complianceissues are resolved expeditiously. Seniormanagement should be responsible forestablishing a compliance policy, ensuring thatit is observed, reporting to the board ofManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 49