The Bangko Sentral ng Pilipinas (BSP) is proposing a more streamlined process for disciplining errant banks and their directors, officers and employees, with penalties ranging from reprimands and fines to suspension, removal from office and disqualification.
The BSP is collecting comments from stakeholders on a draft circular that will spell out how the BSP will investigate and decide administrative cases against banks and other BSP-supervised institutions, and against their directors, trustees, officers and employees.
Under the proposed rules, the complaint must be written, sworn and supported by evidence, such as documents or witness affidavits. Anonymous complaints are not accepted.
Complaints involving purely criminal, civil and labor disputes, or those within the exclusive jurisdiction of the regular courts and other government agencies, will be dismissed.
Right to reply
The bank or employee accused of wrongdoing gets 30 calendar days to submit a sworn answer and supporting evidence. Failure to reply on time means they waive their right to file it, and the central bank’s hearing officer can decide the case based on the complainant’s evidence.
Any withdrawal of complaint will neither result in its outright dismissal nor discharge the accused from possible sanctions when there is merit to the charges, the draft said.
The proposed rules will impose different penalties depending on the seriousness and frequency of a violation.
A first minor offense will generally draw a
reprimand, with a warning that a subsequent violation could result in a more severe sanction. A second or subsequent minor offense could lead to a suspension of one to six months.
Serious offenses carry heavier penalties. A first serious offense could result in a suspension of six months and one day to one year, while a second or subsequent offense could lead to removal from office or disqualification
The decision may be appealed before the Monetary Board and the Court of Appeals.