Professional Documents
Culture Documents
Banking 123
Banking 123
out at reasonable spreads to corporate clients looking to dereliction of duty of public officials;
their aspirations of a nice car or a new home. Banks are able • where money deposited or invested is the subject matter of
to generate these deposits through their good service and the litigation; and
these deposits are safe in the banks. Safe, in that the money • examination of a bank specifically authorized by the
will be returned whole with some interest and that Monetary Board after being satisfied that there is a
unauthorized people won’t know how much or even how little reasonable cause to believe that a bank fraud or irregularity
is in the bank account. is being committed and it is necessary to look into the
passed in 1955 to encourage people to deposit their money In addition, there are many exceptions and other laws that
in banking institutions and to discourage private hoarding so effectively waives bank secrecy:
clients.
• Presidential Commission on Good Government: for ill-
gotten wealth
All deposits with banks including investments in bonds
• in cases of impeachment;
• Bureau of Internal Revenue: request for tax information of agencies, provided these investigations are deemed legal
specific taxpayers made by foreign tax authority pursuant to and in accordance with laws.
tax treaty.
• Bank deposits of a public official, his spouse and unmarried International Organization of Securities Commission
children may be taken in consideration in the enforcement of (IOSCO) Multilateral Memorandum of Understanding
the Anti-Graft and Corrupt Practices Act; (MMOU) because of the Bank Secrecy Law. Securities &
• Bangko Sentral ng Pilipinas (BSP): inquire and examine actually look into deposits now but only by coursing it thru
deposits during examinations to ensure bank compliance of AMLC. SEC needs to have the power to look into bank
examine bank deposits and investments when there is There is a pending bill in Congress to relax the Bank
finding of unsound and unsafe banking practices. Secrecy Law. According to Isabel Pastor, head of
It is very important for banks to have a strong know your projects at IOSCO, transparency will attract investors to the
customer and enhanced due diligence processes to attract Philippines and protect securities and derivatives products
and onboard only the right set of customers with acceptable from cross-border fraud risks.
profiles.
Banks must continuously enhance monitoring tools to detect bank secrecy law, with Lebanon and Switzerland being the
unusual transactions and have an effective compliance other two. We want to be fully compliant with all laws and
system. Banks should also work closely with regulators on also be consistent with international best practice.
The BSP can impose upon any bank, Other sanctions include suspension of
quasi-bank, including their subsidiaries rediscounting privileges or access to
engaged in allied activities, their BSP credit facilities, suspension of
directors, officers or employees any lending or foreign exchange operations
willful violations of its charter or or authority to accept new deposits or
bylaws, delay in the submission of make new investments, suspension of
reports or publications, refusal to interbank clearing privileges, and
permit examination, making false or suspension or revocation of quasi-
misleading statement, and willful banking or other licenses.
failure and refusal to comply with any
banking law. He said resignation or termination from
office would not exempt directors,
The regulator can impose a fine not officers, and employees from
exceeding P1 million for each administrative or criminal sanctions.
transactional violation or P100,000 per
calendar of violations for a continuing Likewise, the BSP could impose
nature. preventive suspension on directors,
officers, and employees pending
The Monetary Board will take into investigation.
consideration attendant circumstances
such as the nature and gravity of the Capule said no court other than the
violation or irregularity and the size of Court of Appeals and the Supreme
the institution. Court could issue any temporary
restraining order, preliminary
However, Capule said a fine of not injunction or preliminary mandatory
more than three times the profit gained injunction against the BSP.
Section 1. How Initiated. – Administrative cases bills of particulars, dismissal, quashal, or
may be initiated upon referral of the Report Of reconsideration on the Formal Charge shall be
Compliance or ROEvaluation to the Litigation entertained. Section 6. Answer. – The Answer
and Evaluation Unit. shall be in writing, under oath, indicate the date
of receipt of the Notice, and contain all material
Section 2. Preliminary Administrative facts and certified true copies of supporting
Investigation. – Upon receipt of the ROC or ROE, evidence. Noncompliance with these
the Litigation and Evaluation Unit shall conduct requirements shall render the Answer
a fact-finding investigation, which involves an ex insufficient in form and substance. An Answer
parte evaluation of documents, to determine filed by personal delivery or by courier service is
whether a prima facie case exists to warrant the deemed filed on the date stamped “Received”
filing of a Formal Charge. In the absence of a thereon by the AMLC Secretariat. In case of
prima facie case, the ROC or ROE shall be set filing by registered mail, it shall be deemed filed
aside. The Compliance Unit and the Supervising on the date shown by the postmark on the
Authorities shall be notified accordingly. Section envelope. If the respondent fails to file the
3. Formal Charge. – Upon determination of the Answer within the prescribed period, files an
existence of a prima facie case, the Litigation Answer that is insufficient in form and
and Evaluation Unit shall file a Formal Charge substance, or files any document other than an
against the covered person. The Formal Charge Answer, the respondent shall be considered to
shall contain the following: a. Statement of have waived the right to file an Answer, and the
Facts; b. Statement of Attendant Circumstances; case shall be submitted for resolution based on
c. Statement of Findings; d. Statement that a available records. Section 7. Clarificatory
prima facie case exists for a specific violation; Meeting. – The Administrative Adjudication Unit
and e. Relevant documents. Section 4. Notice of may, at its discretion, call for a meeting for
Formal Charge. – The Administrative purposes of clarification. No motion or request
Adjudication Unit shall notify the respondent of for postponement or resetting shall be allowed.
the filing of Formal Charge by way of personal Section. 8. Disposition of the Case. – After giving
delivery, courier service or Page 5 of 16 all the parties the opportunity to be heard, the
registered mail; and direct the respondent to Administrative Adjudication Unit may, based on
file an Answer within ten (10) working days evidence presented, dismiss the case, or
from receipt thereof. Section 5. Prohibited recommend to the AMLC the imposition of
Pleadings. – No motions or requests for, appropriate administrative sanctions. In case of
extension of time to file Answer, clarification, dismissal, the respondent shall be notified
through personal delivery, courier service or computation of fines. Section 12. Finality of the
registered mail. Section 9. Resolution. – Upon Resolution. – The Resolution shall immediately
finding of substantial evidence that the become final and executory if no motion for
respondent committed violations as charged, reconsideration is filed within the prescribed
the AMLC shall issue a Resolution imposing such period. Section 13. Notice of Execution. – If the
administrative sanction as may be proper, Resolution involves the payment of fine and
setting forth the factual and legal basis thereof. restoration, if applicable, the Administrative
The respondent shall be notified through Adjudication Unit shall issue a Notice of
personal delivery, courier service or registered Execution directing the respondent to make
mail. Section 10. Motion for Reconsideration. – payment and restoration, if applicable, within
The respondent may file a motion for ten (10) working days from receipt thereof.
reconsideration on the AMLC Resolution within Payment of fines shall be in the form of
ten (10) working days from receipt thereof. No Manager’s Check payable to the account of the
extension of time to file a motion for “AntiMoney Laundering Council”. In cases of
reconsideration shall be allowed. Page 6 of 16 A restoration, the respondent shall submit a proof
motion for reconsideration filed by personal of its compliance within the same period.
delivery or by courier service is deemed filed on Section 14. Surcharge. – A surcharge equivalent
the date stamped “Received” thereon by the to ten percent (10%) of the outstanding fine
AMLC Secretariat. In case of filing by registered shall be imposed upon the respondent for its
mail, it shall be deemed filed on the date shown failure to pay the fine within the prescribed
by the postmark on the envelope. The filing of a period.
motion for reconsideration shall stay the
execution of the Resolution sought to be
reconsidered. No second motion for
reconsideration shall be allowed. Section 11.
Grounds. – The motion for reconsideration shall
be based on any of the following grounds: a.
Newly-discovered evidence which could not
have been discovered and produced at the time
the respondent filed its Answer, and which if
presented, would materially affect the
Resolution rendered; b. Substantial mistake in
the appreciation of evidence; or c. Erroneous