Erring bank officials to face stiff penalty
Bank officials and employees found liable for serious violations could face suspension of up to one year for a first offense and removal or disqualification for repeat offenses under the proposed rules of the Bangko Sentral ng Pilipinas.
The Bangko Sentral ng Pilipinas (BSP) has proposed a set of rules outlining penalties for bank officials and employees found responsible for serious violations of banking laws and central bank regulations. Under the draft circular, first-time offenders could face up to a one-year suspension, while repeat offenders may be removed or disqualified. Serious offenses encompass fraudulent acts, unsafe practices, and breaches of laws or directives that could harm the institution, depositors, or stakeholders.
The proposed penalties include a first serious offense, punishable by a six-month and one-day to one-year suspension with a stern warning, and a recommendation for disqualification to the BSP’s Monetary Board if warranted by the offense's severity. A second or subsequent serious offense would result in removal from office and/or disqualification. Factors such as deliberate misconduct, concealment, fraud, significant harm, and previous administrative liability will be considered when determining penalties.
In contrast, minor offenses would be addressed with a reprimand and a warning for first-time violations without aggravating circumstances. These offenses include procedural lapses that can be rectified immediately and acts causing no material harm or risk. Second and subsequent minor offenses could lead to a suspension of one to six months, with disqualification possible if warranted by the offense's severity.
However, the BSP will consider factors such as good faith, cooperation, corrective measures, and voluntary admission as mitigating factors.
The draft rules also detail the procedures for filing complaints, submitting evidence, deciding cases, and seeking reconsideration or appeal. Proceedings will follow a simplified process, focusing on efficiency and fairness, without strictly adhering to the technical rules of procedure and evidence used in courts. All communications, including complaints, must be in writing, under oath, and supported by evidence.
Anonymous complaints will not be accepted. Respondents will have 30 calendar days to file a sworn answer, or the hearing officer may proceed with the case based solely on the complainant's evidence or conduct proceedings without respondent participation if necessary.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
