The Bangko Sentral ng Pilipinas (BSP) is considering a framework on publicizing criminal offenses made by supervised financial institutions and their officials as well as the corresponding enforcement actions in a bid to promote prudent banking management, sound risk management, and good corporate governance.

In a policy exposure draft dated Nov. 3, the central bank said the regulatory relief measures made available to BSP-supervised financial institutions (BSFIs) should “not be viewed as a relaxation” of supervisory rules from the BSP.

The BSP emphasized it will observe due process as an integral part of its enforcement action.

“The BSFI, and/or its concerned DOEs (directors, officers and employees) are afforded fair and reasonable opportunity to explain their side and to submit evidence in support thereof. Such explanation and documentation are given due consideration in the determination of the appropriate enforcement actions that will be imposed by the BSP,” it said.

Stakeholders are given until Nov. 18 to send their feedback to the central bank with regards to the framework.

Based on the proposals, enforcement action from the BSP’s Financial Supervision Section on BSFIs with finality will be published as press releases on the central bank website.

Offenses under the jurisdiction of the BSP’s Office of the General Counsel and Legal Services include administrative cases filed by the BSP against delinquent DOEs of BSFIs will be published, based on the proposed framework.

Criminal cases filed against DOEs that were already filed with the Department of Justice as well as those already determined to have probable cause in trial courts will also be published. The BSP said it will also publish court convictions of accused DOEs regardless of the finality of the judgment.

Certain laws such as Republic Acts No. 11211 (New Central Bank Act as amended), 7653 (New Central Bank Act), and 8791 (General Banking Law of 2000) gave the BSP the mandate to impose enforcement actions on financial institutions.

The central bank already publishes circular letters on BSFIs that are prohibited from doing business in the Philippines.

It has also already published press releases on its website regarding administrative enforcement actions on cases which are deemed to impair public trust in the banking systems as well as court-issued convictions of bank officials in relation to complaints filed by the BSP.

Other financial regulators such as the Securities and Exchange Commission and the Insurance Commission also disclose their enforcement actions and cases under their watch through press releases in their respective websites. — Luz Wendy T. Noble

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