BSP Circular 1216 amends MORB Section 138 and MORNBFI Section 137-Q on director/officer disqualification and watchlisting. The updates add a new permanent disqualification ground and clarify the process for BSP-initiated cases that result in final convictions.
Key Changes
- New permanent disqualification ground: persons who voluntarily submit an irrevocable sworn commitment to perpetually inhibit themselves from ownership and/or management of any BSP-supervised financial institution.
- Watchlist inclusion confirmed: disqualified directors/officers are included in the BSP Watchlist Files.
- OGCLS recommendation process clarified for BSP-initiated cases with final convictions for banking-law violations or offenses involving dishonesty/breach of trust.
- Disqualification File (Permanent): names are included upon Monetary Board approval after OGCLS recommendation.
Who Is Affected
- Directors and officers of BSP-supervised financial institutions (BSFIs).
- Compliance and corporate governance units handling fit-and-proper checks.
- Legal and HR teams managing director/officer eligibility assessments.
Effective Date & Transition
The circular takes effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation.
Compliance Actions Checklist
- Update fit-and-proper policies to include the new permanent disqualification ground.
- Refresh watchlist procedures for disqualified directors/officers.
- Align internal escalation with the OGCLS recommendation and Monetary Board approval process.
- Review onboarding and screening controls for disqualified persons under MORB/MORNBFI.
FAQs
Does this add a new permanent disqualification ground? Yes. Voluntary, irrevocable sworn commitments to permanently refrain from ownership/management of a BSFI now qualify.
What happens when a BSP-initiated case ends in final conviction? OGCLS recommends permanent disqualification to the Monetary Board, and the person is added to the Disqualification File (Permanent) upon approval.
Related Links
- Regulator hub: /regulations/bsp
- Topic hub: /regulations/topics/corporate-governance
- Ask CHD: /chat (Ask CHD about this regulation)