The BSP, last Sept. 8, issued a circular which contains the new rulings on the imposition of monetary penalties capped at P30,000 a day on banks and quasi-banks, their directors and/or officers pursuant to Sec. 37 of Republic Act (RA) No. 7653.
This particular provision in the law provides for administrative sanctions on banks or quasi-banks and their directors and/or officers for violation of any banking law, rules or regulations.
The new guidelines, the BSP said, are set to enhance the transparency of the penalty imposition process.
The penalty framework, the BSP said, takes into account the circumstances surrounding the offense such that the amount of penalty may vary based on three factors.
These factors are the nature and/or gravity of offense; the asset size of the bank(s)/quasi-banks(s) concerned; the existence and/or absence of any aggravating and/or mitigating factors.
The circular also provides guidance on what are considered as serious, less serious or minor offenses as well as on the nature of aggravating or mitigating factors.
According to the BSP, unsafe and unsound banking practices as earlier defined under Circular No. 341 are considered serious offenses.
The BSP said the imposition of monetary penalties is without prejudice to the imposition of non-monetary sanctions by the MB.
Violations of banking laws and BSP regulations with specific penal clauses are not covered by these guidelines.
Under the new rulings, the BSP also defined the offenses from serious; less serious; minor offense; minimum, medium and maximum offenses.