Bangko Sentral ng Pilipinas issued a circular amending its rules on the disqualification and watchlisting of directors and officers for both banks and non-bank financial institutions. The changes add a new category of permanent disqualification and set out how permanent disqualification will be processed in certain Bangko Sentral-initiated cases that result in a final court conviction. Updates to Section 138 of the Manual of Regulations for Banks and Section 137-Q of the Manual of Regulations for Non-Bank Financial Institutions treat as permanently disqualified persons who have voluntarily submitted an irrevocable sworn written commitment to perpetually inhibit themselves from participating, directly or indirectly, in ownership and or management in any capacity of any BSP-supervised financial institution. Disqualified individuals remain subject to the applicable disqualification procedures and will be included in the Bangko Sentral Watchlist Files. For Bangko Sentral-initiated cases that lead to a conviction by final judgment for violations of banking laws, rules and regulations, or for offences involving dishonesty or breach of trust covered by the permanent disqualification provisions, the Office of the General Counsel and Legal Services will recommend permanent disqualification to the Monetary Board and, upon approval, the individual will be recorded in Disqualification File A (Permanent). The circular takes effect within 15 calendar days following its publication in the Official Gazette or in a newspaper of general circulation.
Central Bank of the Philippines 2025-07-16
Bangko Sentral ng Pilipinas amends director and officer disqualification rules and expands grounds for permanent disqualification
The Bangko Sentral ng Pilipinas has revised its rules on disqualification and watchlisting for directors and officers of banks and non-bank financial institutions. The amendments introduce permanent disqualification for individuals who voluntarily abstain from participating in BSP-supervised institutions and outline procedures for final court convictions. Disqualified individuals will be included in the Bangko Sentral Watchlist Files and, upon Monetary Board approval, recorded in Disqualification File A (Permanent).