Question & AnswerQ&A (BSP CIRCULAR NO. 585, S. OF 2007)
The objective is to provide fair and uniform treatment to all BSP-supervised financial institutions, including their directors and/or officers, regarding the imposition of monetary penalties.
Continuing offenses/violations are acts, omissions, or transactions violating laws, BSP rules, or orders that persist from the time committed until they are corrected or rectified. They are penalized on a per calendar day basis.
Continuing offenses can be corrected or rectified by subsequent acts and are penalized daily, whereas transactional offenses cannot be corrected and are subject to a one-time penalty per transaction.
The computation of the penalty period is based on calendar days, replacing terms like 'per banking day' and 'per business day' used in previous BSP regulations.
A continuing penalty is the monetary penalty imposed on continuing violations calculated on a per calendar day basis from the time the offense occurred until it was corrected.
An additional charge of six percent (6%) per annum applies, computed from the time the penalty becomes due up to actual payment.
The penalty becomes due and payable fifteen (15) calendar days after the supervised entity receives the Statement of Account from the BSP.
The amount will be automatically debited from their demand deposit account on the next banking/business day without additional charge. If insufficient funds, the penalty accrues a 6% per annum additional charge from the day after the 15-day period.
Yes, a one-time appeal or request for reconsideration may be filed within 15 calendar days from receipt of the Statement of Account/billing letter with the appropriate SES department.
The running of the penalty period and computation of additional charges are interrupted from receipt of the appeal by the SES department up to the date the Monetary Board decision is received by the entity or individual.
BSP-supervised financial institutions and their directors and/or officers are subject to the monetary penalties.
Provisions of previous BSP rules and regulations inconsistent with this Circular are repealed or amended accordingly.
It took effect fifteen (15) days following its publication in the Official Gazette or a newspaper of general circulation.