Scope of Disqualification Across Functional Categories
- Disqualification applies to officership positions in specified functional categories within banks and financial institutions including:
- Decision-making and senior management (e.g., Chairman, President, CEO, COO, General Manager, CFO except Treasurer or Controller)
- Treasury function (e.g., Treasurer, Vice President for Treasury)
- Recordkeeping and financial reporting (e.g., Controller, Chief Accountant)
- Safekeeping of assets (e.g., Chief Cashier)
- Risk management (e.g., Chief Risk Officer)
- Compliance (e.g., Compliance Officer)
- Internal audit (e.g., Internal Auditor)
Restrictions at Branch or Extension Office Level
- The spouse or relative within the second degree of consanguinity or affinity of a Manager, Cashier, or Accountant of a branch or extension office is barred from holding equivalent positions in the same branch or extension office.
Legal Effectivity and Enforcement
- The Circular takes effect fifteen (15) calendar days after its publication either in the Official Gazette or a newspaper of general circulation.
- It is pursuant to the Monetary Board Resolution No. 1515 dated 28 October 2010, and officially adopted on 17 November 2010.
Purpose and Policy Consideration
- Ensures the integrity and independence of key functions within banking and financial institutions by preventing conflicts of interest arising from close familial relationships.
- Promotes transparency and sound governance in critical management and operational roles in financial entities.