Prohibited Acts by Directors and Officers of Banks Under Receivership
- Directors or officers must not refuse to surrender the bank’s records and assets to the appointed receivers.
- They are prohibited from tampering with bank records.
- Appropriation, destruction, misappropriation of the bank’s assets by themselves or others is forbidden.
- Receiving deposits, collections of loans, or receivables in the insolvent bank is prohibited.
- Paying out funds or facilitating payment of funds from the insolvent bank is not allowed.
- Transferring or causing the transfer of securities or properties of said bank is forbidden.
Penalties and Sanctions for Violations
- Officers or directors committing any prohibited acts face sanctions pursuant to Section 36 and 37 of R.A. 7653.
- These penalties are related to and applied in correlation with Section 66 of R.A. No. 8791.
- Sanctioned individuals will be added to the Monetary Board’s watchlist.
- Being on the watchlist disqualifies them from holding any position in any bank or financial institution.
Effectivity Clause
- The circular becomes effective fifteen (15) days after its publication.
- Publication must be made either in the Official Gazette or in a newspaper of general circulation.
This framework aims to ensure proper transition and accountability during the receivership of insolvent banks while protecting the interests of the banking system and depositors.