Banking Laws - Dizon

CHAPTER 1
I. DECLARED Policy of the State (Sec. 2, GBL) - The State recogi!e" the #ital role of $a%"
&ro#i'ig a e#iro(et co')ci#e to the ")"taie' 'e#elo&(et of the atioal ecoo(y a'
the fi')ciary at)re of $a%ig that re*)ire" high "ta'ar'" of itegrity a' &erfor(ace. I
f)rtherace thereof, the State "hall &ro(ote a' (aitai a "ta$le a' efficiet $a%ig a'
fiacial "y"te( that i" glo$ally co(&etiti#e, 'ya(ic a' re"&o"i#e to the 'e(a'" of a
'e#elo&ig ecoo(y.
II. Defiitio of Ba%" (Sec. +.,, GBL) - -Ba%"- "hall refer to etitie" egage' i the le'ig of
f)'" o$taie' i the for( of 'e&o"it". .ote/ Ba%" (ay egage i other acti#itie" allo0e' $y
la0.
III. .at)re of Ba%ig B)"ie""
A. De$tor-Cre'itor Relatio"hi& 1 The relatio"hi& e2i"tig $et0ee a depositor a'
bank i" that of a creditor and debtor.
B. 3i')ciary D)ty
,. Si(e2 Itl., Ic. #". CA/ The State recogi!e" the 4fi')ciary at)re of
$a%ig that re*)ire" high "ta'ar'" of itegrity a' &erfor(ace.5 Ba%"
are re*)ire' to treat the acco)t" of it" 'e&o"itor" 0ith (etic)lo)" care,
al0ay" ha#ig i (i' the fi')ciary at)re of their relatio"hi&.
2. Thi" $a%6" o$ligatio i" 'ee(e' 0ritte ito e#ery 'e&o"it agree(et
$et0ee a $a% a' it" 'e&o"itor.
C. .ot A Tr)"t Agree(et
,. The fi')ciary at)re of $a%-'e&o"itor relatio"hi& 'oe" .7T co#ert the
cotract $et0ee the $a% a' it" 'e&o"itor" 3R78 a SI8PLE L7A. T7 a
TR9ST AGREE8E.T. Thi" i" $eca)"e Ba%" 'o ot acce&t 'e&o"it" to
erich 'e&o"itor" $)t to ear (oey for the("el#e".
2. 3ail)re $y the $a% to &ay to &ay the 'e&o"itor i" fail)re to &ay a "i(&le
loa, a' .7T a $reach of tr)"t.
D. I'i"&e"a$le I"tit)tio
,. Ba%" i" a i'i"&e"a$le i"tit)tio i the (o'er 0orl' a' &lay" #ital role
i the ecoo(ic life of e#ery citi!e. Peo&le ha#e co(e to regar' the( 0ith
re"&ect, gratit)'e, a' cofi'ece.
2. E#e a humble wage-earner 'oe" ot he"itate to etr)"t hi" life "a#ig"
+. A ordinary person )")ally (aitai" a acco)t for "ec)rity a'
co#eiece i "ettlig hi" $ill"
:. A" for business entities, the $a% i" tr)"te' to hel& the( i r)ig their
affair", ot oly i the for( of loa", $)t i their 'ay-to-'ay tra"actio" li%e
eca"hig a chec%.
E. I(&re""e' 0ith P)$lic Itere"t (Si(e2 #". CA) 1 a 'e&o"itor e2&ect" a $a% to treat
hi" acco)t 0ith )t(o"t fi'elity, 0hether ")ch acco)t co"i"t" oly of a fe0 h)'re'
&e"o" or (illio".
3. Degree of Diligece (Si(e2 #". CA)
Art. ,,;2 of .CC "tate" that the 'egree of 'iligece re*)ire' of a o$ligor i" that
prescribed by law or contract, a' i the a$"ece of ")ch, that of a goo' father to a
fa(ily
.7TE/ D)e 'iligece i" re*)ire' of $a%" e2te' e#e to &er"o" or i"tit)tio",
regularly engaged in the business of lending money secured by real estate
mortgage.
G. Treat(et of Acco)t" 0ith 8etic)lo)" Care 1 There i" .7 LA< (a'atig $a%" to
call up their clients whenever their representatives withdraw significant amounts
from their accounts.
=. D)ty to >ee& Recor'"
,. Ba%" "hall ha#e a tr)e a' acc)rate acco)t, recor', "tate(et of their
'aily tra"actio" e"&ecially tho"e of 'e&o"it lia$ilitie".
2. The (a%ig of a fal"e etry or 0illf)l o(i""io of etrie" i" a gro)' for the
i(&o"itio of a'(ii"trati#e "actio" a' 'i"*)alificatio fro( office.
I. Ba%" are .7T Grat)ito)" Bailee" 1 Ba%" "olicit 'e&o"it" i or'er that they ca )"e
the (oey to gai.
?. Ba%" are .7T E2&ecte' to $e Ifalli$le, $)t ()"t $ear the $la(e for .7T
'i"co#erig (i"ta%e" 'e"&ite e"ta$li"he' &roce')re".
! S&". A a' @ o&ee' a Aoit c)rret acco)t i C Ba% 0ith a iitial 'e&o"it of P2,2BC.
Prior thereto, A ha' a &er"oal acco)t 0ith the "a(e $a%. <he the "&o)"e o&ee' their
Aoit c)rret acco)t, the 4.e0 Acco)t"5 teller &)lle' o)t the ol' "igat)re car' of A a'
&lace' the ol' &er"oal acco)t )($er of A i the 'e&o"it "li&. @ i"")e' t0o chec%" a'
oe of the"e 0a" 'i"hoore' for I3. They 0ere 'e')cte' P2C fro( their acco)t. The $a%
trie' to call the "&o)"e", $)t they 0ere i Pa(&aga. "s t#e bank liable $or damages%
A! &es.
- a 'e&o"itor e2&ect" a $a% to treat hi" acco)t 0ith )t(o"t fi'elity, 0hether ")ch
acco)t co"i"t" oly of a fe0 h)'re' &e"o" or (illio".
- Ba% ()"t recor' e#ery tra"actio acc)rately
- A $l)'er o the &art of the $a% ")ch a" 'i"hoor of chec% 0itho)t goo' rea"o ca
ca)"e the 'e&o"itor e($arra""(et, fiacial lo"", a' &erha&" ci#il a' cri(ial
litigatio
.ote/ E2e(&lary 'a(age" are a0ar'e' if there i" malice and bad faith.
>. Dealig 0ith Regi"tere' La'" 1 The r)le that &er"o" 'ealig 0ith regi"tere' la'"
ca rely "olely o the certificate of title 'oe" .7T APPLD to $a%". Ba%" "ho)l'
e2erci"e (ore care a' &r)'ece i 'ealig 0ith regi"tere' la'" that &ri#ate
i'i#i')al", for their $)"ie"" i" oe affecte' $y &)$lic itere"t.
! A "ol' i" )regi"tere' &arcel of la' to B. S)$"e*)etly, a 7rig. Cert.Title (7CT) 0a"
i"")e'. A ")rre'ere' it to E $a% a" a co"e*)ece of a (ortgage. B 'ie' 0Fo %o0ig
that a 7CT ha" $ee i"")e'. 9&o learig of hi" right, C (B6" heir) cofrote' A a' 0et
to E $a%. C a"%e' to &hotoco&y the o0er6" ')&licate certificate o)t"i'e the $a%6"
&re(i"e". C the $ro)ght it to the Regi"ter of Dee'" 0ith the Dee' of Sale a' he 0a"
i"")e' a Tra"fer Cert of Title. "s t#e bank liable $or damages to A%
A! &es.
- Ba% faile' to fore"ee the ri"% of it" act of etr)"tig C 0ith the 7CT 0itho)t otifyig
A a' #erifyig the #eracity of C6" clai( a' character.
- Thi" act" r)" afo)l of the $a%6" (a'ate to o$"er#e the highe"t 'iligece
- A ha" al"o the right to ')e &roce"". .otice a' hearig are i'i"&e"a$le ele(et" of
thi" right 0hich the $a% igore'
! A $a% acce&te' a &ro&erty a" (ortgage 'e"&ite e2i"tece of "tr)ct)re" a' occ)&at"
other tha the (ortgagor. "s t#e bank negligent%
A! &es. Ba%", $eig i the $)"ie"" of e2te'ig loa", are fa(iliar 0ith the r)le" o la'
regi"tratio. They are e2&ecte' to e2erci"e (ore care a' &r)'ece i 'ealig 0ith
regi"tere' la'" that &ri#ate i'i#i')al", for their $)"ie"" i" oe affecte' $y &)$lic itere"t.
The $a% "ho)l' ha#e co')cte' i#e"tigatio "ice there occ)&at" other tha the o0er
of the la' (ortgage'. Thi" co"tit)te" gro"" egligece a(o)tig to $a' faith.
L. Ba%" (ay E2cl)'e Per"o" i their Pre(i"e" 1 .o e(&loyee" ()"t $e "&are' $y
$a%" a' their officer" a' e(&loyee" to e")re a' &re"er#e the tr)"t a'
cofi'ece of the geeral &)$lic.
I@. Lia$ility 3or Act" a' E(&loyee" 1 Ba% i" LIABLE for the 0rogf)l act" of it" officer"
'oe <IT=I. the "co&e of their a)thority.
A. .egligece of 8aager
Ba% i" lia$le for the egligece or (i"'ee' of the $rach (aager "ice cofi'ece i the
$a%ig "y"te( ece""arily icl)'e" reliace o $a% (aager". (BPI #". 3ir"t 8etro
I#e"t(et Cor&.)
B. .egligece of 7fficer" 1 if 0ithi the "co&e of a)thority, $a% i" lia$le
C. .egligece of Teller" 1 ret)rig the &a""$oo% 7.LD to the 'e&o"itor or hi"
a)thori!e' re&re"etati#e. If gi#e to the 0rog &er"o, $a% i" lia$le "ice they 0o)l'
$e clothig that &er"o &re")(&ti#e o0er"hi& of the &a""$oo%.
.ote/ A&&ro&riatio of (oey $y a $a% teller i" .7T ESTA3A. S)ch i" oly 8ATERIAL
P7SSESSI7.. The $a% "till ha" ?9RIDICAL P7SSESSI7.. If for personal gain, T=E3T.
If the teller ha" &o""e""io of the (oey "ice he occ)&ie" a &o"itio of cofi'ece,
G9ALI3IED T=E3T.
D. Right to Reco#er fro( E(&loyee" 1 Ba%" (ay reco#er fro( their e(&loyee". (Art.
2,H, of .CC)
E. Lia$ilitie" other tha Act)al
,. E2e(&lary 1 $y 0ay of e2a(&le. 8alice a' $a' faith ()"t $e atte'at
2. 8oral 1 0he the goo' re&)tatio of the cliet 0a" $e"(irche' or hi"
fiacial cre'it
.ote/ Ba%" are .7T re"&o"i$le for ")ch 'a(age" i the ABSE.CE of fraud, bad faith,
malice, or wanton attitude.
3. Re"&o'eat ")&erior, Diligece i the Selectio, a' S)&er#i"io of E(&loyee"
- A $a% i" $o)' $y egligece of it" e(&loyee" )'er the 'rinci'le o$ Res'ondeat
s('erior or command responsibility.
@. Cla""ificatio of Ba%" (C)T R"C*)
Sec. +.2. Ba%" "hall $e cla""ifie' ito/
(a) 9i#er"al $a%"I
($) Co((ercial $a%"I
(c) Thrift $a%", co(&o"e' of/
(i) Sa#ig" a' (ortgage $a%"I
(ii) Stoc% "a#ig" a' loa a""ociatio"I a'
(iii) Pri#ate 'e#elo&(et $a%", a" 'efie' i the Re&)$lic Act .o. ;JCK (hereafter the
4Thrift Ba%" Act5)I
(') R)ral $a%", a" 'efie' i Re&)$lic Act .o. ;+S+ (hereafter the -R)ral Ba%" Act-)I
(e) Coo&erati#e $a%", a" 'efie' i Re&)$lic Act .o KJ+H (hereafter the -Coo&erati#e
Co'e-)I
(f) I"la(ic $a%" a" 'efie' i Re&)$lic Act .o. KH:H, other0i"e %o0 a" the 4Charter of Al
A(aah I"la(ic I#e"t(et Ba% of the Phili&&ie"5I a'
(g) 7ther cla""ificatio" of $a%" a" 'eter(ie' $y the 8oetary Boar' of the Bag%o Setral
g Pili&ia".
A. B)"ie"" .a(e
- 7ly a $a% that i" grate' universal/ commercial $a%ig a)thority (ay re&re"et
it"elf to the &)$lic a" ")ch i coectio 0ith it" $)"ie"" a(e
- Thrift Ba%"/ allo0e' to )"e a' a'o&t ay a(e, &ro#i'e the ff 0or'" are affi2e'/ A
thrift bank, Saving bank, A Private Development ank, or A stick Savings and !oan
Association
- R)ral or Co((ercial Ba%"/ allo0e' to )"e a' a'o&t ay a(e, &ro#i'e the ff 0or'"
are affi2e'/ "ural or #oop, A #ooperative ank, or A "ural ank.
o The "i!e of the letter" of ")ch &hra"e "hall $e at least + o$ t#e size o$ t#e
b(siness name 0he "ho0 o letterhea'", $ill$oar'", a' other
a'#erti"ig (aterial".
B. 9i#er"al Ba%"
,. &o0er" a)thori!e' for a co((ercial $a%
2. &o0er" of a i#e"t(et ho)"e
+. &o0er to i#e"t i o-allie' eter&ri"e"
C. Co((ercial Ba%"
,. geeral &o0er" ici'et to cor&oratio"
2. &o0er" of co((ercial $a%"/ (A BREAD)
D. R)ral Ba%"
- 'e"ige' to (a%e ee'e' cre'it a#aila$le a' rea'ily acce""i$le i the r)ral area" o
rea"oa$le ter("
- &ri(ary &)r&o"e i" to (eet the or(al cre'it ee'" of far(er", fi"her(e, or far(
fa(ilie"
E. Thrift Ba%"
- icl)'e "a#ig" a' (ortgage $a%", &ri#ate 'e#t. $a%", a' "toc% "a#ig" a'
loa" a""ociatio".
- Pro#i'ig "hort-ter( 0or%ig ca&ital, (e'i)( a' log ter( fiacig to $)"ie""
egage' i agriculture, services, industry, and housing
- Po0er" of a Thrift Ba%/
3. Coo&erati#e Ba%"
- oe orgai!e' $y, the (aAority "hare" of 0hich i" o0e' a' cotrolle' $y,
coo&erati#e" &ri(arily to &ro#i'e fiacial a' cre'it "er#ice" to coo&erati#e"
- 4coo&erati#e $a%5 "hall icl)'e coo&erati#e r)ral $a%"
- 8e($er"hi& "hall icl)'e 7.LD coo&erati#e" a' fe'eratio" of coo&erati#e"
- 3)ctio" of a Coo&erati#e Ba%
G. I"la(ic Ba%" (Al-A(ah I"la(ic I#e"t(et Ba% of the Phili&&ie")
- i La($oaga City
- &ri(ary &)r&o"e "hall $e to &ro(ote a' accelerate the "ocio-ecoo(ic 'e#t of the
A)too(o)" Regio $y &erfor(ig $a%ig a' fiacig o&eratio" a' to e"ta$li"h
a' &artici&ate i the agric)lt)ral, co((ercial, a' i')"trial #et)re" $a"e' o the
I"la(ic coce&t of $a%ig.
=. 7ther Ba%"
- Phili&&ie @etera" Ba% 1 &ri#ate co((ercial $a% o0e' $y #etera"
- La' Ba% of the Phili&&ie" 1 fiace the ac*)i"itio a' 'i"tri$)tio of agric)lt)ral
e"tate" fro 'i#i"io a' re"ale to "(all la'hol'er" a" 0ell a" the &)rcha"e of the
la'hol'ig $y the agric)lt)ral le""ee
- De#elo&(et Ba% of the Phili&&ie" 1 0a" create' a" Reha$ilitatio 3iace Cor&.
(R3C)I too% o#er the f)ctio" of Agric)lt)ral I')"trial Ba%
I. .o-Stoc% Sa#ig A' Loa A""ociatio" 1 (ea a o-"toc%, o-&rofit cor&
egage' i the $)"ie"" of acc)()latig the "a#ig" of it" (e($er" a' )"ig ")ch
acc)()latio" for loa" to (e($er" for ho(e $)il'ig or &er"oal fiace
?. (asi-banks 1 refer to etitie" egage' i the $orro0ig of f)'" thro)gh the
i"")ace, e'or"e(et or a""ig(et 0ith reco)r"e or acce&tace of 'e&o"it
")$"tit)te" for &)r&o"e" of rele'ig or &)rcha"ig of recei#a$le" a' other
o$ligatio"
,de'osit s(bstit(tes, i" 'efie' a" a alterati#e for( of o$taiig f)'" fro( the
&)$lic, other tha 'e&o"it", thro)gh the i"")ace, e'or"e(et, or acce&tace of 'e$t
i"tr)(et" for the $orro0erM" o0 acco)t, for the &)r&o"e of rele'ig or &)rcha"ig
of recei#a$le" a' other o$ligatio".
@I. A)thority to Egage i Ba%ig a' G)a"i-Ba%ig (GB) 3)ctio"
A. A)thority fro( Bag%o Setral
- .o &er"o "hall egage i $a%ig o&eratio" or GB f)ctio" <IT=79T a)thority
fro( the Bag%o Setral
- -o articles o$ incor'oration or amendment to articles o$ incor'oration of $a%",
$a%ig a' *)a"i-$a%ig i"tit)tio", $)il'ig a' loa a""ociatio", tr)"t
co(&aie" a' other fiacial iter(e'iarie", i")race co(&aie", &)$lic )tilitie",
e')catioal i"tit)tio", a' other cor&oratio" go#ere' $y "&ecial la0" "hall $e
acce'ted or a''ro.ed $y the Co((i""io (nless accom'anied b/ a $a.orable
recommendation o$ t#e a''ro'riate go.ernment agenc/ to t#e e$$ect t#at s(c#
articles or amendment is in accordance wit# law. 01ec. 12 o$ BP 345
- The Sec)ritie" a' E2chage Co((i""io "hall ot acce&t for $iling t#e b/-laws or
an/ amendment t#ereto of ay $a%, $a%ig i"tit)tio, $)il'ig a' loa
a""ociatio, tr)"t co(&ay, i")race co(&ay, &)$lic )tility, e')catioal i"tit)tio or
other "&ecial cor&oratio" go#ere' $y "&ecial la0", (nless accom'anied b/ a
certi$icate o$ t#e a''ro'riate go.ernment agenc/ to t#e e$$ect t#at s(c# b/-laws
or amendments are in accordance wit# law. (Sec. :K of BP KH)
B. <hether a &er"o or etity i" &erfor(ig $a%ig or *)a"i-$a%ig f)ctio" <F7 the
BS a)thority "hall $e 'eci'e' $y the 8oetary Boar' $y e2a(iig a' i#e"tigatig
the $oo%" a' recor'" of ")ch &er"o or etity. 9&o i"")ace of a)thority, (ay
co((ece to egage i f)ctio" )til a)thority i" ")"&e'e', re#o%e' or a)lle' $y
BS.
C. The 'e&t hea' a' the e2a(ier" of the ")&er#i"ig a' e2a(iig 'e&t "hall/
,. a'(ii"ter oath to ay ")ch &er"o or etity
2. co(&el &re"etatio of $oo%", recor'", a' 'oc)(et"
a. fail)re to 'o "o 0o)l' ")$Aect ")ch to a&&ro&riate "actio"
D. BS "hall, w#en e6amining a bank7 ha#e the a)thority to e2a(ie a eter&ri"e 0hich
i" 0holly or (aAority-o0e' $y the $a%.
E. Certificate of A)thority to Regi"ter
- The SEC "hall ot regi"ter the article" of cor& or ay a(e'(et (nless
accom'anied b/ a certi$icate o$ a(t#orit/ iss(ed b/ t#e 8B7 (nder its seal. The
8B "hall $e "ati"fie' fro( the e#i'ece ")$(itte' to it/ 0RPC5
o All re*)ire(et" of la0 ha#e $ee co(&lie' 0ith
o P)$lic itere"t a' ecoo(ic co'itio" A)"tify the a)thori!atio
o The a(o)t of ca&ital a" 0ell a" the itegrity of the orgai!er" rea"oa$le
a"")re the "afety of 'e&o"it" a' the &)$lic itere"t
- The SEC "hall ot regi"ter the $y-la0" of ay $a% or ay a(e'(et (nless
accom'anied b/ a certi$icate o$ a(t#orit/ iss(ed b/ t#e 8B7 (nder its seal.
CHAPTER 9! *R:A-";AT"*-7 8A-A:E8E-T < AD8"-"1TRAT"*- *= BA->17 )A1"-
BA->1 A-D TR)1T E-T"T"E1
". *rganization o$ Banks
A. Co'itio"
The 8B (ay a)thori!e the orgai!atio of a $a% a' *)a"i-$a%/
,. Etity i" a "toc% cor&oratio
2. 3)'" are o$taie' fro( the &)$lic, 2C o (ore &er"o"
+. 8ii()( ca&ital re*)ire(et" $y 8B are "ati"fie'
B. Ca&a$ilitie"
- The 8B "hall ta%e ito co"i'eratio their a&a$ility i ter(" of their fiacial
re"o)rce" a' techical e2&erti"e a' itegrity.
,. Ba%6" o0er"hi& "tr)ct)re
2. Director6" a' "eior (aage(et
+. It" o&eratig &la
:. Iteral cotrol
B. It" &roAecte' fiacial co'itio a' ca&ital $a"e
C. Ca&ital Re*)ire(et"
,. Ba%" "hall co(&ly 0ith the re*)ire' (ii()( ca&ital $y 8B/
9i#er"al Ba%- :,JBC8
Co((ercial Ba%- 2,:CC8
Thrift Ba%"
0F 88- +2B.C8
7)t"i'e 88- B2.C8
R)ral Ba%"
0F 88- 2K.C8
Citie" of Ce$) a' Da#ao- ,+.C8
I ,"t, 2' N +r' cla"" citie" a' ,"t cla"" (iici&alitie"- K.B8
I :th, Bth N Kth cla""citie" a' i the 2', +r' N :th cla"" ()ici&alitie"-
+.J8
I Bth N Kth cla"" ()ici&alitie"- 2.K8
2. At lea"t 2BO of the total a)thori!e' ca&ital "toc% "hall $e ")$"cri$e' $y the
")$"cri$er" of the &ro&"e' $a%, a' at lea"t 2BO of ")ch ")$"cri&tio "hall $e
&ai'-)& that it ()"t ot $e le"" tha the (ii()( re*)ire' ca&ital.
D. Icor&orator"F S)$"cri$er"
,. 8)"t $e &er"o" of itegrity a' of goo' cre'it "ta'ig i the $)"ie""
co(()ity. S)$"cri$er" ()"t ha#e a'e*)ate foacial "tregth to &ay for their
&ro&"e' ")$"cri&tio" i the $a%.
2. 8)"t ot ha#e $ee co#icte' of ay cri(e i#ol#ig (oral t)r&it)'e )le""
other0i"e allo0e'.
+. A $a% (ay $e orgai!e' 0ith ot le"" tha B or (ore tha ,B &er"o" i
orgai!ig or i#e"tig i the &ro&o"e' $a%.
Pif there i" e2ce"", (ay $e li"te' a(og the origial ")$"cri$er" i the Article" of
Cor&.
QUERY: MAY COOPERAT!E" OR#A$%E A &A$'(
De", e"ta$li"he' coo&erati#e" a' cor&oratio" (ay orgai!e a $a% a'For ")$"cri$e
to the "hare" of "toc% oa ay r)ral $a%. Pro#i'e', that it "hall $e ")$Aect to "&ecial e2a(iatio
a' to ")ch r)le" a' reg)latio" &re"cri$e' $y the 8B.
E. Ba% Brache"
,. 9B N CB (ay o&e $rache" or other office" 0ithi or o)t"i'e the Phil&&ie"
)&o &rior a&&ro#al of the BS.
2. A $a% a)thori!e' to $rach o)t "hall $e re"&o"i$le for all $)"ie"" co')cte'
i ")ch $rache" $eca)"e a $a% a' it" office" "hall $e treate' a" oe )it.
"". 1tock#oldings
A. Trea")ry Stoc%"
,. .o $a% "hall
P)rcha"eF ac*)ire "hare" of it" o0 ca&ital "toc% or
Acce&t it" o0 "hare" a" a "ec)rity for a loa
EECEPT/ 0he a)thori!e' $y the 8B.
-"toc%" &)rcha"e' "hall $e "ol' or 'i"&o"e' of at a &)$lic or
&ri#ate "ale.
2. At co((o la0, a co&r&ratio ha" o lie )&o the "hare" of "toc%hol'er" for
ay i'e$te'e"" of the cor&oratio.
+. Sec.+B of the 9S .atioal Ba%ig At of ,HK:, if $a%ig cor&oratio" 0ere gi#e
a lie o their o0 "toc% for the i'e$te'e"" of the "toc%hol'er", the &rohi$itio
agai"t gratig loa" or 'i"co)t" )&o the "ec)rity of the "toc% 0o)l' $eco(e
laregly ieffecti#e.
B. 3oreig Stoc%hol'ig"
,. 3oreig ii#i')al" a o-$a% cor&oratio" (ay o0 or cotrol )& to :CO of the
#otig "toc% of a 'o(e"tic $a%. It "hall a&&ly t 3ili&io" a' 'o(e"tic o-$a%
c&r&oratio".
QUERY: PRO!"O$ " AM&#UOU". ) T APPEAR" T*AT )PRE#$ $+!+UA," A$+
$O$-&A$' COPORAT$" MAY O$,Y CO$TRO, UP TO ./0 O) T*E !OT$# "TOC'. O$
T*E OT*ER *A$+1 ),P$O" A$+ +OME"TC $O$-&A$' CORPORATO$" MAY A,"O
CO$TRO, O$,Y UP TO ./0 O) T*E !OT$# "TOC'. 2*AT *APPE$" T*E$ TO T*E
3/0(
- 3oreig ii#i')al" a o-$a% cor&oratio" (ay o0 or cotrol )& to :CO of the #otig "toc%
of a 'o(e"tic $a% 1 Pro#i'e', that the aggregate foreig-#otig "to%" o0e' $y the( "hall ot
e2cee' :CO of the o)t"ta'ig #otig "toc% of the $a%. The &ercetage of foreig-o0e' #otig
"toc% "hall $e 'eter(ie' $y the citi!e"hi& of the i'i#i')al "toc%hol'er" i the $a%.
-3ili&io i'i#i')al a' 'o(e"tic o-$a% cor&oratio (ay each o0 )& to :CO o the #otig
"toc% of a 'o(e"tic $a%. There "hall $e o aggregate ceilig o the o0er"hi& $y ")ch
i'i#i')al" a' cor&oratio" i a 'o(e"tic $a%.
2. The &ercetage of foreig-o0e' #otig "toc% "hall $e 'eter(ie' $y the
citi!e"hi& of the i'i#i')al "toc%hol'er" i the $a% 1 "hall follo0 the citi!e"hi&
of the cotrollig "toc%hol'er" of the cor&oratio, irre"&ecti#e of the &lace of
icor&oratio.
PC7.TR7LLI.G ST7C>=7LDER- refer to i'i#i')al" hol'ig (ore tha BCO of
the #otig "toc% of the cor&orate "toc%hol'er" of the $a%.
+. At lea"t KCO of #otig "toc% of ay co((ercial $a% "hall $e o0e' $y 3ili&io
citi!e". 3or thrift banks, at lea"t :CO of it" #otig "toc% "hall $e o0e' $y
3ili&io". I rural banks,all of the ca&ital "toc%.
.7TE/ I 'eter(iig the atioality of $a%", the C7.TR7L TEST i" a&&lie'. The follo0ig
te"t" 'o ot/
,. <ar-ti(e te"t
2. I#e"t(et te"t
+. Place of icor&oratio te"t
:. Gra'father r)le
B. Prici&al &lace of )"ie"" te"t
C. Ac*)i"itio of @otig Stoc% i a Do(e"tic Ba%
,. <ithi ;year" fro( the effecti#ity of the GBL a' ")$Aect to g)i'elie" i"")e'
&)r")at to the 3oreig Ba%" Li$earli!atio Act, the 8B (ay a)thori!e a foreig
$a% to ac*)ire )& to ,CCO of the #otig "toc% of oly oe $a% orgai!e' )'er
the la0" of the Re&)$lic of the Phili&&ie".
2. <ithi the "a(e &erio', 8B (ay a)thori!e ay foreig $a%, 0hich &rior to the
effecti#ity of the GBL a#aile' it"elf of the &ri#ilege to ac*)ire )&to KCO of the
#otig "toc% of a $a% )'er the 3oreig Ba%" Li$earli!atio Act a' the Thrift
Ba%" Act, to f)rther ac*)ire #otig "hare" of ")ch $a% to the e2tet ece""ary
for it to o0 ,CCO of the #otig "toc% thereof.
+. 8B "hall a'o&t (ea")re" ece""ary to e")re that at all ti(e" the cotrol of ;CO
of the re"o)rce" or a""et" of teh etire $a%ig "y"te( i" hel' $y $a%" 0hich
are at %ea"t (aAority-o0e' $y 3ili&io".
D. 3a(ily Gro)" or Relate' Itere"t"
,. Stoc%hol'ig" of i'i#i')al" relate' to each other 0ithi the fo)rth 'egree of
co"ag)iity or affiity, legiti(ater or co((o-la0 "hall $e co"i'ere' fami45
6roups or re4ated interests a' ()"t $e f)llt disclosed i all tra"actio" $y
")ch a i'i#i')al 0ith the $a%.
2. T0o or (ore cor&oratio" o0e' or cotrolle' $y the "a(e fa(ily gro)& or "a(e
gro)& of &er"o" "hall $e co"i'ere' re4ated interests a' ()"t $e f)llly
disclosed i all tra"actio" $y ")ch cor&oratio" or relate' gro)&" of &er"o"
0ith the $a%.
""". Board o$ Directors
A. .)($er of Director"
,. Shall $e at lea"t B, a a (a2i()( of ,B (e($er" of the $oar' of 'irector" of
$a%, 2 "hall $e i'e&e'et 'irector". (e2ce&t)
-all $e of legal age
-(aAority are re"i'et" of the Phil.
-for( a &ri#ate cor&oratio for ay la0f)l &)r&o"e
2. I.DEPE.DE.T DIRECT7R- (ea a &er"o other tha a officer or e(&loyee of
the $a%, it" ")$"i'iarie" or ffiliate" or relate' itere"t".
P.o-3ili&io citi!e" (ay $eco(e (e($er" of the $or' of 'irector" of a $a% to
the e2tet of the foreig &artici&atio i the e*)ity of "ai' $a%.
a. ot or ha" ot $ee a officer or e(&loyee of the $a%F*)a"i$a%Ftr)"t etity, it"
")$"i'iarie" a' affiliate" or relate' itere"t" ')rig the &a"t + year" cote' fro( the
'ate of hi" electio
$. ot a 'irector of officer of relate' co(&aie" of the i"tit)tio6" (aAority "to%hol'er
c. ot a (aAority "harehol'er of the i"tit)tio", ay of it" relate' o(&aie" or of it"
(aAority "harehol'er
'. ot a relati#e 0F :th 'egree of co"ag)iity or affiity, legiti(ate or co((o la0
of ay 'irector,oficer or (aAority "harehol'er of the $a%F*)a"i$a%Ftr)"t etity, it"
")$"i'iarie" a' affiliate" or relate' co(&aie"
e. ot actig a" a o(iee or re&re"etat#e of ay 'irector or ")$"tatial hol'er
f. free fro( ay $)"ie"" or other relatio"hi& 0hich co)l' (aterially iterfere 0ith the
e2eri"e of hi" A)'g(et
B. Director" of 8erge' or Co"oli'ate' Ba%"
- The )($er of 'irector" "hall ot e2ce'' 2,.
C. 8eetig"
,. 8ay $e co')cte' thro)h (o'er techologie" ")ch a" telecoferecig a'
#i'eo-coferecig
PBa%" "hall icl)'e i theor $yla0" a &ro#i"io taht (eetig" of their $oar' of
'irector" "hall $e hel' oly 0ithi the Phili&&ie".
2. Cor&orate officer", *)or)(/
- I((e'iately after electio, 'irector" ()"t for(ally orgai!e the electio of the
a. &re"i'et 0ho "hall $e the'irector
$. trea")rer, 0ho (ay or (ay ot $e a 'irector
c. "ecretary 0ho "hall $e a re"i'et ' citi!e of the Phili&&ie"
'. other officer" &ro#i'e' for i the $y-la0"
PAy 2 or (ore &o"itio" (ay $e hel' coc)rretly $y the "a(e &er"o EECEPT that
o oe "hall act a" a &re"i'et a' "ecretary or a" &re"i'et a' trea")rer at the
"a(e ti(e.
PDirector" or tr)"tee" caot atte' ot #ote $y &roy at $oar' (eetig".
D. Co(&e"atio a' other Beefit" of Director" a' 7fficer"
,. 8B (ay reg)late the &ay(et $y the $a% to it" 'eirector" a' officer" of
co(&e"atio, allo0ace, fee", $o)"e", "toc% o&tio", &roit "harig a' frige
$eefit" oly i the e2ce&tioal ca"e" a' 0he the circ)("tace" 0arrat, ")ch
a" $)t ot li(ite' to the follo0ig/
a. <he a $a% i" )'er co(&troller"hi& or co"er#ator"hi&
$. <he fo)' $y the 8B to $e co)ctig $)"ie"" i a )"afe or )"o)'
(aer
c. <he fo)' to $e a )"ati"factory fiacial co'itio.
2. RE8EDD/ Sec.+C of the Cor&oratio Co'e
Director" "hall ot recei#e ay co(&e"atio e2ce&t for rea"oa$le &er
'ie(". Pro#i'e', taht ay ")ch co(&e"atio other tha &er 'ie(" (ay$e
grate' to 'irector" $y the #ote of the "toc%holer" re&re"etig at lea"t a
(aAority of the o)t"ta'ig ca&itl "toc% at a reg)lar or "&ecial "toc%hol'er6"
(eetig. It "hall ot e2cee' ,CN of the et ico(e $efore ico(e ta2 of the
cor&oratio ')rg the &recee'ig year.
"?. =it and Pro'er R(le
A. Po0er" of the 8B
,. To (aitai the *)ality of $a% (aage(et a' affor' $etter &rotectio to
'e&o"itor" a' the &)$lic i geeral.
-8B "hall &re"cri$e,&a"" )&o a' re#ie0 the *)alificatio" a' 'i"*)alificatio"
of i'i#i')al" electe' or a&&oite' $a% 'irector" or officer" a' 'i"*)alify tho"e
fo)' )fit.
2. After ')e otice to the $oar' of 'irector" of the $a%, the 8B (ay 'i"*)alify,
")"&e' or re(o#e ay $a% 'irector or officer 0ho co((it" or o(it" a act
0hich re'er hi()fit for the &o"itio.
+. If fo)' fit a' &ro&er, "hall $e gi#e to hi" itegrity, e2&eriece, e')catio,
traiig a' co(&etece.
B. Di"*)alificatio
a. Per(aetly Di"*)alifie' Director"
,. =a#e $ee co#icte' $y fial A)'g(et of a co)rt for offe"e" i#ol#ig
'i"hoe"ty or $reach of tr)"t (e2. E"tafa, e2tortio, forgery, (al#er"atio,
"0i'lig, BP22)
2. =a#e $ee co#icte' $y fial A)'g(et of a co)rt "etecig the( to "er#e a
(a2i()( ter( of i(&ri"o(et of (ore tha K year".
+. =a#e $ee co#icte' $y fial A)'g(et of a co)rt for #iolatio of $a%ig
la0", r)le" a' reg)latio"
:. Tho"e 0ho ha#e $ee A)'icially 'eclare' i"ol#et, "&e'thrit or
ica&acitate' to cotract
B. Tho"e 'irector", officer" or e(&lyee" of $a%", *)a"i a%" or tr)"t etitie"
0ho 0ere fo)' to $e c)l&a$le for ")ch i"tit)tio6" clo")re
K. Tho"e 'irector", officer" or e(&lyee" of $a%", *)a"i a%" or tr)"t etitie"
0ho 0ere fo)' $y the 8B a" a'(ii"trati#ely lia$le for #iolatio of $a%ig
la0, r)le" a reg)laito"
;. Tho"e 'irector", officer" or e(&lyee" of $a%", *)a"i a%" or tr)"t etitie"
0ho 0ere fo)' to $e )fit for the &o"itio of 'irector" a' officer"
$. Te(&orarily Di"*)alifie' Director"/
,. Per"o 0ho ref)"e" to f)lly 'i"clo"e the e2tet of their $)"ie"" itere"t" to
the a&&ro&riate ")oer#i"ig a' e2a(iig 'e&art(et.
2. Director" 0ho ha#e $ee a$"et or 0ho ha#e ot &artici&ate' i (ore tha
BCO of all (eetig", $oth reg)lar a' "&ecial, a' tho"e 0ho faile' to
&hy"ically atte' at ea"t 2BO of all (eetig" i a year e2ce&t tho"e 0ith
otari!e' certificatio e2ec)te' $y the cor&orate "ecretary.
+. Per"o" 0ho are 'ei*)et i the &ay(et of their o$ligatio"/
a. DELI.G9E.T I. T=E PAD8E.T 73 7BLIGATI7.S- a
o$ligatio of a &er"o 0ith a $a%F*)a"i$a%Ftr)"t etity 0here he
i" a 'irector or officer, or at lea"t 2 o$ligatio" 0ith other
$a%"Ffiacial i"tit)tio", )'er'ifferet cre'it lie" or loa
cotract", ar &a"t ')e.
$. 7$ligatio" "hall icl)'e all $orro0ig" fro( a $a%F*)a"i$a%
o$taie' $y/
,. Director or officer for hi" o0 acco)t or act" a" g)arator,
i'or"er or ")rety of loa"
2. The "&o)"e or chil' )'er the &aretal a)thority of the
'irector or officer
+. Ay &er"o 0ho"e loa &rocee'" 0ere cre'ite' to a aco)t
for the $eefit of a 'irector or officer.
:. =i" "&o)"e i" the (aagig &arter or a geeral &arter
o0ig a cotrollig itere"t i the &arter"hi&
B. A cor&oratio, a""ociatio or fir( 0hollyo0e' $y ay gro)&
of &er"o"
:. =a#e $ee co#icte' $y fial A)'g(et of a co)rt for offe"e" i#ol#ig
'i"hoe"ty or $reach of tr)"t (e2. E"tafa, e2tortio, forgery, (al#er"atio,
"0i'lig, BP22)
B. Director" of officer" of clo"e' $a%"F*)a"i$a%"Ftr)"t etitie" &e'ig their
clearace $y the 8B
K. Director" 'i"*)alifie' for fail)re to o$"er#eF'i"charge their ')tie" N
re"&o"i$ilitie"
;. Director" 0ho faile' to atte' the "&ecial "e(iar for $oar' of 'irector"
H. Per"o" 'i"(i""e'Fter(iate' fro( e(&loy(et for ca)"e.
J. Tho"e )'er &re#eti#e ")"&e"io
,C. Per"o" 0ith 'erogatory recor'" a" certifie' $y, or o the official file" of, the
A)'iciary, .atioal B)rea) of I#e"tigatio, Phili&&ie .atioal Police, *)a"i
A)'icial $o'ie".
,,. Tho"e are a'(ii"trati#ely lia$le for #iolatio of $a%ig la0", r)le" a'
reg)latio".
,2. Ay &er"o fo)' $y 8B to $e )fit for th &o"itio of 'irector" or officer".
,+. <he &ealty i" ")"&e"io fro( office or fie i" i(&o"e', ")ch i" fo)' to
$e a'(ii"trati#ely lia$le.
C. Di"*)alificatioF Prohi$itio" )'er the Cor&oratio Co'e
Sec.2;. .o &er"o co#ite' $y fial A)'g(et of a offe"e &)i"ha$le $y i(&rio(et
for a &erio" e2cee'ig Kyear" or a #iolatio of thi" Co'e 0ithi Byear" &rior to 'ate of
i" electio( or a&&oit(et "hall *)alify a" a 'irector, tr)"tee or officer of ay
cor&oratio.
D. Di"*)alificatioQ Prohi$itio" )'er .CBA
@. Ba%ig Day" a' =o)r"
A. .)($er of Day" a' =o)r
,. Shall tra"act $)"ie"" o all 0or%ig 'ay" for at lea"t K ho)r" a 'ay, e#e
$efore Ha( or after H&(. 8ay o&e for $)"ie"" o Sat, S) or holi'ay" for
at lea"t + ho)r" a 'ay.
2. If "o, ()"t re&ot to the Bag%o Setrl the a''itioal 'ay"
+. <or%ig 'ay" (ea 8o-3ri e2c&et holi'ay".
:. Brache" at iteratioal air&ort or (aAor fi"h &ort are allo0e' to o&erate o
fle2i$le $a%ig ho)r" &ro#i'e' hat 0il ifor( BSP of the "che')le of the
$a%ig ho)r" that i" ot le"" tha K hr" a 'ay.
?". A(tomated Teller 8ac#ines
A. 7ff-ite A)to(ate' Teller 8achie" (AT8")
,. 8)"t ")$(it a re&ort to the a&&ro&riate 'e&art(et of the BSP o
AT8" 0hich they e"ta$li"h
2. Shall $e i"talle' oly i the ceter" of acti#ity li%e "ho&&ig,
")&er(ar%et", ho"&ital", )i#er"ity ca(&)"e". Pro#i'e', that a'e*)ate
iteral cotrol a' "ec)rity (ea")re" "hall $e a'o&te' ' ")$(itte'
to BSP.
+. 8)"t co(&ly 0ith the"e, to all to o&e off "ite AT8S.
B. 8o$ile AT8"
,. Sho)l' allo0e' to #i"it oly ceter" of acti#ity a' "ho)l' cofie their
itierary to 8etro 8aila )til f)ther otice.
2. Shall "ec)re i")race co#erage or a'o&t a "elf-i")race "che(e to
&rotect it"elf agai"t lo""e" of 0hate#er at)re i ita (o$ile AT8
o&ratio"
+. Ba%" hall otify the ")&er#i"ig a' e2a(iig 'e&art(et of the BSP
of the t)al 'ate a (o$ile AT8 $eco(e o&ratioal a' 0he ter(iate'.
?"". "nde'endent A(ditor
,. 8B "hall re*)ire a $a% etc. To egage the "er#ice" of a i'e&e'et
a)'itor to $e cho"e $y a $a% etc. 3ro( a li"t of certifie' &)$lic
acco)tat" acce&ta$le to the 8B
2. Ter( of egage(et hall $e &re"cri$e' $y 8B, 0hether a" coti)ig
$a"i" or "&ecial egage(et".
+. Boar' of Director" "hall al"o co')ct a a)al $alace "heet a)'it of the
$a% etc. To re#ie0 the iteral a)'it a' cotrol "y"te( of teh $a% etc,
a' to ")$(it a re&ort of ")ch a)'it.
?""". =inancial 1tatements
- E#ery $a% etc. Shall ")$(it to the a&&ro&riate ")&er#i"ig a' e2a(iig 'e&t.
7f the BSP fiacial "tate(et".
- It "hall $e of a "&ecific 'ate 'e"igate' $y BSP a' "hall "ho0 act)al fiacial
co'itio" of the i"tit)tio ")$(ittig the "tate(et", a' of it" $rahe", office",
")$"i'iarie" a' affiliate",
- a' "hall cotai ")ch ifor(atio" a" re*)ire' i the BSP reg)altio".
P9BLICATI7./
- I Egli"h or 3ili&io
- At lea"t oce e#ery *)arter i a e0"&a&er of geeral circ)latio i the city or
&ro#ice
- BSP ("y &re"ci$e 0here it "hall $e &)$li"he'
- Shall (a%e a#aila$le to the &)$lic a "hall &re"cri$e the co(&lete "et of it"
a)'ite' fiacial "tate(et"
- If there i" local e(ergecy or i((iet &aic, the 8B $y #ote of at lea"t B of it"
(e($er" (ay allo0 to 'efer for a "tate' &erio' of ti(e the &)$licatio of the
"tate(et of fiacial co'itio.
.7TES/ &age B:-BB (I8P7RTA.T)
"@. P(blication o$ Ca'ital 1tock
- It "hll ot &)$li"h the a(o)t of it" a)thori!e' or ")$"cri$e' ca&ital "toc% 0itho)t
i'icatig at the "a(e t(e a' 0ith e*)al &ro(iece, the a(o)t o it" ca&ital
act)ally &ai'-)&.
- .o $rach of ay foreig $a% 'oig $)"ie"" i the Phil "hall i ay 0ay
ao)ce the a(o)t of the ca&ital a' ")r&l)" of it" ha' office.
@. 1ettlement o$ Dis'(tes
- BSP "hall $e co")lte' $y other go#. Agecie" i actio" a' &rocee'ig"
$ro)ght $efore the( i#ol#ig cotro#er"ie" i $a%" etc. , a" 0ell a" 'i"&)te"
$et0ee ay all or all of the( 0hich theya re the 'irector", officer" or
"toc%hol'er".
@". 1trikes and Locko(ts
A. 9"ettle" La$or Di"&)te"
- The $a%ig i')"try i" i'i"&e"a$le to the atioal itere"t.
- If )"ettle' afer ; 'ay" "hall $e re&orte' $y the BSP to the Sec. 7f La$or 0ho
(ay a"")(e A)ri"'ictio o#er the 'i"&)te a' 'eci'e it or certify the "a(e.
- The Pre"i'et, (ay iter#ee a' a"")(e A)ri'ictio o#er ")h la$or 'i"&)te i
or'er to "ettle a' ter(iate the "a(e.
B. Re&ort" of Stri%e" a' loc%o)t"
The $a% "hal 'i"clo"e &ertiet ifo/
,. Ca)"e of the "tri%eFloc%o)t a' $a% (aage(et6" &o"itio o it" legality
2. Ba% o&ratio" affecte'
@"". Laws :o.erning ot#er T/'es o$ Banks

- Thrift Ba%" Act, R)ral Ba%" Act, Coo&erati#e Co'e
- 3or I"la(ic $a%"- "&ecial la0"
- 3or &)r&o"e" of &re"cri$ig the (ii()( ratio 0hich the et 0orth of a thrift
$a% ()"t $ear to it" total ri"% a""et", the &ro#i"io" of the G$l "hall go#er.
CHAPTER A. DEP*1"T =)-CT"*-1 *= BA->1
Demand de'osits 1 are all tho"e lia$ilitie" of the BSP a' other $a%" 0hich are 'eo(iate'
i Phil. C)rrecy a' are ")$Aect to &ay(et i legal te'er )&o 'e(a' $y &re"etatio of
chec%".
The follo0ig" are &rohi$ite' fro( (aitaiig 'e(a' 'e&o"it" or c)rret acco)t" 0ith
the $a% office i 0hich they are a""ige'I
a. All officer"I
$. E(&loyee" of the $a%6" ca"h 'e&art(etFca"h )it"
c. 7ther" e(&loyee" 0ho ha#e 'irect a' i((e'iate re"&o"i$ility i the ha'lig of
tra"actio"Frecor'" &ertaiig to 'e(a' 'e&o"it" or c)rret acco)t".
Icl)'e" al"oI
The "&o)"e, relati#e" 0ithi 2
'
'egree of co"ag)iity a' affiity of the officer" a'
e(&loyee co#ere' $y the &rohi$itio.
D9TD 73 BA.> T7 =7.7R C=EC>S
<here the $a% &o""e""e" f)'" of a 'e&o"itor it i" $o)' to hoor hi" chec%" to the
e2tet of the a(o)t of hi" 'e&o"it". 3ail)re of the $a% to &ay the chec%, etitle" the 'ra0er to
")$"tatial 'a(age 0itho)t ay &roof of act)al 'a(age".
RESP7.SIBILITD 73 T=E DRA<ER
=e ()"t &er"oally %ee& trac% of hi" a#aila$le $alace i the $a% a' ot rely o the
$a% to otify hi( of the ece""ity to f)' certai chec%" he &re#io)"ly i"")e'.
D9TD 73 BA.>S T7 >.7< SIG.AT9RES
A $a% i" $o)' to %o0 the "igat)re" of it" c)"to(er".
.7 7BLI. T7 PAD PARTIAL PAD8E.T
A $a% i" )'er o o$ligatio to (a%e &art &ay(et o the chec% )& to oly the
a(o)t of the 'ra0er6" f)' 0here the chec% i" 'ra0 for a a(o)t larger tha 0hat the
'ra0er ha" o 'e&o"it.
<IT=DRA<ALS
BA>S ARE PR7=IBITED 3R78 ISS9I.GFACCEPTI.G <ith'ra0al" "li&" 0itho)t
re*)irig the 'e&o"itor" to &re"et their &a""$oo%" a' acco(&li"hig ece""ary 0ith'ra0al
"li&" e2ce&t for $a%" a)thori!e' $y BSP to a'o&t the o &a""$oo% 0ith'ra0al "y"te(.
.egotia$le or'er of 0ith'ra0al (.7<) 1 are itere"t 1 $earig 'e&o"it" of acco)t"
that co($ie the &aya$le o 'e(a' feat)re of the chec%" a' i#e"t(et feat)re of a "a#ig"
acct.
Ti(e 'e&o"it" 1 oe the &ay(et of 0hich caot legally $e re*)ire' 0ithi ")ch a "&ecifie'
)($er of 'ay".
.EG7TIABLE CERTI3ICATES 73 TI8E DEP7SITS (.CTD6")
a. 9i#er"al $a%" F co((ercial $a%" (ay i"")e .CTD" 0itho)t a&&ro#al of BSP
$. Thrift $a%"FR)ral $a%"FCoo&erati#e $a%" ee' a&&ro#al of BSP
.7. 1 .EG7TIABLE CTD - Ba%" (ay i"")e log-ter( egotia$le ta2 e2e(&t certificate" of
ti(e 'e&o"it 0itho)t a&&ro#al of the BSP.
G9ASI 1 BA.>I.G 39.CTI7.S/
E""etial ele(et" of *)a"i-$a%ig are/
A. $orro0ig of f)'" for the $orro0er6" o0 acco)tI
B. 2C or (ore le'er" at ay oe ti(eI
C. 8etho'" of $orro0ig are i"")ace, e'or"e(et, or acce&tace of 'e$t i"tr)(et"
of ay %i', other tha 'e&o"it"
D. The &)r&o"e of 0hich i" (,) rele'ig, or (2) &)rcha"ig recei#a$le" or other
o$ligatio"

Ay &er"o, at)ral or A)ri'ical (ay 'e&o"it 0ith ")ch Phil. Ba% i goo' "ta'ig foreig
c)rrecie" 0hich are acce&ta$le a" &art of the iteratioal re"er#e e2ce&t tho"e 0hich are
re*)ire' $y the cetral $a% to $e ")rre'ere'.
Aoy(o)" acco)t" or acco)t" )'er fictitio)" a(e "ho)l' ot $e %e&t allo0e'.
II. A'(ii"tratio of 'e&o"it"
All $a%ig i"tit)tio" are re*)ire' to "et a (ii()( of + "&eci(e" of their 'e&o"itor"
a' to )&'ate the "&eci(e of "igat)re" e#ery B year" or "ooer, at the 'i"cretio of the
$a%.
8ior" are #e"te' 0ith "&ecial ca&acity a' &o0er to (a%e "a#ig", a' 0ith'ra0 the
"a(e 0itho)t the a""i"tace of their &aret" or g)ar'ia", &ro#i'e' the f re*)ire(et" are
(etI
,. at lea"t ; year" of ageI
2. a$le to rea' a' 0riteI
+. ha#e ")fficiet 'i"cretioI
:. ot other0i"e 'i"*)alifie' $y ay other ica&acityI
Paret" (ay e#erthele"" 'e&o"it for their (ior chil're a' g)ar'ia" for their 0ar'".

Cor&oratio"
a. Icor&oratio Stage 1 &ay(et of ")$"cri&tio i" i ca"h, the SEC re*)ire" a $a%
certificate of 'e&o"it of &ai'-)& ca&ital otari!e' i &lace 0here "ige'.
$. Po"t Icor&oratio 1 i o&eig a $a% acco)t, the $oar' of 'irector" i"")e" a
re"ol)tio a)thori!ig the "igatorie" a' "&ecifyig the 'e&o"itory $a%.
Clearig c)t 1off ti(e
Geeral r)le/ all 'e&o"it" a' 0ith'ra0al" ')rig reg)lar $a%ig ho)r" "hall $e cre'ite' or
'e$ite' to 'e&o"it lia$ility acco)t" o the 'ate of recei&t or &ay(et thereofI &ro#i'e',
ho0e#er, that a $a% (ay "et a clearig c)t 1off ti(e for it" hea' office ot earlier tha 2
ho)r" $efore the "tart of clearig at the BSP a' ot earlier tha +-,F2 ho)r" $efore the
"tart of clearig for all it" $rache", agecie", a' e2te"io office 'oig $)"ie"" i the
Phili&&ie". Pro#i'e', f)rther that $a%" are locate' i area" 0here there are o BSP
regioalFclearig arrage(et (ay "et a clearig c)t-off ti(e ot earlier tha 2 ho)r"
$efore the "tart of their local clearig after 0hich ti(e, 'e&o"it" recei#e' "hall $e $oo%e'
li%e0i"e.
III. S)r#i#or"hi& Agree(et
De$inition!
?oit o0er" of a 'e&o"it agree that either of the( co)l' 0ith'ra0 ay &art or the 0hole of
"ai' acco)t ')rig the lifeti(e of $oth, a' the $alace, if ay, )&o the 'eath of either,
$eloge' to the ")r#i#or.
Altho)gh ")r#i#or"hi& agree(et i" &er "e ot cotrary to la0, it" o&eratio or effect (ay
$e #iolati#e of the la0.
I@. D)tie" of Ba%"
A. 8ET"C)L*)1 CARE
A $a% i" re*)ire' to ta%e (etic)lo)" care of the 'e&o"it" of it" cliet", 0ho ha#e the
right to e2&ect high "ta'ar'" of itegrity a' &erfor(ace fro( it.
I e#ery ca"e the 'e&o"itor e2&ect" the $a% to treat hi" acco)t 0ith the )t(o"t
fi'elity, 0hether ")ch acco)t co"i"t" oly of a fe0 h)'re' &e"o" or of (illio".
B. PA&8E-T T* PR*PER PART&
C. "- CA1E *= DEATH *= DEP*1"T*R
-ational re.en(e code 'ro.ides/
If a $a% ha" %o0le'ge of the 'eath of the 'e&o"itor, it "hall ot allo0 ay 0ith'ra0al
fro( "ai' 'e&o"it acco)t )le"" the co((i""ioer ha" certifie' that the ta2e" i(&o"e'
thereo $y thi" title ha#e $ee &ai'. Pro#i'e', ho0e#er, that the a'(ii"trator of the e"tate
or ay , of the heir" of the 'ecet (ay )&o a)thori!atio of the co((i""ioer 0ith'ra0 a
a(o)t ot e2cee'ig 2C,CCC 0itho)t the "ai' certificatio.
@. Secrecy of $a% De&o"it"
P)r&o"e"
a. to gi#e eco)rage(et to the &eo&le to 'e&o"it their (oey i $a%ig
i"tit)tio"I
$. to 'i"co)rage &ri#ate hoar'ig "o that the "a(e (ay $e &ro&erly )tili!e' $y
$a%" i a)thori!e' loa" to a""i"t i the ecoo(ic 'e#elo&(et of the
co)try.
R.A. H+K; A$"ol)te Cofi'etiality
All 'e&o"it" of 0hate#er at)re 0ith a A""ociatio i the Phili&&ie" are her$y
co"i'ere' a" of a a$"ol)tely cofi'etial at)re a' (ay ot $e e2a(ie', i*)ire'
or loo%e' ito $y ay &er"o, go#er(et official, $)rea) or office e2ce&t )&oI
,. 0ritte &er(i""io of the 'e&o"itorI
2. i ca"e of i(&each(etI
+. )&o or'er of a co(&etet co)rt i ca"e" of $ri$ery or 'erelictio of ')ty of &)$lic
official"I
:. i ca"e", 0here the (oey 'e&o"ite' or i#e"te' i" the ")$Aect (atter of the
litigatio.
A)thority to i*)ire ito $a% 'e&o"it" )'er the A.TI 87.ED LA9.DERI.G ACT
The A8LC (ay i*)ire ito or e2a(ie ay &artic)lar 'e&o"it or i#e"t(et
0ith ay $a%ig i"tit)tio or o- $a% fiacial i"tit)tio )&o or'er of ay
co(&etet co)rt i ca"e" of #iolatio, 0he it ha" $ee e"ta$li"he' thatI
a. there i" &ro$a$le ca)"e that the 'e&o"it" or i#e"t(et" are relate' to a
)la0f)l acti#ityI
$. a (oey la)'erig offe"e.
A)thority of the Co((i""ioer of Iteral Re#e)e to i*)ire ito 'e&o"it"
I ca"e"I
a. a 'ece'et to 'eter(ie hi" gro"" e"tateI
$. ay ta2&ayer 0ho ha" file' a a&&licatio for co(&ro(i"e of hi" ta2 lia$ility $y
rea"o of fiacial ica&acity to &ay hi" ta2 lia$ility.
CHAPTER B
7&eratio" of a 9i#er"al Ba%
a. Po0er" of a co((ercial $a%
$. Po0er" of a i#er"t(et ho)"e
c. Po0er to i#e"t i o-allie' eter&ri"e"
II. E*)ity I#e"t(et" of a 9i#er"al Ba%
a. Allie' or o-allie'
i. Allie' eter&ri"e"/ fiacial or o-fiacial
ii. Total i#e"t(et "hall ot e2cee' BCO of the et 0orth of the
$a%
iii. Total i#e"t(et i oe eter&ri"e "hall ot e2cee' 2BO of the et
0orth of the $a%
i#. $et worth- total of the )i(&aire' &ai'-i ca&ital icl)'ig &ai'-i
")r&l)", retaie' earig" a' )'i#i'e' &rofit, et of #al)atio,
re"er#e" a' other a'A)"t(et"
$. Ac*)i"itio i" ")$Aect to &rior a&&ro#al of the 8oetary Boar'
III. E*)ity i#e"t(et" of a 9i#er"al Ba% i 3iacial Allie' Eter&ri"e"
a. Ca o0 )& to ,CCO of the e*)ity i a thrift $a%, a r)ral $a% or other"
0ithi thi" category
$. A &)$licly-li"te' )i#er"al or co((ercial $a% ca o0 oly oe other
)i#er"al or co((ercial $a%
c. 3iacial Allie'/ lea"ig co(&aie", $a%", i#e"t(et ho)"e", fiacig
co(&aie", cre'it car' co(&aie", i")race co(&aie", hol'ig co(&ay,
etc.
I@. E*)ity I#e"t(et" of a 9i#er"al Ba% i .o-fiacial allie' eter&ri"e"
a. 8ay o0 )& to ,CCO
$. <areho)"ig, "torage, "afe 'e&o"it $o2, (aage(et of ()t)al f)'",
&ro#i'ig co(&)ter "er#ice", i")race agecie", ho(e $)il'ig a' ho(e
'e#elo&(et
c. "ural/#ooperative anks may invest, as a non-financial allied undertaking
in the ff%
i. &arehousing and postharvest facilities
ii. 'arm e(uipment distribution
iii. )ransportation of agricultural products
iv. *arketing of agri products
v. !easing
@. I#e"t(et" i .o-Allie' Eter&ri"e"
a. Shall ot e2cee' +BO of the total e*)ity i that eter&ri"e or "hall it e2cee'
+BO of the #otig "toc%
$. 7ly )i#er"al $a%" ca i#e"t(et i o-allie' eter&ri"e"/
i. I')"trial &ar% &roAect", fiacial a' co((ercial co(&le2
&roAect", acti#itie" i agri, (iig, (a)fact)rig,etc.
@I. I#e"t(et" i G)a"i-Ba%"
a. Shall ot e2cee' :CO e*)ity
7&eratio" of Co((ercial Ba%"
I. Po0er"
a. Po0er" ici'et to cor&oratio"
$. S)ch &o0er" ece""ary to carry o the $)"ie"" of co((ercial $a%ig/
i. Acce&tig 'raft" a' i"")ace of letter" of cre'it
ii. Acce&tig or creatig 'e(a' 'e&o"it"
iii. Recei#ig 'e&o"it ")$"tit)te"
i#. E2te'ig cre'it
#. B)yig a' "ellig foreig e2chage a' gol' or "il#er
#i. Di"co)tig egotiatig &ro(i""ory ote", etc.
II. Letter" of Cre'it
a. + relatio"hi&" create'/ $a% a' $)yer, $a% a' "eller, $)yer a' "eller
$. I'e&e'ece Prici&le- a"")re" the "eller of &ro(&t &ay(et e#e if $)yer
ha" ot yet rei($)r"e' a" log a" the "eller &re"et" the ece""ary
'oc)(et"
III. I#e"t(et" of a Co((ercial Ba%
a. 7ly e*)itie" i allie' eter&ri"e"/ either fiacial or o-fiacial
$. Total i#e"t(et" i allie' eter&ri"e" "hall ot e2cee' +BO of the et 0orth
of the $a%
c. Total i#e"t(et i ay oe eter&ri"e "hall ot e2cee' 2BO of the et
0orth of the $a%.
I@. I#e"t(et" i 3iacial Allie'
a. ,CCO of the e*)ity of a thrift $a% or a r)ral $a%
$. I other fiacial allie' eter&ri"e", i#e"t(et "hall oly $e a (iority
hol'ig
@. I#e"t(et" i o-fiacial allie'
a. 8ay o0 )& to ,CCO
Ri"%-Ba"e' Ca&ital
I. 8ii()( Ratio- (oetary $oar' "hall &re"cri$eI ratio of the et 0orth of the
$a% to it" total ri"% a""et" 0hich (ay icl)'e cotiget acco)t"
a. 8ay $e altere' or ")"&e'e' for a (a2i()( of oe year 0he ece""ary
$. 9ifor(ly a&&lie' for $a%" i the "a(e category
II. Effect of .o- Co(&liace
a. Li(it or &rohi$it the 'i"tri$)tio of et &rofit"
$. Re"trict or &rohi$it ac*)i"itio of (aAor a""et"
Li(it" o Loa", Cre'it Acco((o'atio" a' G)aratee"
I. Sigle Borro0er6" Li(it- "hall ot e2cee' 2CO of the et 0orth of the $a%
a. E2ce&t/
i. A" &ro#i'e' $y the (oetary $oar' for rea"o" of atioal
itere"t
ii. De&o"it" of r)ral $a%" 0ith G7C fiacial i"tit)tio"
$. The li(it (ay$e icrea"e' $y ,CO &ro#i'e' the a''itioal loa" are
"ec)re'
II. SBL "ho)l' icl)'e/
a. Direct lia$ility of the (a%er of &a&er "ol' or 'i"co)te' 0ith the $a%
$. If the $orro0er o0" ac (aAority itere"t i a cor&oratio, the lia$ilitie" of
"ai' cor&oratio i" icl)'e'
c. Lia$ilitie" of ")$"i'iarie" of a cor&oratio 0ho i" $orro0ig fro( the $a%
'. I ca"e of &arter"hi& or a""ociatio, the lia$ilitie" of the (e($er" thereof
III. SBL "ho)l' e2cl)'e/
a. Loa" "ec)re' $y the BSP or go#er(et
$. Loa" co#ere' $y a""ig(et of 'e&o"it" (aitaie' i the $a%
c. Loa" )'er letter" of cre'it co#ere' $y (argi 'e&o"it"
'. Loa" "&ecifie' a" o-ri"% ite("
I@. Ba% G)aratee- irre#oca$le co((it(et of $a% $i'ig it"elf to &ay i the
#et of o-&erfor(ace $y a thir' &artyI it "hall al"o $e ")$Aect to the li(it"
herei &re"cri$e'
@. Cotiget Acco)t" of $orro0er" (ay $e icl)'e' a(og tho"e ")$Aect to the
li(it"
@I. A""ig(et of Cre'it- agree(et $y #irt)e of 0hich the o0er of a cre'it, $y a
legal ca)"e, ")ch a" "ale", 'atio i &ay(et, 'oatio, a' 0itho)t the ee' of
the co"et of the 'e$tor, tra"fer" hi" cre'it to aother 0ho ac*)ire" the &o0er
to eforce it to the "a(e e2tet a" the cre'itor co)l' ha#e.
@II. Pacto Co((i""orio- a)to(atic a&&ro&riatio of the &le'ge' or (ortgage'
&ro&erty $y the cre'itor i &ay(et of the loa )&o it" (at)rity. It i" ot allo0e'
i a""ig(et of 'e&o"it".
D7SRI
I. Prohi$it" the ff/
a. Direct or i'irectly $orro0 fro( the $a%
$. Beco(e a g)arator or i'or"e" or ")rety for loa" fro( ")ch $a% to
other"
c. Be a o$ligor to the $a% e2ce&t 0ith the 0ritte a&&ro#al of the (aAority of
all the 'irector" of the $a%
II. The a&&ro#al "hall etere' o the recor'" of the $a%
III. Arms !ength "ule-Dealig" 0ith D7SRI "hall $e )&o ter(" ot le"" fa#ora$le to
the $a%
I@. Director"/
a. .a(e" i the article" of icor&oratio
$. Electe' i (eetig" of the "toc%hol'er"
c. Electe' to fill #acacie"
@. 7fficer"/
a. Pre", @P, E@P, Sr. @P, G8, Secretary, Trea")rer, Tr)"t 7fficer
$. Chair(a, #ice-chair(a or ay other &o"itio 0ho &erfor(" f)ctio" of
(aage(et
@I. Stoc%hol'er- "toc%hol'er or recor' i the $oo%" of the $a%
a. Icl)'e"/
i. S&o)"e a'For relati#e 0ithi the ,
"t
'egree or co"ag)iity or
affiity
ii. Cor&oratio o0e' $y the "toc%hol'er or hi" 0ife
@II. Relate' Itere"t"
a. S&o)"e a'For relati#e 0ithi the ,
"t
'egree or co"ag)iity or affiity
$. &arter"hi& 0here D7SRI of tho"e i a) a$o#e are geeral &arter"
c. co-o0er 0ith a D7SRI or tho"e i a) of a &ro&erty )"e' a" a "ec)rity
'. Cor&oratio or a""ociatio 0here the D7SRI or tho"e i a) are i" al"o a
'irector
e. Cor&oratio 0holly or (aAority o0e' or o0e' $y at lea"t 2CO $y the
D7SRI or tho"e i a)
@III. Effect of @iolatio- after ')e otice, the office of the &er"o #iolatig "hall $e
'eclare' #acat a' "hal $e ")$Aect to the &eal &ro#i"io" of .CBA
Sec)ritie" o Loa"
I. Sec)re' $y Real E"tate
a. Shall ot e2cee' ;BO of the a&&rai"e' #al)e &l)" KCO of the i")re'
i(&ro#e(et"
II. Sec)re' $y Chattel" a' Itagi$le Pro&ertie"
a. Shall ot e2cee' to ;BO
Grat a' P)r&o"e of Loa"
I. A(o)t a' P)r&o"e
a. 7ly i the a(o)t a' for the &erio' of ti(e e""etial for the co(&letio of
the o&eratio" to $e fiace'. Thi" "hall $e 'oe co"i"tet 0ith "afe a'
"o)' $a%ig &ractice
$. The &)r&o"e "hall $e "tate' i the a&&licatio
c. If the &)r&o"e "tate' 0a" ot follo0e', the $a% (ay ter(iate the loa a'
'e(a' i((e'iate re&ay(et
II. Re*)ire(et"/
a. State(et of a""et" a' lia$ilitie"
$. State(et of their ico(e a' e2&e'it)re
c. 7ther ifor(atio &re"cri$e' $y la0 or $y the 8oetary Boar'
'. E#e i the a$"ece of thi" &ro#i"io, the $a% (ay "till 'e(a' i((e'iate
re&ay(et $eca)"e the $orro0er ha" lo"t the $eefit of the &erio' )'er
Art. ,,JH of the Ci#il Co'e
III. Rea"o for Striget R)le" i Gratig Loa"- The $a% i#e"t" the (oey it
hol'" i tr)"t for the 'e&o"itor". 3or thi" rea"o, a $a% i" e2&ecte' to a"certai
the i'etitie" of the &er"o" tra"actig 0ith the( to &rotect $oth the itere"t of
the $a% a' the 'e&o"itor".
I@. 9"ec)re' Loa" or 7ther Cre'it Acco((o'atio"- The 8B i" a)thori!e' to
i"")e reg)latio" 0ith re"&ect to )"ec)re' loa"
@. 7ther Sec)rity Re*)ire(et"- The 8B (ay &re"cri$e f)rther "ec)rity
re*)ire(et" "hall $e ")$Aect to.
@I. A)thority to Pre"cri$e Ter(" a' Co'itio" of Loa"
@II. A(orti!atio o Loa"
a. Shall $e a'a&te' to the at)re o the o&eratio" to $e fiace'
$. <ith tho"e 0ho"e (at)ritie" are (ore tha B year"- &erio'ic a(orti!atio
$)t ()"t $e (a'e a)ally
c. Loa" are )"e' for &)r&o"e" ot iitially &ro')cig re#e)e- a(orti!atio
(ay $e 'eferre' )til ")ch ti(e a" "ai' re#e)e" are ")fficiet $)t i o
ca"e "hall it $e later tha B year"
'. 8icrofiace- ta%e ito co"i'eratio the &roAecte' ca"h flo0 of the
$orro0er
e. E"calatio cla)"e- rai"ig of itere"t
i. 7ly allo0e' 0he the (oetary $oar' ha" icrea"e' the rate of
itere"t &ro#i'e' that there i" al"o a "ti&)latio that itere"t 0ill $e
lo0ere' if 8B ha" lo0ere' the rate of itere"t
ii. Both i"tace" "ho)l' $e &re"et $efore e"calatio cla)"e i"
allo0e'
iii. E2ce&tio/ if the cre'itor )ilaterally 'ecrea"e' the itere"t e#e if
it 0a" ot "ti&)late', e"acalatio 0ill $e allo0e'
f. 9co"cioa$le a' e2or$itat itere"t"- SC/ B.BO &er (oth or KKO &er
a)(. <ill $e co"i'ere' a" #oi'. =ece, the co)rt (ay re')ce the
itere"t rate
@III. Pre&ay(et of Loa"- &rior to the (at)rity 'ate, $orro0er (ay &ay ")$Aect to
")ch rea"oa$le ter(" agree' )&o 0ith the $a%
IE. De#elo&(et A""i"tace Iceti#e- BSP "hall gi#e iceti#e" to $a%" 0ho
e2te' loa" to e')catio, coo&erati#e", ho"&ital", lo0-co"t ho)"ig, a' LG9"
E. Ree0al of E2te"io of Loa"- (ay$e reg)late' $y the 8B a' &re"cri$e
co'itio" a' li(itatio"
EI. Ba%" caot e2te' &e"o loa" to o-re"i'et"
EII. Pro#i"io" for lo""e" a' 0rite-off
a. Ba' 'e$t"- 'e$t" ')e to o 0hich itere"t i" &a"t ')e a' )&ai'
$. 8B "hall fi2 the a(o)t of re"er#e" for $a' 'e$t"
Tr)th I Le'ig (RA +;KB- Di"clo")re of 3iace Charge")
I. Policy- &rotect the citi!e" fro( a lac% of a0aree"" of the tr)e co"t of cre'it $y
a"")rig a f)ll 'i"clo")re of ")ch co"t
II. Di"clo")re "hall icl)'e/
a. The ca"h &rice of the &ro&erty or "er#ice to $e ac*)ire'
$. A(o)t" for 'o0&ay(et
c. Charge" 0hich are &ai' i coectio 0ith the tra"actio
'. A(o)t to $e fiace'
e. 3iace charge
III. Defiitio"/
a. Cre'it-
i. ay loa, (ortgage, 'ee' of tr)"t, a'#ace or 'i"co)t
ii. Ay co'itioal "ale" cotract
iii. Retal-&)rcha"e cotract
$. 3iace Charge- itere"t a' fee" ici'et to the e2te"io of cre'it
c. Cre'itor/ ay &er"o egage' i the $)"ie"" of e2te'ig cre'it 0ho
re*)ire" a" a ici'et to the e2te"io of cre'it, the &ay(et of a fiace
charge
I@. Pealty- either ci#il or cri(ial (,%-B% fie or i(&ri"o(et for K-,2 (oth", or
$oth)
@. Go#er(et i" e2e(&te' fro( the &)i"h(et or &ealty
3oreclo")re of Real E"tate
I. The (ortgagor or 'e$tor ha" the right 0ithi oe year after the "ale of the real
e"tate, to re'ee( the &ro&erty $y &ayig the a(o)t ')e i the (ortgage 0F
itere"t a' all the co"t a' e2&e"e"
II. =o0e#er, the &)rcha"er at the a)ctio "hall ha#e the right to ta%e &o""e""io
i((e'iately after the 'ate of the cofir(atio of the a)ctio "ale
III. Ay &etitio i co)rt to re"trai the a)ctio "hall oly $e gi#e ')e co)r"e )&o
the filig of a $o' i a a(o)t fi2e' $y the co)rt
I@. ?)ri'ical Per"o" "hall ha#e the right to re'ee( the &ro&erty )til, $)t ot after,
the regi"tratio of the certificate of foreclo")re 0ith the Regi"ter of Dee'" 0ithi +
(oth"
@. E*)ity of Re'e(&tio #. Right of Re'e(&tio
a. Right of Re'e(&tio e2i"t" oly i e2traA)'icial foreclo")re "ale
i. I a A)'icial foreclo")re "ale 0here the (ortgagee i" the P.B or a
$a%ig i"tit)tio, right of re'e(&tio e2it"
ii. E*)ity of Re'e(&tio- right of the (ortgagor to e2tig)i"h the
(ortgage a' retai o0er"hi& $y &ayig the "ec)re' 'e$t 0ithi
a &erio' ot le"" tha JC 'ay" or (ore tha ,2C 'ay" after the
A)'g(et $eco(e" fial. (R)le KH, R)le" of Co)rt)
iii. Right of Re'e(&tio (ay $e e2te'e'
8aAor I#e"t(et"
I. The 8B "hall e"ta$li"h a criteria for re#ie0ig (aAor ac*)i"itio" $y a $a%
II. Ceilig o I#e"t(et"
a. Ac*)ire real e"tate ece""ary for it" o0 )"e i the co')ct of it" $)"ie""
i. Ba% &re(i"e"- la', $)il'ig", co"tr)ctio, lea"ehol' right",
i(&ro#e(et, fi2t)re", f)rit)re
ii. Real &ro&erty, *)i&(et, chattel &)rcha"e' $y the $a% i it" a(e
$. Total i#e"t(et i real e"tate icl)'ig i(&ro#e(et" "hall ot e2cee'
BCO of co($ie' ca&ital acco)t"
c. I#e"t(et" $y a $a% i a real e"tate cor&oratio "hall $e co"i'ere' a"
&art of the total i#e"t(et i real e"tate $y the $a%
III. Ac*)i"itio of Real E"tate $y 0ay of "ati"factio of clai("
a. .ot0ith"ta'ig the li(itatio" gi#e a$o#e, a $a% (ay ac*)ire real e"tate
)'er the ff circ)("tace"/
i. Shall $e (ortgage' to it i goo' faith $y 0ay of "ec)rity of 'e$t"
ii. Co#eye' to it i "ati"factio of 'e$t" &re#io)"ly cotracte'
iii. P)rcha"e' at "ale" )'er A)'g(et", 'ecree", (ortgage", or
tr)"t 'ee'" hel' $y it
$. Real Pro&erty ac*)ire' )'er thi" &ro#i"io "hall $e 'i"&o"e' $y the $a%
0ithi a &erio' of B year"
c. =o0e#er, it (ay coti)e to hol' ")ch &ro&erty $eyo' the &erio' gi#e if
the li(itatio" gi#e i the &re#io)" &ro#i"io are ot yet reache'.
7ther Ba%ig Ser#ice"
I. Recei#e i c)"to'y f)'", 'oc)(et" a' other o$Aect"
II. Act a" fiacial aget a' $)y a' "ell for their c)"to(er"
III. 8a%e collectio a' &ay(et" for the acco)t of other"
I@. Act a" (aagig aget, a'#i"er, co")ltat or a'(ii"trator of a i#e"t(et
(aage(et 0ith the a&&ro#al of the 8B
@. Ret o)t "afety 'e&o"it $o2e"
@I. Safety De&o"it Bo2- S&ecial >i' of De&o"it $eca)"e it caot $e characteri!e'
a" a cotract of lea"e "ice the g)ar' %ey of the $o2 re(ai" 0ith the $a%.
@II. If a $o2 i" rete' $y t0o &er"o", the agree(et $et0ee the( "hall go#er
@III. The SC "ai' that the ret of a "afety 'e&o"it $o2 i" that of a $ailor a $ailee
Electroic Tra"actio"
I. BSP "hall ha#e f)ll a)thority to reg)late the )"e of electroic 'e#ice" )"e' i
coectio 0ith the o&eratio" of a $a% icl)'ig the 'eli#ery of "er#ice" a'
&ro')ct" to c)"to(er"
II. 7)t"o)rcig of IT "y"te("- ca $e 'oe 0ith &rior a&&ro#al of the 8B e2ce&t/
a. Strategic &laig for the )"e of IT
$. Deter(iatio of "y"te( f)ctioalitie"
c. Chage (aage(et icl)"i#e of *)ality a"")race a' te"tig
'. Ser#ice le#el a' cotract (aage(et
e. Sec)rity &olicy a' a'(ii"tratio
7)t"o)rcig of other f)ctio"
I. <ith a&&ro#al of the 8B, $a%" (ay o)t"o)rce the ff/
a. Data i(agig
$. Clearig a' &roce""ig of chec%" ot i the Phili&&ie Clearig =o)"e
"y"te(
c. Pritig of $a% 'e&o"it "tate(et, $a% loa "tate(et", $a% for(" a'
&ro(otioal (aterial"
'. Cre'it car' "er#ice"
e. Cre'it i#e"tigatio
f. ?aitorial "er#ice"
g. Proc)re(et "er#ice"
h. Legal "er#ice"
G)e"tio"/
<hether or ot a alie-o0e' $a% ca ac*)ire o0er"hi& of a re"i'etial lot $y #irt)e of a
'ee' of tra"fer a" "ettle(et of a 'e$t
.o. for the &)r&o"e of the co"tit)tio i" to &lace a' %ee& i the ha'" of the &eo&le
the o0er"hi& of &ri#ate la'" i or'er ot to e'ager the itegrity of the atio
C#a'ter C
Sec. B:. Prohibition to Act as +nsurer. - A $a% "hall ot 'irectly egage i i")race $)"ie""
a" the i")rer.
PIcl)'e"/
a) (a%ig or &ro&o"ig to (a%e, a" i")rer, ay i")race cotract
$) (a%ig or &ro&o"ig to (a%e, a" ")rety, ay cotract of ")rety"hi& a" a #ocatio a'
ot a" (erely ici'etal to ay other legiti(ate $)"ie"" or acti#ity of the ")rety
c) 'oig ay %i' of $)"ie"", icl)'ig a rei")race $)"ie"", "&ecifically recogi!e'
a" co"tit)tig the 'oig of a i")race $)"ie"" 0ithi the (eaig of the I")race
Co'e
') 'oig or &ro&o"ig to 'o ay $)"ie"" i ")$"tace e*)i#alet to ay of the foregoig
i a (aer 'e"ige' to e#a'e the &ro#i"io" of the I")race Co'e
Sec. BB. Prohibited )ransactions. -
BB.,. .o 'irector, officer, e(&loyee, or aget of ay $a% "hall 1
(a) 8a%e fal"e etrie" i ay $a% re&ort or "tate(et or &artici&ate i ay fra)')let tra"actio,
there$y affectig the fiacial itere"t of, or ca)"ig 'a(age to, the $a% or ay &er"oI

($) <itho)t or'er of a co)rt of co(&etet A)ri"'ictio, 'i"clo"e to ay )a)thori!e' &er"o ay
ifor(atio relati#e to the f)'" or &ro&ertie" i the c)"to'y of the $a% $elogig to
&ri#ate i'i#i')al", cor&oratio", or ay other etity/ Provided, That 0ith re"&ect to $a%
'e&o"it", the &ro#i"io" of e2i"tig la0" "hall &re#ailI
(c) Acce&t gift", fee", or co((i""io" or ay other for( of re()eratio i coectio 0ith the
a&&ro#al of a loa or other cre'it acco((o'atio fro( "ai' $a%I

(') 7#er#al)e or ai' i o#er#al)ig ay "ec)rity for the &)r&o"e of ifl)ecig i ay 0ay the
actio" of the $a% or ay $a%I or
(e) 7)t"o)rce iheret $a%ig f)ctio".
refer" to ay cotract $et0ee the $a% a' a "er#ice &ro#i'er for the latter to
")&&ly, or ay act 0here$y the latter ")&&lie", the (a&o0er to "er#ice the 'e&o"it
tra"actio" of the for(er
ite'e' to e")re "ecrecy of $a% 'e&o"it"
BB.2. .o $orro0er of a $a% "hall -
(a) 3ra)')letly o#er#al)e &ro&erty offere' a" "ec)rity for a loa or other cre'it acco((o'atio
fro( the $a%I

($) 3)ri"h fal"e or (a%e (i"re&re"etatio or ")&&re""io of (aterial fact" for the &)r&o"e of
o$taiig, ree0ig, or icrea"ig a loa or other cre'it acco((o'atio or e2te'ig
the &erio' thereofI
(c) Atte(&t to 'efra)' the "ai' $a% i the e#et of a co)rt actio to reco#er a loa or other cre'it
acco((o'atioI or
(') 7ffer ay 'irector, officer, e(&loyee or aget of a $a% ay gift, fee, co((i""io, or ay other
for( of co(&e"atio i or'er to ifl)ece ")ch &er"o" ito a&&ro#ig a loa or other
cre'it acco((o'atio a&&licatio.
BB.+. .o e2a(ier, officer or e(&loyee of the Bag%o Setral or of ay 'e&art(et, $)rea), office,
$rach or agecy of the Go#er(et that i" a""ige' to ")&er#i"e, e2a(ie, a""i"t or re'er
techical a""i"tace to ay $a% "hall co((it ay of the act" e)(erate' i thi" Sectio or ai'
i the co((i""io of the "a(e.

The (a%ig of fal"e re&ort" or (i"re&re"etatio or ")&&re""io of (aterial fact" $y &er"oel
of the Bag%o Setal g Pili&ia" "hall $e ")$Aect to the a'(ii"trati#e a' cri(ial "actio"
&ro#i'e' )'er the .e0 Cetral Ba% Act.

BB.:. Co"i"tet 0ith the &ro#i"io" of Re&)$lic Act .o. ,:CB, other0i"e %o0 a" the anks Secrecy
!aw, o $a% "hall e(&loy ca")al or o reg)lar &er"oel or too legthy &ro$atioary
&er"oel i the co')ct of it" $)"ie"" i#ol#ig $a% 'e&o"it".
Sec. BK. #onducting usiness in an ,nsafe or ,nsound *anner - I 'eter(iig 0hether a
&artic)lar act or o(i""io, 0hich i" ot other0i"e &rohi$ite' $y ay la0, r)le or reg)latio
affectig $a%", *)a"i-$a%" or tr)"t etitie", (ay $e 'ee(e' a" co')ctig $)"ie"" i a
)"afe or )"o)' (aer for &)r&o"e" of thi" Sectio, the 8oetary Boar' "hall co"i'er ay
of the follo0ig circ)("tace"/
BK.,. The act or o(i""io ha" re")lte' or (ay re")lt i (aterial lo"" or 'a(age, or a$or(al
ri"% or 'ager to the "afety, "ta$ility, li*)i'ity or "ol#ecy of the i"tit)tioI .

BK.2. The act or o(i""io ha" re")lte' or (ay re")lt i (aterial lo"" or 'a(age or a$or(al
ri"% to the i"tit)tioM" 'e&o"itor", cre'itor", i#e"tor", "toc%hol'er" or to the Bag%o
Setral or to the &)$lic i geeralI

BK.+. The act or o(i""io ha" ca)"e' ay )')e iA)ry, or ha" gi#e ay )0arrate'
$eefit", a'#atage or &referece to the $a% or ay &arty i the 'i"charge $y the
'irector or officer of hi" ')tie" a' re"&o"i$ilitie" thro)gh (aife"t &artiality, e#i'et
$a' faith or gro"" ie2c)"a$le egligeceI or

BK.:.The act or o(i""io i#ol#e" eterig ito ay cotract or tra"actio (aife"tly a'
gro""ly 'i"a'#atageo)" to the $a%, *)a"i-$a% or tr)"t etity, 0hether or ot the
'irector or officer &rofite' or 0ill &rofit there$y.
<hee#er a $a%, *)a"i-$a% or tr)"t etity &er"i"t" i co')ctig it" $)"ie"" i a )"afe or
)"o)' (aer, the 8oetary Boar' (ay, 0itho)t &reA)'ice to the a'(ii"trati#e "actio"
&ro#i'e' i Sectio +; of the .e0 Cetral Ba% Act, ta%e actio )'er Sectio +C of the "a(e
Act a'For i((e'iately e2cl)'e the errig $a% fro( clearig, the &ro#i"io" of la0 to the
cotrary ot0ith"ta'ig.

Sec. B;. Prohibition on Dividend Declaration. 1 .o $a% or *)a"i-$a% "hall 'eclare 'i#i'e'",
if at the ti(e of 'eclaratio/
B;.,. It" clearig acco)t 0ith the Bag%o Setral i" o#er'ra0I or

B;.2. It i" 'eficiet i the re*)ire' li*)i'ity floor for go#er(et 'e&o"it" for fi#e (B) or (ore
co"ec)ti#e 'ay", or .

B;.+. It 'oe" ot co(&ly 0ith the li*)i'ity "ta'ar'"Fratio" &re"cri$e' $y the Bag%o Setral
for &)r&o"e" of 'eter(iig f)'" a#aila$le for 'i#i'e' 'eclaratioI or

B;.:. It ha" co((itte' a (aAor #iolatio a" (ay $e 'eter(ie' $y the Bag%o Setral.
Sec. K:. ,nauthori-ed Advertisement or usiness "epresentation. 1 .o &er"o, a""ociatio, or
cor&oratio )le"" ')ly a)thori!e' to egage i the $)"ie"" of a $a%, *)a"i-$a%, tr)"t etity,
or "a#ig" a' loa a""ociatio a" 'efie' i thi" Act, or other $a%ig la0", "hall a'#erti"e or
hol' it"elf o)t a" $eig egage' i the $)"ie"" of ")ch $a%, *)a"i-$a%, tr)"t etity, or
a""ociatio, or )"e i coectio 0ith it" $)"ie"" title, the 0or' or 0or'" .bank,/ .banking,/
.banker,/ .(uasi-bank,/ .(uasi-banking,/ .(uasi-banker,/ .savings and loan association,/ .trust
corporation,/ .trust company/ or 0or'" of "i(ilar i(&ort or tra"act i ay (aer the $)"ie""
of ay ")ch $a%, cor&oratio or a""ociatio.
Sec. K;. #onservatorship. 1 The gro)'" a' &roce')re" for &lacig a $a% )'er
co"er#ator"hi&, a" 0ell a", the &o0er" a' ')tie" of the co"er#ator a&&oite' for the $a%
"hall $e go#ere' $y the &ro#i"io" of Sectio 2J a' the la"t t0o &aragra&h" of Sectio +C of
the .e0 Cetral Ba% Act/ Provided, That thi" Sectio "hall al"o a&&ly to co"er#ator"hi&
&rocee'ig" of *)a"i-$a%".
PGro)'" for a&&oit(et of co"er#ator
<hee#er, o the $a"i" of a re&ort ")$(itte' $y the a&&ro&riate ")&er#i"ig or e2a(iig
'e&art(et, the 8oetary Boar' fi'" that a $a% or *)a"i-$a% i" i a "tate of/
,. coti)ig ia$ility, or
2. )0illige"" to (aitai a co'itio of li*)i'ity 'ee(e' a'e*)ate to &rotect the
itere"t" of 'e&o"itor" a' cre'itor",
the 8oetary Boar' (ay a&&oit a co"er#ator 0ith ")ch &o0er" a" the 8oetary Boar' "hall
'ee( ece""ary to/
,. ta%e charge of the a""et", lia$ilitie", a' the (aage(et thereof,
2. reorgai!e the (aage(et,
+. collect all (oie" a' 'e$t" ')e "ai' i"tit)tio", a'
:. e2erci"e all &o0er" ece""ary to re"tore it" #ia$ility.
The co"er#ator "hall re&ort a' $e re"&o"i$le to the 8oetary Boar' a' "hall ha#e the
&o0er to o#err)le or re#o%e the actio" of the &re#io)" (aage(et a' $oar' of 'irector" of
the $a% or *)a"i-$a%.
PLi*)i'ity 1 the a$ility of a a""et to $e co#erte' ito ca"h *)ic%ly a' 0itho)t ay &rice
'i"co)t
PSol#ecy 1 the co'itio that e2i"t" 0he lia$ilitie" a(o)t to le"" tha total a""et", th)"
&ro#i'ig the a$ility to &ay 'e$t"
PG)alificatio" of co"er#ator/
,. co(&etet
2. %o0le'gea$le i $a% o&eratio" a' (aage(et
PPerio' of co"er#ator"hi& 1 "hall ot e2cee' , year
PTer(iatio of co"er#ator"hi&/
,. The 8oetary Boar' "hall ter(iate the co"er#ator"hi& 0he it i" "ati"fie' that the
i"tit)tio ca coti)e to o&erate o it" o0 a' the co"er#ator"hi& i" o loger
ece""ary.
2. It "ho)l' li%e0i"e $e ter(iate' "ho)l' the 8oetary Boar', o the $a"i" of the re&ort
of the co"er#ator or of it" o0 fi'ig", 'eter(ie that the coti)ace i $)"ie"" of
the i"tit)tio 0o)l' i#ol#e &ro$a$le lo"" to it" 'e&o"itor" or cre'itor", i 0hich ca"e
the &ro#i"io" o recei#er"hi& a' li*)i'atio "hall a&&ly.
PPo0er" of co"er#ator caot i(&air the o$ligatio" of cotract" 1 the la0 (erely gi#e" hi( the
&o0er to re#o%e cotract" that are, )'er e2i"tig la0, 'ee(e' to $e 'efecti#e.
Sec. KH. 0oluntary !i(uidation. 1 I ca"e of #ol)tary li*)i'atio of ay $a% orgai!e' )'er
the la0" of the Phili&&ie", or of ay $rach or office i the Phili&&ie" of a foreig $a%, 0ritte
otice of ")ch li*)i'atio "hall $e "et to the 8oetary Boar' $efore ")ch li*)i'atio "hall $e
"et to the 8oetary Boar' $efore ")ch li*)i'atio i" )'erta%e, a' the 8oetary Boar' "hall
ha#e the right to iter#ee a' ta%e ")ch "te&" a" (ay $e ece""ary to &rotect the itere"t" of
cre'itor".
(ay $e )'erta%e $y the $a% it"elf thro)gh it" $oar' of 'irector", $y a tr)"tee a&&oite' $y
the $a%, or $y a recei#er a&&oite' $y the $a%
o #ol)tary 'i""ol)tio "hall $e )'erta%e $y a $a% 0itho)t &rior a&&ro#al of the 8oetary
Boar', provided further, that it "hall $e acco(&aie' $y a li*)i'atio &la a' 0ritte otice
PGro)'" for recei#er"hi& a' li*)i'atio/
The $a% or *)a"i-$a%/
,. i" )a$le to &ay it" lia$ilitie" a" they $eco(e ')e i the or'iary co)r"e of $)"ie""
2. ha" i")fficiet reali!a$le a""et", a" 'eter(ie' $y the Bag%o Setral, to (eet it"
lia$ilitie"
+. caot coti)e i $)"ie"" 0itho)t i#ol#ig &ro$a$le lo""e" to it" 'e&o"itor" or
cre'itor"
:. ha" 0illf)lly #iolate' a cea"e-a'-'e"i"t or'er that ha" $eco(e fial, i#ol#ig act" or
tra"actio" 0hich a(o)t to fra)' or a 'i""i&atio of the a""et" of the i"tit)tio
PPo0er" of a recei#er/
a. to $rig a' 'efe', i ")ch ca&acity, actio" i hi" o0 a(e
$. to ta%e a' %ee& &o""e""io of the &ro&erty i cotro#er"y
c. to recei#e ret"
'. to collect 'e$t" ')e to hi("elf a" recei#er or to the f)', &ro&erty, e"tate, &er"o, or
cor&oratio of 0hich he i" the recei#er
e. to co(&o)' for a' co(&ro(i"e the "a(e
f. to (a%e tra"fer"
g. to &ay o)t"ta'ig 'e$t"
h. to 'i#i'e the (oey a' other &ro&erty that "hall re(ai a(og the &er"o" legally
etitle' to recei#e the "a(e
i. geerally to 'o ")ch act" re"&ectig the &ro&erty a" the co)rt (ay a)thori!e
PProhi$ite' act"/
Ay 'irector or officer of a $a% 'eclare' i"ol#et or &lace' )'er recei#er"hi& $y the
8oetary Boar' "hall ot co((it ay of the ff/
a. ref)"ig to t)r o#er the $a%6" recor'" a' a""et" to the 'e"igate' recei#er
$. ta(&erig 0ith $a% recor'"
c. a&&ro&riatig for hi("elf or aother &arty, or 'e"troyig or ca)"ig (i"a&&ro&riatio
a' 'e"tr)ctio of the $a%6" a""et"
'. recei#ig or &er(ittig or ca)"ig to $e recei#e' i "ai' $a% ay 'e&o"it, collectio of
loa", a'For recei#a$le"
e. &ayig o)t or &er(ittig or ca)"ig to $e &ai' o)t ay f)'" of "ai' $a%
f. tra"ferrig or &er(ittig or ca)"ig to $e tra"ferre' ay "ec)ritie" or &ro&erty of "ai'
$a%
P5Clo"e o0 hear later5 "che(e 1 the la0 'oe" ot cote(&late &rior otice a' hearig $efore
a $a% (ay $e 'irecte' to "to& o&eratio" a' &lace' )'er recei#er"hi&. Thi" i" to &re#et
)0arrate' 'i""i&atio of the $a%6" a""et" a' i" a #ali' e2erci"e of &olice &o0er to &rotect
the cre'itor", 'e&o"itor", "toc%hol'er", a' the geeral &)$lic. A hearig (ay $e ")$"e*)et to
the clo")re.
PEffect" of recei#er"hi& a' li*)i'atio/
,. retetio of A)ri'ical &er"oality
2. ot lia$le to &ay itere"t
+. a""et" are 'ee(e' )'er c)"to'ia legi"
:. "tay of e2ec)tio of A)'g(et
B. re"trictio of $a%6" ca&acity to act
K. e2cl)"i#e A)ri"'ictio of li*)i'atio co)rt
Sec. ;C. Penalty for )ransactions After a ank ecomes +nsolvent. 1 Ay 'irector or officer of
ay $a% 'eclare' i"ol#et or &lace' )'er recei#er"hi& $y the 8oetary Boar' 0ho ref)"e" to
t)r o#er the $a%6" recor'" a' a""et" to the 'e"igate' recei#er", or 0ho ta(&er" 0ith $a%"
recor'", or 0ho a&&ro&riate" for hi("elf for aother &arty or 'e"troy" or ca)"e" the
(i"a&&ro&riatio a' 'e"tr)ctio of the $a%6" a""et", or 0ho recei#e" or &er(it" or ca)"e" to
$e recei#e' i "ai' $a% ay 'e&o"it, collectio of loa" a'For recei#a$le", or 0ho &ay" o)t or
&er(it" or ca)"e" to $e tra"ferre' ay "ec)ritie" or &ro&erty of "ai' $a% "hall $e ")$Aect to the
&eal &ro#i"io" of the .e0 Cetral Ba% Act.
PPPro$le("PP
The co"er#ator of B $a% re#o%e' a cotract &re#io)"ly etere' ito $y the $a% o
the gro)' that the la'" ")$Aect of "ai' cotract &re"etly co((a'e' a ()ch higher &rice
tha 0he it 0a" "ol'. I" the re#ocatio #ali'Q
.o. Po0er of co"er#ator caot i(&air the o$ligatio" of cotract". A cotract of "ale
etere' ito $y a $a% caot $e re#o%e' if at the ti(e of the tra"actio, the &rice agree' )&o
0a" rea"oa$le.
A $)yer offere' to $)y the &ro&erty of a $a% 0hich the latter acce&te'. =o0e#er, the
$a% $eca(e i"ol#et $efore the $)yer leare' of the acce&tace. <a" there a &erfecte'
cotractQ
.oe. The acce&te' offer $eca(e ieffecti#e 0he the $a% $eca(e i"ol#et $efore the
$a%6" acce&tace of "ai' offer ca(e to the offeror6" %o0le'ge.
C 'e&o"ite' (oey 0ith 7 $a%. Before "ai' 'e&o"it" co)l' $e 0ith'ra0, the BSP
&a""e' a re"ol)tio ")"&e'ig the $a%6" o&eratio". The SC, ho0#er, a)lle' "ai'
re"ol)tio, for 0hich rea"o 7 $a% i" rea'y to acce&t it" lia$ility for the &ay(et to C of the
$alace of the &rici&al a(o)t 'e&o"ite' 0ith it. I" 7 $a% lia$le for itere"t thereo ')rig the
&erio' it 0a" clo"e'Q
.o. <hat ea$le" a $a% to &ay "ti&)late' itere"t o (oey 'e&o"ite' 0ith it i" that thr) the
other a"&ect" of it" o&eratio, it i" a$le to geerate f)'" to co#er the &ay(et of ")ch itere"t.
If it i" clo"e', it caot geerate ")ch f)'", hece it caot &ay the itere"t.
C#a'ter 3! =oreign Banks and Tr(st *'erations
". =oreign Banks D etry to Phil". thr) e"ta$li"h(et" of $rache" go#ere' $y 3oreig Ba%
Li$era!atio Act.
*$$s#ore Banking D go#ere' $y 7ff"hore Ba%ig Sy"te( Decree
- co')ct of $a%ig tra"actio" i foreig c)rrecy i#ol#ig recei&t of f)'"
fro( e2teral "o)rce" a' it" )tili!atio.
*$$s#ore banking (nit D $rach, ")$"i'iary, affiliate of a foreig $a%ig cor&oratio a)thori!e'
to tra"act off"hore $a%ig $)"ie"" i Phil.
-otes! Cor'oration Code
1ec. 1AA. Doing b(siness wit#o(t a license 1 foreig cor&oratio tra"actig $)"ie"" i Phil.
(ay (aitai or iter#ee i ay actio, ")it or &rocee'ig i ay co)rt or a'(. Agecy Phil
$)t caot ")e $efore Phil. co)rt" tho)gh o ay #ali' ca)"e.
- If 40itho)t lice"e5,o acce"" to o)r co)rt" a' caot tra"act $)"ie"" i Phil.
- By "ec)rig a lice"e, a foreig etity 0o)l' $e gi#ig a"")race that it 0ll a$i'e
$y the 'eci"io" of o)r co)rt", e#e if a'#er"e to it.
- Pri(ary &)r&o"e of Stat)te/ to co(&el foreig cor&. if it 'e"ire" to 'o $)"ie""
here, to ")$(it it"elf to the A)ri"'ictio of co)rt" of the Phil".
Co"i"tet 0ith Cor&oratio Co'eR..
1ec. 194. Resident agentE ser.ice o$ 'rocess!
- SEC "hall re*)ire foreig $a% to file 0ith SEC a 0ritte &o0er of atty.
'e"igatig a re"i'et of the Phil. 0ho( ")((o" ()"t $e "er#e', $efore it
i"")e" a lice"e for it to tra"act $)"ie"" i Phil.
- 3oreig $a% "hall e2ec)te a' file 0ith SEC a agree(et.
- If ")((o" $e (a'e 0ith SEC, latter "hall tra"(it it $y (ail to the hea' office of
")ch $a%, 0ithi ,C 'ay".
- I ca"e of chage of a''re"" of re"i'et aget, "hall otify SEC i 0ritig.
AcF(isition o$ ?oting 1tock in a Domestic Bank!
,. <thi ; yr" fro( effecti#itiy of GBL, 8B (ay a)thori!e foreig $a% to ac*)ire )& to
,CCO of #otig "toc% of 7.LD oe $a% orgai!e' )'er la0" of RP.
2. <ithi "a(e &erio', 8B (ay a)thori!e tho"e foreig $a% 0hich &rior to effecti#ity of
GBL a#aile' it"elf of KCO of #otig "toc% of a $a% )'er 3BLA a' Thrift Ba%" Act,
to f)rther ac*)ire #otig "hare" to e2tet ece""ary for it to o0 )& to ,CCO.
+. 8B "hall a'o&t (ea")re" to the cotrol of ;CO of re"o)rce" a' a""et" of etire
$a%ig "y"te( i" hel' $y $a%" 0hich are (aAority o0e' $y 3ili&io".
:. Ay right or iceti#e grate' to foreig $a% "hall $e e*)ally eAoye' $y $a%"
orgai!e' )'er la0" of RP.
-*TE1!
- all $rache" of foreig $a% "hall $e treate' a" oe )it for &)r&o"e of GBLI a'
all referece to Phil. $rache" of foreig $a%" "hall $e hel' to refer to ")ch )it.
- To &rotect itere"t" of 'e&o"itor" a' cre'itor" of Phil. $rache" of 3B, their hea'
office "hall f)lly g)aratee &ro(&t &ay(et of all lia$ilitie" of it" Phil. $rach.
- Re"i'et" a' citi!e" of the Phil. 0ho are cre'itor" "hall ha#e &referetial right"
to a""et" of ")ch $rach.
1(mmons and Legal Process!
If "er#e' o aget or hea' of foreig $a%,
- o)r co)rt" ac*)ire" A)ri"'ictio o#er ")ch $a%.
- $i'" the $a% 0hich it re&re"et".
If a)thority of aget or hea' re#o%e'I or he $eca(e (etally ico(&etet,
- $a% "hall 'e"igate a e0 oe.
- 3ile 0ith SEC a ')ly a)theticate' o(iatio of ")ch aget.
I a$"ece of aget or hea'I or o &er"o a)thori!e' ,
- ")((o" a' legal &roce"" a' otice" $e (a'e )&o Bag%o Setral De&)ty
Go#eror I-Charge of the ")&er#i"ig a' e2a(iig 'e&art(et". The latter
)&o recei&t, "hall tra"(it $y (ail to &re"i'et or "ecretary of $a% at it" hea'
or &rici&al office a ')ly certifie' co&y.
- Se'ig of co&y i" ece""ary &art of "er#ice" a' "hall co(&lete "er#ice.
- Regi"try recei&t i" &ri(a facie e#i'ece of tra"(i""io.
- All co"t" ic)rre' i tra"(i""io "hall $e &ai' i a'#ace $y the &arty 0ho"e
i"tace the "er#ice i" (a'e.
Re.ocation o$ license o$ =oreign Bank!
- By 8oetay Boar'.
- If i"ol#et, i i((iet 'ager, or it" coti)ace 0ill i#ol#e &ro$a$le lo"" to
tho"e it tra"act" $)"ie"" 0ith.
- After re#ocatio, it caot tra"act $)"ie"" )le"" lice"e i" ree0e' or
rei"")e'.
- After re#ocatio. BSP "hall ta%e actio to &rotect cre'itor" a' &)$lic.
- .e0 Cetral Ba% Act &ro#i'e" the "actio a' &ealtie".
"". Liberalized Entr/ o$ =oreign Banks!
P(r'ose!
,. to create (ore co(&etiti#e e#iro(et.
2. to eco)rage greater foreig &artici&atio
Policies!
,. 'e#elo& "elf-reliat ecoo(y cotrolle' $y 3ili&io".
2. &ro(ote a co(&etiti#e a' "ta$le $a%ig "y"te(
+. &ro#i'e a 0i'er #ariety of fiacial "er#ice"
:. ehace co(&etiti#ee"" i iteratioal (ar%et to &ro(ote i')"triali!atio.
8odes o$ Entr/!
a. ac*)irig )& to KCO of #otig "toc%" of a e2i"tig $a%
$. i#e"tig )& to KCO of #otig "toc%" of e0 $a%ig ")$"i'iary icor&orate' )'er
Phil. la0".
c. E"ta$li"hig $rache" 0ith f)ll $a%ig a)thority.
- 3B (ay a#ail oly , (o'e
- 7ly tho"e icl)'e' i to& ,BC 3B i the 0orl' or to& B $a%" i their co)try of
origi allo0e' to (o'e ($) a' (c).
- To e"ta$li"h a $rach or ")$"i'iary, it ()"t $e 0i'ely-o0e' a' &)$licly li"te' i
it" co)try of origi, )le"" o0e' $y go#t. of it" co)try.
- 3B "hall $e allo0e' etry )'er +r' (o'e 0ithi B yr". 3ro( effecti#ity of RA
;;2,. K 3B (ay $e allo0e' $y 8B.
- A''itioal : (ay $e allo0e' o reco((e'atio $y 8B a' a&&ro#al of
Pre"i'et.
- 3B (ay o&e + $rache" i locatio of their choice, + $rache" i locatio"
'e"igate' $y 8B to i")re $alace' ecoo(ic 'e#elo&(et i all regio".
:(idance $or A''ro.al! 8B s#all
,. e")re geogra&hic re&re"etatio.
2. co"i'er "trategic tra'e a' i#e"t(et relatio"hi& $et0ee Phil. a' co)try of 3B.
+. "t)'y ca&acity, glo$al re&)tatio a' "ta$ility i co(&etiti#e e#iro(et of a&&licat.
:. e")re reci&rocity right" are eAoye' $y Phil $a%" i a&&licat6" co)try.
B. co"i'er 0illige"" to f)lly "hare their techology.
Ado'tion o$ meas(res! 8B ado't t#ose w#ic#
,. e")re" that ;CO of re"o)rce" a' a""et" i" hel' $y 'o(e"tic $a% (aAority o0e'
$y 3ili&io"
2. &re#et" 'o(iat (ar%et &o"itio $y oe $a%
+. "ec)re" the li"tig i SEC of "hare" of "toc%"
Ca'ital ReF(irements!
,. Locally Icor&orate' S)$"i'iarie"
- (ii()( ca&ital e*)al to that &re"cri$e' $y 8B for 'o(e"tic $a%" of "a(e
category.
2. 3oreig Ba% Brache" (etry )'er the +
r'
(o'e)
- ot le"" tha 9S 'ollar e*)al to P2,C,CCC,CCC a' "hall $e etitle' to + $rache"
o ca&ital "hall icl)'e tho"e &er(aetly a""ige' &l)" et ')e to hea'
office o)t"i'e the Phili&&ie", ,BO of 0hich "hall $e i0ar'ly re(itte'
a' co#erte' ito Phili&&ie c)rrecy, &ro#i'e' that a(o)t" i#e"te'
i &ro')cti#e or e2&ort acti#itie" "hall ot $e ")$Aect to co#er"io.
Establis#ment o$ Additional Branc#es
,. 3B ca o&e three a''itioal $rache" $y i0ar'ly re(ittig a' co#ertig ito
Phili&&ie c)rrecy a" &er(aetly a""ige' ca&ital, P+B 8illio &er a''itioal
$rach.
Head *$$ice :(arantee- "hall g)aratee &ro(&t &ay(et of all lia$ilitie" of it" Phili&&ie
$rache"
Boar' of Director"- alie" (ay $eco(e (e($er" of the Boar' of a $a% to the e2tet of the
foreig &artici&atio i the e*)ity of "ai' $a%.
E*)al treat(et- foreig $a%" "hall al"o $e ")$Aect to li(itatio" i(&o"e' )&o a Phili&&ie
$a% ")ch a" the SBL, ca&ital to ri"% a""et ratio, 'e#elo&(et loa" iceti#e" etc.
Tr(st *'erations
". A(t#orit/ to engage
- oly a "toc% cor&oratio or a &er"o ')ly a)thori!e' $y the 8B "hall act a" a
tr)"tee
- the car'ial &rici&le i" fi'elity
- )rust business- refers to any activity resulting from a trustor-trustee relationship
involving the appointment of a trustee for the administration of funds and/or
properties of the trustor for the benefit of the latter.
"". Cond(ct o$ Tr(st b(siness
- A'(ii"ter 0ith 'iligece that a &r)'et (a 0o)l' e2erci"e i the co')ct of a
eter&ri"e
- .o tra"actio 0ithi the "a(e tr)"t etity 0ill $e allo0e' e2ce&t 0he the
tra"actio i" a)thori!e' $y the tr)"tor a' the relatio"hi& of the tr)"tee a' the
other &arty i#ol#e' i" f)lly 'i"clo"e'
""". Registration o$ Articles o$ incor'oration and b/-laws
- The SEC "hall ot regi"ter the "a(e or ay a(e'(et thereto, )le""
acco(&aie' $y a certificate of a)thority i"")e' $y the BSP
"?. 8inim(m Ca'ital- tr)"t etity "hall co(&ly 0ith the (ii()( &ai'-i ca&ital re*)ire(et"
0hich 0ill $e 'eter(ie' $y the 8B.
?. Powers o$ a tr(st entit/!
- Po0er" ici'et to a cor&oratio
- Act a" tr)"tee o ay (ortgage or $o' i"")e' $y ay $o'y &olitic a' to acce&t
a' e2ec)te at tr)"t co"i"tet 0ith la0
- Act a" a a'(ii"trator of a (ior or ico(&etet )&o the or'er of a co)rt
- Act a" the e2ec)tor of ay 0ill if a(e' a" the e2ec)tor
- Act a" the a'(ii"trator of ay 'ecea"e' &er"o
- Acce&t a' e2ec)te a' tr)"t for the hol'ig a' a'(ii"tratio of ay e"tate
icl)'ig the ret" a' &rofit" thereof
- E"ta$li"h a' (aage co((o tr)"t f)'"
?". Transactions reF(iring 'rior a(t#orit/
- Le', "ell, tra"fer or a""ig (oey or &ro&erty to tho"e relate' to the tr)"tee
- P)rcha"e or ac*)ire &ro&erty or 'e$t i"tr)(et" to tho"e relate' to the tr)"tee
- I#e"t i e*)itie" I 0hich the tr)"tee o0" BCO of the ca&ital
- Sell tra"fer a""ig or le' fro( oe tr)"t acco)t to aother
?"". De'osit $or $ait#$(l 'er$ormance o$ tr(st d(ties
- Before tra"actig ay $)"ie"", there "hall $e a 'e&o"it (a'e 0ith the BSP
ca"h or "ec)ritie" a&&ro#e' $y the 8B a a(o)t ot le"" that PBCC,CCC
- Thi" 'e&o"it ca $e icrea"e' $y the 8B 0hee#er it i" ece""ary
- The &ai'-i ca&ital a' ")r&l)" of the etity "ho)l' $e at lea"t e*)al to the
a(o)t re*)ire' to $e 'e&o"ite'
- A tr)"t etity ha" the right to collect the itere"t eare' o ")ch 'e&o"it
- All clai(" ari"ig o)t of the tr)"t $)"ie"" "hall ha#e &riority o#er all other clai("
a" regar'" the 'e&o"it".
Bond o$ certain 'erson reF(ired $or t#e $ait#$(l 'er$ormance o$ d(ties
I. Re*)ire(et"
a. Tho"e a&&oite' $y the co)rt "hall file a $o' i ")ch ")( a" the co)rt (ay
re*)ire
$. 9&o a&&licatio i the co)rt, the ")$Aect (atter of the tr)"t or ay &art
thereof $e 'e&o"ite' 0ith a tr)"t etity
c. 9&o &re"etatio of a &roof that the ")$Aect (atter ha" $ee 'e&o"ite'
0ith a tr)"t etity, the co)rt (ay or'er re')ctio i the a(o)t of the $o'
gi#e
'. The re')ce' $o' "hall $e a'e*)ate to "ec)re the &ro&er a'(ii"tratio of
the &ro&erty
II. E2e(&tio fro( Bo' Re*)ire(et
a. Tr)"t etitie" re*)ire' $y the co)rt to $e a a'(ii"trator, etc are ot
re*)ire' to gi#e a $o'
*'erations o$ Tr(st Entit/
". 1e'aration o$ Tr(st B(siness $rom :eneral B(siness
- Shall $e %e&t &hy"ically "e&arate' a' 'i"tict fro( the acco)t" of the geeral
$)"ie"" of the tr)"t etity
"". "n.estment limitations o$ a tr(st entit/
- Li(ite' to tho"e loa" or i#e"t(et" &re"cri$e' $y la0, 8B or ay co)rt of
co(&etet A)ri"'ictio, )le"" 'irecte' $y the i"tr)(et creatig the tr)"t
""". Real Estate acF(ired b/ a tr(st entit/
- 9le"" other0i"e 'irecte' $y the tr)"tor or the at)re of the tr)"t, real e"tate
ac*)ire' $y the tr)"t etity "hall $e ac*)ire', hol', or co#eye' )'er the ff
circ)("tace"/
o 8ortgage' to it i goo' faith $y 0ay of "ec)rity for 'e$t"
o Co#eye' to it i "ati"factio of 'e$t" &re#io)"ly cotracte'
o P)rcha"e' at "ale" )'er A)'g(et", 'ecree", (ortgage", or tr)"t 'ee'"
- The"e &ro&ertie" "hall $e co#eye' 0ithi B year"
- =o0e#er, it (ay coti)e to hol' it $eyo' the &erio' 0he/
o It "hall ot e2cee' BCO of the co($ie' ca&ital acco)t" of the etity
o The i#e"t(et of a $a% i aother cor&oratio egage' i real e"tate
"hall $e co"i'ere' a" &art of the total i#e"t(et
"?. "n.estment in non-tr(st $(nds
$. Shall $e go#ere' $y the GBL a other a&&lica$le la0"
?. 1anctions and Penalties- tho"e 0ho #iolate the &ertiet &ro#i"io" of the GBL "hall $e
")$Aect to "actio" a' &ealtie"
@I. E2e(&tio of Tr)"t A""et" fro( clai("
Tho"e a""et" hel' $y a tr)"t etity "hall ot $e ")$Aect to ay clai(" other tho"e of the
&artie" itere"te' i the tr)"t"
@I. E"ta$li"h(et of Brache"
Shall $e i the &lace of $)"ie"" "tate' i the article" of icor&oratio
A''itioal $rache" ca $e e"ta$li"he' 0ith the a&&ro#al of the 8B
The tr)"t etity a' it" $rache" "ho)l' $e co"i'ere' a" oe )it
@II. A'#erti"e(et of Ser#ice"
I a 'igifie' (aer
Rea'y a' 0illig to gi#e f)ll 'i"clo")re of "er#ice" $eig offere'
Co')ct it" 'ealig" 0ith tra"&arecy
@III. 8oey of Go#er(et
Ba%" (ay ot recei#e or hol' a" tr)"tee ay (oey fro( the go#er(et
o E2ce&t/ go#er(et-o0e' $a%" 0ith re"&ect to the ff/
3)'" of LG9" for log ter( i#e"t(et" i "ec)ritie" a' other
e#i'ece" g)aratee' $y the atioal go#er(et.
3)'" of the go#er(et 0hich are a)thori!e' $y "&ecial la0" to
$e &lace' i tr)"t
C#a'ter 2
T#e Bangko 1entral ng Pili'inas
I. Creatio, Re"&o"i$ilitie" a' cor&orate Po0er" of the Ba%o Setral
A. Declare' Policy of the "tate
The State "hall (aitai a cetral (oetary a)thority that "hall f)ctio a'
o&erate a" a i'e&e'et a' acco)ta$le $o'y cor&orate i the
'i"charge of it" (a'ate' re"&o"i$ilitie" cocerig (oey, $a%ig a'
cre'it. I lie 0ith thi" &olicy, a' co"i'erig it" )i*)e f)ctio" a'
re"&o"i$ilitie", the cetral (oetary a)thority e"ta$li"he' )'er the .CBA,
0hile $eig a go#er(et o0e' cor&oratio, "hall eAoy fi"cal a'
a'(ii"trati#e a)too(y. (Sectio ,, .CBA)
B. Creatio of the $ag%o Setral g Pili&ia"
Sectio 2 N : of .CBA/
SECTI7. 2 #reation of the angko Sentral. 1 There i" here$y e"ta$li"he'
a i'e&e'et cetral (oetary a)thority, 0hich "hall $e a $o'y cor&orate
%o0 a" the Bag%o SEtral g Pili&ia".
The ca&ital of the Bag%o Setral "hall $e 3ifty Billio Pe"o", to $e f)lly
")$"cri$e' $y the Go#er(et of the Re&)$lic,
Te Billio of 0hich "hall $e f)lly &ai' for $y the go#er(et )&o effecti#ity
of thi" act
I ")ch (aer a' for( a" the Go#er(et, thro)gh the Secretary of
3iace a' the Secretary of B)'get a' 8aage(et, (ay thereafter
'eter(ie.
SECTI7. : Place of B)"ie"". 1 The Bag%o SEtral "hall ha#e it"
&rici&al &lace of $)"ie"" i 8etro 8aila, $)t (ay (aitai $rache",
agecie" a' corre"&o'et" i ")ch other &lace" a" the &ro&er co')ct of
it" $)"ie"" (ay re*)ire.
8a'ate $y the Co"tit)tio/
The Cogre"" "hall e"ta$li"h a i'e&e'et cetral (oetary a)thority, the
(e($er" of 0ho"e go#erig $oar' ()"t $e at)ral-$or 3ili&io citi!e",
of %o0 &ro$ity, itegrity, a' &atrioti"(, the (aAority of 0ho( "hall co(e
fro( the &ri#ate "ector. They "hall al"o $e ")$Aect to ")ch other
*)alificatio" a' 'i"a$ilitie" a" (ay $e &re"cri$e' $y la0. The a)thority
"hall &ro#i'e &olicy 'irectio i the area" of (oey, $a%ig, a' cre'it. It
"hall ha#e ")&er#i"io o#er the o&eratio" of $a%" a' e2erci"e ")ch
reg)latory &o0er" a" (ay $e &ro#i'e' $y la0 o#er the o&eratio" of fiace
co(&aie" a' other i"tit)tio" &erfor(ig "i(ilar f)ctio".
9til the cogre"" other0i"e &ro#i'e", the Cetral $a% of the Phili&&ie"
o&eratig )'er e2i"tig la0", "hall f)ctio a" the cetral (oetary
a)thority.
C. Re"&o"i$ility a' Pri(ary 7$Aecti#e" of the $ag%o Setral
,. Re"&o"i$ility of BSP - &ro#i'e &olicy 'irectio" i the area" of (oey,
$a%ig, a' cre'it.
2. It "hall ha#e ")&er#i"io o#er o&eratio" of $a%".
+. It "hall al"o e2erci"e reg)latory &o0er" o#er the o&eratio" of fiace
co(&aie" a' o-$a% fiacial i"tit)tio" &erfor(ig *)a"i-$a%ig
f)ctio", a' i"tit)tio" &erfor(ig "i(ilar f)ctio".
:. Pri(ary o$Aecti#e of BSP 1 (aitai &rice "ta$ility co')ci#e to a $alace'
a' ")"taia$le gro0th i the ecoo(y.
B. It "hall al"o &ro(ote a' (aitai (oetary "ta$ility a' the co#erti$ility of
the &e"o.
D. Cor&orate Po0er" of the Bg%o Setral
,. A'o&t, alter a' )"e a cor&orate "eal
2. Eter ito cotract"
+. Lea"e or o0 real a' &er"oal &ro&erty, a' to 'i"&o"e of the "a(e
:. S)e a' $e ")e'
B. Perfor( all thig" ece""ary to carry o)t the &)r&o"e" of the .CBA
K. Ac*)ire a' hol' a""et" a' ic)r lia$ilitie" i coectio 0ith it" o&eratio
a" a)thori!e' $y the .CBA, or a " e""etial to the &ro&er co')ct of ")ch
o&eratio"
;. Co(&ro(i"e, co'oe, or relea"e ay clai( of or "ettle' lia$ility to the
Bag%o Setral , regar'le"" of the a(o)t i#ol#e', )'er ")ch ter(" a'
co'itio" a" (ay$e &re"cri$e' $y the (oetary $oar'.
E. Po0er to Pro"ec)te
BSP ha" o &o0er to &ro"ec)teI it i" a go#er(et cor&oratio create'
&rici&ally to a'(ii"ter the (oetary a' $a%ig Sy"te( of the
Phili&&ie" a' ot a &ro"ec)tio a)thority li%e the fi"cal6" office. B)t BSP
a' it" official" ha#e the ')ty to ca)"e the &ro"ec)tio of tho"e 0ho #iolate
the $a%ig la0".
BSP i" a artificial &er"o li(ite' to it" "tat)tory &o0er". The clo"e"t it ca
get to &ro"ec)tig i" it" &o0er to ")e a' $e ")e' (ci#il ca"e" oly).
Pro"ec)tio of #iolatio of $a%ig la0" i" ot e2cl)"i#e to BSP, ayoe ca
'eo)ce thi" to ay &ro"ec)tig a)thority $eca)"e "ai' #iolatio"
co"tit)te a &)$lic offe"e a' i" a (atter of &)$lic itere"t.
3. E"to&&el
BSP i" co((itte' to (aitai the "ta$ility of the co)try6" foreig e2chage
re"er#e &o"itio. 9'erlyig thi" co((it(et ho0e#er i" the go#er(et6"
"trict a' faithf)l a'herece to $a"ic &rici&le" of faire"" a' 'ececy
)'er the Bill of Right". =ece BSP circ)lar"F (e(ora'a ()"t $e
i(&le(ete' i a (aer that 0o)l' ot oly "afeg)ar' or har(oi!e the(
0ith go#er(et &rogra(" 'e"ige' to )&lift or &ro(ote the co)try6" le#el
of &ro')ctio a' e(&loy(et, $)t at the "a(e ti(e a#oi' irre&ara$le or
gra#e &reA)'ice to &artici&at" of "ai' &rogra(.
Th)" i ca"e $a%" or $a%ig i"tit)tio" alrea'y faithf)lly co(&lie' 0ith
BASP6" 'irecti#e", BSP i" "to&&e' fro( eforcig circ)lar" that 0o)l' 'ey
$a%" or $a%ig i"tit)tio" of their right".
II. A)thority of the Bag%o Setral
A. S)&er#i"ory Po0er" of the $ag%o Setral
S)&er#i"ory &o0er" icl)'e the follo0ig/
I. I"")ace of r)le" of co')ct or the e"ta$li"h(et of "ta'ar'" of
o&eratio for )ifor( a&&licatio to all i"tit)tio" a' f)ctio"
co#ere'.
II. Co')ct of e2a(iatio to 'eter(ie co(&liace 0ith the la0" a'
reg)latio" if the circ)("tace" "o 0arrat a' 'eter(ie' $y the
(oetary $oar'.
III. 7#er"eeig to a"certai that la0" are co(&lie' 0ith.
I@. Reg)lar i#e"tigatio 0hich "hall ot $e ofteer tha oce a year
@. I*)iry ito the "ol#ecy a' li*)i'ity of the i"tit)tio
@I. Eforcig &ro(&t correcti#e actio.
B. Pha"e o)t of Bag%o Setral Po0er" 7#er B)il'ig Loa a' A""ociatio
<ithi + year" for( effecti#ity of GBl, the BSP "hall &ha"e o)t a' tra"fer
it" ")&er#i"ig a' reg)latory &o0er" o#er $)il'ig a' loa a""ociatio" to
the =o(e I")race a' G)aratee Cor&oratio.
C. Policy DirectioI Ratio", Ceilig" a' Li(itatio"
BSP "hall &ro#i'e &olicy 'irectio i the area" of 8oey, Ba%ig a' Cre'it
8oetary Boar' (ay &re"cri$e ratio", ceilig", a' li(itatio" or other for("
of reg)latio o the 'ifferet ty&e" of acco)t" a' &ractice" of $a%" a'
*)a"i-$a%" 0hich "hall cofor( to iteratioally acce&te' "ta'ar'",
icl)'ig tho"e of the Ba% of Iteratioal Settle(et".
8oetary Boar' (ay e2e(&t &artic)lar categorie" of tra"actio" fro( ")ch
ratio", ceilig" a' li(itatio", $)t ot li(ite' to e2ce&tioal ca"e" or to
ea$le a $a% or *)a"i-$a% )'er reha$ilitatio or ')rig a (erger or
co"oli'atio to coti)e $)"ie"" 0ith "afety to it" cre'itor", 'e&o"itor"
a' the geeral &)$lic.
III. The 8oetary Boar'
The &o0er" a' f)ctio" of the $ag%o Setral (ay $e e2erci"e' $y the
BAg%o SEtral 8oetary Boar'.
A. Co(&o"itio
Co(&o"e' of ; (e($er" a&&oite' $y the &re"i'et of the Phili&&ie" for a
ter( of K year". The (e($er" are/
Go#eror
o Chair(a of the (oetary $oar'
o A&&oit(et ")$Aect to cofir(atio of the Co((i""io o
A&&oit(et"
o If go#eror caot atte' a (eetig of the $oar', he "hall
'e"igate a De&)ty Go#eror to act a" hi" alterate. I ")ch
e#et, the 8oetary Boar' "hall 'e"igate oe of it" (e($er" a"
actig chair(a.
A (e($er of the ca$iet to $e 'e"igate' $y the Pre"i'et.
o <hee#er ")ch ca$iet caot atte' a (eetig of the $oar', he
"hall 'e"igate a 9'er"ecretary i hi" 'e&art(et to atte' a"
hi" alterate.
B (e($er" "hall co(e fro( the &ri#ate "ector, all of 0ho( "hall "er#e f)ll-
ti(e.
o 7f the (e($er" fir"t a&&oite', + "hall ha#e a ter( of K year"
a' the other 2, + year".
B. @acacie"
Ca)"e of #acacy/ 'eath, re"igatio, re(o#al
A e0 (e($er "hall $e a&&oite' 0ho "hall "er#e the )e2&ire' ter( of the
(e($er cocere'.

C. G)alificatio" of the 8e($er" of the (oetary Boar'
i. .at)ral $or citi!e
ii. +B yr" ol'I chair(a :Cyr" ol'
iii. Goo' (oral character
iv. >o0 &ro$ity a' &atrioti"(
v. 9*)e"tioa$le itegrity
vi. Recogi!e' co(&etece i "ocial a' ecoo(ic 'i"ci&lie".
D. Di"*)alificatio" of 8oetary $oar' 8e($er"
i. Di"*)alificatio" i(&o"e' $y RA K;,+
(A act e"ta$li"hig a co'e of co')ct a' ethical "ta'ar'" for &)$lic
official" a' e(&loyee")
ii. Beig a 'irector, officer, e(&loyee, co")ltat, la0yer., aget,
"toc%hol'er of ay $a% or ay other i"tit)tio )'er the ")&er#i"io
of the $ag%o SetralI he ()"t re"ig fir"t to a"")(e office a" (e($er
of the (oetary $oar'
iii. =ol'ig &)$lic office or &)$lic e(&loy(et ')rig their te)re.
iv. Per"o coecte' 'irectly 0ith ay ()ltilateral $a%ig or fiacial
i"tit)tio.
v. =a#ig a ")$"tatial itere"t i ay &ri#ate $a% i the Phili&&ie",
0ithi Ce year &rior to hi" a&&oit(et
vi. .o (e($er of the (oetary $oar' "hall $e e(&loye' i ay ")ch
i"tit)tio 0ithi t0o year" after e2&iratio of hi" ter( e2ce&t 0he he
"er#e" a" a official re&re"etati#e of the Go#er(et to ")ch
I"tit)tio. ("ectio J .CBA)
E. Gro)'" for re(o#al of 8oetary Boar' (e($er"
The &re"i'et (ay re(o#e ay (e($er of the (oetary $oar' for the"e
rea"o" /
i. 8e($er i" ")$"e*)etly 'i"*)alifie' )'er "ectio J of .CBA
ii. Phy"ically or (etally ica&acitate'taht he caot &ro&erly 'i"charge
hi" ')tie" a' re"&o"i$ilitie" a" ")ch ica&acity aSha" la"te' for (ore
tha K (oth".
iii. G)ilty of fra)')let or illegal act" or 0hich are (aife"tly o&&o"e' to
the ai(" a' itere"t" of the $ag%o "etral.
iv. 8e($er o loger &o""e""e" the *)alificatio".
3. 8eetig", G)or)(, Deci"io" a' Procee'ig" of the 8oetary $oar'
i. The 8oetary Bar' "hall (eet at lea"t oce a 0ee%. The $oar' (ay $e
calle' to a (eetig $y the go#eror of the $ag%o "etral or $y 2 other
(e($er" of the $oar'
ii. Pre"ece of : (e($er" co"tit)te" a *)or)(. Pro#i'e' that the
go#eror i" al0ay" a(og tho"e :
iii. Deci"io" of 8B "hall re*)ire coc)rrece of : (e($er".
i. E2ce&tio" ( B #ote" are ee'e' i the"e ca"e")/
o Sec K, GBL - I allo0ig $a%" to 'elay &)$licatio of it"
"tate(et" of fiacial co'itio i &erio'" of atioal or local
e(ergecy, or i((iet &aic 0hich 'irectly (oetary a'
$a%ig "ta$ility, )&o a&&licatio of a $a%.
o Sectio 2H .CBA. 12amination and 'ees. T The ")&er#i"ig a'
e2a(iig 'e&art(et hea', &er"oally or $y 'e&)ty, "hall
e2a(ie the $oo%" of e#ery $a%ig i"tit)tio oce i e#ery
t0el#e (,2) (oth", a' at ")ch other ti(e" a" the 8oetary
Boar' $y a affir(ati#e #ote of fi#e (B) (e($er", (ay 'ee(
e2&e'iet a' to (a%e a re&ort o the "a(e to the 8oetary
Boar'/ Provided, That there "hall $e a iter#al of at lea"t t0el#e
(,2) (oth" $et0ee a)al e2a(iatio".
o Sectio ;2 .CBA. - i the i((iece of, or ')rig a e2chage
cri"i", or i ti(e of atioal e(ergecy to gi#e the 8oetary
Boar' a' the Go#er(et ti(e i 0hich to ta%e co"tr)cti#e
(ea")re" to fore"tall, co($at, or o#erco(e ")ch a cri"i" or
e(ergecy, the 8oetary Boar', 0ith the coc)rrece of at lea"t
fi#e (B) of it" (e($er" a' 0ith the a&&ro#al of the Pre"i'et of
the Phili&&ie", (ay te(&orarily ")"&e' or re"trict "ale" of
e2chage $y the Bag%o Setral, a' (ay ")$Aect all tra"actio"
i gol' a' foreig e2chage to lice"e $y the Bag%o Setral,
a' (ay re*)ire that ay foreig e2chage thereafter o$taie' $y
ay &er"o re"i'ig or etity o&eratig i the Phili&&ie" $e
'eli#ere' to the Bag%o Setral or to ay $a% or aget
'e"igate' $y the Bag%o Setral for the &)r&o"e, at the effecti#e
e2chage rate or rate".
o Sectio H:. 1mergency !oans and Advances. T I &erio'" of
atioal a'For local e(ergecy or of i((iet fiacial &aic
0hich 'irectly threate (oetary a' $a%ig "ta$ility, the
8oetary Boar' (ay, $y a #ote of at lea"t fi#e (B) of it" (e($er",
a)thori!e the Bag%o Setral to grat e2traor'iary loa" or
a'#ace" to $a%ig i"tit)tio" "ec)re' $y a""et" a" 'efie'
here)'er/ Provided, That 0hile ")ch loa" or a'#ace" are
o)t"ta'ig, the 'e$tor i"tit)tio "hall ot, e2ce&t )&o &rior
a)thori!atio $y the 8oetary Boar', e2&a' the total #ol)(e of
it" loa" or i#e"t(et".
The 8oetary Boar' (ay, at it" 'i"cretio, li%e0i"e a)thori!e the
Bag%o Setral to grat e(ergecy loa" or a'#ace" to $a%ig
i"tit)tio", e#e ')rig or(al &erio'", for the &)r&o"e of
a""i"tig a $a% i a &recario)" fiacial co'itio or )'er
"erio)" fiacial &re"")re" $ro)ght $y )fore"ee e#et", or
e#et" 0hich, tho)gh fore"eea$le, co)l' ot $e &re#ete' $y the
$a% cocere'/ Provided, however, That the 8oetary Boar'
ha" a"certaie' that the $a% i" ot i"ol#et a' ha" the a""et"
'efie' here)'er to "ec)re the a'#ace"/ Provided, further, That
a coc)rret #ote of at lea"t fi#e (B) (e($er" of the 8oetary
Boar' i" o$taie'.
The a(o)t of ay e(ergecy loa or a'#ace "hall ot e2cee'
the ")( of fifty &ercet (BCO) of total 'e&o"it" a' 'e&o"it
")$"tit)te" of the $a%ig i"tit)tio a' "hall $e 'i"$)r"e' i t0o
(2) or (ore trache". The a(o)t of the fir"t trache "hall $e
li(ite' to t0ety-fi#e &ercet (2BO) of the total 'e&o"it a'
'e&o"it ")$"tit)te" of the i"tit)tio a' "hall $e "ec)re' $y
go#er(et "ec)ritie" to the e2tet of their a&&lica$le loa #al)e"
a' other )ec)($ere' fir"t cla"" collateral" 0hich the
8oetary Boar' (ay a&&ro#e/ Provided, That if a" 'eter(ie' $y
the 8oetary Boar', the circ)("tace" ")rro)'ig the
e(ergecy 0arrat a loa or a'#ace greater tha the a(o)t
&ro#i'e' hereia$o#e, the a(o)t of the fir"t trache (ay e2cee'
t0ety-fi#e &ercet (2BO) of the $a%M" total 'e&o"it a' 'e&o"it
")$"tit)te" if the "a(e i" a'e*)ately "ec)re' $y a&&lica$le loa
#al)e" of go#er(et "ec)ritie" a' )ec)($ere' fir"t cla""
collateral" a&&ro#e' $y the 8oetary Boar', a' the &rici&al
"toc%hol'er" of the i"tit)tio f)ri"h a acce&ta$le )'erta%ig
to i'e(ify a' hol' har(le"" fro( ")it a co"er#ator 0ho"e
a&&oit(et the 8oetary Boar' (ay fi' ece""ary at ay ti(e.
Prior to the relea"e of the fir"t trache, the $a%ig i"tit)tio
"hall ")$(it to the Bag%o Setral a re"ol)tio of it" $oar' of
'irector" a)thori!ig the Bag%o Setral to e#al)ate other a""et"
of the $a%ig i"tit)tio certifie' $y it" e2teral a)'itor to $e
goo' a' a#aila$le for collateral &)r&o"e" "ho)l' the relea"e of
the ")$"e*)et trache $e thereafter a&&lie' for.
The 8oetary Boar' (ay, $y a #ote of at lea"t fi#e (B) of it"
(e($er", a)thori!e the relea"e of a ")$"e*)et trache o
co'itio that the &rici&al "toc%hol'er" of the i"tit)tio/
(a) f)ri"h a acce&ta$le )'erta%ig to i'e(ify a'
hol' har(le"" fro( ")it a co"er#ator 0ho"e
a&&oit(et the 8oetary Boar' (ay fi' ece""ary at
ay ti(eI a'
($) &ro#i'e acce&ta$le "ec)rity 0hich, i the A)'g(et
of the 8oetary Boar', 0o)l' $e a'e*)ate to
")&&le(et, 0here ece""ary, the a""et" te'ere' $y
the $a%ig i"tit)tio to collaterali!e the ")$"e*)et
trache.
I coectio 0ith the e2erci"e of the"e &o0er", the &rohi$itio"
i Sectio ,2H of thi" Act "hall ot a&&ly i"ofar a" it refer" to
acce&tace a" collateral of "hare" a' their ac*)i"itio a" a re")lt
of foreclo")re &rocee'ig", icl)'ig the e2erci"e of #otig right"
&ertaiig to "ai' "hare"/ Provided, however, That "ho)l' the
Bag%o Setral ac*)ire ay of the "hare" it ha" acce&te' a"
collateral a" a re")lt of foreclo")re &rocee'ig", the Bag%o
Setral "hall 'i"&o"e of "ai' "hare" $y &)$lic $i''ig 0ithi oe
(,) year fro( the 'ate of co"oli'atio of title $y the Bag%o
Setral
G. De&)ty Go#eror" (ay Atte' 8eetig" of the 8oetary Boar'
=e (ay atte' 0ith the right to $e hear'
=. Salarie" of the Go#eror a' 8e($er" of the 8oetary Boar'
Salarie" "hall $e fi2e' $y the &re"i'et at a a(o)t co((e")rate to the
i(&ortace a' re"&o"i$ility attache' to the &o"itio.
I. Per"oal or Pec)iary Itere"t
Ay (e($er of the 8B 0ith &er"oal or &ec)iary itere"t i ay (atter i
the age'a of the (oetary $oar' "hall 'i"clo"e hi" itere"t to the $oar'
a' "hall retire fro( the (eetig 0he the (atter i" ta%e )&. The 'eci"io
ta%e o the (atter "hall $e (a'e &)$lic. The (i)te" "hall reflect the
'i"clo")re (a'e a' the retire(et of the (e($er cocere' fro( the
(eetig.
?. Sco&e of the A)thority of the 8oetary Boar'
a. I"")e r)le" a' reg)latio" it co"i'er" ece""ary for the effecti#e
'i"charge of the re"&o"i$ilitie" a' e2erci"e of the &o0er" #e"te' )&o the
8oetary Boar' a' the Bag%o Setral.
$. Direct the (aage(et, o&eratio", a' a'(ii"tratio of the Bag%o
Setral, reorgai!e it" &er"oel a' i"")e ")ch r)le" a' reg)latio" a" it
(ay 'ee( ece""ary or co#eiet for thi" &)r&o"e.
c. E"ta$li"h a =)(a Re"o)rce (aage(et "y"te( 0hich "hall go#er the
"electio, hirig, or 'i"(i""al of all &er"oel. S)ch "y"te( "hall ai( to
e"ta$li"h &rofe""ioali"( a' e2cellece i all le#el" of BSP i accor'ace
0ith the "o)' &rici&le" of (aage(et.
i. A co(&e"atio "tr)ct)re, $a"e' o Ao$ e#al)atio "t)'ie" a' 0age
")r#ey" a' ")$Aect to the Boar'M" a&&ro#al, "hall $e i"tit)te' a" a
itegral co(&oet of the Bag%o SetralM" h)(a re"o)rce
'e#elo&(et &rogra(/ Provided, That the 8oetary Boar' "hall (a%e
it" o0 "y"te( cofor( a" clo"ely a" &o""i$le 0ith the &rici&le"
&ro#i'e' for )'er Re&)$lic Act .o. K;BH/ Provided, however, That
co(&e"atio a' 0age "tr)ct)re of e(&loyee" 0ho"e &o"itio" fall
)'er "alary gra'e ,J a' $elo0 "hall $e i accor'ace 0ith the rate"
&re"cri$e' )'er Re&)$lic Act .o. K;BH.
ii. 7 the reco((e'atio of the Go#eror, a&&oit, fi2 the
re()eratio" a' other e(ol)(et", a' re(o#e &er"oel of the
Bag%o Setral, ")$Aect to &ertiet ci#il "er#ice la0"/ Provided, That
the 8oetary Boar' "hall ha#e e2cl)"i#e a' fial a)thority to &ro(ote,
tra"fer, a""ig, or rea""ig &er"oel of the Bag%o Setral a'
the"e &er"oel actio" are 'ee(e' (a'e i the itere"t of the "er#ice
a' ot 'i"ci&liary/ Provided, further, That the 8oetary Boar' (ay
'elegate ")ch a)thority to the Go#eror )'er ")ch g)i'elie" a" it
(ay 'eter(ie.
'. a'o&t a a)al $)'get for a' a)thori!e ")ch e2&e'it)re" $y the Bag%o
Setral a" are i the itere"t of the effecti#e a'(ii"tratio a' o&eratio"
of the Bag%o Setral i accor'ace 0ith a&&lica$le la0" a' reg)latio"I
a'
e. i'e(ify it" (e($er" a' other official" of the Bag%o Setral, icl)'ig
&er"oel of the 'e&art(et" &erfor(ig ")&er#i"io a' e2a(iatio
f)ctio" agai"t all co"t" a' e2&e"e" rea"oa$ly ic)rre' $y ")ch
&er"o" i coectio 0ith ay ci#il or cri(ial actio, ")it or &rocee'ig" to
0hich he (ay $e, or i", (a'e a &arty $y rea"o of the &erfor(ace of hi"
f)ctio" or ')tie", )le"" he i" fially a'A)'ge' i ")ch actio or
&rocee'ig to $e lia$le for egligece or (i"co')ct.
i. I the e#et of a "ettle(et or co(&ro(i"e, i'e(ificatio "hall
$e &ro#i'e' oly i coectio 0ith ")ch (atter" co#ere' $y the
"ettle(et a" to 0hich the Bag%o Setral i" a'#i"e' $y e2teral
co)"el that the &er"o to $e i'e(ifie' 'i' ot co((it ay
egligece or (i"co')ct.
ii. The co"t" a' e2&e"e" ic)rre' i 'efe'ig the
afore(etioe' actio, ")it or &rocee'ig (ay $e &ai' $y the
Bag%o Setral i a'#ace of the fial 'i"&o"itio of ")ch actio,
")it or &rocee'ig )&o recei&t of a )'erta%ig $y or o $ehalf
of the (e($er, officer, or e(&loyee to re&ay the a(o)t
a'#ace' "ho)l' it )lti(ately $e 'eter(ie' $y the 8oetary
Boar' that he i" ot etitle' to $e i'e(ifie' a" &ro#i'e' i thi"
")$"ectio.
G. Re"&o"i$ilitie" of the 8e($er" of the 8oetary Boar', 7fficial", E2a(ier", a'
E(&loyee" of the Bag%o Setral
a. 8e($er" of the 8oetary Boar', official", e2a(ier", a' e(&loyee"
of the Bag%o Setral 0ho 0illf)lly #iolate thi" Act or 0ho are g)ilty of
egligece, a$)"e" or act" of (alfea"ace or (i"fea"ace or fail to
e2erci"e e2traor'iary 'iligece i the &erfor(ace of hi" ')tie" "hall
$e hel' lia$le for ay lo"" or iA)ry ")ffere' $y the Bag%o Setral or
other $a%ig i"tit)tio" a" a re")lt of ")ch #iolatio, egligece,
a$)"e, (alfea"ace, (i"fea"ace or fail)re to e2erci"e e2traor'iary
'iligece.
b. Si(ilar re"&o"i$ility "hall a&&ly to (e($er", officer", a' e(&loyee" of the
Bag%o Setral for/
i. the 'i"clo")re of ay ifor(atio of a cofi'etial at)re, or
ay ifor(atio o the 'i"c)""io" or re"ol)tio" of the
8oetary Boar', or a$o)t the cofi'etial o&eratio" of the
Bag%o Setral, )le"" the 'i"clo")re i" i coectio 0ith
the &erfor(ace of official f)ctio" 0ith the Bag%o Setral,
or i" 0ith &rior a)thori!atio of the 8oetary Boar' or the
Go#erorI or
ii. the )"e of ")ch ifor(atio for &er"oal gai or to the
'etri(et of the Go#er(et, the Bag%o Setral or thir'
&artie"/ Provided, however, That ay 'ata or ifor(atio
re*)ire' to $e ")$(itte' to the Pre"i'et a'For the
Cogre"", or to $e &)$li"he' )'er the &ro#i"io" of thi" Act
"hall ot $e co"i'ere' cofi'etial.
I@. The Go#eror a' De&)ty Go#eror" of the Bag%o Setral
Go#eror "hall $e chief e2ec)ti#e officer of the Bag%o Setral g Pili&ia".
A. Po0er" a' D)tie" of the Go#eror
a. &re&are the age'a for the (eetig" of the (oetary $oar' a' to
")$(it for the co"i'eratio of the (oetary $oar' the &olicie" a'
(ea")re" 0hich he $elie#e" to $e ece""ary to carry o)t the &)r&o"e"
a' &ro#i"io" of thi" act
$. e2ec)te a' a'(ii"ter the &olicie" a' (ea")re" a&&ro#e' $y the
8oetary Boar'I
c. 'irect a' ")&er#i"e the o&eratio" a' iteral a'(ii"tratio of the
Bag%o Setral. The Go#eror (ay 'elegate certai of hi"
a'(ii"trati#e re"&o"i$ilitie" to other officer" or (ay a""ig "&ecific
ta"%" or re"&o"i$ilitie" to ay f)ll-ti(e (e($er of the 8oetary Boar'
0itho)t a''itioal re()eratio or allo0ace 0hee#er he (ay 'ee(
fit or ")$Aect to ")ch r)le" a' reg)latio" a" the 8oetary Boar' (ay
&re"cri$eI
'. a&&oit a' fi2 the re()eratio" a' other e(ol)(et" of &er"oel
$elo0 the ra% of a 'e&art(et hea' i accor'ace 0ith the &o"itio
a' co(&e"atio &la" a&&ro#e' $y the 8oetary Boar', a" 0ell a"
to i(&o"e 'i"ci&liary (ea")re" )&o &er"oel of the Bag%o
Setral, ")$Aect to the &ro#i"io" of Sectio ,B(c) of thi" Act/ Pro#i'e',
That re(o#al of &er"oel "hall $e 0ith the a&&ro#al of the 8oetary
Boar'I
e. re'er o&iio", 'eci"io", or r)lig", 0hich "hall $e fial a'
e2ec)tory )til re#er"e' or (o'ifie' $y the 8oetary Boar', o
(atter" regar'ig a&&licatio or eforce(et of la0" &ertaiig to
i"tit)tio" ")&er#i"e' $y the Bag%o Setral a' la0" &ertaiig to
*)a"i-$a%", a" 0ell a" reg)latio", &olicie" or i"tr)ctio" i"")e' $y
the 8oetary Boar', a' the i(&le(etatio thereofI a'
f. e2erci"e ")ch other &o0er" a" (ay $e #e"te' i hi( $y the 8oetary
Boar'.
B. Po0er" of the Go#eror a" Re&re"etati#e of the 8oetary Boar' a' the
Bag%o Setral
The Go#eror of the Bag%o Setral "hall $e the &rici&al re&re"etati#e of
the 8oetary Boar' a' of the Bag%o Setral a', i ")ch ca&acity a' i
accor'ace 0ith the i"tr)ctio" of the 8oetary Boar', 0ith the follo0ig
&o0er"/
a. re&re"et the 8oetary Boar' a' the Bag%o Setral i all 'ealig" 0ith
other office", agecie" a' i"tr)(etalitie" of the Go#er(et a' all other
&er"o" or etitie", &)$lic or &ri#ate, 0hether 'o(e"tic, foreig or iteratioal
$. "ig cotract" etere' ito $y the Bag%o Setral, ote" a' "ec)ritie"
i"")e' $y the Bag%o Setral, all re&ort", $alace "heet", &rofit a' lo""
"tate(et", corre"&o'ece a' other 'oc)(et" of the Bag%o Setral. The
"igat)re of the Go#eror (ay $e i fac"i(ile 0hee#er a&&ro&riate

c. re&re"et the Bag%o Setral, either &er"oally or thro)gh co)"el,
icl)'ig &ri#ate co)"el, a" (ay $e a)thori!e' $y the 8oetary Boar', i ay
legal &rocee'ig", actio or "&eciali!e' legal "t)'ie"

'. 'elegate hi" &o0er to re&re"et the Bag%o Setral, a" &ro#i'e' i
")$"ectio" (a), ($) a' (c) of thi" "ectio, to other officer" )&o hi" o0
re"&o"i$ility/ Provided, however, That i or'er to &re"er#e the itegrity a' the
&re"tige of hi" office, the Go#eror of the Bag%o Setral (ay choo"e ot to
&artici&ate i &reli(iary 'i"c)""io" 0ith ay ()ltilateral $a%ig or fiacial
i"tit)tio o ay egotiatio" for the Go#er(et 0ithi or o)t"i'e the
Phili&&ie". D)rig the egotiatio", he (ay i"tea' $e re&re"ete' $y a
&er(aet egotiator.
C. E(ergecie"
a. I ca"e of e(ergecie" 0here ti(e i" ")fficiet to call a (eetig of the
8oetary Boar', the Go#eror of the Bag%o Setral, 0ith the
coc)rrece of t0o (2) other (e($er" of the 8oetary Boar', (ay
'eci'e ay (atter or ta%e ay actio 0ithi the a)thority of the Boar'.
$. The Go#eror "hall ")$(it a re&ort to the Pre"i'et a' Cogre""
0ithi "e#ety-t0o (;2) ho)r" after the actio ha" $ee ta%e.
c. At the "ooe"t &o""i$le ti(e, the Go#eror "hall call a (eetig of the
8oetary Boar' to ")$(it hi" actio for ratificatio.
D. Li(itatio" o o)t"i'e itere"t" of the go#eror a' the 3)ll-ti(e 8e($er" of the
Boar'
The go#eror of the Bag%o Setral a' the f)ll-ti(e (e($er" of the Boar'
"hall/
a. li(it their &rofe""ioal acti#itie" to tho"e &ertaiig 'irectly to their
&o"itio" 0ith the Bag%o Setral.
$. ot acce&t ay other e(&loy(et, 0hether &)$lic or &ri#ate,
re()erate' or ad honorem, 0ith the e2ce&tio of &o"itio" i
elee(o"yary, ci#ic, c)lt)ral or religio)" orgai!atio" or 0hee#er, $y
'e"igatio of the Pre"i'et, the Go#eror or the f)ll-ti(e (e($er i"
ta"%e' to re&re"et the itere"t of the Go#er(et or other
go#er(et agecie" i (atter" coecte' 0ith or affectig the
ecoo(y or the fiacial "y"te( of the co)try.
E. .)($er a' 3)ctio" of De&)ty Go#eror"
a. The Go#eror of the Bag%o Setral, 0ith the a&&ro#al of the 8oetary
Boar', "hall a&&oit ot (ore tha three (+) De&)ty Go#eror" 0ho
"hall &erfor( ')tie" a" (ay $e a""ige' to the( $y the Go#eror a'
the Boar'.
$. I the a$"ece of the Go#eror, a De&)ty Go#eror 'e"igate' $y the
Go#eror "hall act a" chief e2ec)ti#e of the Bag%o Setral a' "hall
e2erci"e the &o0er" a' &erfor( the ')tie" of the Go#eror. <hee#er
the Go#er(et i" )a$le to atte' (eetig" of go#er(et $oar'" or
co)cil" i 0hich he i" a e2 officio (e($er &)r")at to &ro#i"io" of
"&ecial la0", a De&)ty Go#eror a" (ay $e 'e"igate' $y the
Go#eror "hall $e #e"te' 0ith a)thority to &artici&ate a' e2erci"e the
right to #ote i ")ch (eetig".
@. 7&eratio" of the Bag%o Setral
A. Re"earch a' "tati"tic" of the $ag%o Setral
The Bag%o Setral "hall &re&are 'ata a' co')ct ecoo(ic re"earch for
the g)i'ace of the 8oetary Boar' i the for()latio a' i(&le(etatio
of it" &olicie". S)ch 'ata "hall icl)'e, a(og other", foreca"t" of the
$alace of &ay(et" of the Phili&&ie", "tati"tic" o the (othly (o#e(et
of the (oetary aggregate" a' of &rice" a' other "tati"tical "erie" a'
ecoo(ic "t)'ie" )"ef)l for the for()latio a' aaly"i" of (oetary,
$a%ig, cre'it a' e2chage &olicie".
B. Sco&e of a)thority of $ag%o Setral to 7$tai 'ata a' Ifor(atio
a. The Bag%o Setral "hall ha#e the a)thority to re*)e"t fro(
go#er(et office" a' i"tr)(etalitie", or go#er(et-o0e' or
cotrolle' cor&oratio", ay 'ata 0hich it (ay re*)ire for the &ro&er
'i"charge of it" f)ctio" a' re"&o"i$ilitie".
$. The Bag%o Setral thro)gh the Go#eror or i hi" a$"ece, a ')ly
a)thori!e' re&re"etati#e "hall ha#e the &o0er to i"")e a ")$&oea for
the &ro')ctio of the $oo%" a' recor'" for the afore"ai' &)r&o"e.
Tho"e ")&&ly the $a% 0ith 'ata re*)e"te' or re*)ire', "hall $e
")$Aect to &)i"h(et for cote(&t i accor'ace 0ith the &ro#i"io"
of the R)le" of Co)rt.
c. Data o i'i#i')al fir(", other hta $a%", gathere' $y the De&art(et
of Ecoo(ic Re"earch a' other 'e&art(et" or )it" of the Bag%o
Setral "hall ot $e (a'e a#aila$le to ay &er"o or etity o)t"i'e of
the Bag%o Setral 0hether &)$lic or &ri#ate e"ce&t )'er or'er of the
co)rt or )'er ")ch co'itio" a" (ay $e &re"cri$e' $y the (oetary
$oar'/ Pro#i'e' ho0e#er, that the collecte' 'ata o fir(" (ay $e
relea"e' to itere"te' &er"o" or etitie"/ &ro#i'e' fially, theth the
ca"e of 'ata o $a%", the &ro#i"io" of "ectio 2; "hall a&&ly.
C. Traiig of techical Per"oel
The Bag%o Setral "hall &ro(ote a' "&o"or the traiig of techical
&er"oel i the fiel' of (oey a' $a%ig. To0ar' thi" e', the Bag%o
Setral i" here$y a)thori!e' to 'efray the co"t" of "t)'y, at ho(e or a$roa',
of *)alifie' e(&loyee" of the Bag%o Setral, of &ro(i"ig )i#er"ity
gra')ate" or of ay other *)alifie' &er"o" 0ho "hall $e 'eter(ie' $y
&ro&er co(&etiti#e e2a(iatio". The 8oetary Boar' "hall &re"cri$e r)le"
a' reg)latio" to go#er the traiig &rogra( of the Bag%o Setral.
D. Sco&e of the S)&er#i"io a' E2a(iatio $y the $ag%o Setral
a. The BSP "hall ha#e ")&er#i"io o#er, a' co')ct &erio'ic or "&ecial
e2a(iatio of, $a%ig i"tit)tio" a' *)a"i-$a%", icl)'ig their
")$"i'iarie" a' affiliate".
i. S)$"i'iary 1 (ore tha BCO of the #otig "toc% i" o0e' $y
a $a%
ii. Affiliate 1 BCO or le"", i" o0e' $y a $a% or 0hich i"
relate' or li%e' to ")ch i"tit)tio or iter(e'iary thro)gh
co((o "toc%hol'er" or ")ch other factor" a" (ay $e
'eter(ie' $y the 8B.
$. The 'e&art(et hea'" a' the e2a(ier" of the ")&er#i"ig a'For
e2a(iig 'e&art(et" are here$y a)thori!e' to
i. a'(ii"ter oath" to ay 'irector, officer, or e(&loyee of ay
i"tit)tio )'er their re"&ecti#e ")&er#i"io or ")$Aect to
their e2a(iatio a' to
ii. co(&el the &re"etatio of all $oo%", 'oc)(et", &a&er" or
recor'" ece""ary i their A)'g(et to a"certai the fact"
relati#e to the tr)e co'itio of ay i"tit)tio a" 0ell a" the
$oo%" a' recor'" of &er"o" a' etitie" relati#e to or i
coectio 0ith the o&eratio", acti#itie" or tra"actio" of
the i"tit)tio )'er e2a(iatio, ")$Aect to the &ro#i"io of
e2i"tig la0" &rotectig or "afeg)ar'ig the "ecrecy or
cofi'etiality of $a% 'e&o"it" a" 0ell a" i#e"t(et" of
&ri#ate &er"o", at)ral or A)ri'ical, i 'e$t i"tr)(et"
i"")e' $y the Go#er(et.
E. Re"traiig 7r'er or IA)ctio
a. Co)rt caot or'er re"traiig or'er &rohi$itig the BSP fro(
e2a(iig ay i"tit)tio ")$Aect to the ")&er#i"io a' e2a(iatio of
the BSP.
i. E2ce&tio/ there i" co#icig &roof that the actio of the
BSP i" &laily ar$itrary a' (a'e i $a' faith a' the
&etitioer or &laitiff file" 0ith the cler% or A)'ge of the co)rt
i 0hich the actio i" &e'ig a $o' i" e2ec)te' ifa#or of
the BSP i the a(o)t fi2e' $y co)rt.
$. Pro#i"io" of the R)le" of co)rt regar'ig Preli(iary iA)ctio, i "o
far a" they are a&&lica$le, a' ot ico"i"tet "hall go#er the
i"")ace a' 'i""ol)tio of the re"traiig or'er or iA)ctio.
@I. Director, 7fficer or Stoc%hol'er a' Relate' Itere"t"
A. Cotractig Loa"
a. Ay 'irector, officer or "toc%hol'er 0ho, together 0ith hi" relate'
itere"t, cotract" a loa or ay for( of fiacial acco((o'atio fro(/
i. hi" $a%I or
ii. fro( a $a%
,. 0hich i" a ")$"i'iary of a $a% hol'ig co(&ay
of 0hich $oth hi" $a% a' the le'ig $a% are
")$"i'iarie" or
2. i 0hich a cotrollig &ro&ortio of the "hare" i"
o0e' $y the "a(e itere"t that o0" a cotrollig
&ro&ortio of the "hare" of hi" $a%, i e2ce"" of
fi#e &ercet (BO) of the ca&ital a' ")r&l)" of the
$a%, or i the (a2i()( a(o)t &er(itte' $y la0,
0hiche#er i" lo0er,
"hall $e re*)ire' $y the le'ig $a% to 0ai#e the "ecrecy of hi" 'e&o"it" of
0hate#er at)re i all $a%" i the Phili&&ie".
$. Ay ifor(atio o$taie' fro( a e2a(iatio of hi" 'e&o"it" "hall $e
hel' "trictly cofi'etial a' (ay $e )"e' $y the e2a(ier" oly i
coectio 0ith their ")&er#i"ory a' e2a(iatio re"&o"i$ility or $y
the Bag%o Setral i a a&&ro&riate legal actio it ha" iitiate'
i#ol#ig the 'e&o"it acco)t.
B. Prohi$itio" Agai"t Per"oel of the Bag%o Setral
("a(e a" 'i"*)alificatio" of 8B 8e($er)
@II. E2a(iatio of Ba%ig I"tit)tio"
A. 3re*)ecy of E2a(iatio
The ")&er#i"ig a' e2a(iig 'e&art(et hea', &er"oally or $y 'e&)ty,
"hall e2a(ie the $oo%" of e#ery $a%ig i"tit)tio oce i e#ery t0el#e
(,2) (oth", a' at ")ch other ti(e" a" the 8oetary Boar' $y a
affir(ati#e #ote of fi#e (B) (e($er", (ay 'ee( e2&e'iet a' to (a%e a
re&ort o the "a(e to the 8oetary Boar'/ Provided, That there "hall $e a
iter#al of at lea"t t0el#e (,2) (oth" $et0ee a)al e2a(iatio".
B. Affor'ig 7&&ort)ity to E2a(ie
Ba% cocere' "hall affor' the hea' of the a&&ro&riate ")&er#i"ig a'
e2a(iig 'e&art(et" f)ll o&&ort)ity to e2a(ie
Boo%"
Ca"h a' a#aila$le a""et"
Geeral co'itio
Ayti(e ')rig the $a%ig ho)r" 0he re*)e"te' $y BSP
The re&ort" o the e2a(iatio" 0ill ot $e o&e to the &)$lic )le""
ici'etal to ay &rocee'ig" a)thori!e' or i" ece""ary for the &ro"ec)tio
of #iolatio" i coectio 0ith the $)"ie"" of ")ch i"tit)tio".
C. Ser#ice 3ee"
Ba%" a' *)a"i-$a%" ")$Aect to e2a(iatio of the BSP "hall &ay the
BSP 0ithi +C 'ay" of each year, a a)al fee.
A(o)t of fee i" &re"cri$e' $y the 8B. It 0o)l' $e a &ercetage of it"
a#erage total a""et" ')rig the &rece'ig year a" "ho0 $y it" e' of
(oth $alace "heet", after 'e')ctig ca"h o ha' a' the a(o)t ')e
fro( $a%", icl)'ig the $ag%o "etral a' the $a%" a$roa'.
@III. A'(ii"tratio
A. 7&eratig De&art(et" of the Bag%o Setral
The 8oetary Boar' "hall, i accor'ace 0ith it" a)thority )'er thi" Act,
'eter(ie a' &ro#i'e for ")ch o&eratig 'e&art(et" a' other office",
icl)'ig a &)$lic ifor(atio office, of the Bag%o Setral a" it 'ee("
co#eiet for the &ro&er a' efficiet co')ct of the o&eratio" a' the
acco(&li"h(et of the o$Aecti#e" of the Bag%o Setral. The f)ctio" a'
')tie" of ")ch o&eratig 'e&art(et" a' other office" "hall $e 'eter(ie'
$y the 8oetary Boar'.
B. Re*)ire' Re&ort" a' P)$licatio" of the Bag%o Setral
a. The BSP "hall &)$li"h a geeral $alace "heet 0ithi KC 'ay" after the
e' of each (oth e2ce&t Dece($er, 0hich "hall $e ")$(itte' JC
'ay" after e' of (oth.
It "hall cotai the #ol)(e a' co(&o"itio" of it" a""et" a' lia$ilitie"
a" of the la"t 0or%ig 'ay of the (oth.
$. 8B "hall &)$li"h the ff re&ort" a' ")$(it the( to the Pre"i'et a' to
cogre"".
i. Aaly"i" of ecoo(ic a' fiacial 'e#elo&(et", icl)'ig
the co'itio of et iteratioal re"er#e" a' (oetary
aggregate. (JC 'ay" after e' of each *)arter)
ii. Precee'ig year6" $)'get a' &rofit a' lo"" "tate(et of
the $a%go "etral "ho0ig i rea"oa$le 'etail the re")lt of
it" o&eratio". (0ithi JC 'ay" after e' of year)
iii. Re#ie0 of the "tate of the fiacial "y"te( ( ,2C 'ay" after
e' of "e(e"ter)
i#. A$or(al (o#e(et" i (oetary aggregate" a' the
geeral &rice le#el. (a" "oo a" &ractica$le), a' re(e'ial
(ea")re" i re"&o"e to ")ch a$or(al (o#e(et" (ot
later tha 2; ho)r")
C. A)al Re&ort of the Bag%o Setral
a. Before the e' of 8arch of each year, the Bag%o Setral "hall &)$li"h
a' ")$(it to the Pre"i'et a' the Cogre"" a a)al re&ort o the
co'itio of the Bag%o Setral icl)'ig a re#ie0 of the &olicie" a'
(ea")re" a'o&te' $y the 8oetary Boar' ')rig the &a"t year a' a
aaly"i" of the ecoo(ic a' fiacial circ)("tace" 0hich ga#e ri"e
to "ai' &olicie" a' (ea")re".
$. The a)al re&ort "hall al"o icl)'e a "tate(et of the fiacial
co'itio of the Bag%o Setral a' a "tati"tical a&&e'i2 0hich "hall
&re"et, a" a (ii()(, the follo0ig 'ata/
i. the (othly (o#e(et of (oetary aggregate" a' their
co(&oet"I
ii. the (othly (o#e(et of &)rcha"e" a' "ale" of foreig
e2chage a' of the iteratioal re"er#e" of the Bag%o
SetralI
iii. the $alace of &ay(et" of the Phili&&ie"I
iv. (othly i'ice" of co")(er &rice" a' of i(&ort a' e2&ort
&rice"I
v. the (othly (o#e(et, i ")((ary for(, of e2&ort" a'
i(&ort", $y #ol)(e a' #al)eI
vi. the (othly (o#e(et of the acco)t" of the Bag%o
Setral a' of other $a%"I
vii. the &rici&al 'ata o go#er(et recei&t" a' e2&e'it)re"
a' o the "tat)" of the &)$lic 'e$t, $oth 'o(e"tic a'
foreigI a'
#iii. the te2t" of the (aAor legal a' a'(ii"trati#e (ea")re"
a'o&te' $y the Go#er(et a' the 8oetary Boar' ')rig
the year 0hich relate to the f)ctio" or o&eratio" of the
Bag%o Setral or of the fiacial "y"te(.
c. The Bag%o Setral "hall &)$li"h aother #er"io of the a)al re&ort
i ter(" )'er"ta'a$le to the lay(a.
'. 3ail)re to co(&ly 0ith the re&ortorial re*)ire(et" &)r")at to thi"
article 0itho)t A)"tifia$le rea"o a" (ay $e 'eter(ie' $y the
8oetary Boar' "hall ca)"e the 0ithhol'ig of the "alary of the
&er"oel cocere' )til the re*)ire(et" are co(&lie' 0ith.
D. Sigat)re" o State(et"
Balace "heet" a' "tate(et" "hall $e "ige' $y the officer" re"&o"i$le for
their &re&aratio.
IE. Profit", Lo""e", a' S&ecial acco)t"
A. 3i"cal Dear
a. Profit" or lo""e" ari"ig fro( ay re#al)atio of the Bag%o SetralM"
et a""et" or lia$ilitie" i gol' or foreig c)rrecie" 0ith re"&ect to the
Phili&&ie &e"o "hall ot $e icl)'e' i the co(&)tatio of the a)al
&rofit" a' lo""e" of the Bag%o Setral.
$. Ay &rofit" or lo""e" ari"ig i thi" (aer "hall $e off"et $y ay
a(o)t" 0hich, a" a co"e*)ece of ")ch re#al)atio", are o0e' $y
the Phili&&ie" to ay iteratioal or regioal itergo#er(etal
fiacial i"tit)tio of 0hich the Phili&&ie" i" a (e($er or are o0e'
$y the"e i"tit)tio" to the Phili&&ie".
c. Ay re(aiig &rofit or lo"" "hall $e carrie' i a "&ecial fro!e acco)t
0hich "hall $e a(e' -Re#al)atio of Iteratioal Re"er#e- a' the
et $alace of 0hich "hall a&&ear either a(og the lia$ilitie" or a(og
the a""et" of the Bag%o Setral, 'e&e'ig o 0hether the
re#al)atio" ha#e &ro')ce' et &rofit" or et lo""e".
The Re#al)atio of Iteratioal Re"er#e acco)t "hall $e either cre'ite' or
'e$ite' for ay &)r&o"e" other tha tho"e "&ecifically a)thori!e' i thi" "ectio.
B. Co(&)tatio of Profit" a' Lo""e"
<ithi the fir"t thirty (+C) 'ay" follo0ig the e' of each year, the Bag%o Setral
"hall 'eter(ie it" et &rofit" or lo""e". I the calc)latio of et &rofit", the
Bag%o Setral "hall (a%e a'e*)ate allo0ace or e"ta$li"h a'e*)ate re"er#e"
for $a' a' 'o)$tf)l acco)t".
C. Di"tri$)tio of .et Profit"
<ithi the fir"t "i2ty (KC) 'ay" follo0ig the e' of each fi"cal year, the
8oetary Boar' "hall 'eter(ie a' carry o)t the 'i"tri$)tio of the et
&rofit", i accor'ace 0ith the follo0ig r)le/
a. 3ifty &ercet (BCO) of the et &rofit" "hall $e carrie' to ")r&l)"
$. the re(aiig fifty &ercet (BCO) "hall re#ert $ac% to the .atioal
Trea")ry, e2ce&t a" other0i"e &ro#i'e' i the tra"itory &ro#i"io" of
thi" Act.
D. Re#al)atio of Profit" a' Lo""e"
a. Profit" or lo""e" ari"ig fro( ay re#al)atio of the Bag%o SetralM"
et a""et" or lia$ilitie" i gol' or foreig c)rrecie" 0ith re"&ect to the
Phili&&ie &e"o "hall ot $e icl)'e' i the co(&)tatio of the a)al
&rofit" a' lo""e" of the Bag%o Setral.
$. Ay &rofit" or lo""e" ari"ig i thi" (aer "hall $e off"et $y ay
a(o)t" 0hich, a" a co"e*)ece of ")ch re#al)atio", are o0e' $y
the Phili&&ie" to ay iteratioal or regioal itergo#er(etal
fiacial i"tit)tio of 0hich the Phili&&ie" i" a (e($er or are o0e'
$y the"e i"tit)tio" to the Phili&&ie".
c. Ay re(aiig &rofit or lo"" "hall $e carrie' i a "&ecial fro!e acco)t
0hich "hall $e a(e' -Re#al)atio of Iteratioal Re"er#e- a' the
et $alace of 0hich "hall a&&ear either a(og the lia$ilitie" or a(og
the a""et" of the Bag%o Setral, 'e&e'ig o 0hether the
re#al)atio" ha#e &ro')ce' et &rofit" or et lo""e".
The Re#al)atio of Iteratioal Re"er#e acco)t "hall $e either cre'ite' or
'e$ite' for ay &)r&o"e" other tha tho"e "&ecifically a)thori!e' i thi" "ectio.
E. S)"&e"e Acco)t"
A(o)t" o)t"ta'ig a" of the effecti#e 'ate of thi" Act $a"e' o the"e acco)t"
"hall coti)e to $e for the acco)t of the Cetral Ba% a' "hall $e go#ere' $y
the tra"itory &ro#i"io" of thi" Act.
The Re#al)atio of Iteratioal Re"er#e (RIR) acco)t a" of the effecti#e 'ate
of thi" Act of the Cetral Ba% "hall coti)e to $e for the acco)t of the "a(e
etity a' "hall $e go#ere' $y the &ro#i"io" of Sectio :: of Re&)$lic Act .o.
2KB, a" a(e'e', )til other0i"e &ro#i'e' for i accor'ace 0ith the tra"itory
&ro#i"io" of thi" Act.
3. The A)'itor
The Chair(a of the Co((i""io o A)'it "hall act a" the e2 officio a)'itor of
the Bag%o Setral a', a" ")ch, he i" e(&o0ere' a' a)thori!e' to a&&oit a
re&re"etati#e 0ho "hall $e the a)'itor of the Bag%o Setral a', i accor'ace
0ith la0, fi2 hi" "alary, a' to a&&oit a' fi2 "alarie" a' )($er of &er"oel to
a""i"t "ai' re&re"etati#e i hi" 0or%. The "alarie" a' other e(ol)(et" "hall
$e &ai' $y the Co((i""io. The a)'itor of the Bag%o Setral a' &er"oel
)'er hi( (ay $e re(o#e' oly $y the Chair(a of the Co((i""io.
The re&re"etati#e of the Chair(a of the Co((i""io ()"t $e a certifie' &)$lic
acco)tat 0ith at lea"t te (,C) year" e2&eriece a" ")ch. .o relati#e of ay
(e($er of the 8oetary Boar' or the Chair(a of the Co((i""io 0ithi the
"i2th 'egree of co"ag)iity or affiity "hall $e a&&oite' ")ch re&re"etati#e.
E. Pealty for @iolatio
9le"" other0i"e herei &ro#i'e', the #iolatio of ay of the &ro#i"io" of thi" Act "hall
$e ")$Aect to Sectio" +:, +B, +K a' +; of the .e0 Cetral Ba% Act. If the offe'er
i" a 'irector or officer of a $a%, *)a"i-$a% or tr)"t etity, the 8oetary Boar' (ay
al"o ")"&e' or re(o#e ")ch 'irector or officer. If the #iolatio i" co((itte' $y a
cor&oratio, ")ch cor&oratio (ay $e 'i""ol#e' $y (uo warranto &rocee'ig"
i"tit)te' $y the Solicitor Geeral.
A. Pealty for Ref)"al to (a%e Re&ort"
Ay officer, o0er, aget, (aager, 'irector or officer-i-charge of ay i"tit)tio
")$Aect to the ")&er#i"io or e2a(iatio $y the Bag%o Setral 0ithi the &)r#ie0 of
thi" Act 0ho, $eig re*)ire' i 0ritig $y the 8oetary Boar' or $y the hea' of the
")&er#i"ig a' e2a(iig 'e&art(et 0illf)lly ref)"e" to file the re*)ire' re&ort or
&er(it ay la0f)l e2a(iatio ito the affair" of ")ch i"tit)tio "hall $e &)i"he' $y a
fie of ot le"" tha 3ifty tho)"a' &e"o" (PBC,CCC) or (ore tha 7e h)'re'
tho)"a' &e"o" (P,CC,CCC) or $y i(&ri"o(et of ot le"" tha oe (,) year or (ore
tha fi#e (B) year", or $oth, i the 'i"cretio of the co)rt.
B. Pealty for <illf)l 8a%ig of a 3al"e or 8i"lea'ig State(et o a 8aterial 3act
&)i"he' $y a fie of ot le"" tha 7e h)'re' tho)"a' &e"o"
(P,CC,CCC) or (ore tha T0o h)'re' tho)"a' &e"o" (P2CC,CCC), or $y
i(&ri"o(et of ot (ore tha (B) year", or $oth, at the 'i"cretio of the
co)rt.
C. Procee'ig" 9&o a' Pealty for @iolatio of .CBA a' 7ther $a%ig la0". R)le"
Reg)latio", 7r'er" or I"tr)ctio"
a. A $a%, *)a"i-$a%, &er"o, or ay etity 0ho 0illf)lly the .CBA or other
$a%ig la0" i(&le(ete' $y BSP, or ay or'er, i"tr)ctio, r)le or
reg)latio i"")e' $y the (oetary $oar', "hall $e &)i"he' $y a fie ot
le"" tha BC, CCC a' ot (ore tha 2CC,CCC or i(&ri"o(et of ot le""
tha 2 year". $)t ot (ore tha ,C year".
$. <hee#er a $a% or *)a"i-$a%, or 0hee#er ay &er"o or etity 0illf)lly
#iolate" thi" Act or other &ertiet $a%ig la0" $eig eforce' or
i(&le(ete' $y the Bag%o Setral or ay or'er, i"tr)ctio, r)le or
reg)latio i"")e' $y the 8oetary Boar', the &er"o or &er"o" re"&o"i$le
for ")ch #iolatio "hall )le"" other0i"e &ro#i'e' i thi" Act $e &)i"he' $y
a fie of ot le"" tha 3ifty tho)"a' &e"o" (PBC,CCC) or (ore tha T0o
h)'re' tho)"a' &e"o" (P2CC,CCC) or $y i(&ri"o(et of ot le"" tha
t0o (2) year" or (ore tha te (,C) year", or $oth, at the 'i"cretio of the
co)rt.
D. A'(ii"trati#e Sactio" o Ba%" a' G)a"i Ba%"
a. A'(ii"trati#e #iolatio a' &ealtie"/
Gro)'" for a'(ii"trati#e "actio" i(&o"a$le $y the 8B to ay $a% or
*)a"i-$a%/
i. Ay 0illf)l #iolatio of it" charter or $y-la0"
ii. <illf)l 'elay i the ")$(i""io of re*)ire' re&ort" a'
&)$licatio"
iii. Ref)"al to &er(it e2a(iatio ito the affair" of the i"tit)tio
i#. <illf)l (a%ig of fal"e or (i"lea'ig "tate(et to the $oar' or the
a&&ro&riate ")&er#i"ig a' e2a(iig 'e&art(et e2a(ier".
#. Ay 0illf)l fail)re or ref)"al to co(&ly 0ith, or #iolatio of ay
$a%ig la0 or ay r'er, i"tr)ctio or reg)alti i"")e' $y the
8oetary Boar', or ay or'er, i"tr)ctio or r)lig $y the go#eror
#i. Co')ctig $)"ie"" i a )"afe or )"o)' (aer a" (ay $e
'eter(ie' $y the 8B.
I(&o"a$le "actio"/
i. 3ie" ot e2cee'ig +C,CCC for each 'ay of #iolatio. 8$
0o)l' ta%e ito co"i'eratio the atte'at circ)("tace",
")ch a" the at)re a' gra#ity of the #iolatio or irreg)larity
a' the "i!e of the $a%.
ii. S)"&e"io of re'i"co)tig &ri#ilege" or acce"" to BSP
cre'it facilitie"
iii. ")"&e"io of le'ig or foreig e2chage o&eratio" or
a)thority to acce&t e0 'e&o"it" or (a%e e0 i#e"t(et"I
iv. ")"&e"io of iter$a% clearig &ri#ilege"I a'For
#. re#ocatio of *)a"i-$a%ig lice"e.
$. <hether or ot there i" a a'(ii"trati#e &rocee'ig, if the i"tit)tio
a'For the 'irector" a'For officer" cocere' coti)e 0ith or
other0i"e &er"i"t i the co((i""io of the i'icate' &ractice or
#iolatio, the 8oetary Boar' (ay i"")e a or'er re*)irig the
i"tit)tio a'For the 'irector" a'For officer" cocere' to cea"e a'
'e"i"t fro( the i'icate' &ractice or #iolatio, a' (ay f)rther or'er
that i((e'iate actio $e ta%e to correct the co'itio" re")ltig fro(
")ch &ractice or #iolatio. The cea"e a' 'e"i"t or'er "hall $e
i((e'iately effecti#e )&o "er#ice o the re"&o'et".
c. The re"&o'et" "hall $e affor'e' a o&&ort)ity to 'efe' their actio
i a hearig $efore the 8oetary Boar' or ay co((ittee chaire' $y
ay 8oetary Boar' (e($er create' for the &)r&o"e, )&o re*)e"t
(a'e $y the re"&o'et" 0ithi fi#e (B) 'ay" fro( their recei&t of the
or'er. If o ")ch hearig i" re*)e"te' 0ithi "ai' &erio', the or'er "hall
$e fial. If a hearig i" co')cte', all i"")e" "hall $e 'eter(ie' o the
$a"i" of recor'", after 0hich the 8oetary Boar' (ay either reco"i'er
or (a%e fial it" or'er.
'. The Go#eror i" here$y a)thori!e', at hi" 'i"cretio, to i(&o"e )&o
$a%ig i"tit)tio", for ay fail)re to co(&ly 0ith the re*)ire(et" of
la0, 8oetary Boar' reg)latio" a' &olicie", a'For i"tr)ctio"
i"")e' $y the 8oetary Boar' or $y the Go#eror, fie" ot i e2ce""
of Te tho)"a' &e"o" (P,C,CCC) a 'ay for each #iolatio, the
i(&o"itio of 0hich "hall $e fial a' e2ec)tory )til re#er"e', (o'ifie'
or lifte' $y the 8oetary Boar' o a&&eal.
C#a'ter 4! C(rrenc/7 8onetar/ 1tabilization and =(nctions o$ t#e B1P
I. The 9it of 8oetary @al)e
A. The Pe"o (P)
-)it of (oetary #al)e i the Phili&&ie"
-'i#i'e' ito ,CC e*)al &art"/ ceta#o" (c)
-legal te'erI all (oetary o$ligatio" "hall $e "ettle' i Phili&&ie c)rrecy
&artie" (ay agree to "ettle ")ch o$ligatio i ay other
c)rrecy at the ti(e of the &ay(et.
B. C)rrecy, 'efie'
-all Phili&&ie ote" a' coi" i"")e' or circ)latig i accor'ace 0ith the
.CBA.
C. @al)e of C)rrecy
-ha" #al)e $eca)"e &eo&le are 0illig to acce&t it i e2chage of goo'",
"er#ice" or &ay(et of 'e$t".
II. I"")e of 8ea" of Pay(et
A. E2cl)"i#e I"")e Po0er
(i) Bag%o Setral- S7LE &o0er to i"")e c)rrecy
(ii) 8oetary Boar'- (ay i"")e reg)latio" to &re#et circ)latio of
foreig c)rrecy, c)rrecy ")$"tit)te", or to &re#et the
re&ro')ctio of fac"i(ile" of Bag%o Setral ote".
(iii) Bag%o Setral- ha" a)thority to i#e"tigate, arre"t, "earch a'
"ei!e for the &)r&o"e of (aitaiig the itegrity of the c)rrecy.
(i#) @iolatio/ i(&ri"o(et of ot le"" tha fi#e year" $)t ot (ore
tha te year". I ca"e the RPC &ro#i'e" for a greater &ealty,
the latter "hall &re#ail.
PA E2ce&tio to Territoriality of Peal La0" (RPC)
Art. 3. Application of its provisions. 4 12cept as provided in the treaties and laws of
preferential application, the provisions of this #ode shall be enforced not only within
the Philippine Archipelago, including its atmosphere, its interior waters and maritime
-one, but also outside of its 5urisdiction, against those who%
6. Should commit an offense while on a Philippine ship or airship
3. Should forge or counterfeit any coin or currency note of the Philippine +slands or
obligations and securities issued by the 7overnment of the Philippine +slands8chan
robles virtual law library
9. Should be liable for acts connected with the introduction into these islands of the
obligations and securities mentioned in the presiding number8
:. &hile being public officers or employees, should commit an offense in the e2ercise
of their functions8 or
;. Should commit any of the crimes against national security and the law of nations,
defined in )itle <ne of ook )wo of this #ode.
PRelate' Cri(e" )'er the RPC
,. Art. ,K+. 8a%ig a' I(&ortig a' 9tterig 3al"e Coi"
2. Art. ,K:. 8)tilatio of Coi"I I(&ortatio a' 9tterace of 8)tilate' Coi"
+. Art. ,KB. Sellig of 3la"e or 8)tilate' Coi, <itho)t Coi#ace
:. Art. ,KK. 3orgig Trea")ry or Ba% .ote" o 7ther Doc)(et" Paya$le to BearerI
I(&ortig, a' 9tterig S)ch 3al"e or 3orge' .ote" a' Doc)(et"
B. Art. ,K;. Co)terfeitig, I(&ortig a' 9tterig I"tr)(et" .ot Paya$le to Bearer
K. Art. ,KH. Illegal Po""e""io a' 9"e of 3al"e Trea")ry or Ba% .ote" a' 7ther
I"tr)(et" of Cre'it
;. Art. ,KJ. =ow forgery is committed. T The forgery referre' to i thi" "ectio (ay $e
co((itte' $y ay of the follo0ig (ea"/
,. By gi#ig to a trea")ry or $a% ote or ay i"tr)(et, &aya$le to $earer
or or'er (etioe' therei, the a&&earace of a tr)e ge)ie 'oc)(et.
2. By era"ig, ")$"tit)tig, co)terfeitig or alterig $y ay (ea" the
fig)re", letter", 0or'" or "ig" cotaie' therei.
B. Lia$ility for .ote" a' Coi"
(i) .ote" a' coi" i"")e' $y the BSP "hall $e lia$ilitie" of the BSP.
S)ch (ay $e i"")e' oly agai"t, a' i a(o)t" ot e2cee'ig,
the a""et" of the BSP. S)ch "hall $e a fir"t a' &ara(o)t lie o
all a""et" of the BSP.
(ii) The Bag%o Setral6" hol'ig" of it" o0 ote" a' coi" "hall
ot $e co"i'ere' a" &art of it" c)rrecy i"")e a', accor'igly,
"hall ot for( &art of the a""et" or lia$ilitie" of the BSP.
C. Legal Te'er Po0er
-all ote" a' coi" i"")e' $y the BSPU Legal Te'er for all 'e$t"
Pcoi"/ a. 2Bc a' a$o#e 'eo(iatio" "hall ot e2cee' PBC.CC
$. ,Cc or le"" 'eo(iatio" "hall ot e2cee' P2C.CC
-chec%" re&re"etig 'e(a' 'e&o"it" 'o ot ha#e legal te'er &o0er/ oe
caot $e co(&elle' to acce&t the "a(e.
Pa chec% cleare' a' cre'ite' to the acco)t of the cre'itor U
'eli#ery of ca"h to ")ch cre'itor.
PRelate' Ci#il Co'e Pro#i"io"
Art. 63:>. )he payment of debts in money shall be made in the currency stipulated,
and if it is not possible to deliver such currency, then in the currency which is legal
tender in the Philippines.
)he delivery of promissory notes payable to order, or bills of e2change or other
mercantile documents shall produce the effect of payment only when they have been
cashed, or when through the fault of the creditor they have been impaired.
+n the meantime, the action derived from the original obligation shall be held in the
abeyance.
Art. 63;?. +n case an e2traordinary inflation or deflation of the currency stipulated
should supervene, the value of the currency at the time of the establishment of the
obligation shall be the basis of payment, unless there is an agreement to the contrary.
D. Characteri"tic" of the C)rrecy
(i) 8oetary Boar', 0ith a&&ro#al of the Pre"i'et, "hall &re"cri$e/
,. Deo(iatio"
2. De"ig"
+. I"cri&tio"
:. 7ther characteri"tic" of ote"
Pro#i'e' that/ the ote" "tate that they are lia$ilitie" of the BSP
a' are g)aratee' $y the Go#er(etI al"o "hall $ear the
"igat)re" of the Pre"i'et of the Phili&&ie" a' the Go#eror of
the BSP.
(ii) 8oetary Boar', 0ith a&&ro#al of the Pre"i'et, "hall &re"cri$e/
,. <eight
2. 3iee""
+. De"ig"
:. Deo(iatio"
B. 7ther characteri"tic" of the coi"
The 8B "hall co"i'er the a#aila$ility a' co"t of (aterial"
E. Pritig of .ote" a' 8itig of Coi"
(i) The 8B "hall &re"cri$e the a(o)t a' co'itio" of ote" a'
coi" to $e &rite' a' (ite'. It "hall al"o ha#e the a)thority to
cotract i"tit)tio", (it" or fir(" for ")ch o&eratio".
(ii) E2&e"e" ic)rre' for the o&eratio" "hall $e for the acco)t of
the BSP.
3. Iterco#erti$ility of C)rrecy
-BSP "hall e2chage, o 'e(a' a' 0ith o charge, Phili&&ie c)rrecy of
ay 'eo(iatio to ay other 'eo(iatio of ")ch c)rrecy. If BSP i"
te(&orarily )a$le to 'o "o, "hall 'eli#er the ote" a' coi" of the
'eo(iatio" 0hich (o"t early a&&ro2i(ate tho"e re*)e"te'.
G. Re&lace(et of C)rrecy 9fit for Circ)latio
-"hall $e 0ith'ra0 a' 'e(oiti!e' $y the BSP fro( circ)latio a'
re&lace the( 0ith a'e*)ate oe".
"hall ot re&lace/ ote" a' coi", the i'etificatio of 0hich i"
i(&o""i$leI file', cli&&e', &erforate' coi"I ote" 0hich ha#e lo"t 2FB of their
")rface or all of the "igat)re" therei. (()tilate' co'itio")
=. Retire(et of 7l' .ote" a' Coi"
(i) The BSP (ay call i for re&lace(et/ ote", B year" ol'I coi", ,C
year" ol'
(ii) S)ch ote" calle' i for re&lace(et "hall re(ai legal te'er for
oe year "ice the 'ate of the call. La&"e of oe year, (ay $e
e2chage' at &ar a' 0itho)t charge ')rig the follo0ig year or
for a &erio' 'eter(ie' $y the 8B. La&"e of ")ch &erio', the
ote" a' coi" "hall cea"e to $e a lia$ility of the BSP a' "hall
$e 'e(oiti!e'. The calle' i ote" a' coi" "hall li%e0i"e $e
'e(oiti!e'.
III. Do(e"tic 8oetary Sta$ili!atio
A. G)i'ig Prici&le o 8oetary Sta$ili!atio
-the 8B "hall e'ea#o)r to cotrol ay e2&a"io or cotractio i
(oetary aggregate" 0hich i" &reA)'icial to the attai(et or (aiteace
of &rice "ta$ility.
B. Po0er to Defie Ter("
-8B "hall for()late 'efiitio" of (oetary aggregate", cre'it a' &rice"
a' "hall (a%e &)$lic ")ch 'efiitio" a' ay chage" thereof.
C. Actio <he A$or(al 8o#e(et" 7cc)r i the 8oetary Aggregate",
Cre'it, or Price Le#el
(i) <hee#er a$or(al (o#e(et" i the (oetary aggregate", i
cre'it, or i &rice" e'ager the "ta$ility of the Phili&&ie
ecoo(y or i(&ortat "ector", the 8B "hall/
a) Ta%e a&&ro&riate re(e'ial (ea")re"
$) S)$(it a re&ort to the Pre"i'et a' the Cogre"" (al"o
(a'e &)$lic, a 'e"cri&tio a' aaly"i"/
,. Ca)"e" of the ri"e or fall of ")ch (oetary aggregate"I
2. E2tet to 0hich ")ch chage" ha#e $ee reflecte' i
the le#el of 'o(e"tic o)t&)t, e(&loy(et, 0age" a'
ecoo(ic acti#ity i geeral, a' the at)re a'
"igificace of ay ")ch chage"I
+. 8ea")re" ta%e a' (ea")re" &ro&o"e' to $e
a'o&te'.
(ii) <hee#er/
a. The (oetary aggregate", or the le#el of cre'it, icrea"e" or
'ecrea"e" $y (ore tha ,BO,
$. The co"t of li#ig i'e2 icrea"e" $y (ore tha ,CO, or
c. <he i it" A)'g(et, the circ)("tace" 0arrat,
(<ith re"&ect to a-c) the 8B "hall ")$(it re&ort" a' "tate
0hether ")ch chage" re&re"et a threat to the "ta$ility of the
ecoo(y or of it" i(&ortat "ector".
(iii) The 8B "hall coti)e to (a%e &erio'ic re&ort" )til the
'i"t)r$ace" ha#e 'i"a&&eare' or ha#e $ee cotrolle'.
I@. Iteratioal 8oetary Sta$ili!atio
A. Iteratioal 8oetary Sta$ili!atio
-&re"er#e' $y the BSP
-(aitai co#erti$ility ito other c)rrecie" &ri(arily for foreig tra'e a'
i#i"i$le".
B. Iteratioal Re"er#e"
-P)r&o"e/ to (aitai the iteratioal "ta$ility a' co#erti$ility of the
Phili&&ie Pe"o (a'e*)ate to (eet fore"eea$le et 'e(a'" o the BSP for
foreig c)rrecie".)
-8B "hall A)'ge ")ch a'e*)acy $a"e' o/ &ro"&ecti#e recei&t" a'
&ay(et" of 3orE2 $y the Phili&&ie".
-8B "hall &ay "&ecial attetio to the #ol)(e a' (at)rity of/
,. BSP6" o0 lia$ilitie" i foreig c)rrecie"
2. 3orE2 a""et" a' lia$ilitie" of other $a%" o&eratig i the
Phili&&ie"
+. 3orE2 a""et" a' lia$ilitie" of all other &er"o" a' etitie" i
the Phili&&ie"
C. Co(&o"itio of the Iteratioal Re"er#e" (of the BSP)/
(i) 8ay icl)'e, $)t ot li(ite' to/
a. Gol'
$. A""et" i foreig c)rrecie" i the for( of/
,. Doc)(et" a' i"tr)(et" c)"to(arily e(&loye' for
the iteratioal tra"fer of f)'"
2. De(a' a' ti(e 'e&o"it" i cetral $a%", trea")rie"
a' co((ercial $a%" a$roa'
+. 3oreig go#er(et "ec)ritie"
:. 3oreig ote" a' coi"
(ii) The 8B "hall/
a. E'ea#o)r to hol' the 3orE2 re"o)rce" of the BSP
$. Gi#e &artic)lar co"i'eratio to the &ro"&ect" of coti)e'
"tregth a' co#erti$ility of the c)rrecie"
c. Gi#e &artic)lar co"i'eratio to the atici&ate' 'e(a'"
(iii) The 8B "hall i"")e reg)latio" 'eter(iig the other
*)alificatio" 0hich the 3orE2 ()"t (eet i or'er to $e icl)'e'
i the iteratioal re"er#e" of the BSP.
(i#) BSP i" free to co#ert ay a""et i it" iteratioal re"er#e" ito
other a""et" a" 'e"cri$e' i a. a' $.
D. Actio 0he the iteratioal "ta$ility of the &e"o i" threatee'/
(i) <hee#er/
,) The iteratioal re"er#e fall" to a le#el the 8B co"i'er"
ia'e*)ate to (eet &ro"&ecti#e et 'e(a'", or
2) The iteratioal re"er#e" a&&ear to $e i((iet i fallig to
")ch le#el, or
+) The iteratioal re"er#e i" fallig a" a re")lt of &ay(et" or
re(ittace" a$roa' 0hich are cotrary to the atioal
0elfare
The 8B "hall/
a. Ta%e a&&ro&riate re(e'ial (ea")re"
$. S)$(it a re&ort to the Pre"i'et a' the Cogre""/
,. .at)re a' ca)"e" of the e2i"tig or i((iet 'eclie
2. 8ea")re" alrea'y ta%e or to $e ta%e $y the 8B
+. 8ea")re" &ro&o"e'
:. Coo&eratio re*)ire' fro( other go#er(et agecie"
for the e2ec)tio of &olicie" of the 8B
(ii) If ")ch actio" fail, the 8B "hall &ro&o"e to the Pre"i'et, 0ith
otice to the Cogre"", a''itioal actio it 'ee(" ece""ary to
re"tore iteratioal $alace of &ay(et" i the Phili&&ie"
(iii) The 8B "hall ")$(it &erio'ic re&ort" )til the threat to
iteratioal (oetary "ta$ility ha" 'i"a&&eare'.
E. 8ea" of Actio
-8B "hall rely o it" (oral ifl)ece a' the &o0er" grate' to it )'er the
.CBA.
@. 7&eratio" i Gol' a' 3oreig E2chage
A. P)rcha"e" a' Sale" of Gol'
-$y the BSP ")$Aect to the reg)latio" of 8B
-(a'e i the atioal c)rrecy at the &re#ailig iteratioal (ar%et &rice a"
'eter(ie' $y the 8B.
B. P)rcha"e" a' Sale" of 3orE2
-$y the BSP
-0ith the follo0ig etitie" or &er"o" oly/
,. Ba%ig i"tit)tio" 0ithi the Phili&&ie"
2. Go#er(et a' it" ")$'i#i"io" a' i"tr)(etalitie"
+. 3oreig go#er(et"
:. Iteratioal 3iacial I"tit)tio"
B. 7ther" a)thori!e' $y the 8B
-the BSP (ay $)y or "ell ay *)atity of 3orE2 )&o 'e(a' or re*)e"t $y
ay $a%ig i"tit)tio i the Phili&&ie". Pro#i'e', that ")ch are freely
co#erti$le ito gol' or 9S 'ollar". (ot a&&lica$le to 'e(a'" for foreig
ote" a' coi")
-e2chage tra"actio" "hall $e $a"e' o the .CBA.
C. 3oreig A""et Po"itio of the Bag%o Setral
-BSP "hall (aitai .ET P7SITI@E 37REIG. ASSET P7SITI7. (Gro""
3orE2 a""et"VGro"" 3orE2 lia$ilitie".
-If 3orE2 lia$ilitie" (i Pe"o") V t0ice the 3orE2 a""et" (i Pe"o"), BSP "hall
re&ort to the Cogre"" the origi of the lia$ilitie" a' the (aer it "hall $e
&ai'. ((a'e 0ithi KC 'ay" fro( the 'ate of the occ)rrece.
D. E(ergecy Re"trictio" o E2chage 7&eratio"
I or'er to/
(i) Achie#e the &ri(ary o$Aecti#e of the BSP
(ii) Protect iteratioal re"er#e" i the i((iece or ')rig a'
e2chage cri"i"
(iii) Gi#e ti(e to the 8B a' the Go#er(et to ta%e (ea")re" to
fore"tall or o#erco(e ")ch cri"i"
B (e($er" of the 8B a' the Pre"i'et of the Phili&&ie" (ay/
,. Te(&orarily ")"&e' "ale" of e2chage
2. S)$Aect all gol' a' 3orE2 tra"actio" to lice"e
+. Re*)ire that ay 3orE2 o$taie' $y ay &er"o or etity i
the Phili&&ie" $e 'eli#ere' to the BSP at the e2chage
rate". (3oreig c)rrecy 'e&o"it" (a'e )'er RA K:2K,
e2e(&t fro( thi" re*)ire(et")
E. Ac*)i"itio of Ico#erti$le C)rrecie"
-"hall $e a#oi'e'
-(ay ac*)ire (ore tha the (ii()( $alace ece""ary to co#er c)rret
'e(a'" for ")ch c)rrecie" oly 0he co"i'ere' $y the 8B to $e i the
atioal itere"t.
-8B "hall 'eter(ie the &roce')re
3. E2chage Rate"
-'eter(ie' $y the 8B
-8B "hall 'eter(ie the rate" for $)yig a' "ellig "&ot e2chage a' (ay
e"ta$li"h 'e#iatio li(it" fro( the e2chage rate"
-8B "hall 'eter(ie the rate" for other ty&e" of 3orE2 tra"actio". B)t the
(argi" $et0ee the effecti#e e2chage rate" a' the rate" e"ta$li"he'
(ay ot e2cee' the (argi" for "&ot e2chage $y (ore tha the a''itioal
co"t" i#ol#e' i each ty&e of tra"actio"
G. 7&eratio" 0ith 3oreig Etitie"
-8B (ay a)thori!e the BSP to tra"act 0ith foreig $a%" or etitie". The
BSP (ay al"o act a" aget for ")ch.
-8B (ay a)thori!e the BSP to &le'ge ay gol' or other a""et" a" "ec)ritie"
agai"t loa" 0hich it recei#e" fro( foreig etitie".
@I. Reg)latio of 3oreig E2chage 7&eratio" 7f the Ba%"
A. 3oreig E2chage =ol'ig" of the Ba%"
-8B (ay re*)ire the $a%" to "ell to the BSP or to other $a%" all or &art of
their ")r&l)" hol'ig" of 3orE2 to (aitai iteratioal "ta$ility a'
co#erti$ility of the Pe"o. S)ch tra"fer" "hall $e at the e"ta$li"he' rate"
a' (ay $e re*)ire' of certai c)rrecie" oly.
-8B (ay 'eter(ie the et a""et" a' lia$ilitie" of $a%" a' co"i'er the
$a%6" et0orth, o)t"ta'ig lia$ilitie", or other ratio" it (ay 'ee(
a&&ro&riate. S)ch 'eter(iatio "hall $e a&&lie' i all $a%" )ifor(ly.
B. Re*)ire(et of Balace' C)rrecy Po"itio
-8B (ay re*)ire $a%" to (aitai a $alace' &o"itio $et0ee their
a""et" a' lia$ilitie". They "hall $e grate' rea"oa$le ti(e to a'A)"t.
-")ch &o0er" "hall $e e2erci"e' oly )'er "&ecial circ)("tace" 0hich
0arrat the "a(e
C. Reg)latio of .o-"&ot E2chage Tra"actio
-8B (ay i"")e reg)latio" o ")ch tra"actio to re"trai $a%" fro(
"&ec)latig f)t)re fl)ct)atio" i 3orE2
D. 7the E2chage Profit" a' Lo""e"
-$a%" $ear the ri"%" of
,. .o-co(&liace 0ith the ter(" of the 3orE2 'oc)(et" a' i"tr)(et"
they $)y a' "ell.
2. 7ther co((ercial or other $a%ig ri"%"
+. E2chage ri"%" ot a"")(e' $y the BSP regar'ig o-"&ot e2chage
tra"actio
E. Ifor(atio o E2chage 7&eratio"/
a. Ba%" "hall re&ort to the BSP the #ol)(e a' co(&o"itio of their
&)rcha"e" a' "ale" of gol' a' 3orE2 each 'ay, a' ()"t f)ri"h
re*)e"te' a''itioal ifo.
$. The 8B (ay al"o re*)ire other &er"o" a' etitie" to re&ort to it all
tra"actio" a" "tate' a$o#e. It "hall &re"cri$e the for( ")ch
'eclaratio" ()"t $e (a'e. The BSP (ay i"&ect ")ch 'eclaratio"
for #erificatio.
@II. Loa" To Ba%ig A' 7ther 3iacial I"tit)tio"
A. G)i'ig Prici&le"
-re'i"co)t", 'i"co)t", loa" a' a'#ace" 0hich the BSP i" a)thori!e' to
e2te' "hall $e )"e' to ifl)ece the #ol)(e of cre'it co"i"tet 0ith the
o$Aecti#e of &rice "ta$ility.
B. A)thori!e' Ty&e" of Cre'it 7&eratio"
-carrie' o $y the BSP 0ith $a%"
a. Co((ercial Cre'it"- BSP (ay re'i"co)t, 'i"co)t, $)y a' "ell $ill",
acce&tace", &ro(i""ory ote" a' other cre'it i"tr)(et" 0ith (at)ritie"
of ot (ore tha ,HC 'ay" fro( the 'ate of re'i"co)t, 'i"co)t or
ac*)i"itio a' re")ltig fro( tra"actio" relate' to/
,. The i(&ortatio, e2&ortatio, &)rcha"e or "ale of rea'ily
"alea$le goo'" a' &ro')ct", or their tra"&ortatio 0ithi the Phili&&ie"I
or
2. The "torig of o-&eri"ha$le goo'" a' &ro')ct", ')ly i")re'
a' 'e&o"ite'.
$. Pro')ctio Cre'it"- P"a(eP 0ith (at)ritie" of ot (ore tha +KC 'ay"
P"a(eP a' re")ltig fro( tra"actio" relate' to the &ro')ctio or
&roce""ig of agric)lt)ral, ai(al, (ieral or i')"trial &ro')ct".
8)"t $e "ec)re' $y/
,. A &le'ge of the cro&" or &ro')ct" or
2. A lie or (ortgage o real &ro&, ;CO of the
a&&rai"e' #al)e of 0hich e*)al" or e2cee'" the
a(o)t of the loa grate'.
c. 7ther cre'it"- cre'it i"tr)(et" ot re'i"co)ta$le )'er a a' $ (ay
$e re'i"co)te' i accor'ace 0ith BSP r)le" a' reg)latio".
- 0he ece""ary, BSP (ay &ro#i'e f)'" fro( o-
iflatioary "o)rce"I 8B "hall &re"cri$e" for a''itioal
"afeg)ar'" for the "a(e.
'. A'#ace"- BSP (ay grat a'#ace" agai"t the follo0ig for fi2e'
&erio'" ot e2cee'ig ,HC 'ay" e2ce&t )($er : (+KC 'ay")/
,. Gol' coi" or $)llio"
2. Sec)ritie" re&re"etig o$ligatio" of the BSP or of other
'o(e"tic i"tit)tio" of recogi!e' "ol#ecy
+. Co((ercial cre'it"
:. Pro')ctio cre'it"
B. 9tili!e' &ortio" of a'#ace" i c)rret a(o)t co#ere' $y
reg)lar o#er'raft agree(et" relate' to co((ercial a'
&ro')ctio cre'it", a' certifie' a" to the a(o)t a' li*)i'ity $y
the i"tit)tio "olicitig the a'#ace
K. .egotia$le trea")ry $ill", cert of i'e$te'e"", ote" a' other
egotia$le o$ligatio" of the Go#t (at)rig 0ithi + yr" fro( the
'ate of the a'#ace
;. .egotia$le $o'" i"")e' $y the Go#t a' it" ")$'i#i"io" a'
i"tr)(etalitie" ha#ig (at)ritie" of ot (ore ta ,C year" fro(
the 'ate of the a'#ace
.ote"/
(i) The re'i"co)t", 'i"co)t", loa" a' a'#ace" (a'e i accor'ace 0ith the a$o#e
&ro#i"io" (ay ot $e ree0e' or e2te'e' )le"" e2traor'iary circ)("tace" f)lly
A)"tify ")ch ree0al or e2te"io.
(ii) A'#ace" (a'e agai"t the collateral i K a' ; (ay ot e2cee' HCO of the c)rret
(ar%et #al)e of the collateral
C. Loa" for Li*)i'ity P)r&o"e"
-BSP (ay e2te' loa" a' a'#ace" to $a%" for a &erio' ot e2cee'ig ;
'ay" 0itho)t collateral to &ro#i'e li*)i'ity i ti(e" of ee'
@III. E(ergecy Loa" a' A'#ace"
A. .at)re of E(ergecy Loa" or A'#ace"
-ite'e' to a""i"t a $a% 0ith "erio)" li*)i'ity &ro$le(" ari"ig fro( ca)"e" $eyo'
the cotrol of the (aage(et.
-'i"cretio of 8B
-oly a te(&orary re(e'ial (ea")re
-()"t $e o a f)lly "ec)re' $a"i"
B. <he Grate'
a. <hole $a%ig co(()ity i" threatee' 0ith the fiacial cri"i"
-atioalFlocal e(ergecy or i((iet fiacial &aic
-'irectly threateig the (oetary a' $a%ig "ta$ility
The 8B (#ote of B (e($er") a)thori!e the BSP to grat the "a(e.
<hile ")ch loa" are o)t"ta'ig, the 'e$tor caot e2&a' the total #ol)(e of it"
loa or i#e"t(et" 0itho)t a)thori!atio fro( the 8B
$. Ba% 0ith )certai fiacial co'itio $)t i" ot i"ol#et
-8B (ay a)thori!e the BSP to e2te' ")ch loa" e#e ')rig or(al ti(e" to a""i"t a
$a% i a &recario)" fiacial co'itio $ro)ght $y )fore"ee e#et" or tho)gh
fore"eea$le, caot $e &re#ete'.
-8B ()"t fir"t a"certai that the $a% i" ot i"ol#et a' ha" a""et" to "ec)re the
a'#ace".
-B #ote" of 8B (e($er" ()"t coc)r
C. Li(it"
-a(o)t o loa ()"t ot e2cee' BCO of total 'e&o"it" or 'e&o"it ")$"tit)te" of a $a%
-"hall $e 'i"$)r"e' i 2 or (ore trache"
D. 3ir"t Trache
,. Li(ite' to 2BO of the total 'e&o"it" or 'e&o"it ")$"tit)te"
-"ec)re' $y go#t "ec)ritie" a' other )ec)($ere' fir"t cla"" collateral" the 8B (ay
a&&ro#e
2. If 8B 'eter(ie' that the e(ergecy 0arrat a greater loa, it (ay e2cee' 2BO
-()"t $e "ec)re' $y go#t "ec)ritie" a' other )ec)($ere' fir"t cla"" collateral" the
8B (ay a&&ro#e.
-&rici&al "toc%hol'er" ()"t f)ri"h a acce&ta$le )'erta%ig to i'e(ify a' hol'
har(le"" fro( ")it a co"er#ator a&&oite' $y 8B
+. Prior to the relea"e of the fir"t trache, the $a% ()"t ")$(it to the BSP a
re"ol)tio $y it" $oar' a)thori!ig the BSP to e#al)ate their a""et" certifie' $y a
e2teral a)'itor to $e goo' a' a#aila$le for collateral &)r&o"e".
E. Seco' Trache
-#ote of B 8B (e($er" (ay a)thori!e the relea"e of a "eco' trache o co'itio
that the &rici&al "toc%hol'er" of the i"tit)tio/
,. 3)ri"h the )'erta%ig the "a(e a" i )($er 2 a$o#e
2. Pro#i'e acce&ta$le "ec)rity a'e*)ate (i the o&iio of the 8B) to ")&&le(et the
a""et" te'ere' $y the $a% to collaterali!e the ")$"e*)et trache.
3. Share" a" Collateral
Section 63@. Prohibitions. 4 )he angko Sentral shall not ac(uire shares of any kind or accept
them as collateral, and shall not participate in the ownership or management of any enterprise,
either directly or indirectly.
)he angko Sentral shall not engage in development banking or financing% Provided, however,
)hat outstanding loans obtained or e2tended for development financing shall not be affected by
the prohibition of this section.
-Thi" &ro#i"io "hall ot $e a&&lica$le to acce&tace a" collateral of "hare" a' their
ac*)i"itio a" a re")lt f foreclo")re &rocee'ig. If the BSP ac*)ire' ay of ")ch "hare", ")ch
"hall $e 'i"&o"e' i a &)$lic $i''ig 0ithi oe year fro( the 'ate of co"oli'atio of title $y the
BSP.
G. 7#er'raft
-"hall $e eli(iate' 0ithi B co"ec)ti#e $a%ig 'ay"
IE. Cre'it Ter("
A. Itere"t a' Re'i"co)t
-The BSP "hall collect itere"t a' other charge" o loa" it e2te'"
ot0ith"ta'ig the clo")re, recei#er"hi& or li*)i'atio of the $a%. Thi"
"hall a&&ly &ro"&ecti#ely.
-The 8B "hall fi2 the itere"t a' re'i"co)t rate" (a&&lie' )ifor(ly to
$a%" of the "a(e category)
B. E'or"e(et
-the 'oc)(et" re'i"co)te', 'i"co)te', $o)ght or acce&te' a" collateral
$y the BSP "hall $ear the e'or"e(et of the $a%.
C. Re&ay(et of Cre'it"
a. The collateral" ()"t $e 0ith'ra0 $y the $a% o (at)rity 'ate or
)&o the li*)i'atio of the o$ligatio 0hich they re&re"et
$. Ba%" ha#e the right to 0ith'ra0 ")ch collateral" )&o &ay(et of the
'e$t a' it" itere"t
D. 7ther Re*)ire(et"
-8B (ay &re"cri$e a''itioal re*)ire(et" to o$tai loa fro( the BSP.
E. Pro#i"ioal A'#ace" to the .atioal Go#er(et
-(ay $e (a'e 0ith or 0itho)t itere"t $y the BSP to fiace e2&e'it)re"
a)thori!e' i it" a)al o&eratio". Pro#i'e' that the a'#ace" $e/
,. re&ai' 0ithi + (oth" ((ay $e e2te'e' )& to the "a(e &erio' if
allo0e' $y the 8B) fro( the 'ate ")ch a'#ace" are recei#e' $y the
.atioal Go#t
2. "hall ot, aggregately, e2cee' 2C O of the a#erage a)al ico(e of the
$orro0er for the la"t + &rece'ig year".
3. Prohi$itio"
Sectio ,2H, ")&ra
E. 7&e 8ar%et 7&eratio" 3or The Acco)t 7f The Bag%o Setral
A. Prici&le" of 7&e 8ar%et 7&eratio"
-(a'e e2cl)"i#ely i accor'ace 0ith the o$Aecti#e of achie#ig &rice
"ta$ility
B. P)rcha"e" a' Sale" of Go#er(et Sec)ritie"
-BSP (ay &)rcha"e a' "ell i o&e (ar%et/
a. e#i'ece" of i'e$te'e"" i"")e' 'irectly $y the Go#t a' it"
")$'i#i"io"
$. e#i'ece" of i'e$te'e"" i"")e' $y go#t i"tr)(etalitie" a'
g)aratee' $y the Go#t
-")ch e#i'ece" ()"t $e freely egotia$le, reg)larly "er#ice', a#aila$le to
the &)$lic i 'eo(iatio" of tho)"a' &e"o" or (ore.
C. I"")e a' .egotiatio of the BSP 7$ligatio"
-BSP (ay i"")e, &lace, $)y a' "ell freely egotia$le e#i'ece" of
i'e$te'e"" of the Bag%o Setral
- i"")ace of ")ch certificate" of i'e$te'e"" "hall $e (a'e oly i ca"e"
of e2traor'iary (o#e(et i &rice le#el".
-8B (ay 'eter(ie the itere"t rate", (at)ritie" a' other characteri"tic" of
"ai' o$ligatio" of the BSP a' (ay 'eo(iate the o$ligatio" i gol' or
foreig c)rrecie".
-ac*)ire' $y the BSP thro)gh &)rcha"e" or re'e(&tio".
-"hall ot $e icl)'e' a(og it" a""et", a' "hall $e i((e'iately retire'
a' cacelle'.
EI. Co(&o"itio of the BSP6" Portfolio
Re#ie0 of the BSP6" Portfolio
-$y the 8B i relatio to it" f)t)re cre'it &olicy
-"hall co"i'er 0hether a ")fficietly large &art of the &ortfolio co"i"t" of a""et"
0ith early (at)ritie", i or'er that a cotractio i BSP cre'it (ay $e effecte'
&ro(&tly 0hee#er the atioal (oetary &olicy "o re*)ire"
EII. Ba% Re"er#e"
A. Re"er#e Re*)ire(et"
-$a%" are re*)ire' to (aitai re"er#e" agai"t their 'e&o"it lia$ilitie"
-8B (ay al"o re*)ire all $a%" a'For *)a"i-$a%" to (aitai re"er#e" agai"t
f)'" hel' i tr)"t a' lia$ilitie" for 'e&o"it ")$"tit)te"
-&ro&ortioal to the #ol)(e of it" 'e&o"it lia$ilitie" a' "hall or'iarily ta%e the
for( of a 'e&o"it i the BSP
- Re"er#e" agai"t 'e&o"it ")$"tit)te" "hall $e 'eter(ie' i the "a(e (aer
a" &ro#i'e' for re"er#e re*)ire(et" agai"t reg)lar $a% 'e&o"it"
-8B (ay e2e(&t fro( the re"er#e re*)ire(et" tho"e 0ith re(aiig (at)ritie"
of 2 yr" or (ore a' iter$a% $orro0ig"
-8aiteace of $a% re"er#e" i" for the &)r&o"e of cotrollig the #ol)(e of
(oey
-BSP "hall ot &ay itere"t )le"" re*)ire' $y the 8B
B. Defiitio of De&o"it S)$"tit)te"
Sectio JB. Definition of Deposit Substitutes. T The ter( -'e&o"it ")$"tit)te"- i"
'efie' a" a alterati#e for( of o$taiig f)'" fro( the &)$lic, other tha
'e&o"it", thro)gh the i"")ace, e'or"e(et, or acce&tace of 'e$t i"tr)(et"
for the $orro0erM" o0 acco)t, for the &)r&o"e of rele'ig or &)rcha"ig of
recei#a$le" a' other o$ligatio". The"e i"tr)(et" (ay icl)'e, $)t ee' ot
$e li(ite' to, $a%er" acce&tace", &ro(i""ory ote", &artici&atio", certificate"
of a""ig(et a' "i(ilar i"tr)(et" 0ith reco)r"e, a' re&)rcha"e
agree(et". The 8oetary Boar' "hall 'eter(ie 0hat "&ecific i"tr)(et" "hall
$e co"i'ere' a" 'e&o"it ")$"tit)te" for the &)r&o"e" of Sectio J: of thi" Act/
Provided, however, That 'e&o"it ")$"tit)te" of co((ercial, i')"trial a' other
o-fiacial co(&aie" for the li(ite' &)r&o"e of fiacig their o0 ee'" or
the ee'" of their aget" or 'ealer" "hall ot $e co#ere' $y the &ro#i"io" of
Sectio J: of thi" Act.
C. Re*)ire' Re"er#e" Agai"t Pe"o De&o"it
-fi2e' $y 8B
-(ay alter the (ii()( re"er#e ratio"
D. Re*)ire' Re"er#e" Agai"t 3oreig C)rrecy De&o"it"
-fi2e' $y 8B
E. Re"er#e" agai"t 9)"e' Balace" of 7#er'raft Lie"
-8B (ay e"ta$li"h (ii()( re"er#e re*)ire(et"
3. Icrea"e i Re"er#e Re*)ire(et"
-icrea"e ()"t $e gra')al
-"hall ot e2cee' fo)r &ercetage &oit" i ay thirty-'ay &erio'
-$a%" "hall $e otifie' i a'#ace a" to 0he it 0ill ta%e effect
G. Co(&)tatio o Re"er#e"
- calc)late' 'aily o the $a"i" of the a(o)t of the i"tit)tioM" re"er#e" a' the
a(o)t of it" lia$ility acco)t" agai"t 0hich re"er#e" are re*)ire' to $e
(aitaie'
-holi'ay" or o-$a%ig 'ay"/ the re"er#e &o"itio of the 'ay i((e'iately
&rece'ig the "a(e "hall a&&ly
-&rici&al office W $rache" W agecie" USI.GLE 9.IT
=. Re"er#e Deficiecie"
-if re"er#e &o"itio i" $elo0 the (ii()( re*)ire'/ "hall &ay the Bag%o Setral
oe-teth of oe &ercet (,F,C of ,O) &er 'ay o the a(o)t of the 'eficiecy or
the &re#ailig iety-oe-'ay trea")ry $ill rate &l)" three &ercetage &oit",
0hiche#er i" higher.
-e2ce"" (ay off"et 'eficiecie" (of the "a(e 0ee%)
-8B (ay 'ey ")ch &ri#ilege i ca"e of a$)"e
-if a $a% chroically ha" a re"er#e 'eficiecy, 8B (ay li(it or &rohi$it the
(a%ig of e0 loa" or i#e"t(et" a' (ay re*)ire the et &rofit" $e a""ige'
to ")r&l)"
- 8B (ay (o'ify or "et a"i'e the re"er#e 'eficiecy &ealtie" &ro#i'e' i thi"
"ectio, for &art or the etire &erio' of a "tri%e or loc%o)t affectig a $a% or a
*)a"i-$a% or of a atioal e(ergecy affectig o&eratio" of $a%" or *)a"i-
$a%". The 8B (ay al"o (o'ify or "et a"i'e re"er#e' 'eficiecy &ealtie" for
reha$ilitatio &rogra( of a $a%.
I. Iter$a% Settle(et
-BSP "hall e"ta$li"h facilitie" for iter$a% clearig )'er &re"cri$e' r)le" a'
reg)latio" of the 8B. BSP (ay charge fee".
-De&o"it re"er#e"- $a"i" for chec% clearig a' "ettle(et of iter$a% $alace"
- ay $a% 0hich ic)r" o o#er'ra0ig i it" 'e&o"it acco)t 0ith the Bag%o
Setral "hall f)lly co#er "ai' o#er'raft, icl)'ig itere"t thereo at a rate
e*)i#alet to oe-teth of oe &ercet (,F,C of ,O) &er 'ay or the &re#ailig
iety-oe-'ay trea")ry $ill rate &l)" three &ercetage &oit", 0hiche#er i"
higher, ot later tha the e2t clearig 'ay.
- "ettle(et of clearig $alace" "hall ot $e effecte' for ay acco)t 0hich
coti)e" to $e o#er'ra0 for fi#e (B) co"ec)ti#e $a%ig 'ay" )til ")ch ti(e
a" the o#er'ra0ig i" f)lly co#ere' or other0i"e co#erte' ito a e(ergecy
loa or a'#ace.
-the a&&ro&riate clearig office "hall $e officially otifie' of $a%" 0ith o#er'ra0
$alace".
?. E2e(&tio fro( attach(et
-'e&o"it" (aitaie' $y $a%" 0ith the BSP a" &art of their re"er#e re*)ire(et"
"hall $e e2e(&te' to "ati"fy a clai( of ay &arty e2ce&t the Go#er(et, it"
")$'i#i"io" a' i"tr)(etalitie".
EIII. Selecti#e Reg)latio of Ba% 7&eratio"
XA)"t for o0Y
Sectio ,C:. 7uiding Principle. T The 8oetary Boar' "hall )"e the &o0er" grate' to it )'er
thi" Act to e")re that the ")&&ly, a#aila$ility a' co"t of (oey are i accor' 0ith the ee'" of
the Phili&&ie ecoo(y a' that $a% cre'it i" ot grate' for "&ec)lati#e &)r&o"e" &reA)'icial
to the atioal itere"t". Reg)latio" o $a% o&eratio" "hall $e a&&lie' to all $a%" of the
"a(e category )ifor(ly a' 0itho)t 'i"cri(iatio.
Sectio ,CB. *argin "e(uirements Against !etters of #redit. T The 8oetary Boar' (ay at ay
ti(e &re"cri$e (ii()( ca"h (argi" for the o&eig of letter" of cre'it, a' (ay relate the "i!e
of the re*)ire' (argi to the at)re of the tra"actio to $e fiace'.
Sectio ,CK. "e(uired Security Against ank !oans. T I or'er to &ro(ote li*)i'ity a'
"ol#ecy of the $a%ig "y"te(, the 8oetary Boar' (ay i"")e ")ch reg)latio" a" it (ay 'ee(
ece""ary 0ith re"&ect to the (a2i()( &er(i""i$le (at)ritie" of the loa" a' i#e"t(et"
0hich the $a%" (ay (a%e, a' the %i' a' a(o)t of "ec)rity to $e re*)ire' agai"t the
#ario)" ty&e" of cre'it o&eratio" of the $a%".
Sectio ,C;. Portfolio #eilings. T <hee#er the 8oetary Boar' co"i'er" it a'#i"a$le to
&re#et or chec% a e2&a"io of $a% cre'it, the Boar' (ay &lace a )&&er li(it o the a(o)t
of loa" a' i#e"t(et" 0hich the $a%" (ay hol', or (ay &lace a li(it o the rate of icrea"e
of ")ch a""et" 0ithi "&ecifie' &erio'" of ti(e. The 8oetary Boar' (ay a&&ly ")ch li(it" to the
loa" a' i#e"t(et" of each $a% or to "&ecific categorie" thereof.
I o ca"e "hall the 8oetary Boar' e"ta$li"h li(it" 0hich are $elo0 the #al)e of the loa" or
i#e"t(et" of the $a%" o the 'ate o 0hich they are otifie' of ")ch re"trictio". The
re"trictio" "hall $e a&&lie' to all $a%" )ifor(ly a' 0itho)t 'i"cri(iatio.
Sectio ,CH. *inimum #apital "atios. T The 8oetary Boar' (ay &re"cri$e (ii()( ratio"
0hich the ca&ital a' ")r&l)" of the $a%" ()"t $ear to the #ol)(e of their a""et", or to "&ecific
categorie" thereof, a' (ay alter "ai' ratio" 0hee#er it 'ee(" ece""ary.

ARTICLE IE
C77RDI.ATI7. 73 CREDIT P7LICIES BD G7@ER.8E.T I.STIT9TI7.S

Sectio ,CJ. #oordination of #redit Policies. T Go#er(et-o0e' cor&oratio" 0hich &erfor(
$a%ig or cre'it f)ctio" "hall coor'iate their geeral cre'it &olicie" 0ith tho"e of the
8oetary Boar'.
To0ar' thi" e', the 8oetary Boar' (ay, 0hee#er it 'ee(" it e2&e'iet, (a%e ")gge"tio" or
reco((e'atio" to ")ch cor&oratio" for the (ore effecti#e coor'iatio of their &olicie" 0ith
tho"e of the Bag%o Setral.

C=APTER @
39.CTI7.S AS BA.>ER A.D 3I.A.CIAL AD@IS7R
73 T=E G7@ER.8E.T


ARTICLE I - 39.CTI7.S AS BA.>ER 73 T=E G7@ER.8E.T

Sectio ,,C. Designation of angko Sentral as anker of the 7overnment. T The Bag%o
Setral "hall act a" a $a%er of the Go#er(et, it" &olitical ")$'i#i"io" a' i"tr)(etalitie".
Sectio ,,,. "epresentation with the +nternational *onetary 'und. T The Bag%o Setral "hall
re&re"et the Go#er(et i all 'ealig", egotiatio" a' tra"actio" 0ith the Iteratioal
8oetary 3)' a' "hall carry ")ch acco)t" a" (ay re")lt fro( Phili&&ie (e($er"hi& i, or
o&eratio" 0ith, "ai' 3)'.
Sectio ,,2. "epresentation with <ther 'inancial +nstitutions. T The Bag%o Setral (ay $e
a)thori!e' $y the Go#er(et to re&re"et it i 'ealig", egotiatio" or tra"actio" 0ith the
Iteratioal Ba% for Reco"tr)ctio a' De#elo&(et a' 0ith other foreig or iteratioal
fiacial i"tit)tio" or agecie". The Pre"i'et (ay, ho0e#er, 'e"igate ay of hi" other
fiacial a'#i"or" to Aoitly re&re"et the Go#er(et i ")ch 'ealig", egotiatio" or
tra"actio".
Sectio ,,+. <fficial Deposits. T The Bag%o Setral "hall $e the official 'e&o"itory of the
Go#er(et, it" &olitical ")$'i#i"io" a' i"tr)(etalitie" a" 0ell a" of go#er(et-o0e' or
cotrolle' cor&oratio" a', a" a geeral &olicy, their ca"h $alace" "ho)l' $e 'e&o"ite' 0ith
the Bag%o Setral, 0ith oly (ii()( 0or%ig $alace" to $e hel' $y go#er(et-o0e'
$a%" a' ")ch other $a%" icor&orate' i the Phili&&ie" a" the 8oetary Boar' (ay
'e"igate, ")$Aect to ")ch r)le" a' reg)latio" a" the Boar' (ay &re"cri$e/ Provided, That
")ch $a%" (ay hol' 'e&o"it" of the &olitical ")$'i#i"io" a' i"tr)(etalitie" of the
Go#er(et $eyo' their (ii()( 0or%ig $alace" 0hee#er ")ch ")$'i#i"io" or
i"tr)(etalitie" ha#e o)t"ta'ig loa" 0ith "ai' $a%".
The Bag%o Setral (ay &ay itere"t o 'e&o"it" of the Go#er(et or of it" &olitical
")$'i#i"io" a' i"tr)(etalitie", a" 0ell a" o 'e&o"it" of $a%" 0ith the Bag%o Setral.
Sectio ,,:. 'iscal <perations. T The Bag%o Setral "hall o&e a geeral ca"h acco)t for
the Trea")rer of the Phili&&ie", i 0hich the li*)i' f)'" of the Go#er(et "hall $e 'e&o"ite'.
Tra"fer" of f)'" fro( thi" acco)t to other acco)t" "hall $e (a'e oly )&o or'er of the
Trea")rer of the Phili&&ie".
Sectio ,,B. <ther anks as Agents of the angko Sentral. T I the &erfor(ace of it"
f)ctio" a" fi"cal aget, the Bag%o Setral (ay egage the "er#ice" of other go#er(et-
o0e' a' cotrolle' $a%" a' of other 'o(e"tic $a%" for o&eratio" i localitie" at ho(e or
a$roa' i 0hich the Bag%o Setral 'oe" ot ha#e office" or agecie" a'e*)ately e*)i&&e' to
&erfor( "ai' o&eratio"/ Provided, however, That for fi"cal o&eratio" i foreig co)trie", the
Bag%o Setral (ay egage the "er#ice" of foreig $a%ig a' fiacial i"tit)tio".
Sectio ,,K. "emuneration for Services. T The Bag%o Setral (ay charge e*)ita$le rate",
co((i""io" or fee" for "er#ice" 0hich it re'er" to the Go#er(et, it" &olitical ")$'i#i"io"
a' i"tr)(etalitie".

ARTICLE II
T=E 8AR>ETI.G A.D STABILILATI7. 73 SEC9RITIES 37R T=E ACC79.T 73 T=E
G7@ER.8E.T

A. T=E ISS9E A.D PLACI.G 73 G7@ER.8E.T SEC9RITIES

Sectio ,,;. +ssue of 7overnment <bligations. T The i"")e of "ec)ritie" re&re"etig
o$ligatio" of the Go#er(et, it" &olitical ")$'i#i"io" or i"tr)(etalitie", (ay $e (a'e
thro)gh the Bag%o Setral, 0hich (ay act a" aget of, a' for the acco)t of, the Go#er(et
or it" re"&ecti#e ")$'i#i"io" or i"tr)(etality, a" the ca"e (ay $e/ Provided, however, That
the Bag%o Setral "hall ot g)aratee the &lace(et of "ai' "ec)ritie", a' "hall ot ")$"cri$e
to their i"")e e2ce&t to re&lace it" (at)rig hol'ig" of "ec)ritie" 0ith the "a(e ty&e a" the
(at)rig "ec)ritie".
Sectio ,,H. *ethods of Placing 7overnment Securities. T The Bag%o Setral (ay &lace the
"ec)ritie" to 0hich the &rece'ig "ectio refer" thro)gh 'irect "ale to fiacial i"tit)tio" a'
the &)$lic.
The Bag%o Setral "hall ot $e a (e($er of ay "toc% e2chage or "y'icate, $)t (ay
iter#ee therei for the "ole &)r&o"e of reg)latig their o&eratio" i the &lacig of go#er(et
"ec)ritie".
The Go#er(et, or it" &olitical ")$'i#i"io" or i"tr)(etalitie", "hall rei($)r"e the Bag%o
Setral for the e2&e"e" ic)rre' i the &lacig of the afore"ai' "ec)ritie".
Sectio ,,J. Servicing and "edemption of the Public Debt. T The "er#icig a' re'e(&tio of
the &)$lic 'e$t "hall al"o $e effecte' thro)gh the Bag%o Setral.

B. BA.G>7 SE.TRAL S9PP7RT 73 T=E G7@ER.8E.T SEC9RITIES 8AR>ET

Sectio ,2C. )he Securities Stabili-ation 'und. T There "hall $e e"ta$li"he' a -Sec)ritie"
Sta$ili!atio 3)'- 0hich "hall $e a'(ii"tere' $y the Bag%o Setral for the acco)t of the
Go#er(et. cha ro$le" #irt)al la0 li$rary
The o&eratio" of the Sec)ritie" Sta$ili!atio 3)' "hall co"i"t of &)rcha"e" a' "ale", i the
o&e (ar%et, of $o'" a' other e#i'ece" of i'e$te'e"" i"")e' or f)lly g)aratee' $y the
Go#er(et. The &)r&o"e of the"e o&eratio" "hall $e to icrea"e the li*)i'ity a' "ta$ili!e the
#al)e of "ai' "ec)ritie" i or'er there$y to &ro(ote i#e"t(et i go#er(et o$ligatio".
The 8oetary Boar' "hall )"e the re"o)rce" of the 3)' to &re#et, or (o'erate, "har&
fl)ct)atio" i the *)otatio" of "ai' go#er(et o$ligatio", $)t "hall ot e'ea#or to alter
(o#e(et" of the (ar%et re")ltig fro( $a"ic chage" i the &atter or le#el of itere"t rate".
The 8oetary Boar' "hall i"")e ")ch reg)latio" a" (ay $e ece""ary to i(&le(et the
&ro#i"io" of thi" "ectio.
Sectio ,2,. "esources of the Securities Stabili-ation 'und. T S)$Aect to Sectio ,+2 of thi"
Act, the re"o)rce" of the Sec)ritie" Sta$ili!atio 3)' "hall co(e fro( the $alace of the f)'
a" hel' $y the Cetral Ba% )'er Re&)$lic Act .o. 2KB a" of the effecti#e 'ate of thi" Act.
Sectio ,22. Profits and !osses of the 'und. T The Sec)ritie" Sta$ili!atio 3)' "hall retai
et &rofit" 0hich it (ay (a%e o it" o&eratio", regar'le"" of 0hether "ai' &rofit" ari"e fro(
ca&ital gai" or fro( itere"t earig". The 3)' "hall corre"&o'igly $ear ay et lo""e"
0hich it (ay ic)r.

ARTICLE III
39.CTI7.S AS 3I.A.CIAL AD@IS7R 73 T=E G7@ER.8E.T

Sectio ,2+. 'inancial Advice on <fficial #redit <perations. T Before )'erta%ig ay cre'it
o&eratio a$roa', the Go#er(et, thro)gh the Secretary of 3iace, "hall re*)e"t the o&iio,
i 0ritig, of the 8oetary Boar' o the (oetary i(&licatio" of the cote(&late' actio. S)ch
o&iio" ()"t "i(ilarly $e re*)e"te' $y all &olitical ")$'i#i"io" a' i"tr)(etalitie" of the
Go#er(et $efore ay cre'it o&eratio a$roa' i" )'erta%e $y the(.
The o&iio of the 8oetary Boar' "hall $e $a"e' o the gol' a' foreig e2chage re"o)rce"
a' o$ligatio" of the atio a' o the effect" of the &ro&o"e' o&eratio o the $alace of
&ay(et" a' o (oetary aggregate".
<hee#er the Go#er(et, or ay of it" &olitical ")$'i#i"io" or i"tr)(etalitie", cote(&late"
$orro0ig 0ithi the Phili&&ie", the &rior o&iio of the 8oetary Boar' "hall li%e0i"e $e
re*)e"te' i or'er that the Boar' (ay re'er a o&iio o the &ro$a$le effect" of the &ro&o"e'
o&eratio o (oetary aggregate", the &rice le#el, a' the $alace of &ay(et".
Sectio ,2:. "epresentation on the $ational 1conomic and Development Authority. T I or'er
to a"")re effecti#e coor'iatio $et0ee the ecoo(ic, fiacial a' fi"cal &olicie" of the
Go#er(et a' the (oetary, cre'it a' e2chage &olicie" of the Bag%o Setral, the De&)ty
Go#eror 'e"igate' $y the Go#eror of the Bag%o Setral "hall $e a e2 officio (e($er of the
.atioal Ecoo(ic a' De#elo&(et A)thority Boar'.

C=APTER @I
PRI@ILEGES A.D PR7=IBITI7.S


ARTICLE I
PRI@ILEGES

Sectio ,2B. )a2 12emptions. T The Bag%o Setral "hall $e e2e(&t for a &erio' of fi#e (B)
year" fro( the a&&ro#al of thi" Act fro( all atioal, &ro#icial, ()ici&al a' city ta2e", fee",
charge" a' a""e""(et".
The e2e(&tio a)thori!e' i the &rece'ig &aragra&h of thi" "ectio "hall a&&ly to all &ro&erty of
the Bag%o Setral, to the re"o)rce", recei&t", e2&e'it)re", &rofit" a' ico(e of the Bag%o
Setral, a" 0ell a" to all cotract", 'ee'", 'oc)(et" a' tra"actio" relate' to the co')ct of
the $)"ie"" of the Bag%o Setral/ Provided, however, That "ai' e2e(&tio" "hall a&&ly oly to
")ch ta2e", fee", charge" a' a""e""(et" for 0hich the Bag%o Setral it"elf 0o)l' other0i"e
$e lia$le, a' "hall ot a&&ly to ta2e", fee", charge", or a""e""(et" &aya$le $y &er"o" or
other etitie" 'oig $)"ie"" 0ith the Bag%o Setral/ Provided, further, That foreig loa" a'
other o$ligatio" of the Bag%o Setral "hall $e e2e(&t, $oth a" to &rici&al a' itere"t, fro(
ay a' all ta2e" if the &ay(et of ")ch ta2e" ha" $ee a"")(e' $y the Bag%o Setral.
Sectio ,2K. 12emption from #ustoms Duties. T The &ro#i"io of ay geeral or "&ecial la0 to
the cotrary ot0ith"ta'ig, the i(&ortatio a' e2&ortatio $y the Bag%o Setral of ote"
a' coi", a' of gol' a' other (etal" to $e )"e' for &)r&o"e" a)thori!e' )'er thi" Act, a'
the i(&ortatio of all e*)i&(et ee'e' for $a% ote &ro')ctio, (itig of coi", (etal refiig
a' other "ec)rity &ritig o&eratio" "hall $e f)lly e2e(&t fro( all c)"to(" ')tie" a' co")lar
fee" a' fro( all other ta2e", a""e""(et" a' charge" relate' to ")ch i(&ortatio or
e2&ortatio.
Sectio ,2;. Applicability of the #ivil Service !aw. T A&&oit(et" i the Bag%o Setral,
e2ce&t a" to tho"e 0hich are &olicy-'eter(iig, &ri(arily cofi'etial or highly techical i
at)re, "hall $e (a'e oly accor'ig to the Ci#il Ser#ice La0 a' reg)latio"/ Provided, That o
*)alificatio re*)ire(et" for &o"itio" i the Bag%o Setral "hall $e i(&o"e' other tha tho"e
"et $y the 8oetary Boar'/ Provided, further, That, the 8oetary Boar' or Go#eror, i
accor'ace 0ith Sectio" ,B(c) a' ,;(') of thi" Act, re"&ecti#ely, (ay 0itho)t ee' of o$taiig
&rior a&&ro#al fro( ay other go#er(et agecy, a&&oit &er"oel i the Bag%o Setral
0ho"e "er#ice" are 'ee(e' ece""ary i or'er ot to )')ly 'i"r)&t the o&eratio" of the
Bag%o Setral.
7fficer" a' e(&loyee" of the Bag%o Setral, icl)'ig all (e($er" of the 8oetary Boar',
"hall ot egage 'irectly or i'irectly i &arti"a acti#itie" or ta%e &art i ay electio e2ce&t to
#ote.

ARTICLE II
PR7=IBITI7.S

Sectio ,2H. Prohibitions. T The Bag%o Setral "hall ot ac*)ire "hare" of ay %i' or acce&t
the( a" collateral, a' "hall ot &artici&ate i the o0er"hi& or (aage(et of ay eter&ri"e,
either 'irectly or i'irectly.
The Bag%o Setral "hall ot egage i 'e#elo&(et $a%ig or fiacig/ Pro#i'e', ho0e#er,
That o)t"ta'ig loa" o$taie' or e2te'e' for 'e#elo&(et fiacig "hall ot $e affecte' $y
the &rohi$itio of thi" "ectio.
C#a'ter G 0incom'lete5
=. Rig#ts o$ t#e Entr(ster
,. The Etr)"ter "hall $e etitle'/
To the &rocee' of the "ale of GDI
To the ret)r of the GDI ica"e of o-"aleS
To the eforce(et of all right" coferre' o hi( i the tr)"t recei&t &ro#i'e' ")ch
are ot cotrary to la0
2. The Etr)"ter (ay cacel the tr)"t a' ta%e &o""e""io of the GDI 7R of the
&rocee'" at ay ti(e )&o 'efa)lt or fail)re to co(&ly 0ith the ter(" a' co'itio" or
agree(et, a'
Gi#e otice to the Etr)"tee o or after 'efa)lt of the itetio to SELL a' (ay,
.7T LESS T=A. B DADS, after "er#ig ")ch, "ell the GDI at a P9BLIC or
PRI@ATE SALE. The Etr)"ter (ay $e the &)rcha"er.
.otice of Sale "hall $e 'ee(e' ")fficiet if gi#e i writing a' either/
"er#e' &er"oally to the etr)"tee, or
"et $y &o"t-&ai' or'iary (ail to the the etr)"teeM" la"t %o0
$"ie"" a''re""
The &rocee'" of ")ch "ale" "hall $e a&&lie'/
To the &ay(et of the e2&e"e" thereof
To the &ay(et of the e2&e"e" of re-ta%ig, %ee&ig a' "torig the
GDI
To the "ati"factio of the etr)"teeM" i'e$te'e"" to the etr)"ter
The Etr)"tee "hall recei#e ay ")r&)" $)t "hall $e lia$le for
ay 'eficiecy to the Etr)"ter
:. Entr(ster -*T Res'onsible on 1ale b/ Entr(stee
The Etr)"ter, hol'ig "ec)rity itere"t or ha" gi#e the etr)"tee the li$erty to "ell or
'i"&o"e of the GDI, i" .7T re"&o"i$le a" a principal or a" a vendor i a "ale or cotract to "ell
(a'e $y the etr)"tee.
H. *bligations o$ t#e Entr(stee
The etr)"tee "hall/
,. =ol' the GDI a' "hall 'i"&o"e of the( i accor'ace 0ith the ter(" a' co'itio"
of the tr)"t recei&tI
2. Recei#e the &rocee'" i tr)"t for the etr)"ter a' t)ro#er the "a(e to the etr)"ter
to the e2tet of the a(o)t o0ig the etr)"ter or a" a&&ear" o the tr)"t recei&tI
+. I")re the G77DS for their total #al)e agai"t lo"" fro( fire, theft, &ilferage, or other
ca")altie"I
:. >ee& "ai' goo'" a' &rocee'" thereof 0hether i (oey or 0hate#er for(, "e&arate
a' ca&a$le of i'etificatio a" &ro&erty of the etr)"terI a'
B. 7$"er#e all other ter(" a' co'itio" of the tr)"t recei&t ot cotrary to the
&ro#i"io" of the la0.
". Liabilit/ o$ Entr(stee $or Loss
Ri"% of Lo"" "hall $e $ore $y the Etr)"tee.
The lo"" of the GDI &e'ig their 'i"&o"itio, 0hether or ot the etr)"tee i" at fa)lt or
egliget, it "hall .7T e2tig)i"h hi" o$ligatio to teh etr)"ter for the #al)e thereof
H. Rig#ts o$ t#e P(rc#aser $or ?al(e and :ood =ait#
If the etr)"tee ha" the right to "ell the a &)rcha"er of #al)e a' goo' faith ac*)ire"
the GDI free fro( the etr)"terM" "ec)rity itere"t
>. ?alidit/ o$ Entr(sterIs 1ec(rit/ "nterest as Against Creditors
The Etr)"terM" "ec)rity itere"t i GDI &)r")at to the 0ritte ter(" of a tr)"t recei&t
"hall $e @ALID agai"t all cre'itor" of the Etr)"tee for the ')ratioo fo the tr)"t
recei&t agree(et
L. ?iolation o$ t#e Tr(st Recei'ts Law 08al(m Pro#ibit(m--intent is immaterial5
<he the Etr)"tee fail" to/
t)r o#er the &rocee'" of the "ale of the goo'"
ret)r the goo'" co#ere' $y the tr)"t recei&t if the goo'" are ot "ol'
3ail)re to acco)t, )&o 'e(a', for the goo'" recei#e' i tr)"t i" e#i'ece of
co#er"io or (i"a&&ro&riatio--co"tit)te" estafa.
The Tr)"t Recei&t" La0 &)i"he" 'i"hoe"ty a' a$)"e of cofi'ece i ha'lig of
(oey or goo'" to the &reA)'ice of &)$ic or'er.
8ere fail)re to 'eli#er the &rocee'" or ret)r the goo'" co"tit)te" a cri(ial offe"e
the ca)"e" &reA)'ice ot oly to the cre'itor", $)t to the &)$lic itere"t.
8. Penalt/
P)i"he' )'er Art. 96; par. 6 AbB of the "P# or RA +H,B
If #ilaotio i" co((itte' $y cor&oratio", &arter"hi&", a""ociatio", or other A)ri'ical
etitie", &ealty "hall $e i(&o"e' o the directors, officers, employees,or other
officials or persons therein responsible for the offense1 0Fo &reA)'ice to the ci#il
lia$ilitie"
Rea"o/ Cor&oratio a' other A)ri'ical etitie" CA..7T $e &)t ito Aail. B)t
they are LIABLE for the ci#il lia$ilitie" $eca)"e of the cla)"e, -0Fo &reA)'ice to the
ci#il lia$ilitie".-
C#a'ter 1J 0incom'lete5
:. D(t/ to "ndicate "ns(rance on De'osits
All $a%" "hall i'icate the co#erage of the PDIC i each &a""$oo%, CTD a'For co#er
of chec%$oo% for 'e(a' 'e&o"itF.7< acco)t" "tatig, inter alia, the (a2i()( a(o)t of
i")race.
?". Assessment
A. Assessment Rate
- "hall $e 'eter(ie' $y the Boar' of Director"
- "hall ot e2cee' ,FB of ,O &er a)(I "e(i-a""e""(et rate for each i")re' $a%
"hall $e i the a(o)t of the &ro')ct of Z the a""e""(et rate ()lti&lie' $y the
a""e""(et $a"e $)t i o ca"e "hall it $e le"" tha P2BC. the a""e""(et $a"e "hall
$e the a(o)t of the lia$ility of he $a% for 'e&o"it" 0itho)t ay 'e')ctio for
i'e$te'e"" of 'e&o"itor".
B. Certi$ied 1tatement o$ Assessment Base and Assessment D(e
(i) 7 or $efore ?)ly +, of each year, each i")re' $a% "hall file 0ith the Cor&. a
certifie' "tate(et "ho0ig for the K (oth" e'ig o the &rece'ig ?)e +C
the a(o)t of the a""e""(et $a"e a' the a(o)t of the "e(ia)al
a""e""(et ')e to PDIC for the &erio' e'ig o the follo0ig Dec. +,,
'eter(ie' i accor'ace 0ith (a) a$o#e 0hich "hall cotai or $e #erifie' $y a
0ritte 'eclaratio that it i" (a'e )'er the &ealtie" of &erA)ry.
(ii) 7 or $efore ?a. +, of each year, each i")re' $a% "hall file 0ith the PDIC a
"i(ilar certifie' "tate(et for the K (oth" e'ig o the &rece'ig Dec. +, a'
"hall &ay the a(o)t of the "e(ia)al a""e""(et for the &erio' e'ig i the
follo0ig ?)e +C 0hich it i" re*)ire' to certify.
(iii) Each $a% 0hich $eco(e" a i")re' $a% "hall ot $e re*)ire' to file ay
certifie' "tate(et for the "e(ia)al &erio' i 0hich it $eco(e" a" i")re'
$a%.
(i#) 7 the e2&iratio of ")ch &erio', each ")ch $a% "hall co(&ly 0ith ($) a$o#e
e2ce&t that the "e(ia)al a""e""(et $a"e for it" fir"t certifie' "tate(et "hall
$e the a""e""(et $a"e of the $a% a" of the clo"e of $)"ie"" o the &rece'ig
?)e +C or Dec. +,, 0hiche#er i" a&&lica$le, 'eter(ie' i accor'ace 0ith (a)
a$o#e.
(#) If ")ch $a% ha" a"")(e' the lia$ilitie" for 'e&o"it" of aother $a% or $a%", it
"hall icl)'e ")ch lia$ilitie" i it" a""e""(et $a"e.
(#i) The a""e""(et &ay(et" re*)ire' fro( the i")re' $a%" "hall $e (a'e i
")ch (aer a" the Boar' "hall &re"cri$e, &ro#i'e' it "hall ot $e later tha KC
'ay" after filig the certifie' "tate(et "ettig forth the a(o)t of a""e""(et.
(#ii) Ay i")re' $a% 0hich fail" to &ay ay certifie' "tate(et (ay $e co(&elle' to
'o "o $y (a'atory iA)ctio or other a&&ro&riate re(e'y .
C. Re$(nd and Credit
PDIC (ay/
,. ref)' to a IB ay &ay(et of a""e""(et i e2ce"" of the a(o)t ')e
2. cre'it ")ch e2ce"" to0ar' the &ay(et of the a""e""(et e2t $eco(ig ')e
fro( ")ch $a% a' )&o ")ccee'ig a""e""(et" )til the cre'it i" e2ha)"te'.
D. Termination
- PDIC "hall ot ter(iate the i")re' "tat)" of ay $a% 0hich coti)e" to o&erate or
recei#e 'e&o"it"
- Sho)l' ay IB fail or ref)"e to &ay ay a""e""(et re*)ire', a' "ho)l' ot correct
")ch fail)re of ref)"al 0ithi +C 'ay" after 0ritte otice ha" $ee gi#e to a officer of
the $a%, a' "tatig that the $a% ha" faile' or ref)"e' to &ay, PDIC (ay, at it"
'i"cretio, file a ca"e for collectio 0itho)t &reA)'ice to the i(&o"itio of a'(ii"trati#e
"actio"
E. Tr(st =(nds
- (ea" f)'" hel' $y a i")re' $a% i a fi')ciary ca&acity a' icl)'e", 0itho)t
$eig li(ite' to, f)'" hel' a" tr)"tee, e2ec)tor, a'(ii"trator, g)ar'ia, or aget
- "hall $e i")re' li%e other for(" of 'e&o"it", i a a(o)t ot to e2cee' P,C,CCC for
each tr)"t e"tate, a' 0he 'e&o"ite' $y the fi')ciary $a% i aother IB, ")ch f)'"
"hall $e "i(ilarly i")re' to the 3B accor'ig to the tr)"t e"tate" re&re"ete'
- the a(o)t "o hel' $y other IB" o 'e&o"it "hall ot for the &)r&o"e of ay certifie'
"tate(et $e co"i'ere' to $e a 'e&o"it lia$ility of the 3B, $)t "hall $e co"i'ere' to
$e a 'e&o"it lia$ility of the IB
=. Pa/ment o$ Di.idends andKor "nterests
- o i")re' $a% "hall &ay ay 'i#i'e' o it" ca&ital "toc% or itere"t o it" ca&ital
ote" or 'e$et)re" or 'i"tri$)te ay of it" ca&ital a""et" 0hile it re(ai" i 'efa)lt i
the &ay(et of ay a""e""(et ')e
- if ")ch 'efa)lt i" ')e to a 'i"&)te $et0ee the i")re' $a% a' PDIC o#er the
a(o)t of ")ch a""e""(et, thi" r)le "hall ot a&&ly if ")ch $a% "hall 'e&o"it
"ec)rity "ati"factory to PDIC for &ay(et )&o fial 'eter(iatio of the i"")e
?"". De'osit "ns(rance =(nd
- the &er(aet i")race f)' "hall $e P+ $illio
- the DI3 "hall $e the ca&ital acco)t of PDIC a' "hall &rici&ally co"i"t of the ff/
a. the PI3
$. a""e""(et collectio", ")$Aect to the charge"
c. re"er#e" for i")race a' fiacial a""i"tace lo""e"
'. retaie' earig"
- PDIC (ay, 0ithi 2 year" fro( the &a""age of the PDIC La0, a' e#ery B year"
thereafter, co')ct a "t)'y o the ee' to a'A)"t the a(o)t of the PI3, i")race
co#er, a""e""(et rate a' a""e""(et $a"e, a' thereafter (a%e the ece""ary
reco((e'atio to Cogre""
- All a""e""(et collectio" a' ico(e fro( o&eratio" after e2&e"e" a' charge"
"hall $e a''e' to the DI3. S)ch e2&e"e" a' charge" are/
a. the o&eratig co"t" a' e2&e"e" of the Cor&. for the cale'ar year
$. a''itio" to re"er#e to &ro#i'e for i")race a' fiacial a""i"tace
lo""e", et of reco#era$le a(o)t" fro( a&&lica$le a""et" a'
collateral", ')rig the cale'ar year
c. the et i")race a' fiacial a""i"tace lo""e" ")"taie' i "ai'
cale'ar year
- I a ")it, PDIC i" etitle' to reco#er fro( ay i")re' $a% the a(o)t of ay )&ai'
a""e""(et la0f)lly &aya$le $y ")ch i")re' $a%, 0hether or ot ")ch $a% "hall
ha#e file' ay ")ch certifie' "tate(et a' 0hether or ot ")it "hall ha#e $ee
$ro)ght to co(&el the $a% to file ay ")ch "tate(et
- .o actio or &rocee'ig "hall $e $ro)ght for reco#ery of ay a""e""(et ')e of for
the reco#ery of ay a(o)t &ai' i e2ce"" of the a(o)t ')e, )le"" it ha" $ee
$ro)ght 0ithi B year" after the right accr)e' for 0hich the clai( i" (a'e
?""". )nso(nd Practice
I ca"e of co((i""io of )"afe or )"o)' &ractice" $y a IB or it" officer", the
Boar' of Director" "hall/
- ")$(it the re&ort of the e2a(iatio to the 8B to "ec)re correcti#e actio thereo
- if o ")ch actio i" ta%e 0ithi :B 'ay" fro( ")$(i""io of the re&ort, the BoD "hall
motu proprio i"tit)te correcti#e actio 0hich it 'ee(" ece""ary (BoD (ay i"")e a
cea"e-a'-'e"i"t or'er, a' re*)ire the $a% or it" 'irector" or aget" cocere' to
correct the &ractice" or #iolatio" 0ithi :B 'ay")
- if the &ractice or #iolatio i" li%ely to ca)"e i"ol#ecy or ")$"tatial 'i""i&atio of
a""et" or earig" of the $a%, or i" li%ely to "erio)"ly 0ea%e the co'itio of the
$a% or other0i"e "erio)"ly &reA)'ice the itere"t" of it" 'e&o"itor" a' the Cor&., the
&erio' to ta%e correcti#e actio "hall ot $e (ore tha ,B 'ay". The or'er (ay al"o
icl)'e the i(&o"itio of fie"
<hat (ay $e #iolate'/
,. ay &ro#i"io of the PDIC La0
2. ay or'er, r)le or i"tr)ctio i"")e' $y PDIC
+. ay 0ritte co'itio i(&o"e' i coectio 0ith ay tra"actio 0ith or grate' $y
PDIC
"@. Re'orts b/ "ns(red Banks
- each IB "hall (a%e to PDIC re&ort" of co'itio" i ")ch for( a' at ")ch ti(e" a"
the BoD (ay re*)ire ")ch re&ort" to $e &)$li"he' i ")ch (aer ot ico"i"tet
0ith ay a&&lica$le la0 a" it (ay 'irect
- PDIC "hall ha#e acce"" to re&ort" of e2a(iatio (a'e $y, a' re&ort of co'itio"
(a'e to the BSP or it" a&&ro&riate ")&er#i"ig 'e&t., a' the BSP "hall al"o ha#e
acce"" to ")ch re&ort" (a'e $y a' to PDIC
- Each IB "hall %ee& a' (aitai a tr)e a' acc)rate recor' or "tate(et of it" 'aily
'e&o"it tra"actio" co"i"tet 0ith the "ta'ar'" "et $y the BSP a' PDIC
@. Pro#ibitions on PD"C Personnel
- $eig a officer, 'irector, co")ltat, e(&loyee or "toc%hol'er, 'irectly or i'irectly, of
ay $a% or $a%ig i"tit)tio e2ce&t a" other0i"e &ro#i'e' $y la0
- recei#ig ay gift or thig of #al)e fro( ay officer, 'irector, or e(&loyee of ay $a%
- re#ealig i ay (aer, e2ce&t a" &ro#i'e' $y la0 or )'er co)rt or'er, ifor(atio
relatig to the co'itio or $)"ie"" of ay $a% "hall ot a&&ly to the gi#ig of
ifor(atio to the BoD, the Pre"i'et of the Cor&., Cogre"", ay agecy of go#t.
a)thori!e' $y la0, or to ay &er"o a)thori!e' $y either of the( i 0ritig to recei#e
")ch ifor(atio
@". Legal Assistance
- PDIC "hall )'er0rite or a'#ace litigatio co"t" a' e2&e"e", or &ro#i'e legal
a""i"tace to it" 'irector", officer", e(&loyee", or aget" i coectio 0ith ay ci#il,
cri(ial, a'(ii"trati#e, or ay other actio to 0hich ")ch 'irector etc. i" (a'e a &arty
$y rea"o of or i coectio 0ith the e2erci"e of a)thority or &erfor(ace of
f)ctio" a' ')tie" 'oe" ot a&&ly agai"t actio" iitiate' $y PDIC agai"t ")ch
'irector etc.
- A&&lie" al"o to tho"e 0ho re"ige', retire', or tra"ferre' to aother agecy, i
coectio 0ith act" 'oe ')rig their te)re or e(&loy(et 0ith PDIC
@"". Dealings b/ PD"C Personnel wit# Banks
A. Designation as Directors and *$$icers o$ Banks
8e($er" of the BoD a' &er"oel of PDIC (ay $eco(e 'irector" a' officer" of ay
$a% or $a%ig i"tit)tio a' of ay etity relate' to ")ch i"tit)tio i coectio 0ith
fiacial a""i"tace e2te'e' $y PDIC to ")ch i"tit)tio a' 0he, i the o&iio of the Boar',
it i" a&&ro&riate to (a%e ")ch 'e"igatio to &rotect the itere"t of PDIC.
B. Borrowing $rom Banks
- "hall $e &rohi$ite' oly 0ith re"&ect to the &artic)lar i"tit)tio i 0hich they are
a""ige', or are co')ctig a e2a(iatio
- &er"oel are li%e0i"e &rohi$ite' fro( $orro0ig fro( ay $a% or $a%ig i"tit)tio
')rig the ti(e that a tra"actio of ")ch i"tit)tio 0ith PDIC i" $eig e#al)ate',
&roce""e', or acte' )&o $y ")ch &er"oel
@""". Recei.ers#i'
A. A''ointment
- 0hee#er it "hall $e a&&ro&riate for the 8B of the BSP to a&&oit a recei#er of ay
$a%ig i"tit)tio &)r")at to e2i"tig la0", the 8B "hall gi#e &rior otice a' a&&oit
PDIC a" recei#er
- 4recei#er5 icl)'e" a recei#er, co((i""io, &er"o, or other agecy charge' $y la0
0ith the ')ty to ta%e charge of the a""et" a' lia$ilitie" of a $a% 0hich ha" $ee
for$i''e fro 'oig $)"ie"" i the Phil, a" 0ell a" the ')ty to gather, &re"er#e a'
a'(ii"ter ")ch a""et" a' lia$ilitie" for the $eefit of the 'e&o"itor" a' cre'itor" of
'ai" $a%, a' to coti)e ito li*)i'atio 0hee#er a)thori!e' )'er the la0, a' to
'i"&o"e of the a""et" a' to 0i' )& the affair" of ")ch $a%
B. Powers

A" recei#er, it "hall cotrol, (aage a' a'(ii"ter the affair" of the clo"e' $a%.
Effecti#e i((e'iately )&o ta%eo#er a" recei#er of ")ch $a%/
- the &o0er", f)ctio" a' ')tie", a" 0ell a" all allo0ace", re()eratio", a'
&er*)i"ite" of the 'irector", officer", a' "toc%hol'er" of ")ch $a% are ")"&e'e'
- the rele#at &ro#i"io" of the Article" of Icor&oratio a' By-la0" of the clo"e' $a%
are li%e0i"e ")"&e'e'
- the a""et" "hall $e 'ee(e' i custodia legis i the ha'" of the recei#er
- fro( the ti(e the $a% i" &lace' )'er recei#er"hi&, it" a""et" "hall ot $e ")$Aect to
attach(et, gari"h(et, e2ec)tio, le#y or ay other co)rt &roce""e"
I a''itio to the &o0er" of a recei#er &)r")at to e2i"tig la0", PDIC i" e(&o0ere'
to/
,. $rig ")it to eforce lia$ilitie" to or reco#erie" of the clo"e' $a%
2. a&&oit a' hire &er"o" a' etitie" of recogi!e' co(&etece i $a%ig or fiace
a" it" 'e&)tie" a' a""i"tat", to &erfor( ")ch &o0er" a' f)ctio" of PDIC a"
recei#er a' li*)i'ator of the clo"e' $a%
+. ")"&e' or ter(iate the e(&loy(et of officer" a' e(&loyee" of the $a%
&ay(et of "e&aratio &ay or $eefit" "hall $e (a'e oly after the $a% ha"
$ee &lace' )'er li*)i'atio
:. &ay accr)e' )tilitie", retal" a' "alarie" of &er"oel of the $a% for a &erio' ot
e2cee'ig + (oth" fro( a#aila$le f)'" of the $a%
B. collect loa" a' other clai(" of the $a%, a' for the &)r&o"e, (o'ify, co(&ro(i"e or
re"tr)ct)re the ter(" a' co'itio" of ")ch loa" or clai(" a" (a $e 'ee(e'
a'#atageo)" to the itere"t of the cre'itor" a' clai(at" of the $a%
K. hire or retai &ri#ate co)"el" a" (a $e ece""ary
;. $orro0 or o$tai a loa, or (ortgage, &le'ge, or ec)($er ay a""et of the $a%,
0he ece""ary to &re"er#e or &re#et 'i""i&atio of the a""et", or to re'ee(
foreclo"e' a""et" of the clo"e' $a%, or to (ii(i!e lo""e" to the 'e&o"itor" a'
cre'itor"
H. if the "ti&)late' itere"t o 'e&o"it" i" ))")ally high co(&are' 0ith the &re#ailig
a&&lica$le itere"t rate, PDIC a" recei#er (ay e2erci"e ")ch &o0er" 0hich (ay
icl)'e a re')ctio of the itere"t rate to a rea"oa$le rate. Ay (o'ificatio or
re')ctio "hall a&&ly oly to )&ai' itere"t
J. e2erci"e ")ch other &o0er" a" are iheret a' ece""ary for the effecti#e 'i"charge
of the ')tie" of PDIC a" recei#er
C. 1(its $iled b/ PD"C
(i) I all ca"e" file' $y PDIC a" recei#er for the reco#ery of or i#ol#ig ay a""et of
the clo"e' $a%, &ay(et of all 'oc%et a' other co)rt fee" "hall $e 'eferre'
)til the actio i" ter(iate' 0ith fiality.
(ii) Ay ")ch fee" "hall co"tit)te a" a fir"t lie o ay A)'g(et i fa#or of the
clo"e' $a% or i ca"e of )fa#ora$le A)'g(et, ")ch fee" "hall $e &ai' a"
a'(ii"trati#e e2&e"e" ')rig the 'i"tri$)tio of the a""et" of the clo"e' $a%.
D. Di"tri$)tio of A""et"
,. Before ay 'i"tri$)tio of a""et" of the clo"e' $a%, PDIC "hall charge agai"t
")ch a""et"/
Rea"oa$le recei#er"hi& e2&e"e" (")$Aect to a&&ro#al of co)rt)
Rea"oa$le li*)i'atio e2&e"e"
2. After &ay(et of all lia$ilitie" a' clai(" agai"t clo"e' $a%, PDIC "hall &ay ay
")r&l)" 'i#i'e'" at the legal rate of itere"t fro( the 'ate of ta%eo#er to the 'ate
of 'i"tri$)tio, to cre'itor" a' clai(at" i accor'ace 0ith legal &riority $efore
'i"tri$)tio to the "harehol'er".
EI@. Pay(et of I")re' De&o"it"
A. 8aer of Pay(et
,. <hee#er a i")re' $a% "hall ha#e $ee clo"e' $y the 8oetary Boar',
&ay(et of the i")re' 'e&o"it" o ")ch clo"e' $a%" "hall $e (a'e $y
the PDIC $y/
i. Ca"h
ii. Tra"ferre' 'e&o"it
2. Tra"fer 'e&o"it 1 'e&o"it i a i")re' $a% (a'e a#aila$le to a 'e&o"itor
$y PDIC a" &ay(et of i")re' 'e&o"it of ")ch 'e&o"itor i a clo"e' $a%.
.ot to e2cee' t0o h)'re' fifty tho)"a' (2BC,CCC)
+. A Aoit acco)t "hall $e i")re' "e&arately fro( ay i'i#i')ally o0e'
'e&o"it acco)t.
:. 8a2i()( i")re' 'e&o"it" of ?oit acco)t" "hall $e 'i#i'e' ito a" (ay
e*)al "hare" a" there are co-o0er", )le"" a 'ifferet "harig i" "ti&)late'
i the 'oc)(et of 'e&o"it.
B. If a acco)t i" hel' $y a A)ri'ical &er"o Aoitly 0ith a i'i#i')al, it i"
&re")(e' that the (a2i()( i")re' 'e&o"it $elog" to the A)ri'ical &er"o.
K. The aggregate of the itere"t" of each co-o0er o#er "e#eral Aoit acco)t"
"hall li%e0i"e ot e2cee' 2BC,CCC
;. .o o0erFhol'er of ay egotia$le certificate of 'e&o"it "hall $e recogi!e'
a" a 'e&o"itor etitle' to the right" &ro#i'e' )le"" hi" a(e i" regi"tere' i
the $oo%" of the i"")ig $a%.
B. Proof of Clai("
,. PDIC (ay re*)ire &roof of clai(" to $e file' $efore &ayig the i")re'
'e&o"it".
2. It (ay re*)ire fial 'eter(iatio $y the co)rt" if ot "ati"fie' to the #ia$ility
of the clai(.
C. Settle(et Perio' a' Pealtie" i Ca"e of 3ail)re to Settle
,. 3ail)re to "ettle clai( 0ithi "i2 (oth" fro( the 'ate of filig clai( ')e to
gra#e a$)"e of 'i"cretio, gro"" egligece, $a' faith, or (alice "hall
")$Aect the 'irector", e(&loyee", or officer" of PDIC Re"&o"i$le for the
'elay to i(&ri"o(et fro( "i2 (oth" to oe year.
2. Perio' "hall ot a&&ly if the #ali'ity of the clai( 'e&e'" o re"ol)tio of
i"")e" of fact or la0 $y aother office.
+. 9&o &ay(et to ")ch 'e&o"itor, PDIC "hall $e ")$rogate' to all of the
right" of the 'e&o"itor to the e2tet of ")ch &ay(et.
:. S)ch ")$rogatio "hall icl)'e the right to recei#e the "a(e 'i#i'e'" fro(
the &rocee'" of the a""et" of the clo"e' $a%. B)t ")ch 'e&o"itor "hall
retai hi" clai( for ay )i")re' &ortio of hi" 'e&o"it.
D. .otice
,. PDIC "hall co((ece the 'eter(iatio of i")re' 'e&o"it" ')e to
'e&o"itor" of the clo"e' $a% )&o it" act)al ta%eo#er of the clo"e' $a%.
2. PDIC "hall &)$li"h the otice oce a 0ee% for at lea"t + co"ec)ti#e 0ee%"
i a e0"&a&er of geeral circ)latio or e0"&a&er circ)late' i the
co(()ity 0here the clo"e' $a% or it" $rache" are locate'.
E. Di"charge
Pay(et of a i")re' 'e&o"it "hall 'i"charge PDIC. A' &ay(et of a
tra"ferre' 'e&o"it $y the e0 $a% i 0hich a tra"ferre' 'e&o"it ha" $ee
(a'e a#aila$le "hall 'i"charge PDIC a' the e0 $a%.
3. Recogitio of 70er
PDIC caot recogi!e a" the o0er ay &er"o, 0ho"e a(e or itere"t
a" ")ch o0er i" ot 'i"clo"e' o the recor'" of a clo"e' $a%, a" &art
o0er of ay &ortio of a 'e&o"it a&&earig o the recor'" of the clo"e'
$a% )'er a a(e other tha that of the clai(at.
G. <ithhol'ig of Pay(et
PDIC (ay 0ithhol' &ay(et of ")ch &ortio" of the i")re' 'e&o"it of ay
'e&o"itor i a clo"e' $a% a" (ay $e re*)ire' to &ro#i'e for the &ay(et of
ay lia$ility of ")ch 'e&o"itor a" a "toc%hol'er of the clo"e' $a%, or ay
lia$ility of ")ch 'e&o"itor to the clo"e' $a% or to it" recei#er, 0hich i" ot
off"et agai"t a clai( ')e fro( ")ch $a%, &e'ig the 'eter(iatio a'
&ay(et of ")ch lia$ility $y ")ch 'e&o"itor or ay other lia$le therefore.
=. Pre"cri&tio
All right" of a 'e&o"itor 0ith re"&ect to the i")re' 'e&o"it "hall $e $arre' if/
=e fail" to file a clai( 0ithi t0o year" fro( act)al ta%e-o#er of
the clo"e' $a% $y the recei#er.
7r 'oe" ot eforce hi" clai( 0ithi t0o year" after the filig a
clai( 9le"" other0i"e 0ai#e' $y PDIC.
All right" of the 'e&o"itor ")$rogate' to PDIC "hall there)&o re#ert $ac% to
the 'e&o"itor. PDIC "hall $e 'i"charge' fro( ay lia$ility.
E@. I#e"t(et $y PDIC
A. 8oey of the PDIC ot other0i"e e(&loye' "hall $e i#e"te' i o$ligatio" of the
Re&)$lic of the Phili&&ie" or $y o$ligatio" g)aratee' $y it.
,. It "hall ot "ell or &)rcha"e ay ")ch o$ligatio for it" o0 acco)t or i it"
o0 right a' itere"t i ay oe ti(e aggregatig i e2ce"" of ,CC,CCC
0itho)t a&&ro#al of the I")race Co((i""ioer.
2. I")race Co((i""ioer (ay 0ai#e the re*)ire(et of hi" a&&ro#al a" he
(ay 'eter(ie.
B. The $a%ig or chec%ig acco)t of PDIC "hall $e %e&t i/
,. BSP
2. P.B
+. Ay $a% 'e"igate' a" fi"cal aget or 'e&o"itory of RP
E@I. E2te"io of Loa"
A. I or'er to &re#et a i")re' $a% fro( clo"ig, PDCI (ay (a%e loa", &)rcha"e the
a""et", a"")(e lia$ility, or (a%e 'e&o"it" i ")ch i")re' $a%, )&o ")ch co'itio"
a" the Boar' of Director" (ay &re"cri$e, the o&eratio" of ")ch $a% i" e""etial to
&ro#i'e a'e*)ate $a%ig "er#ice i the co(()ity or (aitai fiacial "ta$ility i
the ecoo(y.
a. S)ch &o0er (ay al"o $e e2erci"e' i ca"e of a clo"e' i")re' $a% if/
i. the re")(&tio of the o&eratio" of "ai' $a% i" #ital to the
itere"t of the co(()ity
ii. Se#ere fiacial cli(ate e2i"t"
$. Reo&eig of "ai' $a% i" ")$Aect to the a&&ro#al of the 8oetary Boar'.
B. PDIC (ay &ro#i'e ay cor&oratio ac*)irig cotrol of, (ergig or co"oli'atig 0ith
or ac*)irig the a""et" of a i")re' $a% i or'er to &re#et ")ch clo"ig or of a
clo"e' i")re' $a% i or'er to re"tore it to or(al o&eratio
a. <ithi KC 'ay" fro( 'ate of a""i"tace, PDIC "hall ")$(it a re&ort to 8B
C. PDIC "hall 'eter(ie the act)al &ayoff a' li*)i'atio thereof 0ill $e (ore e2&e"i#e
tha the e2erci"e of it" &o0er &rior to e2erci"e of it" &o0er".
D. PDIC (ay grat fiacial a""i"tace to i")re' $a%", 0ith "y"te(ic co"e*)ece"
0ith a &ro$a$le fail)re or clo")re, a" (ay $e ece""ary to &re#et it" fail)re or
clo")re. 1 ")$Aect to the a&&ro#al of the 8oetary Boar'.
a. 4"y"te(ic ri"%5 1 &o""i$ility that fail)re of oe $a% to "ettle et tra"actio"
0ith other $a%" 0ill trigger a chai reactio, 'e&ri#ig other $a%" of f)'"
lea'ig to a geeral "h)t'o0 of or(al clearig a' "ettle(et acti#ity.
- Li%elihoo' of a ")''e )e2&ecte' colla&"e of
cofi'ece i a "igificat &ortio of the $a%ig or
fiacial "y"te( 0ith &otetially large real ecoo(ic
effect".
E. PDIC (ay ot &)rcha"e the #otig or co((o "toc% of a i")re' $a% $)t it ca
eter ito or force agree(et" that it 'eter(ie" to $e ece""ary to &rotect it"
fiacial itere"t".
3. 3iacial a""i"tace (ay ta%e the for( of e*)ity or *)a"i-e*)ity of i")re' $a%" a"
(ay $e 'ee(e' ece""ary $y the Boar' of Director" 0ith coc)rrece $y the 8B. The
cor&oratio "hall 'i"&o"e of ")ch e*)ity a" "oo a" &ractica$le.
E@II. Borro0ig"
A. PDIC i" a)thori!e' to $orro0 fro( the BSP o ")ch ter(" a" (ay $e agree' $y the(.
S)ch loa" grate' $y the BSP "hall $e co"i"tet 0ith (oetary &olicy, the itere"t
rate thereo "hall ot e2cee' the trea")ry $ill rate.
B. <he i the ?)'g(et of the Boar' of Director", the PDIC ha" i")fficiet f)'" to
attai it" &)r&o"e, PDIC "hall $e a)thori!e' to $orro0 (oey, o$tai loa", or arrage
cre'it lie" or other cre'it acco((o'atio" fro( ay $a% 'e"igate' a" 'e&o"itory
or fi"cal aget $y the RP.
E@II. I"")ace of Bo'"
<ith a&&ro#al of the Pre"i'et of RP, PDIC i" a)thori!e' to i"")e $o'", 'e$et)re",
a' other o$ligatio" ece""ary fro the &)r&o"e of "ettle(et of i")re' 'e&o"it" i
clo"e' $a%" a" 0ell a" for fiacial a""i"tace.
a. BoD "hall 'eter(ie itere"t rate a' other re*)ire(et" of ")ch o$ligatio.
$. PDIC "hall &ro#i'e a&&ro&riate re"er#e" for the re'e(&tio of "ai'
o$ligatio.
EIE. Re&ort" a' A)'it
A. PDIC "hall a)ally (a%e a re&ort of it" o&eratio" to the Cogre"" a" "oo "
&ractica$le after ?a ,
B. 3iacial tra"actio" "hall $e a)'ite' $y the C7A i accor'ace 0ith &rici&le" a'
&roce""e" a' &roce')re" a&&lica$le to co((ercial cor&orate tra"actio". A)'it
"hall $e co')cte' i &lace" 0here the acco)t" of the cor&oratio are or(ally %e&t.
C. C7A "hall ha#e acce"" to all $oo%", acco)t", recor'", re&ort", file", a' all other
&a&er" $elogig to PDIC &ertaiig to it" fiacial tra"actio". E2ce&t a" to (atter"
relatig to the 3)ctio of the PDIC 0hich "hall $e ")$Aect to #i"itorial a)'it oly.
EE. 8i"cellaeo)"
A. Sig"
a. I")re' $a%" "hall &lace "ig" i all &lace of $)"ie"" a' i it" "tate(et"
that it" 'e&o"it" are i")re' $y PDIC.
$. BoD (ay e2e(&t fro( thi" re*)ire(et a'#erti"e(et" ot relatig to
'e&o"it".
B. 8erger or co"oli'atio of i")re' $a%"
9&o co"et of PDIC, $a%" (ay/
,. 8erge or co"oli'ate 0ith a )i")re' $a%
2. A"")(e lia$ility to &ay ay 'e&o"it" (a'e i oi")re' $a%
+. Tra"fer a""et" to ay oi")re' $a%
C. Protectio Agai"t Lo""e"
a. PDIC (ay re*)ire a i")re' $a% to &ro#i'e &rotectio a' i'e(ity
agai"t $)rglary, 'efalcatio, lo""e" ari"ig fro( 'i"charge of ')tie", $y
&artic)lar act" of it" 'irector", e(&loyee", officre"
$. BoD "hall 'eter(ie the $o'ig re*)ire(et referrig to 'irector", officer",
af' e(&loyee" of a i")re' $a%
c. If i")re' $a% ref)"e to co(&ly 0ith ay ")ch re*)ire(et, PDIC (ay a''
the co"t thereof to the a""e""(et other0i"e &aya$le to ")ch $a%.
D. Director", 7fficer" a' e(&loyee" of I")re' $a%"
a. .o &er"o "hall $e a 'irector, officer, or e(&loyee of a i")re' $a% 0ho
ha" $ee co#icte' of ay cri(ial offe"e i#ol#ig 'i"hoe"ty of $reach of
tr)"t.
$. Pealty for #iolatio of thi" &rohi$itio/ the $a% 0ill $e ")$Aect to &ealty of
ot (ore tha ,CC for e#ery 'ay of #iolatio.
EEI. Cri(ial Pealtie"
A. P)i"ha$le $y &ri"io (ayor or a fie of BC,CCC-2,CCC,CCC,CCC or $oth, ay 'irector,
officer, e(&loyee or aget of $a% 0ho/
,. <illf)l ref)"al to ")$(it re&ort"
2. 9A)"tifie' ref)"al to &er(it e2a(iatio a' a)'it of recor'" a" re*)ire' $y
la0, r)le", a' reg)latio"
+. <illf)l (a%ig of fal"e "tate(et or etry i ay $a% re&ort or 'oc)(et
:. S)$(i""io of fal"e (aterial ifor(atio i coectio 0ith or i relatio to
ay fiacial a""i"tace e2te'e' to the $a%
B. S&littig of 'e&o"it" or creatio of fictitio)" loa" or 'e&o"it acco)t"
i. S&littig 'e&o"it" 1 'e&o"it acco)t" 0ith a o)t"ta'ig $alace
of (ore tha the "tat)tory (a2i()( a(o)t of i")re'
'e&o"it (aitaie' )'er the a(e of a &er"o i" $ro%e 'o0
a' tra"ferre' ito t0o or (ore acco)t" i the a(e" of
&er"o" 0ho ha#e o $eeficial o0er"hi& o tra"ferre'
'e&o"it" i their a(e" 0ithi +C 'ay" &rece'ig or ')rig a $a%
'eclare' holi'ay, or &rece'ig a clo")re or'er i"")e' $y the 8B
for the &)r&o"e of a#ailig of the (a2i()( 'e&o"it i")race
co#erage.
K. Ref)"al to allo0 PDIC to ta%eo#er a clo"e' $a% &lace' )'er it"
recei#er"hi&
;. Ref)"al to t)ro#er or 'e"troyig or ta(&erig $a% recor'"
H. 3ra)')let 'i"&o"al , tra"fer or coceal(et of ay a""et, &ro&erty, lia$ility
of the clo"e' $a% )'er the recei#er"hi& of the PDIC
J. @iolatio, or ca)"ig a &er"o to #iolate, the e2e(&tio of gari"h(et, le#y
attach(et, or e2ec)tio &ro#i'e' )'er the PDIC La0 a' the .CBA
,C. <illf)l fail)re or ref)"al to co(&ly 0ith, or #iolatio of ay &ro#i"io of eh
PDIC La0, or co((i""io of ay other irreg)laritie" a'For co')ctig
$)"ie"" i a )"afe or )"o)' (aer.
EEII. 3I.ES
A. B7D i" a)thori!e' to i(&o"e a'(ii"trati#e fie" for #iolatio of ay other i"tr)ctio,
r)le, or reg)latio i"")e' $y PDIC, agai"t a $a% or ay of it" 'irector", officer", or
aget" re"&o"i$le for ")ch act, o(i""io, or #iolatio. I o ca"e ")ch fie e2cee'
+ti(e" the a(o)t of the 'a(age" or co"t" ca)"e' $y the tra"actio for each 'ay
that the #iolatio ")$"i"t.

Cha& ,, 1 Ati- 8oey La)'erig ( RA J,KC)
. CO$CEPT"
A. Policies
i. To &rotect a' &re"er#e the itegrity a' cofi'etiality of $a% acco)t"
ii. E")re that the Phili&&ie" "hall ot $e )"e' a" a (oey la)'erig "ite for
the &rocee'" of ay )la0f)l acti#ity.
iii. Coo&eratio i tra"atioal i#e"tigatio a' &ro"ec)tio of &er"o"
i#ol#e' i (oey la)'erig
B. Co.ered "nstit(tions
i. Ba%", o-$a%", *)a"i-$a%", tr)"t etitie" a' all other i"tit)tio"
reg)late' $y the BSP
ii. I")race co(&aie" a' all other i"tit)tio" reg)late' $y the i")race
co((i""io
iii. Sec)ritie", $ro%er", "ale"(e, i#e"t(et ho)"e a' other etitie"
(aagig "ec)ritie" or "er#ice a" aget, a'#i"or, co")ltat
i#. 8)t)al f)'", clo"e'-e' i#e"t(et co(&ay, co((o tr)"t f)' a' &re-
ee' co(&aie"
#. 3oreig e2chage cor&oratio", (oey chager", (oey &ay(et",
re(ittace, a' tra"fer co(&aie"
#i. Tho"e a'(ii"terig or 'ealig i c)rrecy, co((o'itie", fiacial
'eri#ati#e" or other (oetary i"tr)(et" or &ro&erty ")&er#i"e' $y the
SEC
C. Co.ered and 1(s'icio(s transaction
i. Tra"actio i ca"h or (oetary i"tr)(et e2cee'ig PBCC,CCC i oe
$a%ig 'ay
ii. S)"&icio)" tra"actio" regar'le"" of the a(o)t
a. .o legal or tra'e o$ligatio, &)r&o"e or ecoo(ic A)"tificatio
$. Cliet i" ot &ro&erly i'etifie'
c. A(o)t i" ot co((e")rate 0ith the cliet6" fiacial ca&acity
'. Str)ct)re' tra"actio" to a#oi' $eig the ")$Aect of re&ortig
re*)ire' )'er the act
e. Tho"e 0hich 'e#iate fro( the &rofile of the cliet or &a"t
tra"actio"
f. Relate' to ay )la0f)l acti#ity or offe"e
g. Ay tra"actio that i" "i(ilar to ay of the foregoig
D. 8onetar/ instr(ment
i. Coi"Fc)rrecy of legal te'er of the Phil. 7r ay co)try
ii. Draft", chec%" a' ote"
iii. Sec)ritie" or egotia$le i"tr)(et", $o'", co((ercial &a&er", 'e&o"it
certificate", tr)"t certificate", c)"to'ial recei&t", tra'ig or'er", tra"actio
tic%et", cofir(atio of "ale (oey (ar%et i"tr)(et"
i#. 7ther "i(ilar i"tr)(et" 0he title &a""e" to aother $y e'or"e(et,
a""ig(et or 'eli#ery
E. )nlaw$(l Acti.ities
i. >i'a&&ig for ra"o( )'er Art.2K; of RPC
ii. Sec". :-K, H-,C, ,2-,K of the Dagero)" Dr)g" Act of 2CC2
iii. Sec.+ &ar $, c, e, g, h, I of the Ati-Graft a' Corr)&t Practice" Act
i#. Pl)'er )'er RA ;CHC
#. Ro$$ery a' e2tortio )'er Art". 2J:-2JK, 2JJ-+C2 of the RPC
#i. ?)eteg a' 8a"iao )'er PD ,KC2
#ii. Piracy o high "ea" )'er RPC a' PD B+2
#iii. G)alifie' theft )'er Art.+,C of RPC
i2. S0i'lig )'er Art.+,B of RPC
2. S()gglig )'er RA :BB a' ,J+;
2i. @iolatio" of Electroic Co((erce Act of 2CCC
2ii. =iAac%ig a' other #iolatio" of RA K2+B
2iii. De"tr)cti#e ar"o a' ()r'er )'er RPC
2i#. 3ra)')let &ractice" )'er Sec)ritie" Reg)latio Co'e of 2CCC
2#. 3eloie" or offe"e" of "i(ilar at)re &)i"ha$le )'er &eal la0" of other
co)trie"
=. 8one/ La(ndering *$$ense- is a crime w#ereb/ t#e 'roceeds o$ an (nlaw$(l
acti.it/ are transacted7 t#ereb/ making t#em a''ear to #a.e originated $rom
legitimate so(rces. "t can be committed b/ t#e $$!
i. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, tra"act" or
atte(&t" to tra"act "ai' (oetary i"tr)(et or &ro&erty
ii. Ay &er"o %o0ig ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, &erfor(" or fail"
to &erfor( ay act a" a re")lt of 0hich he facilitate" the offe"e of (oey
la)'erig referre' to a$o#e
iii. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty i" re*)ire' to
$e 'i"clo"e' a' file' 0ith the Ati-8oey La)'erig Co)cil, fail" to 'o "o
. 7urisdiction and Prosecution
A. H(risdiction
i. Pri#ate &er"o"- RTC
ii. P)$lic &er"o" a' &ri#ate &er"o" i co"&iracy 0ith the for(er-
Sa'iga$aya
B. Prosec(tion
i. Ay &er"o (ay $e charge' of $oth (oey la)'erig a' the )la0f)l
acti#ity
ii. Ay &rocee'ig relatig to the )la0f)l acti#ity "hall $e gi#e &rece'ece
o#er the &ro"ec)tio of ay offe"e or #iolatio 0Fo &reA)'ice to the
free!ig a' other re(e'ie"
. Anti-Mone5 ,aunderin6 Counci4
A. Com'osition
i. Go#eror of he BSP a" chair(a
ii. Co((i""ioer of the I")race Co((i""io
iii. Chair(a of the SEC
B. =(nctions
i. Re*)ire a' recei#e co#ere' or ")"&icio)" tra"actio re&ort" fro( co#ere'
i"tit)tio"
ii. I"")e or'er" a''re""e' to the ")&er#i"ig a)thority of the i"tit)tio to
'eter(ie the tr)e o0er of a co#ere' or ")"&icio)" tra"actio re&ort or
re*)e"t a""i"tace o the $a"i" of ")$"tatial e#i'ece
iii. I"tit)te ci#il forfeit)re &rocee'ig" thro)gh the 7SG
i#. Ca)"e the filig of co(&lait" 0ith the D7? or 7($)'"(a
#. I#e"tigate ")"&icio)" a' co#ere' tra"actio"
#i. A&&ly $efore the CA e2 &arte, for the free!ig of ay (oetary i"tr)(et or
&ro&erty
#ii. I(&le(et (ea")re" a" (ay $e ece""ary to co)teract (oey la)'erig
#iii. Recei#e a' ta%e actio ay re*)e"t of a""i"tace fro( foreig "tate" i
their o0 ati-(oey la)'erig o&eratio"
i2. De#elo& e')catioal &rogra(" o the effect", (etho'", a' (ea" to
&re#et (oey la)'erig
2. Eli"t a""i"tace fro( go#er(et i"tr)(etality for ay ati-(oey
la)'erig o&eratio
2i. I(&o"e a'(ii"trati#e "actio" for #iolatio of la0", r)le", reg)latio" a'
or'er" i"")e' &)r")at thereto
2ii. E"ta$li"h a "ecretariat
a. 8e($er of the Bar
$. +B year" of age
c. G8C
'. 9*)e"tioa$le itegrity a' %o0 &ro$ity
I@. Prevention of Mone5 ,aunderin6
A. C(stomer "denti$ication
i. I"tit)tio" "hall e"ta$li"h a' recor' the tr)e i'etity of it" cliet" $a"e' o
office 'oc)(et"
ii. 8aitai a "y"te( of #erifyig the i'etity a' legal e2i"tece of their
cliet"
iii. Aoy(o)", fictitio)" a "i(ilar acco)t" are &rohi$ite'
i#. Pe"o a' foreig c)rrecy o-chec%ig acco)t" "hall $e allo0e' 0hich
0ill $e ")$Aect to te"t $y the BSP to 'eter(ie the e2i"tece a' i'etity of
the o0er"
B. Record >ee'ing
i. Recor'" of tra"actio" "hall $e (aitaie' a' "tore' fro( B year" fro(
the 'ate of tra"actio
ii. 3or clo"e' acco)t", it" recor'" "hall al"o $e "tore' for B year" fro( the
'ate it 0a" clo"e'
C. Re'orting o$ Co.ered and 1(s'icio(s Transaction
i. Shall $e re&orte' to A8LC 0ithi B 0or%ig 'ay" fro( the occ)rrece
thereof, )le"" ")&er#i"ig a)thority &re"cri$e" a loger &erio' ot
e2cee'ig ,C 'ay"
ii. Sho)l' a tra"actio $e 'eter(ie' a a co#ere' a' ")"&icio)" tra"actio,
it "hall $e re*)ire' to re&ort the "a(e
iii. S)ch re&ortig "hall ot $e co"i'ere' a" a #iolatio of RA ,:CB, RA K:2K,
RA H;J,, $)t are &rohi$ite' to co(()icate to ay other &er"o
i#. I ca"e of #iolatio of the &rohi$itio a$o#e, they "hall $e cri(ially lia$le
#. Re&ortig to the A8LC i" al"o &rohi$ite' to $e 'i"clo"e' to the (e'ia or ay
other &er"o or etity
D. =reezing o$ 8onetar/ "nstr(ment or Pro'ert/
i. To the CA, )&o a&&licatio e2 &arte $y the A8LC a' after 'eter(iatio
that &ro$a$le ca)"e e2i"t", (ay i"")e a free!e or'er
ii. S)ch or'er "hall $e for 2C 'ay" )le"" e2te'e' $y the Co)rt
E. A(t#orit/ to inF(ire into bank de'osits
i. The A8LC (ay i*)ire )&o or'er of ay co(&etet co)rt 0he it ha" $ee
e"ta$li"he' that/
a. There i" &ro$a$le ca)"e that the 'e&o"it or i#e"t(et " relate'
to ay )la0f)l acti#ityI or
$. A (oey la)'erig offe"e
ii. .o co)rt or'er "hall $e re*)ire' i the follo0ig acti#itie"
a. >i'a&&ig for ra"o(
$. @iolatio" of Dagero)" Dr)g Act of 2CC2
c. =iAac%ig a' other #iolatio" of RA K2+B
'. De"tr)cti#e ar"o a' ()r'er icl)'ig tho"e &er&etrate' $y
terrori"t"
!. )orfeiture
A. Ci.il $or$eit(re
a. <he there i" a re&ort (a'e, a' the Co)rt, i a &etitio file' for the
&)r&o"e of "ei!)re, the R)le" of Co)rt o ci#il forfeit)re a&&lie"
B. Claim on =or$eit(re Assets
a. Tho"e clai(ig a itere"t (ay a&&ly, $y #erifie' &etitio, for a 'eclaratio
that the "ei!e' i"tr)(et or &ro&erty legiti(ately $elog" to hi( a' &ray
for the "egregatio a' e2cl)"io
$. It "hall $e file' 0ith the co)rt 0hich re'ere' the A)'g(et of forfeit)re
0ithi ,B 'ay" fro( the or'er of forfeit)re
C. Pa/ment in lie( o$ $or$eit(re
a. I" allo0e' $eca)"e forfeit)re caot $e eforce' ')e to the ff/
i. <ith ')e 'iligece, it caot $e locate'
ii. S)$"tatially altere', 'e"troye', 'i(ii"he' i #al)e or re'ere'
0orthle"" $y ay act or o(i""io attri$)ta$le to the offe'er
iii. Coceale', re(o#e', co#erte' or tra"ferre' to &re#et fro(
$eig fo)' or a#oi' forfeit)re
i#. Locate' o)t"i'e the Phili&&ie or o)t"i'e the A)ri"'ictio of the
co)rt
#. Co((igle' 0ith other i"tr)(et or &ro&erty re'erig it 'iffic)lt
to $e i'etifie' or "egregate'
!. Mutua4 assistance amon6 states
A. ReF(est $or assistance $rom a $oreign state
a. The A8LC (ay e2ec)te or ref)"e to e2ec)te ")ch re*)e"t a' ifor( the
"tate of ay #ali' rea"o for ot e2ec)tig ")ch re*)e"t
B. Powers o$ t#e A8LC to act on a reF(est $or assistance
a. 8ay e2ec)te a re*)e"t $y/
i. Trac%ig 'o0, free!ig, re"traiig a' "ei!ig a""et"
ii. Gi#e ifor(atio ee'e'
iii. A&&ly for a or'er of forfeit)re
$. Co)rt 0ill i"")e ")ch or'er oly 0he acco(&aie' $y/
i. A)theticate' co&y of the or'er of a co)rt i the re*)e"tig "tate
or'erig the forfeit)re
ii. Certificatio or affi'a#it of a co(&etet officer of the re*)e"tig
"tat that the co#ictio a' or'er of forfeit)re are fial
C. *btaining assistance $rom $oreign state
a. Trac%ig 'o0, free!ig, re"traiig a' "ei!ig a""et"
$. 7$tai ifo that it ee'" relatig to co#ere' tra"actio a' (oey
la)'erig offe"e
c. Eter ito the &re(i"e" $elogig to or i the &o""e""io of the &er"o"
a(e' i the re*)e"t, to the e2tet allo0e' $y the la0 of the foreig "tate
'. A&&ly for a or'er of forfeit)re a' ()"t $e acco(&aie' $y the or'er of the
RTC a' a affi'a#it of the Cler% of Co)rt that the co#ictio a' forfeit)re
are fial
D. Limitations on reF(est
a. <he it cotra#ee" the co"tit)tio
$. PreA)'icial to the itere"t of the Phili&&ie"
i. E2ce&t/ if there i" a treaty $et0ee the Phil. A' the re*)e"tig
State relatig to the &ro#i"io" of a""i"tace i (oey la)'erig
offe"e
E. ReF(irement $or reF(est $rom a $oreign state
a. Cofir( that a i#e"tigatio or &ro"ec)tio i" $eig co')cte'
$. State the gro)'" o 0hich ay &er"o i" $eig i#e"tigate' or &ro"ec)te'
for
c. Gi#e ")fficiet &artic)lar" a" to the i'etity of the &er"o
'. Gi#e &artic)lar" ")fficiet to i'etify the i"tit)tio $elie#e' to ha#e ay ifo
e. A"% fro( the i"tit)tio for ay ifo 0hich (ay $e of a""i"tace to the
i#e"tigatio or &ro"ec)tio
f. S&ecify the (aer i 0hich ")ch ifo 0ill $e o$taie' or &ro')ce'
g. Gi#e all the &artic)lar" ece""ary for the i"")ace $y the co)rt i the
re*)e"te' "tate of the or'er" ee'e' $y th re*)e"tig "tate
h. Cotai other ifo a" (ay a""i"t i the e2ec)tio of the re*)e"t
=. A(t#entication o$ doc(ments
a. Sige' or certifie' $y a A)'ge or e*)i#alet officer i or of the re*)e"tig
"tate
$. A)theticate' $y the oath or affir(atio of a 0ite"" or "eale' 0ith a
official "eal of a (ii"ter or "ecretary of the go#er(et of the re*)e"tig
"tate
c. By the "ecretary of e($a""y, co")l geeral, co")l or ay officer i the
foreig "er#ice of the Phili&&ie" "tatioe' i the foreig "tate
:. E6tradition
a. .egotiate for the icl)"io of (oey la)'erig offe"e" a(og e2tra'ita$le
offe"e"
!. Pena4ties
A. Crime o$ mone/ la(ndering
a. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, tra"act" or
atte(&t" to tra"act "ai' (oetary i"tr)(et or &ro&erty
i. I(&ri"o(et of ; to ,: year" a' a fie ot le"" tha P+8
$. Ay &er"o %o0ig ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, &erfor(" or fail"
to &erfor( ay act a" a re")lt of 0hich he facilitate" the offe"e of (oey
la)'erig referre' to a$o#e
i. :-; year" a' fi ot le"" tha P,.B8 ot (ore tha P+8
c. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty i" re*)ire' to
$e 'i"clo"e' a' file' 0ith the Ati-8oey La)'erig Co)cil, fail" to 'o "o
i. K(-:year" or fie ot le"" tha P,CC,CCC ot (ore tha
PBCC,CCC, or $oth
B. =ail(re to kee' records
a. K(-,year or fie ot le"" tha P,CC,CCC ot (ore tha PBCC,CCC, or $oth
C. 8alicio(s re'orting
a. Ay &er"o 0ho, 0ith (alice or $a' faith, re&ort" a co(&letely )0arrate'
or fal"e ifo relati#e to (oey la)'erig
i. K(-:year" a' a fie ot le"" tha P,CC,CCC ot (ore tha
PBCC,CCC
ii. If cor&oratio- )&o the re"&o"i$le officer"
iii. ?)ri'ical &er"o- ")"&e' or re#o%e it" lice"e
i#. Alie- 'e&ortatio
#. P)$lic official- &er&et)al or te(&orary a$"ol)te 'i"*)alificatio
fro( office
#i. P)$lic official 0ho ref)"e" to te"tify- "a(e &ealtie" a$o#e
D. Breac# o$ Con$identialit/
a. +-Hyear" a' fie PBCC,CCC- P,8
$. If 'i"clo"e' to (e'ia- re&orter, 0riter, &)$li"her, (aager, e'itor
!. Prohi8itions a6ainst po4itica4 harassment
A. "hall ot $e )"e' for &olitical &er"ec)tio or hara""(et or a" a i"tr)(et to
ha(&er co(&etitio i tra'e a' co((erce
B. o ca"e (ay $e file' agai"t a' o a""et" "hall $e fro!e or forfeite' to the &reA)'ice
of a ca'i'ate for electoral office ')rig electio &erio'
IE. mp4ementin6 ru4es and Re6u4ations
A. The BSP, IC, a' SEC "hall &ro()lgate r)le" to effecti#ely i(&le(et thi" Act. The"e r)le"
"hall $e ")$(itte' to the cogre""ioal o#er"ight co((ittee for a&&ro#al.
B. Co#ere' i"tit)tio" "hall for()late their o0 &re#etio &rogra("
9. Con6ressiona4 Oversi6ht Committee
A. Com'osition
a. ; (e($er" fro( the Seate a' ; (e($er" fro( the =o)"e of
Re&re"etati#e"
$. Shall $e a&&oite' $y the Seate Pre"i'et a' the S&ea%er, re"&ecti#ely,
$a"e' o &ro&ortioal re&re"etatio of &artie"
B. Powers
a. Po0er to &ro()lgate r)le" to o#er"e the i(&le(etatio of the la0 a' to
re#ie0 a' re#i"e the r)le" i"")e' $y the A8LC 0ithi +C 'ay" fro(
&ro()lgatio
9. Ru4es and Re6u4ation for 8an:s and non-financia4 institutions to com8at mone5
4aunderin6
,. Ta%e rea"oa$le (ea")re" to e"ta$li"h a' recor' the tr)e i'etity a' legal
e2i"tece of their cliet"
2. i ca"e of 'o)$t, o$tai the tr)e i'etity of the &er"o" o 0ho"e $ehalf a acco)t i"
o&ee'
+. aoy(o)" or fictitio)" acco)t" "ho)l' ot $e allo0e'
:. i'etity of cliet" "ho)l' $e )&'ate'
B. ece""ary recor'" of tra"actio" "ho)l' $e (aitaie'
K. "&ecial attetio "ho)l' $e gi#e to co(&le2, ))")al large tra"actio" a' all
))")al &atter" of tra"actio
;. other ")"&icio)" tra"actio" ot i#ol#ig 'e&o"it "ho)l' $e re&orte'
H. Ba%" "ho)l' a#oi' $)"ie"" 0ith cri(ial"
J. Progra(" agai"t (oey la)'erig- e(&loyee traiig, a)'it f)ctio, 'e#elo&(et
of iteral &olicie".
D. Di"tri$)tio of A""et"
+. Before ay 'i"tri$)tio of a""et" of the clo"e' $a%, PDIC "hall charge agai"t
")ch a""et"/
Rea"oa$le recei#er"hi& e2&e"e" (")$Aect to a&&ro#al of co)rt)
Rea"oa$le li*)i'atio e2&e"e"
:. After &ay(et of all lia$ilitie" a' clai(" agai"t clo"e' $a%, PDIC "hall &ay ay
")r&l)" 'i#i'e'" at the legal rate of itere"t fro( the 'ate of ta%eo#er to the 'ate
of 'i"tri$)tio, to cre'itor" a' clai(at" i accor'ace 0ith legal &riority $efore
'i"tri$)tio to the "harehol'er".
EI@. Pay(et of I")re' De&o"it"
I. 8aer of Pay(et
,. <hee#er a i")re' $a% "hall ha#e $ee clo"e' $y the 8oetary Boar',
&ay(et of the i")re' 'e&o"it" o ")ch clo"e' $a%" "hall $e (a'e $y
the PDIC $y/
i. Ca"h
ii. Tra"ferre' 'e&o"it
2. Tra"fer 'e&o"it 1 'e&o"it i a i")re' $a% (a'e a#aila$le to a 'e&o"itor
$y PDIC a" &ay(et of i")re' 'e&o"it of ")ch 'e&o"itor i a clo"e' $a%.
.ot to e2cee' t0o h)'re' fifty tho)"a' (2BC,CCC)
+. A Aoit acco)t "hall $e i")re' "e&arately fro( ay i'i#i')ally o0e'
'e&o"it acco)t.
:. 8a2i()( i")re' 'e&o"it" of ?oit acco)t" "hall $e 'i#i'e' ito a" (ay
e*)al "hare" a" there are co-o0er", )le"" a 'ifferet "harig i" "ti&)late'
i the 'oc)(et of 'e&o"it.
B. If a acco)t i" hel' $y a A)ri'ical &er"o Aoitly 0ith a i'i#i')al, it i"
&re")(e' that the (a2i()( i")re' 'e&o"it $elog" to the A)ri'ical &er"o.
K. The aggregate of the itere"t" of each co-o0er o#er "e#eral Aoit acco)t"
"hall li%e0i"e ot e2cee' 2BC,CCC
;. .o o0erFhol'er of ay egotia$le certificate of 'e&o"it "hall $e recogi!e'
a" a 'e&o"itor etitle' to the right" &ro#i'e' )le"" hi" a(e i" regi"tere' i
the $oo%" of the i"")ig $a%.
?. Proof of Clai("
,. PDIC (ay re*)ire &roof of clai(" to $e file' $efore &ayig the i")re'
'e&o"it".
2. It (ay re*)ire fial 'eter(iatio $y the co)rt" if ot "ati"fie' to the #ia$ility
of the clai(.
>. Settle(et Perio' a' Pealtie" i Ca"e of 3ail)re to Settle
,. 3ail)re to "ettle clai( 0ithi "i2 (oth" fro( the 'ate of filig clai( ')e to
gra#e a$)"e of 'i"cretio, gro"" egligece, $a' faith, or (alice "hall
")$Aect the 'irector", e(&loyee", or officer" of PDIC Re"&o"i$le for the
'elay to i(&ri"o(et fro( "i2 (oth" to oe year.
2. Perio' "hall ot a&&ly if the #ali'ity of the clai( 'e&e'" o re"ol)tio of
i"")e" of fact or la0 $y aother office.
+. 9&o &ay(et to ")ch 'e&o"itor, PDIC "hall $e ")$rogate' to all of the
right" of the 'e&o"itor to the e2tet of ")ch &ay(et.
:. S)ch ")$rogatio "hall icl)'e the right to recei#e the "a(e 'i#i'e'" fro(
the &rocee'" of the a""et" of the clo"e' $a%. B)t ")ch 'e&o"itor "hall
retai hi" clai( for ay )i")re' &ortio of hi" 'e&o"it.
L. .otice
,. PDIC "hall co((ece the 'eter(iatio of i")re' 'e&o"it" ')e to
'e&o"itor" of the clo"e' $a% )&o it" act)al ta%eo#er of the clo"e' $a%.
2. PDIC "hall &)$li"h the otice oce a 0ee% for at lea"t + co"ec)ti#e 0ee%"
i a e0"&a&er of geeral circ)latio or e0"&a&er circ)late' i the
co(()ity 0here the clo"e' $a% or it" $rache" are locate'.
8. Di"charge
Pay(et of a i")re' 'e&o"it "hall 'i"charge PDIC. A' &ay(et of a
tra"ferre' 'e&o"it $y the e0 $a% i 0hich a tra"ferre' 'e&o"it ha" $ee
(a'e a#aila$le "hall 'i"charge PDIC a' the e0 $a%.
.. Recogitio of 70er
PDIC caot recogi!e a" the o0er ay &er"o, 0ho"e a(e or itere"t
a" ")ch o0er i" ot 'i"clo"e' o the recor'" of a clo"e' $a%, a" &art
o0er of ay &ortio of a 'e&o"it a&&earig o the recor'" of the clo"e'
$a% )'er a a(e other tha that of the clai(at.
7. <ithhol'ig of Pay(et
PDIC (ay 0ithhol' &ay(et of ")ch &ortio" of the i")re' 'e&o"it of ay
'e&o"itor i a clo"e' $a% a" (ay $e re*)ire' to &ro#i'e for the &ay(et of
ay lia$ility of ")ch 'e&o"itor a" a "toc%hol'er of the clo"e' $a%, or ay
lia$ility of ")ch 'e&o"itor to the clo"e' $a% or to it" recei#er, 0hich i" ot
off"et agai"t a clai( ')e fro( ")ch $a%, &e'ig the 'eter(iatio a'
&ay(et of ")ch lia$ility $y ")ch 'e&o"itor or ay other lia$le therefore.
P. Pre"cri&tio
All right" of a 'e&o"itor 0ith re"&ect to the i")re' 'e&o"it "hall $e $arre' if/
=e fail" to file a clai( 0ithi t0o year" fro( act)al ta%e-o#er of
the clo"e' $a% $y the recei#er.
7r 'oe" ot eforce hi" clai( 0ithi t0o year" after the filig a
clai( 9le"" other0i"e 0ai#e' $y PDIC.
All right" of the 'e&o"itor ")$rogate' to PDIC "hall there)&o re#ert $ac% to
the 'e&o"itor. PDIC "hall $e 'i"charge' fro( ay lia$ility.
E@. I#e"t(et $y PDIC
C. 8oey of the PDIC ot other0i"e e(&loye' "hall $e i#e"te' i o$ligatio" of the
Re&)$lic of the Phili&&ie" or $y o$ligatio" g)aratee' $y it.
,. It "hall ot "ell or &)rcha"e ay ")ch o$ligatio for it" o0 acco)t or i it"
o0 right a' itere"t i ay oe ti(e aggregatig i e2ce"" of ,CC,CCC
0itho)t a&&ro#al of the I")race Co((i""ioer.
2. I")race Co((i""ioer (ay 0ai#e the re*)ire(et of hi" a&&ro#al a" he
(ay 'eter(ie.
D. The $a%ig or chec%ig acco)t of PDIC "hall $e %e&t i/
,. BSP
2. P.B
+. Ay $a% 'e"igate' a" fi"cal aget or 'e&o"itory of RP
E@I. E2te"io of Loa"
G. I or'er to &re#et a i")re' $a% fro( clo"ig, PDCI (ay (a%e loa", &)rcha"e the
a""et", a"")(e lia$ility, or (a%e 'e&o"it" i ")ch i")re' $a%, )&o ")ch co'itio"
a" the Boar' of Director" (ay &re"cri$e, the o&eratio" of ")ch $a% i" e""etial to
&ro#i'e a'e*)ate $a%ig "er#ice i the co(()ity or (aitai fiacial "ta$ility i
the ecoo(y.
a. S)ch &o0er (ay al"o $e e2erci"e' i ca"e of a clo"e' i")re' $a% if/
i. the re")(&tio of the o&eratio" of "ai' $a% i" #ital to the
itere"t of the co(()ity
ii. Se#ere fiacial cli(ate e2i"t"
$. Reo&eig of "ai' $a% i" ")$Aect to the a&&ro#al of the 8oetary Boar'.
=. PDIC (ay &ro#i'e ay cor&oratio ac*)irig cotrol of, (ergig or co"oli'atig 0ith
or ac*)irig the a""et" of a i")re' $a% i or'er to &re#et ")ch clo"ig or of a
clo"e' i")re' $a% i or'er to re"tore it to or(al o&eratio
a. <ithi KC 'ay" fro( 'ate of a""i"tace, PDIC "hall ")$(it a re&ort to 8B
I. PDIC "hall 'eter(ie the act)al &ayoff a' li*)i'atio thereof 0ill $e (ore e2&e"i#e
tha the e2erci"e of it" &o0er &rior to e2erci"e of it" &o0er".
?. PDIC (ay grat fiacial a""i"tace to i")re' $a%", 0ith "y"te(ic co"e*)ece"
0ith a &ro$a$le fail)re or clo")re, a" (ay $e ece""ary to &re#et it" fail)re or
clo")re. 1 ")$Aect to the a&&ro#al of the 8oetary Boar'.
a. 4"y"te(ic ri"%5 1 &o""i$ility that fail)re of oe $a% to "ettle et tra"actio"
0ith other $a%" 0ill trigger a chai reactio, 'e&ri#ig other $a%" of f)'"
lea'ig to a geeral "h)t'o0 of or(al clearig a' "ettle(et acti#ity.
- Li%elihoo' of a ")''e )e2&ecte' colla&"e of
cofi'ece i a "igificat &ortio of the $a%ig or
fiacial "y"te( 0ith &otetially large real ecoo(ic
effect".
>. PDIC (ay ot &)rcha"e the #otig or co((o "toc% of a i")re' $a% $)t it ca
eter ito or force agree(et" that it 'eter(ie" to $e ece""ary to &rotect it"
fiacial itere"t".
L. 3iacial a""i"tace (ay ta%e the for( of e*)ity or *)a"i-e*)ity of i")re' $a%" a"
(ay $e 'ee(e' ece""ary $y the Boar' of Director" 0ith coc)rrece $y the 8B. The
cor&oratio "hall 'i"&o"e of ")ch e*)ity a" "oo a" &ractica$le.
E@II. Borro0ig"
C. PDIC i" a)thori!e' to $orro0 fro( the BSP o ")ch ter(" a" (ay $e agree' $y the(.
S)ch loa" grate' $y the BSP "hall $e co"i"tet 0ith (oetary &olicy, the itere"t
rate thereo "hall ot e2cee' the trea")ry $ill rate.
D. <he i the ?)'g(et of the Boar' of Director", the PDIC ha" i")fficiet f)'" to
attai it" &)r&o"e, PDIC "hall $e a)thori!e' to $orro0 (oey, o$tai loa", or arrage
cre'it lie" or other cre'it acco((o'atio" fro( ay $a% 'e"igate' a" 'e&o"itory
or fi"cal aget $y the RP.
E@II. I"")ace of Bo'"
<ith a&&ro#al of the Pre"i'et of RP, PDIC i" a)thori!e' to i"")e $o'", 'e$et)re",
a' other o$ligatio" ece""ary fro the &)r&o"e of "ettle(et of i")re' 'e&o"it" i
clo"e' $a%" a" 0ell a" for fiacial a""i"tace.
a. BoD "hall 'eter(ie itere"t rate a' other re*)ire(et" of ")ch o$ligatio.
$. PDIC "hall &ro#i'e a&&ro&riate re"er#e" for the re'e(&tio of "ai'
o$ligatio.
EIE. Re&ort" a' A)'it
D. PDIC "hall a)ally (a%e a re&ort of it" o&eratio" to the Cogre"" a" "oo "
&ractica$le after ?a ,
E. 3iacial tra"actio" "hall $e a)'ite' $y the C7A i accor'ace 0ith &rici&le" a'
&roce""e" a' &roce')re" a&&lica$le to co((ercial cor&orate tra"actio". A)'it
"hall $e co')cte' i &lace" 0here the acco)t" of the cor&oratio are or(ally %e&t.
3. C7A "hall ha#e acce"" to all $oo%", acco)t", recor'", re&ort", file", a' all other
&a&er" $elogig to PDIC &ertaiig to it" fiacial tra"actio". E2ce&t a" to (atter"
relatig to the 3)ctio of the PDIC 0hich "hall $e ")$Aect to #i"itorial a)'it oly.
EE. 8i"cellaeo)"
E. Sig"
a. I")re' $a%" "hall &lace "ig" i all &lace of $)"ie"" a' i it" "tate(et"
that it" 'e&o"it" are i")re' $y PDIC.
$. BoD (ay e2e(&t fro( thi" re*)ire(et a'#erti"e(et" ot relatig to
'e&o"it".
3. 8erger or co"oli'atio of i")re' $a%"
9&o co"et of PDIC, $a%" (ay/
:. 8erge or co"oli'ate 0ith a )i")re' $a%
B. A"")(e lia$ility to &ay ay 'e&o"it" (a'e i oi")re' $a%
K. Tra"fer a""et" to ay oi")re' $a%
G. Protectio Agai"t Lo""e"
a. PDIC (ay re*)ire a i")re' $a% to &ro#i'e &rotectio a' i'e(ity
agai"t $)rglary, 'efalcatio, lo""e" ari"ig fro( 'i"charge of ')tie", $y
&artic)lar act" of it" 'irector", e(&loyee", officre"
$. BoD "hall 'eter(ie the $o'ig re*)ire(et referrig to 'irector", officer",
af' e(&loyee" of a i")re' $a%
c. If i")re' $a% ref)"e to co(&ly 0ith ay ")ch re*)ire(et, PDIC (ay a''
the co"t thereof to the a""e""(et other0i"e &aya$le to ")ch $a%.
=. Director", 7fficer" a' e(&loyee" of I")re' $a%"
a. .o &er"o "hall $e a 'irector, officer, or e(&loyee of a i")re' $a% 0ho
ha" $ee co#icte' of ay cri(ial offe"e i#ol#ig 'i"hoe"ty of $reach of
tr)"t.
$. Pealty for #iolatio of thi" &rohi$itio/ the $a% 0ill $e ")$Aect to &ealty of
ot (ore tha ,CC for e#ery 'ay of #iolatio.
EEI. Cri(ial Pealtie"
B. P)i"ha$le $y &ri"io (ayor or a fie of BC,CCC-2,CCC,CCC,CCC or $oth, ay 'irector,
officer, e(&loyee or aget of $a% 0ho/
,. <illf)l ref)"al to ")$(it re&ort"
2. 9A)"tifie' ref)"al to &er(it e2a(iatio a' a)'it of recor'" a" re*)ire' $y
la0, r)le", a' reg)latio"
+. <illf)l (a%ig of fal"e "tate(et or etry i ay $a% re&ort or 'oc)(et
:. S)$(i""io of fal"e (aterial ifor(atio i coectio 0ith or i relatio to
ay fiacial a""i"tace e2te'e' to the $a%
B. S&littig of 'e&o"it" or creatio of fictitio)" loa" or 'e&o"it acco)t"
i. S&littig 'e&o"it" 1 'e&o"it acco)t" 0ith a o)t"ta'ig $alace
of (ore tha the "tat)tory (a2i()( a(o)t of i")re'
'e&o"it (aitaie' )'er the a(e of a &er"o i" $ro%e 'o0
a' tra"ferre' ito t0o or (ore acco)t" i the a(e" of
&er"o" 0ho ha#e o $eeficial o0er"hi& o tra"ferre'
'e&o"it" i their a(e" 0ithi +C 'ay" &rece'ig or ')rig a $a%
'eclare' holi'ay, or &rece'ig a clo")re or'er i"")e' $y the 8B
for the &)r&o"e of a#ailig of the (a2i()( 'e&o"it i")race
co#erage.
K. Ref)"al to allo0 PDIC to ta%eo#er a clo"e' $a% &lace' )'er it"
recei#er"hi&
;. Ref)"al to t)ro#er or 'e"troyig or ta(&erig $a% recor'"
H. 3ra)')let 'i"&o"al , tra"fer or coceal(et of ay a""et, &ro&erty, lia$ility
of the clo"e' $a% )'er the recei#er"hi& of the PDIC
J. @iolatio, or ca)"ig a &er"o to #iolate, the e2e(&tio of gari"h(et, le#y
attach(et, or e2ec)tio &ro#i'e' )'er the PDIC La0 a' the .CBA
,C. <illf)l fail)re or ref)"al to co(&ly 0ith, or #iolatio of ay &ro#i"io of eh
PDIC La0, or co((i""io of ay other irreg)laritie" a'For co')ctig
$)"ie"" i a )"afe or )"o)' (aer.
EEII. 3I.ES
B. B7D i" a)thori!e' to i(&o"e a'(ii"trati#e fie" for #iolatio of ay other i"tr)ctio,
r)le, or reg)latio i"")e' $y PDIC, agai"t a $a% or ay of it" 'irector", officer", or
aget" re"&o"i$le for ")ch act, o(i""io, or #iolatio. I o ca"e ")ch fie e2cee'
+ti(e" the a(o)t of the 'a(age" or co"t" ca)"e' $y the tra"actio for each 'ay
that the #iolatio ")$"i"t.
C#a' 11 D Anti- 8one/ La(ndering 0 RA G13J5
. CO$CEPT"
:. Policies
i. To &rotect a' &re"er#e the itegrity a' cofi'etiality of $a% acco)t"
ii. E")re that the Phili&&ie" "hall ot $e )"e' a" a (oey la)'erig "ite for
the &rocee'" of ay )la0f)l acti#ity.
iii. Coo&eratio i tra"atioal i#e"tigatio a' &ro"ec)tio of &er"o"
i#ol#e' i (oey la)'erig
H. Co.ered "nstit(tions
i. Ba%", o-$a%", *)a"i-$a%", tr)"t etitie" a' all other i"tit)tio"
reg)late' $y the BSP
ii. I")race co(&aie" a' all other i"tit)tio" reg)late' $y the i")race
co((i""io
iii. Sec)ritie", $ro%er", "ale"(e, i#e"t(et ho)"e a' other etitie"
(aagig "ec)ritie" or "er#ice a" aget, a'#i"or, co")ltat
i#. 8)t)al f)'", clo"e'-e' i#e"t(et co(&ay, co((o tr)"t f)' a' &re-
ee' co(&aie"
#. 3oreig e2chage cor&oratio", (oey chager", (oey &ay(et",
re(ittace, a' tra"fer co(&aie"
#i. Tho"e a'(ii"terig or 'ealig i c)rrecy, co((o'itie", fiacial
'eri#ati#e" or other (oetary i"tr)(et" or &ro&erty ")&er#i"e' $y the
SEC
". Co.ered and 1(s'icio(s transaction
i. Tra"actio i ca"h or (oetary i"tr)(et e2cee'ig PBCC,CCC i oe
$a%ig 'ay
ii. S)"&icio)" tra"actio" regar'le"" of the a(o)t
a. .o legal or tra'e o$ligatio, &)r&o"e or ecoo(ic A)"tificatio
$. Cliet i" ot &ro&erly i'etifie'
c. A(o)t i" ot co((e")rate 0ith the cliet6" fiacial ca&acity
'. Str)ct)re' tra"actio" to a#oi' $eig the ")$Aect of re&ortig
re*)ire' )'er the act
e. Tho"e 0hich 'e#iate fro( the &rofile of the cliet or &a"t
tra"actio"
f. Relate' to ay )la0f)l acti#ity or offe"e
g. Ay tra"actio that i" "i(ilar to ay of the foregoig
H. 8onetar/ instr(ment
i. Coi"Fc)rrecy of legal te'er of the Phil. 7r ay co)try
ii. Draft", chec%" a' ote"
iii. Sec)ritie" or egotia$le i"tr)(et", $o'", co((ercial &a&er", 'e&o"it
certificate", tr)"t certificate", c)"to'ial recei&t", tra'ig or'er", tra"actio
tic%et", cofir(atio of "ale (oey (ar%et i"tr)(et"
i#. 7ther "i(ilar i"tr)(et" 0he title &a""e" to aother $y e'or"e(et,
a""ig(et or 'eli#ery
>. )nlaw$(l Acti.ities
i. >i'a&&ig for ra"o( )'er Art.2K; of RPC
ii. Sec". :-K, H-,C, ,2-,K of the Dagero)" Dr)g" Act of 2CC2
iii. Sec.+ &ar $, c, e, g, h, I of the Ati-Graft a' Corr)&t Practice" Act
i#. Pl)'er )'er RA ;CHC
#. Ro$$ery a' e2tortio )'er Art". 2J:-2JK, 2JJ-+C2 of the RPC
#i. ?)eteg a' 8a"iao )'er PD ,KC2
#ii. Piracy o high "ea" )'er RPC a' PD B+2
#iii. G)alifie' theft )'er Art.+,C of RPC
i2. S0i'lig )'er Art.+,B of RPC
2. S()gglig )'er RA :BB a' ,J+;
2i. @iolatio" of Electroic Co((erce Act of 2CCC
2ii. =iAac%ig a' other #iolatio" of RA K2+B
2iii. De"tr)cti#e ar"o a' ()r'er )'er RPC
2i#. 3ra)')let &ractice" )'er Sec)ritie" Reg)latio Co'e of 2CCC
2#. 3eloie" or offe"e" of "i(ilar at)re &)i"ha$le )'er &eal la0" of other
co)trie"
L. 8one/ La(ndering *$$ense- is a crime w#ereb/ t#e 'roceeds o$ an (nlaw$(l
acti.it/ are transacted7 t#ereb/ making t#em a''ear to #a.e originated $rom
legitimate so(rces. "t can be committed b/ t#e $$!
i. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, tra"act" or
atte(&t" to tra"act "ai' (oetary i"tr)(et or &ro&erty
ii. Ay &er"o %o0ig ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, &erfor(" or fail"
to &erfor( ay act a" a re")lt of 0hich he facilitate" the offe"e of (oey
la)'erig referre' to a$o#e
iii. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty i" re*)ire' to
$e 'i"clo"e' a' file' 0ith the Ati-8oey La)'erig Co)cil, fail" to 'o "o
. 7urisdiction and Prosecution
C. H(risdiction
i. Pri#ate &er"o"- RTC
ii. P)$lic &er"o" a' &ri#ate &er"o" i co"&iracy 0ith the for(er-
Sa'iga$aya
D. Prosec(tion
i. Ay &er"o (ay $e charge' of $oth (oey la)'erig a' the )la0f)l
acti#ity
ii. Ay &rocee'ig relatig to the )la0f)l acti#ity "hall $e gi#e &rece'ece
o#er the &ro"ec)tio of ay offe"e or #iolatio 0Fo &reA)'ice to the
free!ig a' other re(e'ie"
. Anti-Mone5 ,aunderin6 Counci4
C. Com'osition
i#. Go#eror of he BSP a" chair(a
#. Co((i""ioer of the I")race Co((i""io
#i. Chair(a of the SEC
D. =(nctions
2iii. Re*)ire a' recei#e co#ere' or ")"&icio)" tra"actio re&ort" fro( co#ere'
i"tit)tio"
2i#. I"")e or'er" a''re""e' to the ")&er#i"ig a)thority of the i"tit)tio to
'eter(ie the tr)e o0er of a co#ere' or ")"&icio)" tra"actio re&ort or
re*)e"t a""i"tace o the $a"i" of ")$"tatial e#i'ece
2#. I"tit)te ci#il forfeit)re &rocee'ig" thro)gh the 7SG
2#i. Ca)"e the filig of co(&lait" 0ith the D7? or 7($)'"(a
2#ii. I#e"tigate ")"&icio)" a' co#ere' tra"actio"
2#iii. A&&ly $efore the CA e2 &arte, for the free!ig of ay (oetary i"tr)(et or
&ro&erty
2i2. I(&le(et (ea")re" a" (ay $e ece""ary to co)teract (oey la)'erig
22. Recei#e a' ta%e actio ay re*)e"t of a""i"tace fro( foreig "tate" i
their o0 ati-(oey la)'erig o&eratio"
22i. De#elo& e')catioal &rogra(" o the effect", (etho'", a' (ea" to
&re#et (oey la)'erig
22ii. Eli"t a""i"tace fro( go#er(et i"tr)(etality for ay ati-(oey
la)'erig o&eratio
22iii. I(&o"e a'(ii"trati#e "actio" for #iolatio of la0", r)le", reg)latio" a'
or'er" i"")e' &)r")at thereto
22i#. E"ta$li"h a "ecretariat
a. 8e($er of the Bar
$. +B year" of age
c. G8C
'. 9*)e"tioa$le itegrity a' %o0 &ro$ity
I@. Prevention of Mone5 ,aunderin6
=. C(stomer "denti$ication
#. I"tit)tio" "hall e"ta$li"h a' recor' the tr)e i'etity of it" cliet" $a"e' o
office 'oc)(et"
#i. 8aitai a "y"te( of #erifyig the i'etity a' legal e2i"tece of their
cliet"
#ii. Aoy(o)", fictitio)" a "i(ilar acco)t" are &rohi$ite'
#iii. Pe"o a' foreig c)rrecy o-chec%ig acco)t" "hall $e allo0e' 0hich
0ill $e ")$Aect to te"t $y the BSP to 'eter(ie the e2i"tece a' i'etity of
the o0er"
:. Record >ee'ing
iii. Recor'" of tra"actio" "hall $e (aitaie' a' "tore' fro( B year" fro(
the 'ate of tra"actio
i#. 3or clo"e' acco)t", it" recor'" "hall al"o $e "tore' for B year" fro( the
'ate it 0a" clo"e'
H. Re'orting o$ Co.ered and 1(s'icio(s Transaction
#i. Shall $e re&orte' to A8LC 0ithi B 0or%ig 'ay" fro( the occ)rrece
thereof, )le"" ")&er#i"ig a)thority &re"cri$e" a loger &erio' ot
e2cee'ig ,C 'ay"
#ii. Sho)l' a tra"actio $e 'eter(ie' a a co#ere' a' ")"&icio)" tra"actio,
it "hall $e re*)ire' to re&ort the "a(e
#iii. S)ch re&ortig "hall ot $e co"i'ere' a" a #iolatio of RA ,:CB, RA K:2K,
RA H;J,, $)t are &rohi$ite' to co(()icate to ay other &er"o
i2. I ca"e of #iolatio of the &rohi$itio a$o#e, they "hall $e cri(ially lia$le
2. Re&ortig to the A8LC i" al"o &rohi$ite' to $e 'i"clo"e' to the (e'ia or ay
other &er"o or etity
". =reezing o$ 8onetar/ "nstr(ment or Pro'ert/
iii. To the CA, )&o a&&licatio e2 &arte $y the A8LC a' after 'eter(iatio
that &ro$a$le ca)"e e2i"t", (ay i"")e a free!e or'er
i#. S)ch or'er "hall $e for 2C 'ay" )le"" e2te'e' $y the Co)rt
H. A(t#orit/ to inF(ire into bank de'osits
iii. The A8LC (ay i*)ire )&o or'er of ay co(&etet co)rt 0he it ha" $ee
e"ta$li"he' that/
a. There i" &ro$a$le ca)"e that the 'e&o"it or i#e"t(et " relate'
to ay )la0f)l acti#ityI or
$. A (oey la)'erig offe"e
i#. .o co)rt or'er "hall $e re*)ire' i the follo0ig acti#itie"
a. >i'a&&ig for ra"o(
$. @iolatio" of Dagero)" Dr)g Act of 2CC2
c. =iAac%ig a' other #iolatio" of RA K2+B
'. De"tr)cti#e ar"o a' ()r'er icl)'ig tho"e &er&etrate' $y
terrori"t"
!. )orfeiture
D. Ci.il $or$eit(re
a. <he there i" a re&ort (a'e, a' the Co)rt, i a &etitio file' for the
&)r&o"e of "ei!)re, the R)le" of Co)rt o ci#il forfeit)re a&&lie"
E. Claim on =or$eit(re Assets
a. Tho"e clai(ig a itere"t (ay a&&ly, $y #erifie' &etitio, for a 'eclaratio
that the "ei!e' i"tr)(et or &ro&erty legiti(ately $elog" to hi( a' &ray
for the "egregatio a' e2cl)"io
$. It "hall $e file' 0ith the co)rt 0hich re'ere' the A)'g(et of forfeit)re
0ithi ,B 'ay" fro( the or'er of forfeit)re
=. Pa/ment in lie( o$ $or$eit(re
a. I" allo0e' $eca)"e forfeit)re caot $e eforce' ')e to the ff/
i. <ith ')e 'iligece, it caot $e locate'
ii. S)$"tatially altere', 'e"troye', 'i(ii"he' i #al)e or re'ere'
0orthle"" $y ay act or o(i""io attri$)ta$le to the offe'er
iii. Coceale', re(o#e', co#erte' or tra"ferre' to &re#et fro(
$eig fo)' or a#oi' forfeit)re
i#. Locate' o)t"i'e the Phili&&ie or o)t"i'e the A)ri"'ictio of the
co)rt
#. Co((igle' 0ith other i"tr)(et or &ro&erty re'erig it 'iffic)lt
to $e i'etifie' or "egregate'
!. Mutua4 assistance amon6 states
H. ReF(est $or assistance $rom a $oreign state
a. The A8LC (ay e2ec)te or ref)"e to e2ec)te ")ch re*)e"t a' ifor( the
"tate of ay #ali' rea"o for ot e2ec)tig ")ch re*)e"t
". Powers o$ t#e A8LC to act on a reF(est $or assistance
a. 8ay e2ec)te a re*)e"t $y/
i. Trac%ig 'o0, free!ig, re"traiig a' "ei!ig a""et"
ii. Gi#e ifor(atio ee'e'
iii. A&&ly for a or'er of forfeit)re
$. Co)rt 0ill i"")e ")ch or'er oly 0he acco(&aie' $y/
i. A)theticate' co&y of the or'er of a co)rt i the re*)e"tig "tate
or'erig the forfeit)re
ii. Certificatio or affi'a#it of a co(&etet officer of the re*)e"tig
"tat that the co#ictio a' or'er of forfeit)re are fial
H. *btaining assistance $rom $oreign state
a. Trac%ig 'o0, free!ig, re"traiig a' "ei!ig a""et"
$. 7$tai ifo that it ee'" relatig to co#ere' tra"actio a' (oey
la)'erig offe"e
c. Eter ito the &re(i"e" $elogig to or i the &o""e""io of the &er"o"
a(e' i the re*)e"t, to the e2tet allo0e' $y the la0 of the foreig "tate
'. A&&ly for a or'er of forfeit)re a' ()"t $e acco(&aie' $y the or'er of the
RTC a' a affi'a#it of the Cler% of Co)rt that the co#ictio a' forfeit)re
are fial
>. Limitations on reF(est
a. <he it cotra#ee" the co"tit)tio
$. PreA)'icial to the itere"t of the Phili&&ie"
i. E2ce&t/ if there i" a treaty $et0ee the Phil. A' the re*)e"tig
State relatig to the &ro#i"io" of a""i"tace i (oey la)'erig
offe"e
L. ReF(irement $or reF(est $rom a $oreign state
a. Cofir( that a i#e"tigatio or &ro"ec)tio i" $eig co')cte'
$. State the gro)'" o 0hich ay &er"o i" $eig i#e"tigate' or &ro"ec)te'
for
c. Gi#e ")fficiet &artic)lar" a" to the i'etity of the &er"o
'. Gi#e &artic)lar" ")fficiet to i'etify the i"tit)tio $elie#e' to ha#e ay ifo
e. A"% fro( the i"tit)tio for ay ifo 0hich (ay $e of a""i"tace to the
i#e"tigatio or &ro"ec)tio
f. S&ecify the (aer i 0hich ")ch ifo 0ill $e o$taie' or &ro')ce'
g. Gi#e all the &artic)lar" ece""ary for the i"")ace $y the co)rt i the
re*)e"te' "tate of the or'er" ee'e' $y th re*)e"tig "tate
h. Cotai other ifo a" (ay a""i"t i the e2ec)tio of the re*)e"t
8. A(t#entication o$ doc(ments
a. Sige' or certifie' $y a A)'ge or e*)i#alet officer i or of the re*)e"tig
"tate
$. A)theticate' $y the oath or affir(atio of a 0ite"" or "eale' 0ith a
official "eal of a (ii"ter or "ecretary of the go#er(et of the re*)e"tig
"tate
c. By the "ecretary of e($a""y, co")l geeral, co")l or ay officer i the
foreig "er#ice of the Phili&&ie" "tatioe' i the foreig "tate
-. E6tradition
a. .egotiate for the icl)"io of (oey la)'erig offe"e" a(og e2tra'ita$le
offe"e"
!. Pena4ties
E. Crime o$ mone/ la(ndering
a. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, tra"act" or
atte(&t" to tra"act "ai' (oetary i"tr)(et or &ro&erty
i. I(&ri"o(et of ; to ,: year" a' a fie ot le"" tha P+8
$. Ay &er"o %o0ig ay (oetary i"tr)(et or &ro&erty re&re"et",
i#ol#e", or relate" to, the &rocee'" of ay )la0f)l acti#ity, &erfor(" or fail"
to &erfor( ay act a" a re")lt of 0hich he facilitate" the offe"e of (oey
la)'erig referre' to a$o#e
i. :-; year" a' fi ot le"" tha P,.B8 ot (ore tha P+8
c. Ay &er"o %o0ig that ay (oetary i"tr)(et or &ro&erty i" re*)ire' to
$e 'i"clo"e' a' file' 0ith the Ati-8oey La)'erig Co)cil, fail" to 'o "o
i. K(-:year" or fie ot le"" tha P,CC,CCC ot (ore tha
PBCC,CCC, or $oth
=. =ail(re to kee' records
a. K(-,year or fie ot le"" tha P,CC,CCC ot (ore tha PBCC,CCC, or $oth
:. 8alicio(s re'orting
a. Ay &er"o 0ho, 0ith (alice or $a' faith, re&ort" a co(&letely )0arrate'
or fal"e ifo relati#e to (oey la)'erig
i. K(-:year" a' a fie ot le"" tha P,CC,CCC ot (ore tha
PBCC,CCC
ii. If cor&oratio- )&o the re"&o"i$le officer"
iii. ?)ri'ical &er"o- ")"&e' or re#o%e it" lice"e
i#. Alie- 'e&ortatio
#. P)$lic official- &er&et)al or te(&orary a$"ol)te 'i"*)alificatio
fro( office
#i. P)$lic official 0ho ref)"e" to te"tify- "a(e &ealtie" a$o#e
H. Breac# o$ Con$identialit/
a. +-Hyear" a' fie PBCC,CCC- P,8
$. If 'i"clo"e' to (e'ia- re&orter, 0riter, &)$li"her, (aager, e'itor
!. Prohi8itions a6ainst po4itica4 harassment
C. "hall ot $e )"e' for &olitical &er"ec)tio or hara""(et or a" a i"tr)(et to
ha(&er co(&etitio i tra'e a' co((erce
D. o ca"e (ay $e file' agai"t a' o a""et" "hall $e fro!e or forfeite' to the &reA)'ice
of a ca'i'ate for electoral office ')rig electio &erio'
IE. mp4ementin6 ru4es and Re6u4ations
A. The BSP, IC, a' SEC "hall &ro()lgate r)le" to effecti#ely i(&le(et thi" Act. The"e r)le"
"hall $e ")$(itte' to the cogre""ioal o#er"ight co((ittee for a&&ro#al.
B. Co#ere' i"tit)tio" "hall for()late their o0 &re#etio &rogra("
9. Con6ressiona4 Oversi6ht Committee
C. Com'osition
a. ; (e($er" fro( the Seate a' ; (e($er" fro( the =o)"e of
Re&re"etati#e"
$. Shall $e a&&oite' $y the Seate Pre"i'et a' the S&ea%er, re"&ecti#ely,
$a"e' o &ro&ortioal re&re"etatio of &artie"
D. Powers
a. Po0er to &ro()lgate r)le" to o#er"e the i(&le(etatio of the la0 a' to
re#ie0 a' re#i"e the r)le" i"")e' $y the A8LC 0ithi +C 'ay" fro(
&ro()lgatio
9. Ru4es and Re6u4ation for 8an:s and non-financia4 institutions to com8at mone5
4aunderin6
,. Ta%e rea"oa$le (ea")re" to e"ta$li"h a' recor' the tr)e i'etity a' legal
e2i"tece of their cliet"
2. i ca"e of 'o)$t, o$tai the tr)e i'etity of the &er"o" o 0ho"e $ehalf a acco)t i"
o&ee'
+. aoy(o)" or fictitio)" acco)t" "ho)l' ot $e allo0e'
:. i'etity of cliet" "ho)l' $e )&'ate'
B. ece""ary recor'" of tra"actio" "ho)l' $e (aitaie'
K. "&ecial attetio "ho)l' $e gi#e to co(&le2, ))")al large tra"actio" a' all
))")al &atter" of tra"actio
;. other ")"&icio)" tra"actio" ot i#ol#ig 'e&o"it "ho)l' $e re&orte'
H. Ba%" "ho)l' a#oi' $)"ie"" 0ith cri(ial"
J. Progra(" agai"t (oey la)'erig- e(&loyee traiig, a)'it f)ctio, 'e#elo&(et
of iteral &olicie".