Source Document
Manual of Regulations for Banks
BSP.MORB.2023.Sec923.p31.OBL2
Manual of Regulations for Banks > 923 ADDITIONAL PREVENTIVE MEASURES FOR SPECIFIC CUSTOMERS AND ACTIVITIES > Private banking/wealth management operations > 923
Obligation Summary
Require a senior officer independent of the relationship officer to approve acceptance of every private banking, wealth management, or similar customer.
They shall also require approval by a senior officer other than the private banking/wealth management/similar activity relationship officer or the like for acceptance of customers of private banking, wealth management and similar activities.
MORB, Sec. 923, p. 31 (2023 ed.) · Manual of Regulations for Banks · p. 31
Private banking/wealth management operations. These services, which by their nature involve a high measure of client confidentiality, are more open to the elements of reputational risk especially if the customer identification process is not diligently followed. Covered persons shall therefore establish and record the true and full identity and take reasonable measures to establish the source of wealth and source of funds, of the customer and beneficial owners, if any, and establish a policy on what standard of due diligence will apply to them. They shall also require approval by a senior officer other than the private banking/wealth management/similar activity relationship officer or the like for acceptance of customers of private banking, wealth management and similar activities.
PEP. Covered persons shall establish and record the true and full identity of PEPs, as well as their immediate family members and entities related to them.
What This Requires.
ProfytAI Regulatory Intelligence
Type: requirementRequires prior approval from a senior officer, other than the relationship officer, before a covered person accepts a private banking, wealth management, or similar-activity customer.
Relationship
This is the closing sentence of the 'Private banking/wealth management operations' paragraph, whose earlier sentences (visible in this pack as surrounding context) require covered persons to establish customer identity and source-of-wealth information; this sentence adds a further, independent-approval requirement on top of that. No lead-in or parent clause is separately recorded for this record itself.
Why This Exists
Private banking and wealth management relationships carry heightened confidentiality and reputational risk, so requiring sign-off from an officer independent of the relationship function guards against conflicts of interest in customer acceptance decisions.
Implementation Considerations
Typically implemented as an account-opening approval step requiring documented sign-off from a senior officer outside the relationship-management line before onboarding is completed.
Interpretation Note · 'They' refers back to 'covered persons' introduced earlier in the paragraph, not defined in this sentence alone. The approving officer must be genuinely independent of the relationship-management function; scope is limited to private banking, wealth management, and an undefined category of 'similar activities.'
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