Source Document
Manual of Regulations for Banks
BSP.MORB.2023.Sec941.a(3).p38.OBL1
Manual of Regulations for Banks > 941 SANCTIONS AND PENALTIES > Monetary penalty guidelines > (3)
Obligation Summary
Count the corrective action period from the date the violation was notified, not from any earlier or later point.
The corrective action shall be reckoned with from the date of notification.
MORB, Sec. 941.a(3), p. 38 (2023 ed.) · Manual of Regulations for Banks · p. 38
(2) Duration of violations prior to notification - This pertains to the length of time prior to the latest notification on the violation. Violations that have been existing for a long time before they were revealed/discovered in the examination or are under the evaluation for a long time due to pending requests or correspondences from covered institutions on whether a violation has actually occurred shall be dealt with through this criterion. Violations outstanding for more than one (1) year prior to notification, at the minimum, will qualify as violations outstanding for a long time.
(3) Continuation of offense or omission after notification - This pertains to the persistence of an act or omission after the latest notification on the existence of the violation, either from the appropriate department of the Bangko Sentral or from the Monetary Board and/or Deputy Governor, in cases where the violation has been elevated accordingly. This covers the period after the final notification of the existence of the violation until such time that the violation has been corrected and/or remedied. The corrective action shall be reckoned with from the date of notification.
(4) Concealment - This factor pertains to the cover up of a violation. In evaluating this factor, one shall consider the intention of the party/ies involved and whether pecuniary benefit may accrue accordingly. The act of concealing an act or omission constituting the violation carries with it the intention to defraud regulators. Moreover, the amount of pecuniary benefit, which may or may not accrue from the offense or omission, shall also be considered under this factor.
What This Requires.
ProfytAI Regulatory Intelligence
Type: requirementThe timeline for a required corrective action is measured starting from the date the covered institution is notified of the violation.
Relationship
Item (3) in the same numbered list of monetary-penalty guideline factors, following the long-standing-violation criterion and preceding the item on evaluating intention and pecuniary benefit.
Why This Exists
Establishes an unambiguous start date for corrective-action and penalty-accrual timelines, avoiding disputes over when the clock begins.
Implementation Considerations
Typically involves examiners and covered institutions tracking the notification date precisely, since it is the reference point for corrective-action and any related penalty timelines.
Interpretation Note · 'The date of notification' is the anchor date for this rule; the excerpt does not itself define what constitutes notification, so that meaning must be drawn from elsewhere in the Part.
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