Source Document
Manual of Regulations for Banks
BSP.MORB.2023.Sec941.c-(2).p37.OBL2
Manual of Regulations for Banks > 941 SANCTIONS AND PENALTIES > Written reprimand; b > (2)
Obligation Summary
Start prompt corrective action against a covered person whose AML rating of 1 marks it as unsafe and unsound banking.
For this reason, prompt corrective action shall be initiated on the covered person.
MORB, Sec. 941.c-(2), p. 37 (2023 ed.) · Manual of Regulations for Banks · p. 37
In the event of non-submission of an acceptable plan within the deadline or failure to implement its action plan, the appropriate department of the Bangko Sentral shall recommend appropriate enforcement action on the covered person and its responsible officers including monetary penalties to be computed on a daily basis until improvements are satisfactorily implemented.
c. An AML rating of 1 shall also be considered as an unsafe and unsound banking. For this reason, prompt corrective action shall be initiated on the covered person.
Escalation of enforcement action. In cases of heightened AML/CFT supervisory concern as reflected in the overall AML risk rating over a certain period of time, the Bangko Sentral shall impose escalated enforcement action which shall include corrective action, sanction and/or additional supervisory enforcement action, consistent with Sec. 002 on Supervisory Enforcement Policy.
What This Requires.
ProfytAI Regulatory Intelligence
Type: requirementRequires BSP to initiate prompt corrective action against a covered person because its AML rating of 1 has been classified as unsafe and unsound banking.
Relationship
Directly continues from its immediately preceding sibling (the rule classifying an AML rating of 1 as unsafe and unsound banking) via the connector for this reason; both are part of the list of rules under the lead-in stating that the following rules shall apply to implement the enforcement action provision alongside the ARRS. Its next sibling moves to a different topic, the aggravating and mitigating factors used elsewhere in the guidelines.
Why This Exists
Converts the unsafe-and-unsound classification into an actual supervisory response, so the AML Risk Rating System has teeth and covered institutions with the weakest AML programs receive the same escalated handling as other unsafe-and-unsound cases.
Implementation Considerations
A covered person with an AML Composite rating of 1 should expect entry into BSP's prompt corrective action process and should be prepared to respond to the directives, timelines, and reporting typically associated with it.
Interpretation Note · For this reason ties this rule directly to the immediately preceding rating classification; it cannot be read in isolation from it; prompt corrective action refers to BSP's broader supervisory framework of that name, not elaborated further in this text; covered person is the AML/CFT-covered institution.
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Reproduced from the Bangko Sentral ng Pilipinas Manual of Regulations for Banks, retrieved from bsp.gov.ph. Highlighting and the verification stamp were added by ProfytAI; the underlying text is unaltered. This document is freely available from the BSP website.