BSP fine-tunes rule on officers watchlist
The Bangko Sentral ng Pilipinas (BSP) has issued new rules to clarify how financial executives can be removed from its watchlist for temporary disqualification as part of a broader push to strengthen governance and accountability.
The amendments also aim to bolster public trust in regulated financial institutions.
Under Circular No. 1226 dated Dec. 15, directors or officers placed on the BSP’s watchlist for temporary disqualification will remain there for five years, after which their names will be automatically removed. The period of disqualification will be counted from the date the individual is formally notified by the central bank.
However, executives with pending court or administrative cases, or those under investigation by the BSP’s Office of the General Counsel and Legal Services, will not be automatically delisted after five years.
How to delist
The same applies to cases where the Monetary Board determines—based on an assessment of a person’s fitness and propriety—that continued inclusion on the watchlist is warranted.
In such cases, affected individuals may apply for delisting by submitting documentary proof—such as an order, decision or clearance from the appropriate authority—showing that the cases against them had been resolved in their favor or otherwise cleared.
These may include rulings from courts, quasi-judicial bodies, domestic financial regulators or comparable foreign authorities where the individual has a derogatory record.
The Monetary Board will then decide whether to approve or deny the request.
Meanwhile, deceased individuals will be automatically delisted upon submission of proof of death.
The revised regulations will apply retroactively.
As it is, the BSP has been working to refine its capital, liquidity, governance and risk management frameworks to help financial institutions withstand shocks and maintain public confidence.
Notably, the BSP is finalizing the policy adopting the Basel III New Standardized Approach for operational risk.
Parallel efforts include conducting the National Risk Assessment and the introduction of clearer guidelines for the disqualification of directors and officers—both aimed at strengthening accountability and risk oversight across the financial system.
