The Bangko Sentral ng Pilipinas has expanded the grounds for disqualifying directors and officers of financial institutions, aiming to strengthen governance and regulatory integrity.
The BSP approved circular No. 1216, which amends existing regulations for banks and non-bank financial institutions.
A key provision will automatically and permanently disqualify individuals who voluntarily commit to inhibit themselves from owning or managing, directly or indirectly, any BSP-supervised financial institution.
The new circular also formalizes that individuals convicted with finality for banking violations or crimes involving dishonesty or breach of trust will be recommended for permanent disqualification by the BSP’s legal office.
Once approved by the Monetary Board, their names will be added to the BSP’s Disqualification File “A,” a list of individuals permanently barred from assuming key roles in supervised entities.
The new rules seek to ensure that only individuals of “proven integrity, competence and sound judgment” serve in leadership positions within the financial system, the central bank said.
