Conscious Investing Today
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
Conscious Investing Today
No Result
View All Result
Home Politics News

BSP tightens know-your-employee rules for banks

by
April 15, 2021
in Politics News
0
BSP tightens know-your-employee rules for banks
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT

BSP CIRCULAR No. 1112, signed by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on April 8, directed banks to apply adequate policies, risk management and control measures in hiring and performance management of bankers.

Under the new rules, banks will now have to use BSP records to screen applicants, where findings will be considered in order to gauge the “fitness and propriety of the applicant for the position.”

“One of the major sources of operational risk is ‘people risk.’ In this regard, BSP-supervised institutions shall embed their enterprise-wide risk management framework measures to identify, measure, monitor, and control human resource-related risks,” Mr. Diokno said.

Banks will have to require candidates that passed initial stages of pre-employment process to accomplish a form authorizing them to check  BSP records.

The BSP now requires banks to adopt a “risk-focused” screening process that will assess applicants in relation to the sensitivity of the positions they are vying for. Banks should check applicants’ character references, criminal records, psychological evaluation, past employment, credentials, and professional qualifications.

“Information gathered shall enable BSP-supervised institutions to have sufficient understanding of the applicant’s personal background and character, conflict of interest, and susceptibility to collusion, fraud, or illegal activities,” the BSP circular said.

Banks are also expected to employ verification techniques to gauge whether details provided by an applicant contain inaccurate or false information.

ADVERTISEMENT

“The BSP’s newest rules on the screening process further enhance the banking industry’s vigorous risk management protocols and reinforce our commitment to the highest standards of integrity,” Bankers Association of the Philippines President Jose Arnulfo “Wick” A. Veloso said in an e-mail to BusinessWorld.

“These additional layers in the screening process will help prevent incidents of fraud and misconduct, especially with the rapid rise of digitalization brought by the COVID-19 pandemic that has also brought an increase in the number of cybercrimes being reported,” Mr. Veloso, who is also the CEO and president of Philippine National Bank, added.

Chamber of Thrift Banks (CTB) Executive Director Suzanne I. Felix noted banks’ current practices already include a “high level of validation,” especially when hiring for sensitive positions.

“Banking is fundamentally an industry of trust. It is banking’s most important currency. Hence an extra amount of diligence is required (and expected) when onboarding personnel who will be entrusted with the funds of the depositing public, effectively making them a “trustee,” she said in an e-mail.

For instance, CTB member banks’ application process includes getting clearance from the National Bureau of Investigation and credit bureau to check the financial well-being of candidates, especially branch managers and high-level officers.

Apart from rules on application process, the BSP circular also stressed the need for performance management among bank officials.

“The financial circumstances of an employee who will be responsible for the custody of, or handling cash-related transactions, shall be taken into consideration in the evaluation of his continuing qualification,” it said.

The BSP said this will give banks the ability to detect suspicious behavior.

Among the red flags identified by the BSP are reluctance or refusal to take vacation leaves; involvement of personnel in cases with frequent override of internal controls; established limits or approving authorities; high incidents of policy circumventions; sudden or significant changes in lifestyle; standard of living; spending habits that are inconsistent with the salary; financial position; and level of indebtedness.

“Aligning BSP regulations with international best practices on know-your-employee procedures is just half the battle. The other half depends on the strength of oversight of the board of directors of BSP-supervised institutions in implementing these policies,” Mr. Diokno said. — Luz Wendy T. Noble

Related Posts

PSEi down on profit taking after three-day climb
Politics News

PSEi down on profit taking after three-day climb

July 7, 2022
Davao City records 30 new COVID-19 cases, positivity rate at 6.3%
Politics News

Davao City records 30 new COVID-19 cases, positivity rate at 6.3%

July 7, 2022
Baguio mulls centralized parking for weekend tourists, use of hop on-hop off bus service
Politics News

Baguio mulls centralized parking for weekend tourists, use of hop on-hop off bus service

July 7, 2022
Next Post
Philippines hopeful of vaccine manufacturing investments by 2022

Philippines hopeful of vaccine manufacturing investments by 2022

Creating Your Own Sports Prediction Company

Creating Your Own Sports Prediction Company

Filipino Fund, Inc. sets stockholders’ meeting via remote communication

Filipino Fund, Inc. sets stockholders' meeting via remote communication

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Categories

  • Economic Indicators
  • Editor's Pick
  • Investing Ideas
  • Politics News
  • Stock Analysis

Popular News

  • A Minute With: Family Reunion cast on relatable story lines

    A Minute With: Family Reunion cast on relatable story lines

    0 shares
    Share 0 Tweet 0
  • Twitter launches ‘Milk Tea Alliance’ emoji as movement grows

    0 shares
    Share 0 Tweet 0
  • Gas and car bills to soar under green revolution

    0 shares
    Share 0 Tweet 0
  • Level up your gaming experience with vivo Y20s [G]

    0 shares
    Share 0 Tweet 0
  • Rehab, expansion of General Santos airport seen completed by Q2

    0 shares
    Share 0 Tweet 0
No Result
View All Result

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Highlights

SC suspends metro court judge over homophobic remarks   

Ex-Defense chief Lorenzana to head BCDA 

House bill on mandatory bank secrecy waiver for gov’t officials, workers refiled

Fuel excise tax suspension will induce more economic activities — Poe 

Marcos meets Energy team without a chief 

Hearing for Marcos ill-gotten wealth case moved by court

Trending

PSEi down on profit taking after three-day climb
Politics News

PSEi down on profit taking after three-day climb

by
July 7, 2022
0

BW FILE PHOTO PHILIPPINE STOCKS fell on Thursday on profit taking and data showing more Filipinos were...

Davao City records 30 new COVID-19 cases, positivity rate at 6.3%

Davao City records 30 new COVID-19 cases, positivity rate at 6.3%

July 7, 2022
Baguio mulls centralized parking for weekend tourists, use of hop on-hop off bus service

Baguio mulls centralized parking for weekend tourists, use of hop on-hop off bus service

July 7, 2022
SC suspends metro court judge over homophobic remarks   

SC suspends metro court judge over homophobic remarks   

July 7, 2022
Ex-Defense chief Lorenzana to head BCDA 

Ex-Defense chief Lorenzana to head BCDA 

July 7, 2022

Disclaimer: ConsciousInvestingToday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2021 ConsciousInvestingToday. All Rights Reserved.

No Result
View All Result
  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.