Amendment of Section X181 (2008-X171) on Bank Protection

Bangko Sentral ng Pilipinas

OFFICE OF THE GOVERNOR

CIRCULAR NO. 823

Series of 2014

Subject: Amendment of Section X181 (2008 - X171) on Bank Protection

The Monetary Board, in its Resolution No. 2038 dated 5 December 2013, approved the revisions to Section X181 (2008 - X171) of the Manual of Regulations for Banks (MORB) on Bank Protection.

Section 1. The relevant provisions of Section X181 of the MORB particularly those relating to the appointment of the bank's security officer are hereby amended, as follows:

1. Subsection X181.2 (2008 - X171.2) on the Designation of Security Officer is

amended to read as follows:

S X181.2 (2008 - X171.2) Designation of a Chief Security Officer

The board of directors of each bank, or the country head in the case of a foreign bank branch, shall designate a Chief Security Officer.

A full-time Chief Security Officer shall be designated whenever the bank operates an extensive physical network of branches and other offices that regularly handle cash. For purposes of this section, extensive branch network means a bank has at least ten (10) branches and/or other cash handling banking offices.

reduced security risk exposure and may designate a senior officer to A bank that falls outside the preceding criteria is considered to have

act as concurrent Chief Security Officer provided that such designation shall not result to a conflict of interest situation.

In banking group or conglomerate structure, the parent bank or the primary bank may establish a group-wide security management system to facilitate a consolidated approach in handling security risks.

Chief Security Officer. This, however, does not relieve each bank from appointing its own

2. The new Subsection X181.3 (2008 - X171.2) contains the Qualifications and

Responsibilities of the Chief Security Officer. It will read as follows:

S X181.3 Qualifications and Responsibilities of the Chief Security Officer

Before appointing its Chief Security Officer, the board of directors must ensure that its security officer-designate meets the following minimum qualifications:

A. Mabini St., Malate 1004 Manila, Philippines * (632) 708-7011 www.bsp.gov.ph [email protected]

b. Be a college graduate; a. Be at least 30 years of age; C Have at least five (5) years experience in the field of law

enforcement and/or security operations, two (2) years of

d Possess all the qualifications and none of the which is in a managerial position; and

X143 of the MORB. disqualifications provided for under Sections X142 and

In the event that the senior officer, acting concurrently as the bank's

above under item "c", said officer shall be supported by a competent consultant/adviser who may be a person or a firm. independent of the Chief Security Officer, does not meet the minimum experience defined

management matters. The hiring of said consultant/adviser shall be bank with special knowledge, skill and experience on security

approved by the Board of Directors of the bank or the country head in the case of a foreian bank branch.

consider the reputation and integrity, the extent of relevant When assessing competency, the board of directors of the bank should

education/training and the knowledge and experience of the consultant/adviser on security management matters.

All Chief Security Officers, including those acting in concurrent capacity. shall be responsible for:

a. Developing and administering a security program appropriate to the risk profile of the bank: b. Constituting a security management team, as appropriate; C. Conducting a security awareness program among bank employees

d Investigating bank robberies/hold-ups, recommending the filing of on a continuing basis;

appropriate charges in court as the evidence may warrant and

e. Establishing an effective working relationship with the BSP, PNP, assisting in the prosecution of the perpetrator(s) thereof:

and other law enforcement agencies in the prevention of bank crimes and other natural and man-made hazards; I+ Implementing new techniques, methods and equipment to enhance

bank protection measures in a cost effective manner.

3. Subsection X181.7 of the MORB on Common Security Service Provision is

amended and incorporated in the new Subsection X181.2. Hence, said subsection is hereby deleted. The following Subsections shall be re-numbered as follows:

Subsection X181.3 From Subsection X181.4 To Security Program Subsection Title

Subsection X181.4 Subsection X181.5 Minimum Security Measures Subsection X181.5 Subsection X181.6 Subsection X181.6 Subsection X181.7 Reports Bangko Sentral Inspection

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Section 2. Transitory Provisions. This Circular shall take effect fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation. Banks, however, are given three (3) months from date of effectivity to submit a certification to the appropriate supervising department of the BSP whether or not they are compliant with this circular. Within the same period, non-compliant banks shall submit an acceptable plan of action to achieve compliance within six (6) months from effectivity.

FOR THE MONETARY BOARD

AMANDO M. TETANGCO, JR Governor

00 January 2014

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