Compliance Officer

CIRCULAR 598 Series of 2008

Pursuant to Monetary Board Resolution No. 8 dated 03 January 2008, the Manual of Regulations for Banks (MORB) and the Manual of Regulations  for Non-Bank Financial institufions (MORNBFI) are hereby amended, as follows:

Section 1. Items "d." and "e." of Subsec. X170.2 of the MORB on Compliance Officer are hereby amended to read, as follows:

X X X

"d. ALL  UBs/KBs, AS WELL AS TBs AND RBs/COOP BANKS WITH TOTAL RESOURCES OF P500 MILLION AND ABOVE, SHALL APPOINT an independent full-time compliance officer, who shall have the rank of at least a Vice President OR ITS EQUIVALENT.

e. FORTBs AND RBs/COOP BANKS WlTH TOTAL RESOURCES OF BELOW P500 MILLION, an incumbent senior officer may be designated concurrently as the bank's compliance officer: Provided, That such designation will not give rise to any conflict of interest situation AND THAT THE MAIN   FUNCTION OF THE SENIOR OFFICER SHALL BE THAT OF A COMPLIANCE OFFICER

The internal auditor of a bank may also be designated as its compliance officer subject to the condition that his MAIN FUNCTION SHALL be THAT OF A compliance officer.

Transitory Provision. Compliance officers concurrently holding the position of Head of Internal Audit or Internal Auditor shall be given one (1) year from date of effectivity of this Circular within which to comply with the aforementioned regulation."

Section 2. ltem "d." of Subsec. 4191Q.2 of the MORNBFI on Compliance Officer is hereby amended and ltem "e." is hereby added to read, as follows:

x  x  x "d. ALL QUASI-BANKS WlTH TOTAL RESOURCES OF P500 MILLION AND ABOVE SHALL APPOINT an independent full-time compliance officer, who shall have a rank of at least a Vice President OR ITS EQUIVALENT.

e. FOR QUASI-BANKS WlTH TOTAL RESOURCES OF BELOW P500 MILLION, AN INCUMBENT SENIOR OFFICER MAY BE DESIGNATED CONCURRENTLY AS THE BANK'S  COMPLIANCE OFFICER PROVIDED, THAT SUCH DESIGNATION WILL NOT GIVE RISE TO ANY CONFLICT OF INTEREST SITUATION  AND THAT THE MAIN FUNCTION OF THE SENIOR OFFICER SHALL BE THAT OF A COMPLIANCE OFFICER.

THE INTERNAL AUDITOR OF A QUASI-BANK MAY ALSO BE DESIGNATED AS ITS COMPLIANCE OFFICER SUBJECT TO THE CONDITION THAT HIS MAIN FUNCTION SHALL BE THAT OF A COMPLIANCE OFFICER.

Transitory Provision. Compliance officers concurrently holding the position of Head of Internal Audit or Internal Auditor shall be given one (1) year from date of effectivity of this Circular within which to comply with the aforementioned regulation."

This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation.

FOR THE MONETARY BOARD:

AMANDO M. TETANGCO, JR. Governor