Amendments to the guidelines on the retention and disposal of records/documents of rural and cooperative banks

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE GOVERNOR ctRcuLAR NO. 72O Series of 2O1-l Subject : Amendments to the guidellnes on the retention and disposal of records/documents of rural and cooperative banks Pursuant to Monetary Board Resolution No. 659 dated 28 April 2011, amending the guidelines on the retention and disposal of records, particularly the reduced retention period for certain records/documents and the deletion of the notice requirement to the BSP relative to the disposal thereof, Appendix 50 of the Manual of Regulations for Banks (MORB) on the Guidelines on Retention and Disposal of Records of Rural and Cooperative Banks is hereby amended as presented in the attached AnnexA. This Circular shall take effect fifteen (15) calendar days after publication either in the Official gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: /,^nn- AMANDg M. TETANGCO, JR. /Gou"rno'. L rviavzott 4 M;rt, n! 5t,. M,rrcie i0{j4 llrr rtc Phi:ipo,i,e!. (g-rl) :'24 7C1l .,.,:','/ar.btr tov.1,:- . .rirrii,,aqiii,ri) qi!.'r

ANNEXA Appendix 50 GUIDELINES ON RETENTION AND DISPOSAT OF RECORDS OF RURAL AND COOPERATIVE BANKS [Appendixto Subsec. 3791.9 (2008 - 3767.9)] The following guidelines shall govern the retention and disposal of records of RBs/Coop Banks. A. Classification of Records and Documents Retention Period 1. Accounting records (a) Books of accounts, audited financial/annual reports 10 years (b) Tickets and supporting papers 10 years (c) Official receipts (2nd copy) 10 years 2. Organization papers for the establishment of RBs/ Permanent Coop Banks, branches/offices (organizationa I file), special license/authority granted by BSP (e.g. authority to accept demand deposits, government deposits, fringe benefit plan) 3. Updated Manual of operations, including compliance Permanent system, policies on personnel, security and other related matters 4. Stock and transfer book and related records and Permanent documents 5. Minutes of meeting (a) Stockholders/general assembly, board of directors Permanent (b) Other committees 10 years 6. Human resource files (a) Documents pertaining to members of the board of Permanent d irectors and stockholders (b) Bank officers and staff 5 years from resignation/separation/ retirement (c) Officers and staff with derogatory information Permanent 7. Correspondence (to and from) (a) BSP on examination findings/exceptions and 10 years except if there is a directives; rediscounting, loans and advances court case - until the case is finally resolved by the court (b) Other government regu latory/supervisory 5 years or as prescribed by authorities, e.g. PDIC, BlR, DOLE, SSS the government institution concerned whichever is longer

ANNEX A Appendix 50 A. Classification of Records and Documents Retention Period (c) All other correspondence 5 years 8. Reports to BSP (financial and non-financial reports) 5 years 9. Reports to other government and non-government 5 years or as prescribed by institutions the institution concerned whichever is longer 1.0. Records and documents on court cases/complaints Permanent l.L. Documents, certificates of ownership/titles on bank permanent assets e.g. 12' All other records/documents of all transactions 10 years from dates when loans and investments, disposal of assets,deposit accounts were income, liabilities and borrowings, expenditures and closed/disposed of/settled disbursements Notwithstanding the retention periods hereln, RBs/Coop Banks may preserve for a longer period those records/documents they deem necessary. In cases where specific laws or BSP issuances require a different retention period, the longer retention period shall be observed. B. Procedural requirements on disposal of bank records and documents 1. No RBs/Coop Banks shall dispose of any records without the prior approval of its board of directors. 2. All records and documents for disposal must be burned or shredded in the presence of a director of the bank duly designated by the board of directors, the Chief Operating Officer or equivalent rank and the Compliance Officer. 3. The designated director, the Chief Operating Officer (or its equivalent) and the Compliance Officer shall execute a joint affidavit (Annex A) attesting to the burning/sh redding of the records/documents. The original copy of the joint affidavit shall be kept permanently by the Treasurer or Cashier and must be made available for inspection by the BSP.

ANNEX A Page I of 2 REPUBLTC OF THE PHtLtPPtNES ) CITY/MUNICIPALITY OF ) s.s PROVINCE OF ) JOINTAFFIDAVIT We, namely: Director; Chief Operating Officer (or equivalent rank); and Compliance Officer, all of legal ages, representing the Rura/Cooperative Bank of Inc. after having been sworn to in accordance with law do hereby depose and say: 1. That we are the bank officials of the Rural/Cooperative Bank of , Inc., duly designated under Board Resolution No. dated to ensure and witness the proper disposal of the following records/documents: 2. That we have witnessed the burning/shredding of the above-mentioned records/documents that took place on 20 at AM/PM at the premises of the Rural/Cooperative Bank of 3. That we have executed this Affidavit to attest to the truthfulness of the foregoing and in accordance with the rules prescribed by the Bangko Sentral ng Pilipinas (BSP). lN WITNESS WHEREOF, we have set our hands this _ day of _20_ at Philippines.

ANNEXA PaEe 2 ot 2 SUBSCRIBED AND SWORN TO BEFORE ME, this day of 20_ at the foregoing Affiants, exhibiting their respective valid identification document/s (lDls), to wit: Name Valid lD/s Date lssued place lssued NOTARY PUBLIC My Commission expires on December 3t,20- PTR No. _ issued on _ 20at Doc. No. Book No. Page No. Series of 20