Electronic Banking Safety Regulations

Electronic Equipment Safety

• Electronic banking minimizes operational costs and improves the bank's image and competitiveness.
• Electronic equipment safety is a combination of technical and internal control systems to ensure data and process integrity, authenticity, and confidentiality.

Strict Approval of Electronic Banking

• Government agencies and institutions should regulate electronic banking transactions.

Electronic Banking Termination Rules

• Financial institutions with electronic banking services shutting down completely or partially must notify the Central Bank with the reason and disposal plan.

Emergency Treatment Measures

• Financial institutions should have emergency procedures in place to mitigate risks arising from service or product transfers caused by abnormal conditions.

Safety Assessment Measures

• Safety evaluations should occur during the development of electronic banking businesses, including:
  • Safety strategy analysis
  • Internal control assessment
  • Risk management evaluation.
  • Consumer security evaluation

Anti-Money Laundering Act (AMLA) of 2001 (RA 9160)

• Criminalizes activities like corruption, fraud, robbery, extortion, and plunder.
• Targets money laundering activities, including:
  • Market manipulation
  • Illegal goods trading
  • Corruption of public funds
  • Tax evasion
  • Methods to conceal criminal activity and the money generated from it
  • Transferring cash to foreign countries.
  • Depositing cash in small amounts to avoid detection.
  • Using illicit cash to buy other cash instruments

Report Suspicious Activity

• Law enforcement investigates money laundering by analyzing financial records for inconsistencies or suspicious activities.
• Financial institutions should identify the origin of large sums, monitor suspicious activities, and report cash transactions exceeding $10,000 (Php 500,000).
• Transactions of Php 500,000 or less are reported to the AMLC if considered "suspicious" due to factors like:
  • Lack of legal or economic justification for a transaction
  • Client is not properly identified
  • Transaction amount is disproportionate to the client's capacity.

Multinational Corporations (MNCs)

• MNCs are:
  • Headquartered in one country but operate in several others.
  • Subsidiaries operate independently but belong to the same company.
• Examples of MNCs:
  • Google
  • Nike
  • Netflix
  • TripleOne
  • Nestle
  • Johnson & Johnson
  • Coca-Cola
  • PepsiCo
  • Unilever.

Transnational Enterprises

• Have a decentralized structure with branches in various countries.
• Parent company has limited control over foreign branches.
• May have a narrower focus, targeting a specific market in a country or region.
• Examples of Transnational Enterprises:
  • Toyota
  • Shell

Challenges of Multinational Companies

• Cultural Differences: Localizing products, marketing strategies, and corporate culture can be challenging.
• Different Political and Legislative Environments: Adapting to varying regulations impacting products can be difficult.
• Long Supply Chains: Coordinating transportation between countries can be complex.
• Managing Geopolitical and Economic Risks: Political and economic instability in host countries pose challenges.
• Global Market Competition: Competing with other global companies is challenging.
• Currency Fluctuations: MNCs face risks due to changes in exchange rates.

Cultural Diversity in Multinational Businesses

• Culture shapes beliefs, behaviors, and identity.

• Attitudes towards Appointments and Deadlines:

  • Different cultures perceive time differently, prioritizing “doing things right” over strict deadlines.

• Attitudes towards Agreements and Commitments:

  • Promises of time, money, and support require consideration of cultural differences.

• Cross-Country Differences in Individual Work Values and Attitudes:

  • Variation in work values and attitudes need to be understood in managing an MNC workforce.

• Diversity can lead to a lack of cohesion.

• Managing Diversity in MNCs during HRM is essential.

• Challenges of working across cultures include:

  • Ethnocentrism: Believing one's own culture is superior, leading to biases.
  • Parochialism: Having a narrow perspective, focusing only on one's own community.

Positive Aspects of Cultural Diversity

• Cultural diversity can add value if managed effectively.

Harmful effects of MNCs on the Philippines

• Decline in interest in local products and businesses.
• Exploitation of low labor rates.
• Environmental pollution.
• Inadequate tax payments.

Multinational Enterprises Based in the Philippines

• Factors contributing to the lack of Philippine MNEs include:
  • Limited access to funding
  • Lack of skilled labor
  • Government regulations
  • Market size
  • Cultural factors.

This quiz explores the safety measures and regulations surrounding electronic banking, focusing on technical controls and governmental oversight. Participants will assess their understanding of emergency procedures and safety evaluations that financial institutions must implement. Test your knowledge on how these elements contribute to the integrity and confidentiality of electronic banking services.