Banking and Finance Institutions Chapter 4: Banking Laws - PDF

FInancial Management a B ndn king a ce in a n F tituti In s Prepared by: Arly Patague FInancial Management ha C 4:pt er Ba nk in g Prepared by:...

FInancial Management a B ndn king a ce in a n F tituti In s Prepared by: Arly Patague FInancial Management ha C 4:pt er Ba nk in g Prepared by: Arly Patague SCOPE Republic Act No. 7653 “The New Central Bank Act” Republic Act No. 11211. “An Act Amending the New Central Bank Act” The General Banking Law of 2000 Anti-Money Laundering Law of 2001 The National Payment Systems Act THE NEW CENTRAL BANK ACT Approved June 14, 1993 The State shall maintain a central monetary authority that shall function and operate as an independent and accountable body corporate in the discharge of its mandated responsibilities concerning money, banking and credit. There is hereby established an independent central monetary authority, which shall be a body corporate known as the Bangko Sentral ng Pilipinas. THE NEW CENTRAL BANK ACT BSP shall have supervision over the operations of banks and exercise such regulatory powers as provided in this Act and other pertinent laws over the operations of finance companies and non-bank financial institutions performing quasi-banking functions, hereafter referred to as quasibanks, and institutions performing similar functions. The primary objective of the Bangko Sentral is to maintain price stability conducive to a balanced and sustainable growth of the economy. It shall also promote and maintain monetary stability and the convertibility of the peso. AN ACT AMENDING THE NEW CENTRAL BANK Act Approved on February 14, 2019 This republic act seeks to strengthen the Bangko Sentral ng Pilipinas (BSP) by expanding its regulatory power. Under the New Central Bank Act, the primary objective of the BSP is to maintain price stability conducive to a balanced and sustainable growth of the economy. Under the amended law, the same has been expanded to include price stability for a balanced and sustainable growth of employment. The BSP shall now wield regulatory and examination powers not only over quasi-banking operations of non-bank financial institutions but also over money service businesses, credit granting businesses, and payment system operators. THE GENERAL BANKING LAW OF 2000 It primarily governs Universal Banks and Commercial Banks, and has suppletory application to Thrift Banks, Rural Banks and Cooperative Banks. GBL provides that a bank or quasi-bank cannot be incorporated without authority from the BSP. In addition, an entity performing banking and quasi-banking function cannot also operate without a certificate of authority from the BSP. GBL provides, as a general rule, that no trust entity shall, for the account of the trustor or the beneficiary of the trust, purchase or acquire property from, or sell, transfer, assign or lend money or property to, or purchase debt instruments of any of the departments, directors, officers, stockholders, or employees of the trust entity relatives within the 1st degree of consanguinity or affinity, or the related interests, of such directors, officers and stockholders,  UNIVERSAL BANKS IN THE PH 1. Al-Amanah Islamic Investment Bank of the Philippines 11. ING Bank NV 12. Land Bank of the Philippines (Landbank) 2. ANZ Banking Group Ltd. 13. Metropolitan Bank & Trust Co. (Metrobank) 3. Asia United Bank Corp. (AUB) 14. Mizuho Bank, Ltd. – Manila Branch 4. Bank of the Philippine Islands (BPI) 15. Philippine National Bank (PNB) 5. BDO Unibank, Inc. (BDO) 16. Philippine Trust Co. (Philtrust) 6. China Banking Corp. (Chinabank) 17. Rizal Commercial Banking Corp. (RCBC) 7. Deutsche Bank AG 18. Security Bank Corp. (SBC) 8. Development Bank of the Philippines (DBP) 19. Standard Chartered Bank (Standard) 9. East West Banking Corp. (Eastwest) 20. Union Bank of the Philippines (Unionbank) 10. The Hongkong & Shanghai Banking Corp. 21. United Coconut Planters Bank (UCPB) (HSBC) ANTI-MONEY LAUNDERING LAW OF 2001 Approved September 2001 Was passed to implement its continued commitment and support of the global fight against money laundering The legislation, among others, defines money laundering as a criminal offense, prescribes penalties for such crimes committed and forms the foundation of a central monitoring and implementing council called the Anti-Money Laundering Council (AMLC). To combat money laundering, this law imposes requirements on customer identification, record keeping, reporting of covered and suspicious transactions, relaxes strict bank deposit secrecy laws, and provides for freezing/seizure/forfeiture/recovery of dirty money/property as well as for international cooperation.  BANGLADESH BANK HEIST The Bangladesh Bank Heist of 2016 remains one of the most significant cyberattacks in history, and its impact reverberates to this day. The brazen attack targeted the central bank of Bangladesh and resulted in the theft of over $81 million. This case study offers a closer look at the attack, its impact, and the lessons learned from this watershed moment in cybersecurity. The heist was a highly sophisticated operation that utilized malware, social engineering, and insider help to infiltrate the bank's systems and steal the funds. The incident highlights the growing threat of cybercrime and the need for improved security measures to protect against these types of attacks. NATIONAL PAYMENT SYSTEMS ACT Approved October 30, 2018 This law provides a comprehensive legal and regulatory framework which supports the twin objectives of maintaining a payment system that is necessary to control systemic risk and providing an environment conducive to the sustainable growth of the economy. A payment system provides the channels through which funds are transferred among banks and other institutions to discharge payment obligations arising from economic and financial transactions across the entire economy. An efficient, secure and reliable payment system reduces the cost of exchanging goods and services. It is an essential tool for the effective implementation of monetary policy, and the smooth functioning of money and capital markets. THANK YOU,