BANGKO SENTRAL NG PILIPINAS

(CENTRAL BANK OF THE PHILIPPINES)

ABOUT THE BANK LINK
Overview of the BSP
The Bangko Sentral ng Pilipinas
(BSP) is the central bank of the
Republic of the Philippines. It
was established on 3 July 1993
pursuant to the provisions of
the 1987 Philippine
Constitution and the New
Central Bank Act of 1993. The
BSP took over from the Central
Bank of Philippines, which was
established on 3 January 1949,
as the countrys central

monetary authority. The BSP

enjoys fiscal and administrative
autonomy from the National
Government in the pursuit of
its mandated responsibilities.
The BSP Seal
The new BSP
logo is a
perfect round
shape in blue
that features
three gold
stars and a
stylized
Philippine
eagle

rendered in
white strokes.
These main
elements are
framed on the
left side with
the text
inscription
Bangko
Sentral ng
Pilipinas
underscored
by a gold line
drawn in half
circle. The
right side
remains open,

signifying
freedom,
openness, and
readiness of
the BSP, as
represented
by the
Philippine
eagle, to soar
and fly toward
its goal.
Putting all
these
elements
together is a
solid blue
background to

signify
stability.
Principal
Elements:
1. The
Philippine
Eagle, our
national bird,
is the worlds
largest eagle
and is a
symbol of
strength, clear
vision and
freedom, the
qualities we

aspire for as a
central bank.
2. The three
stars
represent the
three pillars of
central
banking: price
stability,
stable banking
system, and a
safe and
reliable
payments
system. It
may also be
interpreted as

a geographical
representation
of BSPs equal
concern for
the impact of
its policies
and programs
on all
Filipinos,
whether they
are in Luzon,
Visayas or
Mindanao.
Colors
1. The blue
background
signifies

stability.
2. The stars
are rendered
in gold to
symbolize
wisdom,
wealth,
idealism, and
high quality.
3. The white
color of the
eagle and the
text for BSP
represents
purity,
neutrality,
and mental

clarity.
Font or Type
Face
Non-serif,
bold for
BANGKO
SENTRAL NG
PILIPINAS to
suggest
solidity,
strength, and
stability. The
use of nonserif fonts
characterized
by clean lines
portrays the

no-nonsense
professional
manner of
doing business
at the BSP.
Shape
Round shape
to symbolize
the continuing
and unending
quest to
become an
excellent
monetary
authority
committed to
improve the

quality of life
of Filipinos.
This round
shape is also
evocative of
our coins, the
basic units of
our currency.
The BSP Main Complex
The BSP Main
Complex in
Manila houses
the offices of
the Governor,
the Monetary
Board and the

different
operating
departments/
offices. The
Complex has
several
buildings,
namely: 5Storey
building,
Multi-storey
building, the
EDPC building
and the BSP
Money
Museum,
which

showcases the
Bank's
collection of
currencies.
The BSP Security Plant
Complex

The Security Pla

Complex which i
located in Quezo
City houses a
banknote printin
plant, a securitie
printing plant, a
mint and a gold
refinery. The
banknote printin

plant and the mi

take care of
producing curren
notes and coins,
respectively.

Products | Gall
Tour | Gold
Buying
Program | Gold
Selling
Program | Map
The BSP Regional Offices
and Branches
The BSP has
three regional
offices

performing
cash
operations,
cash
administration,
loans and
rediscounting,
bank
supervision
and gold
buying
operations.
These regional
offices are
located in La
Union, Cebu
City and

Davao City.
There are also 19 BSP branches
situated in Batac (Ilocos Norte),
Tuguegarao City (Cagayan),
Dagupan City (Pangasinan),
Cabanatuan City (Nueva Ecija),
San Fernando City
(Pampanga), Lucena City
(Quezon), Naga City
(Camarines Sur), Legazpi City
(Albay), Dumaguete City
(Negros Oriental), Bacolod City
(Negros Occidental), Iloilo City
(Iloilo), Roxas City (Capiz),
Tacloban City (Leyte), Butuan
City (Agusan del Norte),
Cagayan de Oro City (Misamis

Oriental), Ozamiz City (Misamis

Occidental), Cotabato City,
General Santos City (South
Cotabato) and Zamboanga City
(Zamboanga del Sur). They
perform cash operations, cash
administration, and in certain
areas, gold buying operations.

Creating a Central Bank for

the Philippines
A group of Filipinos had
conceptualized a central bank
for the Philippines as early as
1933. It came up with the
rudiments of a bill for the

establishment of a central bank

for the country after a careful
study of the economic
provisions of the Hare-Hawes
Cutting bill, the Philippine
independence bill approved by
the US Congress.
During the Commonwealth
period (1935-1941), the
discussion about a Philippine
central bank that would
promote price stability and
economic growth continued.
The countrys monetary system
then was administered by the
Department of Finance and the
National Treasury. The

Philippines was on the

exchange standard using the
US dollarwhich was backed
by 100 percent gold reserve
as the standard currency.
In 1939, as required by the
Tydings-McDuffie Act, the
Philippine legislature passed a
law establishing a central bank.
As it was a monetary law, it
required the approval of the
United States president.
However, President Franklin D.
Roosevelt disapproved it due to
strong opposition from vested
interests. A second law was
passed in 1944 during the

Japanese occupation, but the

arrival of the American
liberalization forces aborted its
implementation.
Shortly after President Manuel
Roxas assumed office in 1946,
he instructed then Finance
Secretary Miguel Cuaderno, Sr.
to draw up a charter for a
central bank. The
establishment of a monetary
authority became imperative a
year later as a result of the
findings of the Joint PhilippineAmerican Finance Commission
chaired by Mr. Cuaderno. The
Commission, which studied

Philippine financial, monetary

and fiscal problems in 1947,
recommended a shift from the
dollar exchange standard to a
managed currency system. A
central bank was necessary to
implement the proposed shift to
the new system.
Immediately, the Central Bank
Council, which was created by
President Manuel Roxas to
prepare the charter of a
proposed monetary authority,
produced a draft. It was
submitted to Congress in
February1948. By June of the
same year, the newly-

proclaimed President Elpidio

Quirino, who succeeded
President Roxas, affixed his
signature on Republic Act No.
265, the Central Bank Act of
1948. The establishment of the
Central Bank of the Philippines
was a definite step toward
national sovereignty. Over the
years, changes were introduced
to make the charter more
responsive to the needs of the
economy. On 29 November
1972, Presidential Decree No.
72 adopted the
recommendations of the Joint
IMF-CB Banking Survey

Commission which made a

study of the Philippine banking
system. The Commission
proposed a program designed
to ensure the systems
soundness and healthy growth.
Its most important
recommendations were related
to the objectives of the Central
Bank, its policy-making
structures, scope of its
authority and procedures for
dealing with problem financial
institutions.
Subsequent changes sought to
enhance the capability of the
Central Bank, in the light of a

developing economy, to enforce

banking laws and regulations
and to respond to emerging
central banking issues. Thus, in
the 1973 Constitution, the
National Assembly was
mandated to establish an
independent central monetary
authority. Later, PD 1801
designated the Central Bank of
the Philippines as the central
monetary authority (CMA).
Years later, the 1987
Constitution adopted the
provisions on the CMA from the
1973 Constitution that were
aimed essentially at

establishing an independent
monetary authority through
increased capitalization and
greater private sector
representation in the Monetary
Board.
The administration that
followed the transition
government of President
Corazon C. Aquino saw the
turning of another chapter in
Philippine central banking. In
accordance with a provision in
the 1987 Constitution,
President Fidel V. Ramos signed
into law Republic Act No. 7653,
the New Central Bank Act, on

14 June 1993. The law provides

for the establishment of an
independent monetary
authority to be known as the
Bangko Sentral ng Pilipinas,
with the maintenance of price
stability explicitly stated as its
primary objective. This
objective was only implied in
the old Central Bank charter.
The law also gives the Bangko
Sentral fiscal and
administrative autonomy which
the old Central Bank did not
have. On 3 July 1993, the New
Central Bank Act took effect.

Chronology of Events:
Central Banking in
the Philippines
1900

Act No. 52 was

passed by the First
Philippine
Commission placing
all banks under the
Bureau of
Treasury. The
Insular Treasurer
was authorized to
supervise and
examine banks and
banking activities.

February The Bureau of

1929
Banking under the
Department of
Finance took over
the task of banking
supervision.
1939

A bill establishing a
central bank was
drafted by
Secretary of
Finance Manuel
Roxas and
approved by the
Philippine
Legislature.

However, the bill

was returned by
the US
government,
without action, to
the Commonwealth
Government.
1946

A joint PhilippineAmerican Finance

Commission was
created to study
the Philippine
currency and
banking system.
The Commission
recommended the
reform of the

monetary system,
the formation of a
central bank and
the regulation of
money and credit.
The charter of the
Central Bank of
Guatemala was
chosen as the
model of the
proposed central
bank charter.

August
1947

A Central Bank
Council was formed
to review the

Commissions
report and prepare
the necessary
legislation for
implementation.

February President Manuel

1948
Roxas submitted to
Congress a bill
Establishing the
Central Bank of the
Philippines,
defining its powers
in the
administration of
the monetary and

banking system,
amending pertinent
provisions of the
Administrative
Code with respect
to the currency and
the Bureau of
Banking, and for
other purposes.

15 June
1948

The bill was signed

into law as Republic
Act No. 265 (The
Central Bank Act)
by President Elpidio
Quirino.

3 January The Central Bank

1949
of the Philippines
(CBP) was
inaugurated and
formally opened
with Hon. Miguel
Cuaderno, Sr. as
the first governor.
The broad policy
objectives
contained in RA No.
265 guided the CBP
in the
implementation of
its duties and
responsibilities,

particularly in
relation to the
promotion of
economic
development in
addition to the
maintenance of
internal and
external monetary
stability.

November RA No. 265 was

1972
amended by
Presidential Decree
No. 72 to make the
CBP more

responsive to
changing economic
conditions.
PD No. 72
emphasized the
maintenance of
domestic and
international
monetary stability
as the primary
objective of the
CBP. Moreover, the
CBPs authority was
expanded to
include not only
the supervision of
the banking system

but also the

regulation of the
entire financial
system.

January
1981

Further
amendments were
made with the
issuance of PD No.
1771 to improve
and strengthen the
financial system,
among which was
the increase in the
capitalization of the
CBP from P10

million to P10
billion.

1986

3 July
1993

Executive Order
No. 16 amended
the Monetary Board
membership to
promote greater
harmony and
coordination of
government
monetary and fiscal
policies.
The Bangko Sentral
ng Pilipinas (BSP)

was established to
replace the CBP as
the countrys
central monetary
authority.

The BSP Vision

and Mission
Vision
The BSP aims to be a worldclass monetary authority and a
catalyst for a globally
competitive economy and
financial system that delivers a
high quality of life for all

Filipinos.

Mission
BSP is committed to promote
and maintain price stability and
provide proactive leadership in
bringing about a strong
financial system conducive to a
balanced and sustainable
growth of the economy.
Towards this end, it shall
conduct sound monetary policy
and effective supervision over
financial institutions under its
jurisdiction.

The BSP Charter

The New Central Bank Act (RA

7653) - PDF file, 155 KB

Overview of
Functions and
Operations
Objectives
The BSPs primary objective is
to maintain price stability
conducive to a balanced and
sustainable economic growth.
The BSP also aims to promote
and preserve monetary stability
and the convertibility of the
national currency.

Responsibilities
The BSP provides policy
directions in the areas of
money, banking and credit. It
supervises operations of banks
and exercises regulatory
powers over non-bank financial
institutions with quasi-banking
functions.
Under the New Central Bank
Act, the BSP performs the
following functions, all of which
relate to its status as the
Republics central monetary
authority.
Liquidity Management.

The BSP formulates and

implements monetary
policy aimed at influencing
money supply consistent
with its primary objective
to maintain price stability.
Currency issue. The BSP
has the exclusive power to
issue the national
currency. All notes and
coins issued by the BSP
are fully guaranteed by
the Government and are
considered legal tender for
all private and public
debts.

Lender of last resort.

The BSP extends
discounts, loans and
advances to banking
institutions for liquidity
purposes.
Financial Supervision.
The BSP supervises banks
and exercises regulatory
powers over non-bank
institutions performing
quasi-banking functions.
Management of foreign
currency reserves. The
BSP seeks to maintain
sufficient international

reserves to meet any

foreseeable net demands
for foreign currencies in
order to preserve the
international stability and
convertibility of the
Philippine peso.
Determination of
exchange rate policy.
The BSP determines the
exchange rate policy of the
Philippines. Currently, the
BSP adheres to a marketoriented foreign exchange
rate policy such that the
role of Bangko Sentral is
principally to ensure

orderly conditions in the

market.
Other activities. The BSP
functions as the banker,
financial advisor and
official depository of the
Government, its political
subdivisions and
instrumentalities and
government-owned and controlled corporations.

The BSP's Organizational

Structure
as of December 2014
Executive Management
Services the functional
grouping of all units
directly reporting to the

Monetary Board or to the

Governor
Functional Sectors
Monetary Stability
Sector - mainly
responsible for the
operations/activities
related to monetary
policy formulation and
implementation
Supervision and
Examination
Sector mainly
responsible for the
regulation of banks
and other BSP-

supervised financial
institutions
Resource
Management
Sector mainly
responsible for the
management of
human, financial, and
physical resources of
the Bank
Security Plant
Complex responsible for
the production of
Philippine currency,
security documents, and
commemorative medals

and medallions

The BSP's
Organizational
Structure
as of December
2014
The Executive
Management
Services

Offices Under the Monetary

Board
1. Office of the Secretary,
Monetary Board

Provides secretarial and

administrative support to
the Monetary Board
2. Office of the General
Counsel and Legal Services
Renders legal advisory
services to the Monetary
Board and other BSP units
on matters relating to
policies, functions,
operations, and
regulations of the BSP
Prosecutes and defends
cases involving the BSP,
the Monetary Board, and
Management in judicial

and administrative
proceedings
3. Office of Special
Investigation
Investigates, mediates,
and when necessary,
prosecutes bank
irregularities and
anomalies noted in the
examination reports
submitted by the
Supervision and
Examination Sector
4. Internal Audit Office
Reviews and appraises the

effectiveness of operating
control systems of the BSP
and makes
recommendations to
address findings
Monitors utilization of
security materials and
other resources of the BSP
Offices Under the Office of
the Governor
1. Treasury Department
Manages the BSPs
international reserves, in
accordance with monetary
and foreign exchange

policies, at a level and a

mix that allows the BSP to
meet any demands for
foreign currency
Undertakes open market
operations and transacts
with accredited
government securities
dealers and the rest of the
members of the banking
system
Participates in the
Philippine Dealing System
to ensure the
competitiveness of the
Philippine peso and its

convertibility into other

acceptable foreign
currencies
2. Systems and Methods
Office
Ensures a well-organized
and integrated Bank-wide
effort to develop and
maintain efficient systems
and procedures
Provides recommendations
along the areas of
manualization, business
process reengineering, and
systems support

3. Corporate Planning Office

Provides technical support
to Management in the
formulation and
application of strategic
plans and practices, and in
the development of
policies and guidelines in
preparing departmental
work plans
4. BSP Staff in the AntiMoney Laundering Council
Secretariat
Assists the Anti-Money
Laundering Council in
implementing the

provisions of the AntiMoney Laundering Law

Receives transaction
reports from covered
institutions, investigates
suspicious transactions,
and causes the filing of
complaints with the
Department of Justice or
the Ombudsman for the
prosecution of moneylaundering offenses
5. Risk Management Office
Aggregates various risk
exposures of the Bank,
and identifies appropriate

risk control measures

Ensures that appropriate
risk management practices
are being implemented in
the Bank at all times
6. Corporate Affairs Office
Implements programs and
policies on public relations
and advertising through
various media to promote
and enhance BSPs
corporate image

The Monetary Stability

Sector
1. Investor Relations Office
Assists in developing
relations with the
international financial
community, and promotes
the Philippines as an
investment site
Monetary Policy Sub-sector
1. Department of Economic
Research
Acts as the principal policy
research and technical arm

of the Bank; and

Produces economic data
for the guidance of the
Governor and the
Monetary Board in the
formulation and
implementation of
monetary policies.
2. Department of Economic
Statistics
Generates relevant,
accurate and timely
statistics for the guidance
of the Monetary Board in
the formulation and
implementation of its

policies.
3. Center for Monetary and
Financial Policy
Develops a comprehensive
and integrated research
program that will provide
the research resources
required for the
formulation of monetary
policies
4. Economic and Financial
Learning Center
Central arm of the Bank in
providing monetary,
financial, and economic

information to the public.

International Sub-sector
1. International Relations
Department
Monitors and analyzes
regional and global
economic, financial, and
trade development issues,
and assesses their impact
on the Philippine economy
Strengthens and initiates
relations with foreign
entities by complying with
the commitments arising
from membership, and

participating in
international and regional
associations and groupings
2. International Operations
Department
Supports the promotion
and maintenance of
monetary stability and
external sustainability
through the management
of external debt, foreign
investments, and other
foreign exchange
transactions
Regional Monetary Affairs
Sub-sector

RMASs supervises the BSP

Regional Offices/Branches
in performing the following
functions: cash operations,
cash administration, gold
buying operations, and
economic and financial
literacy programs.

The following BSP branches

report directly to the Regional
Monetary Affairs Sub-sector:
Legazpi Branch
Lucena Branch
Naga Branch
BSP Regional Offices
1. La Union Regional Office supervises the following
branches in Luzon:
Cabanatuan Branch
Tuguegarao Branch
Batac Branch
San Fernando (Pampanga)

Branch
Dagupan Branch
2. Cebu Regional Office
supervises the following
branches in the Visayas:
Bacolod Branch
Dumaguete Branch
Iloilo Branch
Roxas Branch
Tacloban Branch
3. Davao Regional Office
supervises the following
branches in Mindanao:

Cotabato Branch
Zamboanga Branch
Ozamiz Branch
Cagayan de Oro Branch
General Santos Branch
Butuan Branch

Monetary Operations Subsector

1. Asset Management
Department
Administers, preserves,
and disposes assets
acquired or foreclosed
properties by the Bangko
Sentral in payment for
loans secured by banks
including real estate
holdings of the Bangko
Sentral which are not
utilized or earmarked for
use pursuant to its
objectives/regular

business.
2. Department of Loans and
Credit
Implements the credit policies
of the BSP;
Extends loans and advances
to banks and rediscounts;
Conducts credit examination
of banks; and
Undertakes special studies on
credit policies.
Currency Management Subsector
1. Cash Department
Responsible for the supply,

issuance, and exchange of

currency
Serves as depository and
custodian of cash,
securities, gold, and other
forms of valuable assets
2. Currency Issue and
Integrity Office
Issues currency to Cash
Department and Regional
Monetary Affairs Subsector
based on their requisitions
Preserves and maintains
the integrity of currency
The Supervision and

Examination Sector
1. Inclusive Finance
Advocacy Staff
Focuses on advocacy work
with financial institutions
to promote sustainable
methods in the delivery of
microfinance and the small
and medium enterprise
banking services
2. Central Administrative
Services Group
Undertakes sector-wide
services relating to
personnel, budget and

finance, records, facilities,

property and supplies, and
frontline services
administration of the SES
3. SES Technical Services
Staff
Provides immediate
advisory services to the
SES Deputy Governor and
to the SES operating units
on matters with technical,
legal and compliance
dimensions, and assistance
on various activities
arising from the conduct of
supervisory and regulatory

functions
4. SES Operations
Management Group
Responsible for the overall
coordination of SES
training activities
Assists in the deployment
of appropriate human
resources to scheduled onsite examinations
Financial Supervision
Research and Consumer
Protection Sub-Sector
1. Financial Consumer
Protection Department

Serves as the Banks

principal consumer
protection unit which shall
ensure the protection of
financial consumer rights
by formulating related
policies and standards,
assessing supervised
financial institutions
adherence to the said
standards, and
implementing financial
learning programs and the
BSP consumer assistance
mechanism
2. Office of Supervisory
Policy Development

Central policy research

and development unit of
the Sector

3. Supervisory Data Center

Serves as the central
collection, quality
assurance, processing, and
distribution point of all
financial sector data
coming into or being
released by the Sector
Supervision and
Examination Sub-sector I
1. Central Point of Contact
Departments I and II
Maintains the Institutional
Overview (a document
that represents a

continuously up-dated
report of examination),
handles critical requests of
banks and non-banks that
require BSP approval, and
supports implementation
of new supervisory
processes and concerns
Maintains updated
information on the plans
and structure of the
consolidated organization,
including overall
operations and the nature
and extent of intercompany relationships
within the consolidated

institution
2. Examination Departments
I and II
In-charge of the on-site
examination of:
universal banks and
their
subsidiaries/affiliates;
commercial banks and
their
subsidiaries/affiliates;
foreign banks and
their
subsidiaries/affiliates;
and

thrift, cooperative,
and rural banks
3. Core Information
Technology Specialist Group
Conducts information
technology (IT)
supervision and
examination of banks and
non-bank financial
institutions, including
payments systems
4. Trust Specialist Group
Examines risk exposure
that may arise from trust,
other fiduciary business,

and investment
management activities of
financial institutions
5. Capital Markets Specialist
Group
Examines capital market
activities of BSPsupervised financial
institutions, including
treasury operations,
market and liquidity risk
management, and trading
of capital markets
products
Supervision and
Examination Sub-sector II

1. Central Point of Contact

Departments III and IV
Maintains the Institutional
Overview (a document
that represents a
continuously up-dated
report of examination),
handles critical requests of
banks and non-banks that
require BSP approval, and
supports implementation
of new supervisory
processes and concerns
Maintains updated
information on the plans
and structure of the

consolidated organization,
including overall
operations and the nature
and extent of intercompany relationships
within the consolidated
institution
2. Examination Departments
III and IV
In-charge of the on-site
examination of:
universal banks and
their
subsidiaries/affiliates;
commercial banks and

their
subsidiaries/affiliates;
foreign banks and
their
subsidiaries/affiliates;
and
thrift, cooperative,
and rural banks
3. Anti-Money Laundering
Specialist Group
Examines financial
institutions with
operations that present a
higher risk of money
laundering activities

4. Micro, Small and Medium

Enterprise Finance
Specialist Group
Examines banks that have
adopted a business model
dedicated to or highly
exposed to micro, small,
and medium enterprises
Supervision and
Examination Sub-sector III
1. Integrated Supervision
Department I
Monitors and supervises
non-bank financial
institutions, including

investment houses with

quasi-banking and/or trust
license, and non-stock
savings and loans
associations
2. Integrated Supervision
Department II
Supervises and examines
banks through:
Off-site maintenance
and updating of
Institutional
Overviews and
Briefers, risk profiling,
evaluating and
processing banks

requests and
applications, and
monitoring
compliance with BSP
directives and bankcommitted
undertakings; and
Conduct of on-site
examination
The Resource Management
Sector
1. Provident Fund Office
Administers the Provident
and Housing Funds, and
implements policies and

directives of the Provident

Funds Board of Trustees
Manages the Funds
investment portfolio and
its earnings
2. Business Continuity Office
Serves as the BSPs
technical advisor on
matters pertaining to
business continuity
management, and
coordinator for the Deputy
Governor for RMS and
SPC, in ensuring
immediate action by
appropriate responding

units for the smooth

implementation of existing
plans and procedures
3. Payments and
Settlements Office
Ensures the smooth flow of
the countrys payments
and settlements system
through the management
of the Philippine Payments
and Settlements Systems
or PhilPaSS

Management Services Subsector

1. Administrative Services
Department
Responsible for property
control, insurance of real
and movable properties,
warehousing, records
management, printing of
bank circulars/internal
issuance/forms, mail
distribution, and telephone
switch board operations
2. Facilities Management
and Engineering Department
Responsible for the
general upkeep of the BSP
main building complex and

premises
Responsible for the
operations and
maintenance of all
mechanical, electrical,
electronic, and
auxiliary/accessory
equipment systems of the
Bank
3. Project Development and
Management Office
Supervises the
construction and
renovation of offices and
buildings in the BSP Main
Office, Security Plant

Complex, and BSP

Regional Offices/Branches,
and the maintenance of
the Philippine
International Convention
Center

4. Procurement Office
Processes purchase
requisitions from
departments/offices
Assists the Bids and
Awards Committee Head
Office in the conduct of
procurement activities
5. Security, Investigation
and Transport Department
Protects and safeguards
the Banks human,
financial, and physical
resources, and manages
the Banks motor pool

Comptrollership Sub-sector
1. Budget Planning and
Special Studies Group
Serves as technical staff of
the BSP Budget Committee
in the formulation of
budget guidelines,
preparation of budget
forms, and dissemination
of information
Reviews and analyzes
budgetary estimates of
income and expenses
submitted by the sector

heads
2. Financial Accounting
Department
Responsible for the
accounting, bookkeeping,
budget administration, and
disbursement activities of
the Bank

Human Resource Sub-sector

1. Human Resource
Development Department
Manages the development
of the Bank as an

organization and its

human capital through
organizational change and
development, and
organizational planning
and staffing
Facilitates the attainment
of individual employees
goals and those of the
Bank through talent
development, career and
succession management,
and performance
management
2. Human Resource
Management Department

Provides human resource

services including
recruitment, appointment,
personnel selection and
placement, compensation
and benefits, payroll, leave
and retirement, and
employee relations
Promotes employee
welfare through wellness
programs/initiatives and
other employee services
3. Bangko Sentral ng
Pilipinas Institute
Acts as the training arm of
the BSP

Designs and administers

various executive
development/values
enhancement courses,
seminars or workshops for
personnel of the BSP as
well as personnel of
certain segments of the
financial system on a
continuing basis
4. Health Services Office
Provides medical and
dental services to the
employees, and, if
necessary, refers them to
external professionals for

consultations and medical

and dental attention

Information Technology
Sub-sector
1. Information Technology
Enterprise Security Group
Designs, implements, and
maintains an effective
security infrastructure for
the BSP, and enforces IT
security policies
2. Policy Standards and
Planning Group

Establishes, monitors, and

updates specific standards
in the acquisition,
development, and
implementation of
application systems,
software, hardware, and
other IT projects
3. Information Technology
Infrastructure and
Operations Department
Manages the computer
environment of the Bank,
and ensures the efficient
operation of all
communication and

technology infrastructure
4. Application Systems
Management Department
Develops and maintains
appropriate business or
application software in the
Bank
The Security Plant Complex
1. Research and
Development Group
Conducts studies on the
design of currency and
securities, and on the tools
and technologies on
currency/securities

production and gold

refining
2. Financial Services and
Data Management Group
Prepares financial
statements and records
financial
receipts/disbursements,
and processes bills for
payment
3. Quality Assurance and
Compliance Group
Directs the policy-making
program on environment
safety and health, risk,

and business continuity,

ensures compliance of the
SPC to Quality
Management System
requirements, and
coordinates with
government agencies
regarding implementing
rules and regulations on
labor and environmental
laws
4. Banknotes Securities and
Printing Department
Manages and performs the
printing of banknotes and
other security documents

(e.g. passports, land titles,

etc.)
5. Mint and Refinery
Operations Department
Manages and performs the
minting of coins and
commemorative medals,
and the refinery of gold
purchased from local
panners and miners
6. Department of General
Services

Manages the procurement

of supplies, equipment,
and services for the SPC,

client affairs and

information programs, and
the general maintenance
and upkeep of its facilities

Governance of the Bank

The Monetary Board exercises
the powers and functions of the
BSP, such as the conduct of
monetary policy and
supervision of the financial
system. Its chairman is the BSP
Governor, with five full-time
members from the private
sector and one member from
the Cabinet.
The Governor is the chief
executive officer of the BSP
and is required to direct and
supervise the operations and

internal administration of the

BSP. A deputy governor heads
each of the BSP's operating
sector as follows:
Monetary Stability Sector
takes charge of the
formulation and
implementation of the
BSPs monetary policy,
including serving the
banking needs of all banks
through accepting
deposits, servicing
withdrawals and extending
credit through the
rediscounting facility.

Supervision and
Examination Sector
enforces and monitors
compliance to banking
laws to promote a sound
and healthy banking
system.
Resource Management
Sector serves the human,
financial and physical
resource needs of the BSP

The Monetary
Board

The powers and function of

Bangko Sentral are exercised
by its Monetary Board, which
has seven members appointed
by the President of The
Philippines. Under the New
Central Bank Act, one of the
government sector members of
the Monetary Board must also
be a member of the Cabinet
designated by the President.
The New Central Bank Act
establishes certain
qualifications for the members
of the Monetary Board and also
prohibits members from holding
certain positions with other

governmental agencies and

private institutions that may
give rise to conflicts of interest.
With the exception of the
members of the Cabinet, the
Governor and the other
members of the Monetary
Board serve terms of six years
and may only be removed for
cause.
The Monetary Board meets at
least once a week. The Board
may be called to a meeting by
the Governor of the Bangko
Sentral or by two (2) other
members of the Board. Usually,
the Board meets every

Thursday but on some

occasions, it convenes to
discuss urgent issues.
In the exercise of its authority,
the Monetary Board shall:
1. Issue rules and regulations
it considers necessary for
the effective discharge
of the responsibilities and
exercise of the powers
vested upon the Monetary
Board and the Bangko
Sentral;
2. Direct the management,
operations, and
administration of the

Bangko Sentral,
reorganize its personnel,
and issue such rules and
regulations as it may deem
necessary or convenient
for this purpose. The legal
units of the Bangko
Sentral shall be under the
exclusive supervision and
control of the Monetary
Board;
3. Establish a human
resource management
system which shall govern
the selection, hiring,
appointment, transfer,
promotion, or dismissal of

all personnel. Such system

shall aim to establish
professionalism
and excellence at all levels
of the Bangko Sentral in
accordance with sound
principles of management.
A compensation structure,
based on job evaluation
studies and wage surveys
subject to the Board's
approval, shall be
instituted as an integral
component of the Bangko
Sentral's human resource
development program.
On the recommendation of

the Governor, appoint, fix

the remunerations and
other emoluments, and
remove personnel of the
Bangko Sentral, subject to
pertinent civil service
laws: Provided, That the
Monetary Board shall have
exclusive and final
authority to promote,
transfer, assign, or
reassign personnel of the
Bangko Sentral and these
personnel actions are
deemed made in the
interest of the service and
not disciplinary: Provided,

further, That the Monetary

Board may delegate such
authority to the Governor
under such guidelines as it
may determine;
4. Adopt an annual budget
for and authorize such
expenditures by the
Bangko Sentral in the
interest of the effective
administration and
operations of the Bangko
Sentral in accordance with
applicable laws and
regulations; and
5. Indemnify its members

and other officials of the

Bangko Sentral, including
personnel of the
departments performing
supervision and
examination functions
against all costs and
expenses reasonably
incurred by such persons
in connection with any
civil or criminal action, suit
or proceedings to which he
may be, or is, made a
party by reason of the
performance of his
functions or duties, unless
he is finally adjudged in

such action or proceeding

to be liable for negligence
or misconduct.

The BSP Monetary Boa

ChairmanAmando M. Tetangco,

Members Cesar V. Purisima

Alfredo C. Antonio

Juan D. De Zuiga, Jr.

Valentin A. Araneta

Felipe M. Medalla
Armando L. Suratos

The Governor
Pursuant to Republic Act No.
7653 (The New Central Bank
Act), the Governor shall be the
chief executive officer of the
Bangko Sentral. His powers and
duties shall be to:

1. Prepare the agenda for the

meetings of the Monetary
Board and to submit for
the consideration of the
Board the policies and
measures that he believes
to be necessary to carry
out the purposes and
provisions of said Act;
2. Execute and administer
the policies and measures
approved by the Monetary
Board;
3. Direct and supervise the
operations and internal
administration of the

Bangko Sentral. The

Governor may delegate
certain of his
administrative
responsibilities to other
officers or may assign
specific tasks or
responsibilities to any fulltime member of the
Monetary Board without
additional remuneration or
allowance whenever he
may deem fit or subject to
such rules and regulations
as the Monetary Board
may prescribe;
4. Appoint and fix the

remunerations and other

emoluments of personnel
below the rank of a
department head in
accordance with the
position and compensation
plans approved by the
Monetary Board, as well as
to impose disciplinary
measures upon personnel
of the Bangko Sentral,
subject to the provisions of
Section 15(c) of said Act:
Provided, That removal of
personnel shall be with the
approval of the Monetary
Board;

5. Render opinions, decisions,

or rulings, which shall be
final and executory until
reversed or modified by
the Monetary Board, on
matters regarding
application or enforcement
of laws pertaining to
institutions supervised by
the Bangko Sentral and
laws pertaining to quasibanks, as well as
regulations, policies or
instructions issued by the
Monetary Board, and the
implementation thereof;
and

6. Exercise such other

powers as may be vested
in him by the Monetary
Board.
The Governor of the Bangko
Sentral shall be the principal
representative of the Monetary
Board and of the Bangko
Sentral and, in such capacity
and in accordance with the
instructions of the Monetary
Board, he shall be empowered
to:
1. Represent the Monetary
Board and the Bangko
Sentral in all dealings with

other offices, agencies and

instrumentalities of the
Government, and all other
persons or entities, public
or private, whether
domestic, foreign or
international;
2. Sign contracts entered into
by the Bangko Sentral,
notes and securities issued
by the Bangko Sentral, all
reports, balance sheets,
profit and loss statements,
correspondence, and other
documents of the Bangko
Sentral;

3. Represent the Bangko

Sentral, either personally
or through counsel,
including private counsel,
as may be authorized by
the Monetary Board, in
any legal proceedings,
action or specialized legal
studies; and
4. Delegate his power to
represent the Bangko
Sentral, to other officers
upon his own
responsibility: Provided,
however, That in order to
preserve the integrity and
the prestige of his office,

the Governor of the

Bangko Sentral may
choose not to participate
in preliminary discussions
with any multilateral
banking or financial
institution on any
negotiations for the
Government within or
outside the Philippines.
During the negotiations,
he may instead be
represented by a
permanent negotiator.
Governor Amando M.
Tetangco, Jr.

Past governors
Central Bank Governors
Name

Tenure

Miguel
Cuaderno, Sr.

3 January
1949 - 31
December
1960

Andres V.
Castillo

6 January
1961 - 31
December
1967

Alfonso
Calalang

1 January
1968 - 9
January 1970

Gregorio S.
Licaros

10 January
1970 - 15
January 1981

16 January
Jaime C. Laya
1981 - 18
January 1984
Jose B.
Fernandez, Jr.

19 January
1984 - 19
February 1990

Jose L. Cuisa,
Jr.

20 February
1990 - 2 Juy
1993

Bangko Sentral Governors

Name

Tenure

Gabriel C.
Singson

6 July 1993 July 1999

Rafael B.
Buenaventura

6 July 1999 July 2005

Amando M.
Tetangco, Jr.

4 July 2005Present

Audited Financial
Statements
CY2013 Audited
Financial Statements

1. Audit Certification

2. BSP Financial Statements

a. Balance Sheet
b. Income Statement

c. Statement of
Comprehensive Income
d. Statement of Changes
Equity
e. Cash Flow Statement
f. Notes to Financial
Statements
Advocacies

The BSP is deeply involved in

various projects and activities
aimed towards alleviating povert
contributing to the global fight
against money laundering,
increasing transparency of
monetary policy and improving t
financial literacy of the public.

The BSP has declared

microfinance as its flagship
program for poverty alleviat
in Year 2000 and has since
then played a key role in th
development of sustainable
microfinance in the country.
The BSP initiatives have
focused on the policy and

regulatory environment,
training and capacity buildin
as well as on promotion and
advocacy.

In order to implement its

continued commitment and
support of the global fight
against money laundering, t
BSP worked for the passage
the Anti-Money Laundering
and issued a number of
measures to bring the
Philippines' regulatory regim
on money laundering closer
international standards.

The BSP has been conductin

public information campaign

in line with the effort to
increase public awareness o
the role of the BSP in the
economy and the financial
system and to further enhan
the transparency of moneta
policy.

The BSP has also taken a

proactive stance in embarki
on a consumer education
program that aims to improv
the basic financial literacy o
the public.

The BSP undertakes various

bank-related initiatives to

improve the remittance

environment and to channe
remittances to productive
undertakings. Through thes
initiatives, the BSP intends
maximize the benefits of
remittances aimed at: (1)
ensuring the smooth inflow
remittances, and (2)
promoting their use for
development by channeling
them to the financial sector
that these funds can be
mobilized for lending and ot
productive activities.

BSP Initiatives on

Microfinance and
Financial Inclusion

In 2000, the BSP was mandated

the General Banking Law to
recognize microfinance as a
legitimate banking activity and t
set the rules and regulations for
practice within the banking secto
In the same year, the BSP declar
microfinance as its flagship
program for poverty alleviation.
Since 2000, the BSP has been
proactive in the development of
microfinance using a three prong
approach: I) To provide the
enabling policy and regulatory

environment, II) To increase the

capacity of the BSP and banking
sector on microfinance operation
and III) To promote and advocat
for the development of sound an
sustainable microfinance
operations.
BSP Circulars Related to
Microfinance and Financial
Inclusion
Financial Inclusion in the
Philippines
Year End Reports on BSP
Microfinance Initiatives

BSP Advocacy on Anti-Money

Laundering (AML)

Passage of Anti-Money
Laundering Act (AMLA) of 200
(Republic Act No. 9160) and
Subsequent AMLA Amendmen
(RA 9194, RA 10167 and RA
10365)

The Original AMLA under RA 916

(September 2001)

In order to implement its continu

commitment and support of the
global fight against money
laundering, the BSP has issued a
number of measures to bring the
Philippines' regulatory regime on
money laundering closer to

international standards. In
September 2001, the Anti-Money
Laundering Act (AMLA) of 2001 w
passed under Republic Act No.
9160. The legislation, among
others, defines money launderin
as a criminal offense, prescribes
penalties for such crimes commit
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 suspicio

transactions, relaxes strict bank

deposit secrecy laws, and provide
for
freezing/seizure/forfeiture/recov
of dirty money/property as well a
for international cooperation.

The AMLC is comprised of three (

members: the Governor of the
Bangko Sentral ng Pilipinas as th
Chairman and the other two (2)
members are the Commissioner
the Insurance Commission and th
Chairman of the Securities and
Exchange Commission. It acts
unanimously in the discharge of
functions. AMLC is also referred
as the countrys Financial

Intelligence Unit (FIU) and is

assisted by a Secretariat, otherw
known as the AMLC Secretariat
(AMLCS), headed by an Executiv
Director.

The AMLA Implementing Rules a

Regulations (IRR) was also issue
in 2001.

First AMLA Amendment under RA

9194 March 2003
To address concerns such as the
high threshold level for covered
transactions, the coverage of
covered institutions and the
existing Bank Secrecy Law, the
amendments to the AMLA were

signed into law on 7 March 2003

under Republic Act No. 9194. Th
amendments included the
following: a) lowering the thresh
for covered transactions from P4
million to P500,000; b) authorizi
the BSP to inquire or examine an
deposit or investment with any
banking institution without court
order in the course of a periodic
special examination; and c)
removing the provision prohibitin
the retroactivity of the law.

Said amendments were given

favorable consideration by the
Financial Action Task Force (FAT
and sanctions were not imposed

the Philippines. However, the

Philippines at that time remained
the list of non-cooperative
countries and territories (NCCTs)
the FATF and the countrys remo
from the list will be determined b
the FATF after close monitoring o
the implementation issues. The
Philippines was finally removed
from the NCCT list of the FATF in
February 2005 due to excellent
progress made in combating mon
laundering and terrorist financin

The Revised Implementing Rules

and Regulations (RIRR) on the
AMLA of 2001, as amended, was
approved by the Congressional

Oversight Committee on 6 Augus

2003 and was implemented on 3
September 2003.

Second AMLA Amendment under

RA 10167 June 2012

To further strengthen the countr

AML regime and address the
concerns of the FATF, second AM
amendment under RA 10167 wa
signed into law on 18 June 2012
amending for the purpose Sectio
10 and 11 of the AMLA, as
amended.

Section 10 relates to the Freezi

of Monetary Instrument wherein
upon verified ex parte petition

the AMLC, the Court of Appeals

(CA) should act on the petition to
freeze within twenty-four (24)
hours from filing of the petition,
and the freeze order shall be for
period of twenty (20) days unles
extended by the Court/CA.

Section 11 relates to the Author

to Inquire into Bank Deposits
wherein the AMLC is given
authority to examine bank accou
upon order of any competent co
based on an ex parte application
which effectively expanded the
instances when no such court
application is required. Said
provision simply means that the

court may allow the AMLC to loo

into bank deposit accounts of
suspected money launderers
without notifying them. Under th
Section, the CA is directed to act
the application to inquire into or
examine any deposit or investme
account within twenty-four (24)
hours from date of filing of the
application. In addition, although
Section 11 of the AMLA reworded
the authority of BSP to check the
compliance in the course of a
periodic or special examination o
covered institution with the
requirements of the AMLA and it
implementing rules and

regulations, the sponsoring Sena

when asked if the BSP, without
court order, may be allowed to lo
into specific accounts under the
proviso, Senator Guingona said
that it is only to ensure complian
with AMLA.

These two amended provisions

recognized the urgency of the
issuance of the freeze order and
the grant of authority to AMLC to
conduct bank inquiry within 24
hours from the filing of the petiti

This AMLA amendment under RA

10167 resulted to favorable actio
of the FATF where it decided to

upgrade the country's dark gray

list to gray, which is just one
notch away from being taken out
the FATF list of nations considere
non-compliant to global AML
standards.

After the passage of RA 10167, t

Revised Implementing Rules and
Regulations (RIRR) was approved
under AMLC Resolution No. 84
dated 23 August 2012. BSP
disseminated said RIRR to all BS
covered institutions under BSP
Circular Letter No. CL-2012-068
dated 20 September 2012.

Third AMLA Amendment under R

10365 February 2013

As continuing commitment to
comply with FATF AML/CFT
standards, the third AMLA
amendment under RA 10365 wa
passed into law on 15 February
2013 that covered the following
major amendments:

Expansion of the definition o

the crime of money
laundering: AMLC can now g
after persons who engage in
the conversion, transfer,
movement, disposal of,
possession, use, and
concealment or disguise, of

monetary proceeds of an
unlawful activity, that was
previously limited to the
transaction of laundered fun
and property;

Inclusion of jewelry dealers

precious metals and stones
whose transactions are in
excess of P1,000,000 and
company service providers a
defined and listed under RA
10365, are now included as
Covered Persons;

Increase of unlawful activiti

to money laundering from 1
to 34. The 20 additional crim

include trafficking in person

bribery, counterfeiting, frau
and other illegal exactions,
forgery, malversation, vario
environmental crimes, and
terrorism and its financing;

Authorize the AMLC to requ

the Land Registration
Authority and all its Registe
Deeds to submit report to th
AMLC covering real estate
transactions in excess of
P500,000.00;
Issuance of freeze order by
Court is now valid for a
maximum period of six (6)

months, from the previous

twenty (20) days validity
under RA 10167.
Compliance with FATF
International Standards

In November 2003, the Philippin

amendments to the AMLA were
evaluated by the FATF and were
found to be at par with
international standards. On 11
February 2005, the Philippines,
Cook Islands, and Indonesia wer
removed from the list of NCCTs
during the meeting of the FATF.
After the countrys delisting from
the list of NCCTs, the AMLC of th

Philippines was accepted as one

seven new members of the Egmo
Group, the global network of FIU
against money laundering and
terrorist financing, making the
Philippines an equal partner in th
global fight against money
laundering and terrorist financin
Membership to the Egmont Grou
means affording AMLC free and
unlimited access to a wealth of
financial data contained in the
databases of all the FIU-member
of the group. All information
exchanged by FIUs are subjected
strict controls and safeguards to
ensure it is used only in an

authorized manner, consistent w

national provisions on privacy an
data protection.

The recent AMLA amendments

under RA 10167 and RA 10365 a
testament of the Philippines
serious commitment to further
strengthen the countrys AML
regime and to address the
weaknesses noted by the FATF in
the Philippines legal framework
with regard to AML. Passage of
these laws were officially
recognized and favorably
considered by the FATF that are
now in substantial compliance wi
its AML/CFT international

standards. Thus, FATF in its

February 2013 plenary meeting,
shielded the Philippines from bei
blacklisted again.

Other AML Initiatives

Undertaken by BSP to Further
Strengthen the Countrys AML
Regime

Since 2000, the BSP continued t

firmly undertake several initiativ
on how to safeguard the Philippin
banking system through constan
reshaping of existing AML
preventive measures and
implementation of appropriate

policies at par with global standa

such as the following initiatives.

1. Creation of the Anti-Mone

Laundering Specialist Gro
(AMLSG) within the
Supervision and
Examination Sector (SES)

The AMLSG was created on 13

December 2007 under MB
Resolution No. 1443 to address t
need for technical expertise in th
supervision of AML activities of
banks and non-bank financial
institutions (NBFIs) under the
supervision and regulation of the
BSP. The Group became fully

operational in November 2008 a

currently has 34 authorized
plantilla positions. It is under the
direct supervision of the Managin
Director, Supervision and
Examination Subsector I, SES.

AMLSG aims to be BSP's core un

of highly competent, dynamic an
ethical professionals who work to
ensure financial institutions (FIs)
adopt and maintain adequate an
effective policies, systems and
procedures that prevent them fro
being used to support the
laundering of proceeds from any
unlawful activity. AMLSG is taske
to develop relevant guidelines an

regulations to support and guide

the AML efforts of financial
institutions supervised by the BS
ensure the effective
implementation of said policies
through examination services an
technical assistance to the SES a
enhance the related technical sk
of the SES human resource pool
through training. In addition,
AMLSG shall perform off-site
monitoring to identify those FIs
whose operations present an
elevated risk of money launderin
activities. AMLSG works closely
with the AMLC Secretariat and
various banking and non-bank

industry associations under the

regulatory ambit of the BSP to
foster domestic cooperation.

Since 2008, AMLSG has conducte

several AML onsite examinations
particularly commercial banks du
to their significant assets size an
complex banking activities. The
Group was also principally involv
in the crafting of AML rules and
regulations, such as the issuance
Circular 706 dated 5 January 20
and the adoption on 2 March 201
of the AML Risk Rating System,
that are discussed below.

2. Issuance of a consolidate
AML regulations under BS
Circular No. 706 dated 5
January 2012, otherwise
known as the Updated AM
Rules and Regulations
(UARR)
UARR was issued for the
purpose of consolidating all
existing BSP circulars, circu
letters and other issuances
related to AML. Likewise, it

enhances the implementatio

of the existing AML legal
framework to better conform
with international standards
well as address the deficienc
noted by the joint team of
assessors from the World Ba
and Asia Pacific Group on
Money Laundering during th
mutual evaluation of the
country in 2008.
The UARR applies to all
covered institutions supervi
and regulated by the BSP
including Banks, Offshore
banking units, quasi banks,

trust entities, non-stock

savings and loan association
pawnshops, foreign exchang
dealers, money changers an
remittance agents, electroni
money issuers including the
subsidiaries and affiliates
wherever they may be locat

In addition to the usual

provisions on customer
identification/KYC, covered
suspicious transaction
reporting and record keepin
and retention requirements
that are found in the AMLARIRR, the UARR emphasizes
the incorporation of a sound

risk management system to

ensure that risks associated
with money laundering and
terrorist financing are
identified, assessed,
monitored, mitigated and
controlled by covered
institutions. A sound risk
management system include
adequate and active Board a
Senior Management oversig
acceptable policies and
procedures embodied in a
Money Laundering and
Terrorist Financing Preventi
Program (MLPP), appropriat
monitoring and Managemen

Information System and

comprehensive internal
controls and audit.

UARR encourages covered

institutions to formulate a r
based and tiered customer
acceptance and retention
policies, adoption of a criter
for assessing customers as l
normal and high risk and
standards for applying
reduced, average and
enhanced due diligence. It a
mandates observance of
extreme caution and vigilan
in dealing with high risk
customers such as shell

companies.

The UARR also strongly

supports the Financial
Inclusion advocacy promote
by the BSP. For instance, it
allows a) the outsourcing of
the conduct of face-to-face
contact as well as the
gathering of the KYC
documents and information
establish the identity of a
customer; b) acceptance of
one (1) valid ID for the
conduct of financial
transactions, listing for this
purpose a wide variety of
acceptable IDs and the

utilization of the covered

institutions own technology
take the photo of their
customers in case the ID
presented is non-photobearing such as TIN, barang
and DSWD certification; and
the third-party reliance is
likewise introduced in the
UARR to avoid duplication o
customer identification
processes so that covered
institutions may refocus the
resources to better serve an
address the needs of
customers. This principle
allows a covered institution

such as a Bank to rely on th

KYC conducted by another
covered institution.

UARR further provides that

any violations of existing
provisions thereof shall
constitute a major violation,
that may subject the bank,
directors, officers and staff t
enforcement actions such as
monetary and non-monetar
penalties. The enforcement
actions shall may be impose
on the basis of the overall
assessment of a covered
institutions AML compliance
system, and if found to be

grossly inadequate, such ma

be considered as unsafe and
unsound banking practice th
may warrant initiation of
prompt corrective action.

3. Adoption of AML Risk

Rating System (ARRS)

A necessary consequence of
risk-based approach to
supervision is the developm
of a risk-focused examinatio
process that is complemente
by the adoption of an AML R
Rating System (ARRS)

approved under MB Resoluti

No. 362 dated 2 March 2012
and disseminated to all BSP
covered institutions under
Memorandum to All Banks N
2012-017 dated 4 April 201

ARRS is an internal rating

system to be used by BSP to
understand whether the risk
management policies and
practices as well as internal
controls of Banks and NBFIs
prevent money laundering a
terrorist financing are in pla
well disseminated and
effectively implemented. AR
is an effective supervisory t

that undertakes to ensure th

all covered institutions as
defined under Circular No. 7
are assessed in a
comprehensive and uniform
manner, and that superviso
attention is appropriately
focused on entities exhibitin
inefficiencies in Board of
Directors and Senior
Management oversight and
monitoring, inadequacies in
their AML framework,
weaknesses in internal
controls and audit and
defective implementation of
internal policies and

procedures.

Under the ARRS, each cover

institution is assigned a
Numerical and Adjectival
Composite Rating (4 as the
highest sound; 3
adequately sound; 2vulneralbe; and 1 as the
lowest grossly inadequate
based on the assessment of
the following four (4)
components:

1. Component I- Efficient
Board of Directors (BOD) an
Senior Management (SM)
Oversight (Management);

2. Component II- Sound AM

policies and procedures
embodied in a Money
Laundering and Terrorist
Financing Prevention Progra
duly approved by the Board
Directors (MLPP);
3. Component III- Robust
internal controls and audit
(Controls and Audit); and
4. Component IV- Effective
implementation
(Implementation).
Evaluation of the four (4)
components takes into
consideration the covered
institutions responses to

various questions that are

designed to comprehend its
business operations as well
its risk profile. The response
will be assessed and on-site
examination will confirm the
veracity and accuracy. Base
on the evaluation of the
existence or non-existence o
the each of the above
components, BSP covered
institutions are assigned a
Numerical and Adjectival
Component Rating that also
ranges from 4 as the highes
and 1 as the lowest. After
considering the four

components, enforcement
actions proportional to the
Composite Rating are
recommended to ensure tha
BSP covered institutions tak
necessary measures to
improve their risk
management policies and
practices.

4. Proactive issuance of
AML Regulations on
Ongoing Basis since 2000

Aside from AML Circulars, B

also issues on an ongoing ba

Circular-Letters since 2000

disseminate resolutions
adopted by the AMLC coveri
updates of guidelines on
reporting of suspicious
transactions or identifying
suspected individuals or
organizations (local and
international) known to be
involved in money launderin
and other illegal activities,
particularly those included i
the United Nations Sanction
List.
In addition, BSP has issued
several media releases and
other public advisories to

disseminate certain suspicio

or illegal activities to make
public fully aware of them.

Financial Literacy

The BSP has taken a proactive

stance in embarking on a consum
education program that aims to
improve the basic financial litera
of the public. In line with this
program, the BSP approved in

January 2004 the creation of the

BSP Consumer Education
Committee. The Committee initia
addressed the basic financial
literacy needs of consumers of
financial products and services. T
involved familiarizing the public
the various banking products and
services that they usually
encounter in ordinary financial
transactions.

Moreover, the BSP promoted

consumer rights awareness and
protection through its linkage wi
an inter-agency group,
ConsumerNet. ConsumerNet is a
group of national government

agencies that have banded toget

to facilitate the resolution of
consumer complaints and
disseminate information regardin
consumer rights.

The Financial Consumer Affair

Group. Governor Amando M.
Tetangco Jr. issued Officer Order
No. 892 on 15 October 2006 tha
created the Financial Consumer
Affairs Group (FCAG) of the
Supervision and Examination
Sector (SES) to support the SES
ensuring the protection of
depositors and investors and
enabling the smooth and orderly
functioning of the entire financia

system.

Consumer Assistance
Mechanism. The BSP recognizes
the rights of consumers of financ
products and services. The
Financial Consumer Affairs Grou
(FCAG) may be enlisted to assist
the resolution of your concerns
within our mandate.

Handbook on Consumer Laws

Covering BSP-Supervised
Financial Institutions - contain
BSP circulars, relevant sections o
the Manuals of Regulations for
Banks and Non-Bank Financial
Insitutions, and other relevant la

on consumer protection and welf

Economic
Information

As part of the monetary authorit

effort to promote greater
transparency of monetary policymaking in the Philippines, enhan
public awareness on the role of t
BSP in the Philippine economy, a
help manage inflation expectatio
and reputational risks, the BSP

conducts a series of public

information campaign on the role
the BSP in the Philippine econom
and the recent economic
developments in various cities
within and outside Metro Manila.
Overseas Filipino Workers

The BSP initiatives to improve th

Overseas Filipinos (OFs)
remittance environment are gea
towards the following:

1. Enhancing transparency and

promoting competition in th
remittance market. Studies
remittances underscore the
importance of healthy

competition among the

remittance players to bring
down transaction costs. To
drive down remittance
charges, remitters and
beneficiaries should be fully
aware of the costs and bene
of the different products and
services available in the
market. The BSP issued
Circular No. 534 dated 26 Ju
2006, requiring banks and
non-bank financial institutio
to post remittance charges,
classification of costs, and
other relevant information f
the benefit of remitters and

beneficiaries. To facilitate
access to bank websites, the
BSP will serve as a portal*
all relevant pages of the ban
on remittance services and
products, locations of
branches/centers, as well as
their corresponding service
fees.
Go to OFW portal

2. Improving access to financia

services. Toward promoting
efficient and speedy transfe
funds to beneficiaries in
remote areas of the country
the BSP has:

a) granted foreign currency

deposit unit (FCDU) license
rural banks/cooperative ban
to encourage the flow of
foreign exchange into the
banking system and provide
OFs with an option to maint
foreign currency deposits
(FCD) instead of immediatel
exchanging their remittance
proceeds into pesos through
the issuance of Circular No.
522 on 23 March 2006;

b) facilitated interconnection
major ATM networks to prov

safer and convenient bankin

and to reduce transaction co
or service fees for all ATMrelated transactions of over
million ATM cardholders,
including OFs and their
beneficiaries;

c) approved alternative mod

of remittances, e.g., Smart
Padala, G-Cash and stored
value cards to achieve lower
transaction cost and faster
delivery time for the remitte
and the beneficiaries;
d) issued Circular Nos. 564

April 2007) and 608 (20 Ma

2008) to standardize
identification requirements
banks to customers while
ensuring compliance with th
Anti-Money Laundering Act.
The BSP issued Circular No.
657 on 16 June 2009 to
further amend Circular No.
564 allowing the use of
foreign-issued passports as
valid identification of OFs
when financially transacting
the Philippines; and

e) signed a Memorandum of
Agreement (MOA) with

participating banks to set up

local clearinghouse for credi
to-other-banks mode of
remittances to eliminate the
use of couriers in delivering
remittances to beneficiaries
reducing charges by as muc
as 90-96%. The MOA also
standardizes and reduces
back-end processing fees
presently ranging at P100P550 to P50 per transaction

3. Encouraging OFs and their

families to increase savings
and investment. The BSP ha
encouraged commercial ban
to offer OFs specialized

investment products and

services, e.g., insurance,
pension and real estate, wit
direct payment schemes to
ensure the security and add
convenience of beneficiaries
The BSP has also approved
proposals of DBP and LBP to
launch their hedging progra
and Long-Term Negotiable
Certificates of Deposit for
OFWs, respectively.
Microfinance has also been
promoted by the BSP as a
flagship program for poverty
alleviation to help channel
remittances sent to rural

households to investment in
small scale businesses.

4. Promoting financial learning

among OFs and their
beneficiaries. The BSP
continues to undertake its
advocacy through financial
learning campaigns (or FLCs
that aim to promote a cultur
of savings among OFs and
their families and encourage
the channeling of these
savings into productive
investments in financial
instruments and business
ventures. The FLCs are
conducted using lectures

and multimedia
presentationsfocusing on
topics such as the importanc
of remittances, financial
planning, rewards and risks
associated with various
financial instruments, and
ways to protect remittances
and savings. Through the FL
the BSP aims to encourage
productive uses of remittanc
not only for consumption or
spending for basic needs, bu
also for savings in different
forms of financial instrumen
and/or investments such as
micro, small- and medium-

sized enterprises.

In addition to the financial

learning activities, OFs and
their families can make use
the Financial
Planner developed by the
International Organization f
Migration (IOM) and ATIKHA
development-oriented
Philippine NGO) to guide the
in managing their finances.
The financial planner provid
a simple and practical guide
migrant workers and their
families to manage their
budget and remittances with

a framework of wise-spendin
savings and investment. It
includes tools on the budget
process, planning for
retirement, savings and
entrepreneurial undertaking
cash flows monitoring,
property acquisition,
investment portfolios, and
overall financial standing.

Facilities
Within the complex of the BSP
resides a numismatist's haven Museo ng Bangko Sentral ng
Pilipinas. Inaugurated on Januar

3, 1999, as part of the celebratio

of the 50 years of central bankin
in the Philippines, the Museo
showcases the Bank's collection o
currencies.

Also located at the BSP Complex

the BSP Library which serves the
research needs of the Bank office
and staff. As a public service,
however, its collection of BSP
publications are made available t
the public.

The Money
Museum

Within the complex of the Bangk

Sentral ng Pilipinas, the nation's

central monetary authority, resid
a numismatist's haven - the Mus
ng Bangko Sentral ng Pilipinas.
Inaugurated on January 3, 1999
part of the celebration of the 50
years of central banking in the
Philippines, the Museo showcase
the Bank's collection of currencie

As repository and custodian of th

country's numismatic heritage, t
Museo collects, studies and
preserves coins, paper notes,
medals, artifacts and monetary
items found in the Philippines
during its different historical
periods. These collections have

been placed on permanent displa

at the Museo.

Designed to "walk" the visitor

through a number of galleries,
individually dedicated to a specif
historical period of the country, t
Museo visually narrates the
development of the Philippine
economy, parallel to the evolutio
of its currency. Complementary
paintings from the BSP art
collection, together with chosen
artifacts, enhance each gallery.

A panoramic memorabilia of 50
years of central banking in the
Philippines, showcases the stride

made in bringing about price

stability, to sustain economic
growth in the country. The
exhibition hall also carries the
busts of the governors of the
Central Bank/ Bangko Sentral.

The Metropolitan
Museum
Permanent Exhibitions
Bangko Sentral ng Pilipinas
Collection
Classical Philippine
Goldwork of the 8th to the
13th century
Basement Gallery
Gold ornaments, ritual pieces,
and barter rings evidences of
a flourishing pre-colonial
Filipino society actively
engaged in local and
international trade.

Classical Philippine Pottery

of the 8th to the 13th
century Basement Gallery
Pottery used by pre-colonial
Filipinos as household
implements, ritual articles, and
burial vessels.
Aura: Religious Art from the
BSP Basement Hallway
Religious images crafted by
Filipino artist to capture
spiritual aura represented by a
halo of gold.
Hidalgo: The Colonial

Subject as Master
Galeriya Bangko Sentral ng
Pilipinas
Works of Felix Resurreccion
Hidalgo (1855-1913) in an
exhibit paying homage to the
Master
A Century and a half since
Galeriya Bangko Sentral ng
Pilipinas
A special 150th
commemorative exhibition on
Juan Luna (1857 - 1899), a
towering figure in Philippine
art.
Three Budda Mothers

Basement
Figurative sculptures by Agnes
Arellano that convey the
spiritual in everyday life.

Economic and Financial

Learning Center (EFLC)

The Economic and Financial

Learning Center of the BSP is
the focal point of contact of the

public of information
concerning economic and
financial matters. Instead of
gathering various information
from different
departments/locations within
the BSP, researchers can just
visit the EFLC for their
information requirements
Tour the EFLC
Exhibit Area
Information Help Desk
Information Kiosks /
Publications and Sales
Multi-media/Internet

Research
Statistical Information
Section
Audio Visual Room /
Games Nook
Library Section
Attention

RECRUITMENT
Please be informed
that hiring of entrylevel (Bank Officer I
and below)

personnel for BANK

SUPERVISOR
(Examiner) positions
in the Supervision
and Examination
Sector is temporarily
put on hold.
Meantime,
applications received
will form part of the
pool for future
reference.
1. Applicants must be
Filipino citizens and meet
or exceed the minimum
requirements of the vacant
position(s).

2. Applicants should
indicate/specify the
position applied for, and
the name of the
department/office where
the vacancy is, and the
position key; otherwise,
applications will not be
acted upon.
3. Application forms should
be answered properly and
completely, e.g., "inclusive
dates
(mm/dd/year mm/dd/year)", etc.
4. Applications will be
accepted on or before the

deadline which is ten (10)

calendar days from
publication date;
applications received
beyond the last day of
publication will not be
acted upon.
Interested applicants may
apply online thru the BSP
e-Recruitment Portal
Otherwise, you may
We further advise that the
following documents be on
hand and ready once
requested:

1. Original and 2
photocopies of your:
a. Transcript of
Records
b. Diploma
c. Civil Service
Eligibility and/or
Board Rating
Certificate
2. 2 Copies of
Updated Resume
3. 2 Pictures
(Passport-size with
white background)
4. Certificate/s of
Employment with
Duties &

Responsibilities
5. Certificate/s of
Trainings/Seminars
taken
6. NSO copy of Birth
Certificate
7. Marriage Contract
(if applicable)
8. NBI, Police and
Barangay Clearances
Applications will be
considered valid for a
period of one (1) year.
Due to the large volume
of applications we
receive, only applicants
who are shortlisted will

be contacted.