Financial Crime World

PNB Unveils Enhancements to Compliance Framework, Strengthening Ties with Regulators

Philippine National Bank (PNB) has announced significant updates to its compliance framework, aimed at ensuring continued trustworthiness and market confidence.

Strengthening Ties with Regulatory Bodies

The enhancements are designed to strengthen ties between PNB and regulatory bodies, as well as enhance market perception among customers, interbank counterparties, and regulators. The updated framework consists of eight key elements:

  • Executive Level Oversight
  • Compliance Structure
  • Policies and Procedures
  • Monitoring and Assessment
  • MIS and Controls
  • Training
  • Compliance Reviews and Testing
  • Working with Regulatory Bodies and Enforcement Agencies

Enhancing Risk Management

According to PNB, the updates are intended to ensure that the bank’s compliance framework remains robust and effective in mitigating risk. The enhancements include:

  • Creation of management committees for complex business and support groups
  • Appointment of an Anti-Money Laundering (AML) Cybercrime Officer
  • Reorganization of the Compliance Group into six divisions
  • Modified compliance programs for high-risk products and services
  • Comprehensive enterprise-wide risk assessments
  • Annual risk assessments across business legal vehicles

Strengthened Ethical Standards Committee

The bank’s Ethical Standards Committee (ESC) has also been strengthened, with a new chairperson and vice-chairperson appointed from various business and support units. The ESC is responsible for:

  • Maintaining high ethical standards among PNB employees
  • Managing reputational risk
  • Investigating any potential breaches of the Bank’s Code of Conduct

Recognition and Future Plans

PNB’s compliance framework has been recognized as effective, with significant enhancements achieved in 2016-2017. With these updates, PNB is poised to maintain its reputation as a model bank founded on good corporate governance, promoting best practices and strengthening ties with regulatory bodies.

“We are committed to maintaining the highest level of ethical standards and ensuring that our compliance framework remains robust and effective,” said a PNB spokesperson. “These enhancements will enable us to better mitigate risk and ensure that we continue to meet the evolving needs of our stakeholders.”