Philippine National Bank Launches Updated Compliance Framework

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Philippine National Bank (PNB) has launched an updated compliance framework designed to strengthen ties with regulators, customers, and stakeholders. The new framework aims to mitigate risk and ensure regulatory compliance by focusing on eight key elements.

Key Elements of the New Framework

Executive Level Oversight

The framework emphasizes the importance of executive-level oversight in ensuring compliance. This includes setting clear expectations for senior management and providing training on compliance responsibilities.

Compliance Structure

PNB has reorganized its Compliance Group into six divisions to enhance effectiveness and efficiency. The group is responsible for implementing policies, procedures, and controls to mitigate risk.

Policies and Procedures

The framework outlines policies and procedures that govern various aspects of PNB’s operations, including anti-money laundering (AML) and combating the financing of terrorism (CFT).

Monitoring and Assessment

PNB will conduct regular monitoring and assessments to identify potential compliance and control risks. The bank will also implement corrective actions to address deficiencies noted during these assessments.

MIS and Controls

The framework emphasizes the importance of maintaining accurate and reliable management information systems (MIS) and controls to ensure compliance with regulatory requirements.

Training

PNB provides training to its employees on compliance responsibilities, including AML/CFT, data privacy, and other relevant topics.

Compliance Reviews and Testing

The bank conducts regular reviews and testing to ensure that its policies, procedures, and controls are effective in mitigating risk.

Working with Regulatory Bodies and Enforcement Agencies

PNB has strengthened its relationships with regulatory bodies and enforcement agencies to ensure compliance with regulatory requirements and to address any issues promptly.

Benefits of the Updated Compliance Framework

Risk Mitigation

The framework enables PNB to assess and mitigate potential compliance and control risks, ensuring that the bank operates in a safe and sound manner.

Regulatory Compliance

PNB’s updated compliance framework ensures that the bank complies with all relevant laws, rules, regulations, and related bank policies.

Transparency and Accountability

The framework promotes transparency and accountability by providing clear expectations for senior management and employees, as well as regular monitoring and assessment of compliance risk.

Good Corporate Governance

PNB believes that its updated compliance framework will promote good corporate governance, leading to increased profits, a strong reputation, and enhanced market perception.

Enhancements to Internal Controls

Appointment of AML Cybercrime Officer

PNB has appointed an AML Cybercrime Officer to ensure that the bank’s anti-money laundering and combating the financing of terrorism programs are effective.

Reorganization of Compliance Group

The bank has reorganized its Compliance Group into six divisions to enhance effectiveness and efficiency.

Increased Plantilla Positions

PNB has increased plantilla positions from 59 to 71, ensuring that all officers are empowered to effectively carry out their compliance duties.

Conclusion

PNB’s updated compliance framework is designed to promote transparency, accountability, and good corporate governance. The bank believes that this framework will enable it to sustain trust and market confidence in the banking community and achieve its goals of being a model bank founded on good corporate governance.