PNB Unveils Enhanced Compliance Framework for Stronger Governance and Risk Management
Philippine National Bank (PNB) has announced the launch of its updated compliance framework, designed to strengthen its governance structure, risk management processes, and overall commitment to ethical standards.
A New Era of Compliance
The new framework aims to ensure that PNB’s domestic subsidiaries, overseas branches, and subsidiaries are assessed for prevailing risks, allowing the bank to mitigate any potential compliance and control risks. The self-assessment process is a critical “control” engine that enables the business to identify areas of improvement and implement corrective actions to achieve a satisfactory level of compliance.
Key Components of the Framework
The framework includes:
- Quarterly Regulatory Compliance Certification (RCC) and semi-annual Risk Control Self-Assessment (RCSA): These processes capture relevant laws, rules, regulations, and bank policies applicable to each business unit or entity.
- Independent review and testing processes: Conducted by designated staff or external auditors, these processes identify deficiencies and escalate significant issues to higher-level authorities.
- Robust monitoring and tracking process for open findings: This process ensures that required corrective actions are implemented in a timely manner.
Beyond Compliance
PNB has also initiated new policies and procedures to align with international best practices, anticipating new regulatory requirements based on draft documents. The bank is committed to maintaining trust and market confidence through its effective compliance framework.
“We believe that an evolving effective compliance framework is crucial in strengthening ties with our customers, interbank counterparties, and regulators,” said a spokesperson for PNB. “By implementing these enhancements, we aim to promote good corporate governance, best practices, and a strong reputation.”
Ethical Standards Committee
The bank’s Ethical Standards Committee (ESC), comprising members from various business and support units, is also playing a vital role in promoting high ethical standards among employees and managing reputational risk.
Key Achievements
For 2016-2017, PNB achieved:
- Creation of management committees for complex business and support groups
- Appointment of an Anti-Money Laundering (AML) Cybercrime Officer
- Reorganization of the Compliance Group
- Development of modified compliance programs for high-risk products and services
- Implementation of annual risk assessments across business legal vehicles
Impact on Operations
The enhanced framework is expected to have a positive impact on PNB’s operations, enabling the bank to focus resources on revenue-generating activities while maintaining a strong reputation and attracting quality customers.