Financial Crime World

Here is the converted article in markdown format:

PNB Mandates Compliance Training for All Employees

The Philippine National Bank (PNB) has taken a proactive approach to ensuring compliance with regulatory requirements by mandating all employees to pass a written examination on “compulsory” training courses.

Compliance Awareness Training

  • Global Compliance Group, in coordination with the Human Resources Group, conducts basic compliance awareness training for all existing employees and new hires.
  • New hires are required to undergo compliance and AML awareness training prior to assuming duties, while existing employees must participate in refresher courses every 18-24 months.

Sector-Specific Training

  • The bank also offers tailored training programs for specific sectors or groups, such as:
    • Branch Cluster
    • New Tellers
    • New Hires
    • Sales and Service Heads
    • New Internal Auditors
    • New Officers
    • Business and Support Units
    • Legal Vehicle Management Units

Compliance Review and Testing

  • To ensure compliance with regulatory requirements, PNB conducts regular compliance review and testing.
  • This includes:
    • Independent testing to verify that risk-mitigation activities are in place and effective.
    • Competent and independent reviewers comprised of:
      • Auditors
      • Branch Area Operations Officers
      • Compliance officers/compliance designates
      • Risk overseers

Working with Regulatory Bodies

  • Beyond compliance, PNB actively participates in technical working groups among regulatory bodies and banking organizations to ensure timely submission of reports and full cooperation with enforcement agencies.
  • The bank also anticipates new regulatory requirements by:
    • Implementing new systems
    • Policy changes
    • Updating procedures
    • Enhancing management information system (MIS) reports

Effective Compliance Framework

  • PNB’s effective compliance framework has resulted in several benefits for the institution, including:
    • Significant enhancements in 2016-2017, such as:
      • Creation of management committees
      • Appointment of an AML Cybercrime Officer
      • Reorganization of the Compliance Group
      • Development of modified compliance programs

Ethical Standards Committee

  • PNB also has an Ethical Standards Committee (ESC) that meets weekly to carry out responsibilities such as:
    • Maintaining high ethical standards among employees
    • Managing reputational risk
    • Conducting investigations
    • Rendering decisions
  • The ESC is composed of members from various Business and Support Units, led by the Head of the Legal Group as Chairperson and the Head of the Human Resource Group as Vice Chair.

Conclusion

Overall, PNB’s commitment to compliance training and review has strengthened ties with customers, regulators, and stakeholders, enhancing market perception and promoting good corporate governance.