Article 133p. 133

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

writing by the Monetary Board or by the head of the

supervising and examining department willfully refuses

to

file

the

required

report

or

permit

any

lawful

examination into the affairs of such institution shall be

punished by a fine of not less than Fifty thousand pesos

(P50,000) nor more than One hundred thousand pesos

(P100,000) or by imprisonment of not less than one (1)

year nor more than five (5) years, or both, in the discretion

of the court.

SECTION 35. False Statement . — The willful making of a

false or misleading statement on a material fact to the

Monetary

Board

or to the examiners of the Bangko

Sentral shall be punished by a fine of not less than One

hundred thousand pesos (P100,000) nor more than Two

hundred thousand pesos (P200,000), or by imprisonment

of not more than five (5) years, or both, at the discretion of

the court. cd

SECTION 36. Proceedings Upon Violation of This Act

and Other Banking Laws, Rules, Regulations, Orders or

Instructions . — Whenever a bank or quasi-bank, or

whenever any person or entity willfully violates this Act or

other

pertinent

banking

laws

being

enforced

or

implemented

by

the

Bangko

Sentral

or

any order,

instruction, rule or regulation issued by the Monetary

Board,

the

person

or

persons

responsible

for

such

violation shall unless otherwise provided in this Act be

punished by a fine of not less than Fifty thousand pesos

(P50,000) nor more than Two hundred thousand pesos

(P200,000) or by imprisonment of not less than two (2)

years nor more than ten (10) years, or both, at the

discretion of the court.

Whenever a bank or quasi-bank persists in carrying on its

business in an unlawful or unsafe manner, the Board may,

without

prejudice

to

the

penalties

provided

in

the

preceding

paragraph

of

this

section

and

the

administrative sanctions provided in Section 37 of this

Act, take action under Section 30 of this Act.

SECTION 37. Administrative Sanctions on Banks and

Quasi-banks .

—

Without

prejudice

to

the

criminal

sanctions

against

the

culpable

persons

provided

in

Sections 34, 35, and 36 of this Act, the Monetary Board

may,

at

its

discretion,

impose

upon

any

bank

or

quasi-bank, their directors and/or officers, for any willful

violation of its charter or by-laws, willful delay in the

submission of reports or publications thereof as required

by law, rules and regulations; any refusal to permit

examination into the affairs of the institution; any willful

making of a false or misleading statement to the Board or

the appropriate supervising and examining department

or its examiners; any willful failure or refusal to comply

with, or violation of, any banking law or any order,

instruction or regulation issued by the Monetary Board, or

any order, instruction or ruling by the Governor; or any

commission or irregularities, and/or conducting business

in an unsafe or unsound manner as may be determined

by the Monetary Board, the following administrative

sanctions, whenever applicable:

(a) fines in amounts as may be determined by the

Monetary Board to be appropriate, but in no case to

exceed Thirty thousand pesos (P30,000) a day for each

violation,

taking

into

consideration

the

attendant

circumstances, such as the nature and gravity of the

violation or irregularity and the size of the bank or

quasi-bank;

(b) suspension of rediscounting privileges or access to

Bangko Sentral credit facilities;

(c) suspension of lending or foreign exchange operations

or

authority

to

accept

new

deposits

or make new

investments;

(d) suspension of interbank clearing privileges; and/or

(e) revocation of quasi-banking license.

Resignation or termination from office shall not exempt

such director or officer from administrative or criminal

sanctions.

The

Monetary

Board

may,

whenever

warranted

by

circumstances,

preventively

suspend

any

director

or

officer of a bank or quasi-bank pending an investigation:

Provided , That should the case be not finally decided by

the Bangko Sentral within a period of one hundred

twenty (120) days after the date of suspension, said

director or officer shall be reinstated in his position:

Provided, further , That when the delay in the disposition

of the case is due to the fault, negligence or petition of

the director or officer, the period of delay shall not be

counted in computing the period of suspension herein

provided.

The above administrative sanctions need not be applied

in the order of their severity.

Whether or not there is an administrative proceeding, if

the

institution

and/or

the

directors

and/or

officers

concerned continue with or otherwise persist in the

commission of the indicated practice or violation, the

Monetary

Board

may

issue

an

order

requiring

the

institution and/or the directors and/or officers concerned

to

cease

and desist from the indicated practice or

violation, and may further order that immediate action be

taken to correct the conditions resulting from such

practice or violation. The cease and desist order shall be

immediately effective upon service on the respondents.

The respondents shall be afforded an opportunity to

defend their action in a hearing before the Monetary

Board or any committee chaired by any Monetary Board

member created for the purpose, upon request made by

the respondents within five (5) days from their receipt of

the order. If no such hearing is requested within said

period, the order shall be final. If a hearing is conducted,

all issues shall be determined on the basis of records,

after which the Monetary Board may either reconsider or

make final its order.

The Governor is hereby authorized, at his discretion, to

impose upon banking institutions, for any failure to

comply with the requirements of law, Monetary Board

regulations and policies, and/or instructions issued by the

Monetary Board or by the Governor, fines not in excess of

Ten thousand pesos (P10,000) a day for each violation, the

imposition of which shall be final and executory until

reversed, modified or lifted by the Monetary Board on

appeal.

SECTION 38. Operating Departments of the Bangko

Sentral . — The Monetary Board shall, in accordance with

its authority under this Act, determine and provide for

such operating departments and other offices, including

a public information office, of the Bangko Sentral as it

deems convenient for the proper and efficient conduct of

the operations and the accomplishment of the objectives

of the Bangko Sentral . The functions and duties of such

operating

departments

and

other

offices

shall

be

determined by the Monetary Board. acd

ARTICLE V Reports and Publications

SECTION 39. Reports and Publications . — The Bangko

Sentral shall publish a general balance sheet showing the

volume and composition of its assets and liabilities as of

the last working day of the month within sixty (60) days

after the end of each month except for the month of

December, which shall be submitted within ninety (90)

days after the end thereof.

The

Monetary

Board

shall

publish

and

submit

the

following reports to the President and to the Congress:

(a) not later than ninety (90) days after the end of each

quarter,

an

analysis

of

economic

and

financial

developments,

including

the

condition

of

net

international reserves and monetary aggregates;

(b) within ninety (90) days after the end of the year, the

preceding year's budget and profit and loss statement of

the Bangko Sentral showing in reasonable detail the

result of its operations;

© Compiled by RGL

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