Section 19Sec./Art. 19

Administrative Sanctions. -

(a) Without prejudice to the penalties and sanctions provided in Section 20 of this Act, the Monetary Board may, at its discretion, impose upon any participant of a designated payment system, its directors and officers, including any person or entity determined by the Monetary Board to be acting as an operator without the requisite authority from the Bangko Sentral, for violations of this Act or rules and regulations issued by the Monetary Board or any order or instruction of the Governor of the Bangko Sentral, fines in amounts as may be determined by the Monetary Board to be appropriate, but not to exceed One million pesos (P1,000,000.00) for each transactional violation or One hundred thousand pesos (P100,000.00) a day for each continuing violation, depending on the nature and gravity of the violation or irregularity: Provided, That, in case profit is gained or loss is avoided as a result of the violation, an additional fine of no less than the profit gained or loss avoided but no more than three (3) times the profit gained or loss avoided may be imposed.

(b) The Monetary Board may suspend, disqualify, or remove any of the directors or officers of the operator of a designated payment system, in any of the following instances:

(1) Willful violation of the charter or by-laws of the operator of the designated payment system;

(2) Willful delay in the submission of reports of publications thereof as required by the rules and regulations to be issued by the Monetary Board pursuant to this Act;

(3) Refusal to permit examination into the affairs of the operator of the designated payment system;

(4) Willful making of a false or misleading statement to the Monetary Board or Bangko Sentral examiners; (5) Willful failure or refusal to comply with any provision of this Act, rule or regulation or any order instruction issued by the Monetary Board pursuant to this Act, or any order or instruction of the Governor of the Bangko Sentral; and

(6) Willful commission of irregularities or the conduct of business that threatens the safety, efficiency or reliability of a payment system as may be determined by the Monetary Board.

The suspension of directors and officers of the operator of a designated payment system shall not be more than one (1) year, depending on the nature and gravity of the violation or irregularity. Resignation or termination from office shall not exempt such director or officer from administrative or criminal sanctions.

(c) Notwithstanding the institution or pendency of an administrative proceeding, if the participant of a designated payment system and its directors and its officers concerned continue with or otherwise persist in the commission of the cited practice or violation, the Bangko Sentral may issue an order requiring such participant and its directors and officers concerned to cease and desist from the cited 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.

(d) The revocation of the certificate of authority of an operator of a designated payment system may be ordered by the Monetary Board on the following grounds:

(1) The operator committed a violation of or has not complied with the provisions of this Act or the rules and regulations on orders and instructions issued by the Monetary Board or any order or instruction of the Governor of the Bangko Sentral, involving acts or violations which amount to fraud or expose its participants or the public to material loss or damage; or

(2) The operator committed a violation of or has not complied with the provisions of this Act or the rules and regulations or orders and instructions issued by the Monetary Board or any order or instruction of the Governor of the Bangko Sentral, or failed to implement the rules of the payment system or a cease and desist order issued by the Bangko Sentral, and such violation or failure has been determined by the Monetary Board to be a threat to the safety, efficiency or reliability of the payment system or poses a risk to the stability of the monetary and financial system.

(e) The cancellation of the registration of any operator of a payment system may be ordered by the Monetary Board, if it finds that the payment system operates to facilitate fraud and other transactions contrary to law, good morals and public policy.

The Monetary Board may also order the suspension or revocation of the certificate of authority or the registration with the Bangko Sentral of an operator of a payment system on the basis of the suspension or revocation of its permits or licenses issued by other government agencies.