(NAR) VOL. 19 NO. 3 / JULY - SEPTEMBER 2008
"§ X405.4/§ 4405Q.4 Compliance period; sanctions. The trustee or fiduciary shall have thirty (30) calendar days after the end of every calendar quarter within which to deposit with the BSP the securities required under this Section.For purposes of determining the frequency of the violation, the bank's/QB's compliance profile for the immediately preceding three (3) years or twelve (12) quarters will be reviewed: Provided, That for purposes of determining appropriate penalty on the trust officer and/or other responsible officer(s), any offense committed outside the preceding three (3) year or twelve (12) quarter-period shall be considered as the first offense: Provided, further, That in the case of trust officer, all offenses committed by him in the past as trust officer of other institution(s) shall also be considered: Provided, finally, That if the offense cannot be attributed to any other officer of the bank, the trust officer shall be automatically held responsible since the ultimate responsibility for ensuring compliance with the regulation rests upon him, as evidence may warrant.
The following sanctions shall be imposed for any deficiency in the basic security deposit for the faithful performance of trust, and other fiduciary duties:
a. On the bank/quasi-bank(QB):
i. Monetary penalty/ies:
Penalty per Calendar Day
Trust
UBs/KBs/TBs/QBs with Full Trust Authority and
/with Trust Assets of
Asset
Size
TBs/RBs with
Up to
Above P500
Above PI
Above P1O
? Above
Limited Trust
P500 Million
million but
billion
billion but
P50
not exceeding
but not
not exceeding
million
Offense
P1 billion
exceeding
P50 billion
P10 billion
first
P 300.00
P 600.00
. P 1,000.00
P 2,000.00
P 5,000.00
P 8,000.00
Second
P 400.00
P 700.00
P 1,250.00
P 3,000.00
P 6,000.00
P 9,000.00
Third and
subsequent
offense(s)
P 500.00
P 800.00
P 1,500.00
P 4,000.00
P 7,000-00
P10,000.00
ii. Non-monetary penalty beginning with the third offense (ail banks/GBs) - Prohibition against the acceptance of new trust and other fiduciary accounts, and from renewing expiring trust and other fiduciary contracts up to the time the violation is corrected.
b. On the trust officer and/or other officer(s) responsible for the deficiency/non- compliance:
(1) First offense-warning that subsequent violations shall be dealt with more severely;
(2) Second offense - written reprimand with a stern warning that subsequent violations shall be subject to suspension;
(3) Third offense - thirty (30) calendar day-suspension without pay; and
(4) Subsequent offense(s) - sixty (60) calendar day-suspension without pay.