Supplementary Policy on Penalties and Sanctions Under Section 621 of the Peso RTGS Rules

To
BANGKO SENTRAL NG PILIPINAS
PESO REAL-TIME CROSS SETTLEMENT MANACEMENT COMMITTEE MEMORANDUM NO. M -2024@ Subject :
All Participants in the Peso Real-Time Gross settlement (RTGS) Payment System supplementary Policy on penalties and sanctions Under
section 621of the Peso Real-Time Gross settlement (RTGS) Rules
The Monetary Board, in its Resolution No. 1368 dated 28 November 2024, approved the following amendments to the Peso RTCS Rules under the Manual of Requlations for Payment Systems (MOR pS):
Section l. Section 621of the MORPS shall be amended to read as follows.
"Section 62I Penalties and Sanctions. Depending on the gravity of the offense committed by a participant, the Bangko Sentral may impose penalties and sanctions, which may include fines, suspension of the participant's privilege to avail of the Intraday Settlement Facility, and suspension or termination of the participant's access to the Peso RTCS Payment System. Repeat offenders shall be meted with stiffer penalties and sanctions. The following rules, which will form part of Appendix ezi-t of the MoRpS, shall govern the imposition of penalties and sanctions on erring participants of the Peso RTCS Payment System:
Section l. The following monetary penalties shall be imposed for non￾compliance with specific requirements, apart from the reporting
standards, under the Peso RTCS Rules:
Wpes of Violations lmposable Monetary Penalties Failure to properly manage liquidity position as manifested by any of the following circumstances:
Queuing of a transaction for over 15 minutes Rejection of more than three {3) transactions per day due to insufficient balance of settlement account Cancellation of more than three (3) transactions per day For Universal Banks (UBs):
Fine of Php75,OOO per incident
For lslamic Banks (lBs):
Fine of Php75,OOO per incident
For Commercial Banks {KBs):
Fine of Php65,OOO per incident
For Digital Banks (DBs)ffhrift Banks (TBs):
Fine of Php3O,OOO per incident
For Rural Banks (RBs)/Cooperative
Banks (CBs):
Fine of Php2O,OOO per incident
For Non-banks with Quasi-Banking
Functions (N BQBs)/ Non-bank
Electronic Money lssuers (EMls)/ Other

Participants Maintaining Settlement
Accounts (sAs)with the Bangko sentral:
Fine of Php2O,OOO per incident
HabituaI scheduling of bulk settlements near the close of business, that is, thirty (3O) minutes or less before close of RTCS settlement window, to take undue advantage of funding from incoming payments in violation of Section 6lO (c) on the required level of SA
3. Failure to timely notify the
Bangko Sentral, through its appropriate department, of the participant's placement under insolvency, bankruptcy or rehabilitation For UBs:
Fine of PhplO,OOO per incident
For lBs:
Fine of PhplO,OOO per incident
For KBs:
Fine of PhpS,OOO per incident
For DBsi-Bs:
Fine of Php6,OOO per
For RBs/CBs:
Fine of Php4,OOO per
For NBQBs/ Non-bank EMls/ other
Participants Maintaining SAs with the Bangko Sentral:
Fine of Php4,OOO per
Fine of Php2O,OOO for non-bank participants that are not quasi-banks ln the cose of bank ond quosi-bonk po rtici ponts, the o ppropriate Bo ngko Sentrol deportment is notified by the concer ned Bo ng ko Sentrol su pervising deportment
4. Failure to follow the orescribed
messaging standard, including mandatory message contents Fine of PhpS,OOO per incident
5. Request for allowable manual
settlement/adjustment2 to correct erroneous transfers/ transactions in excess of orescribed limits For UBs:
Fine of Php15,OOO per adjustment
For lBs:
Fine of Php1S,OOO per adjustment
For KBs:
Fine of PhplO,OOO per adjustment
For DBs/TBs:
Fine of PhpS,OOO per adjustment
For RBs/CBs:
Fine of Php3,OOO per adjustment
More than ihree (3) times per month
Section 6lO (e) of the Peso RTCS Rules
Three (3) per calendar quarter

Types of Molations lmposable Monetary Penalties For NBQBs/ Non-bank EMtsl Other Participants Maintaining SAs with the Bangko Sentral:
Fine of Php3,OOO per adjustment
For Financial Market Infrastructures (FMls)/Clearing Switch Operators (CSOs):
Fine of PhplO,OOO per adjustment
The fines stoted obove ore in oddition to the sett/ern ent-reloted fees provided under Memorondum No. M-2O23-OO2.
6. Non-compliance with
settlement timelines set bv the
Bangko Sentral
For UBs:
Fine of PhpSO,OOO per incident
For lBs:
Fine of PhpSO,OOO per incident
For KBs:
Fine of Php3O,OOO per incident
For DBsfl-Bs:
Fine of Php2O,OOO per incident
For RBs/CBs:
Fine of PhplO,OOO per incident
For NBQBs/ Non-bank EMls/ Other
Participants Maintaining SAs with the Bangko Sentral:
Fine of PhplO,OOO per incident
For FMls/CSOs:
Fine of Php2O,OOO per incident
Failure to repurchase securities sold to the Bangko Sentral under an Extended Intraday Settlement Facility (lSF) availment in excess of allowable limit' For UBs:
Fine of PhpSO,OOO per incident
For lBs:
Fine of PhpSO,OOO per incident
For KBs:
Fine of Php3O,OOO per incident
For DBsffBs:
Fine of Php2O,OOO per incident
For RBs/CBs:
Fine of PhplO,OOO per incident
For NBQBs/ Non-bank EMls/ Other
Participants Maintaining SAs with the Bangko Sentral:
Fine of PhplO,OOO per incident
'Three (3) per calendar quarter
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Types of Molations lmposable Monetary Penalties Non-compliance with the requirements for managing adverse incidents under
Section 6.|6 of the Peso RTCS
Rules
For UBs:
Fine of PhplO,OOO per incident
For lBs:
Fine of PhplO,OOO per incident
For KBs:
Fine of PhpS,OOO per incident
For DBsfiBs:
Fine of Php6,OOO per incident
For RBs/CBs:
Fine of Php4,OOO per incident
For NBQBs/ Non-bank EMls/ Other
Participants Maintaining SAs with the Bangko Sentral:
Fine of Php4,OOO per incident
For FMls/CSOs:
Fine of Php6,OOO per incident
9. Failure to establish a resilient,
documented, and tested
Business Continuity Plan (BCP) under Section 6.17 of the Peso RTCS Rules For UBs:
Fine of Php7S,OOO
For lBs:
Fine of Php75,OOO
For UKs:
Fine of Php65,OOO
For DBsfl-Bs:
Fine of Php2O,OOO
For RBs/CBs:
Fine of PhplO,OOO
For NBQBs/ Non-bank EMts/ Other
Participants Maintaining SAs with the Bangko Sentral:
Fine of PhplO,OOO
For FMls/CSOs:
Fine of Php2O,OOO
'lO. Non-compliance with system enhancement reouirements under Section 6]8 of the Peso RTCS Rules For UBs:
Fine of Php7S,OOO
For lBs:
Fine of Php7S,OOO
For KBs:
Fine of Php65,OOO

Types of Molations lmposable Monetary Penalties For DBsfl-Bs:
Fine of Php2O,OOO
For RBs/CBs:
Fine of PhplO,OOO
For NBQBs/ Non-bank EMls/ Other
Participants Maintaining SAs with the Bangko Sentral:
Fine of PhplO,OOO
For FMIS/CSOS:
Fine of Php65,OOO
11. Non-compliance with testing
requirements under Section 6.18 of the Peso RTCS Rules For UBs:
Fine of Php1S,OOO for failure to participate in each testing exercise For lBs:
Fine of Php1S,OOO for failure to participate in each testing exercise For KBs:
Fine of Phpl2,OOO for failure to participate in each testing exercise For TBs/DBs:
Fine of PhplO,OOO for failure to participate in each testing exercise For RBs/CBs:
Fine of Php5.OOO for failure to participate in each testing exercise For NBQBs/ Non-bank EMls/ Other Participants Maintaining SAs with the Bangko Sentral:
Fine of Php2,OOO for failure to participate in each testing exercise For FMls/CSOs:
Fine of PhpS,OOO for failure to participate in each testing exercise
Section 2. The following fines shall be imposed for non-compliance with
the reporting standards under Section 614 of the Peso RTCS Rules, requiring participants to submit reports such as an attestation reports, the monthly tiered participation report6, and all other reports that may be requrred bythe Bangko Sentralon a periodic or on call basis:
5 Per Section 614 of the Peso RTCS Rules and Memorandum No. M-2O24^O14, participants shall present an "Attestation Report" to the Bangko Sentralyearly, to be submitted on the last banking day of January. 6 Pursuant to Sections 605 and 6.14 of the Peso RTCS Rules and Memorandum No. M-2023-O2O, sponsoring RTCS participants shall provide the Bangko Sentrarwith a "Monthly Monitoring Report on Sponsored Participation in Paoe 5 of I

Types of Molations lmposable Monetary Penatties
l. Delayed Report
A report that was submitted after the reporting deadline but not beyond the date the next report becomes due
2. Erroneous Report
A report that is incomplete or inaccu rate Regardless of being penalized under this item, the participant is required to submit the correct report within 90 calendar days from its due date. Otherwise, the participant shall also be subject to the provisions of Section 3 below. For UBs:
Fine of Php5O0 per calendar day of delay For lBs:
Fine of Php5OO per calendar day of delay For KBs:
Fine of Php4OO per calendar day of delay For DBsffBs:
Fine of Php3OO per calendar day of delay For RBs/CBs:
Fine of Php2OO per calendar day of delay For NBQBs/ Non-bank EMls/ Other Participants Maintaining SAs with the Bangko Sentral:
Fine of Php2OO per calendar day of delay For FMls/CSOs:
Fine of Php2OO per calendar day of delay For UBs:
Fine of Php15,OOO per submission of an erroneous reporl For lBs:
Fine of PhplS,OOO per submission of an erroneous report For KBs:
Fine of Php'l2,OOO per submission of an erroneous report For DBs/TBs:
Fine of Php9,OOO per submission of an erroneous report For RBs/CBs:
Fine of Php6,OOO per submission of an erroneous report For NBQBs/ Non-bank EMts/ Other Participants Maintaining SAs with the Bangko Sentral:
Fine of Php6,OOO per submission of an erroneous report For FMls/CSOs:
the Peso Real-Time Cross Settlernent (RTCS) payment System" to be submitted via email within ten 60) calendar days from the end of the reference period beginning June 2023.

Types of Molations lmposable Monetary Penalties Fine of Php5,OOO per submission of an erroneous report
3. Unsubmitted Report
A report that remains unsubmitted after the next report becomes due. Regardless of being penalized under this item, the participant is required to submit the report within 9O calendar days from its due date. Otherwise. the participant shall also be subject to the provisions of Section 3 below. For UBs:
Fine of Php3O,OOO per violation
For lBs:
Fine of Php3O,OOO per violation
For KBs:
Fine of Php24,OOO per violation
For DBs/TBs:
Fine of Php18,OOO per violation
For RBs/CBs:
Fine of Phpl2,OOO per violation
For NBQBs/ Non-bank EMls/ Other
Participants Maintaining SAs with the Bangko Sentral:
Fine of Php12,OOO per violation
For FMls/CSOs:
Fine of Php12,OOO per violation
Section 3. Violations not included in Sections I and 2 above, ano non￾compliance with applicable laws, and the implementing guidelines, rules
and regulations issued by the Bangko Sentral, as well as commission of a combination of violations, or multipleT cases of the same violation shall be subject to penalties and sanctions ranging from a fine of phpS,OOO.OO to PhpIOO,OOO.OO, and/or suspension or termination of participation in the ISF and the Peso RTCS Payment System.
Section 4. Once the Bangko Sentral, through its appropriate department,
ascertains that a participant has committed a punishable violation, it shall send a notice of violation with corresponding penalty to the participant. The participant shalljustifu within fifteen (ls) calendar days from receipt of notice why it should not be penalized or sanctioned as indicated in the notice. The justification shall be signed bythe President (or equivalent)of the concerned participant and sent to the Head of the appropriate Bangko Sentral department. The recommendation to sanction or impose penalties shall be approved by the Bangko Sentral. The Bangko Sentral's decision shall be communicated to the concerned participant.
section 5. The decision of the Bangko sentral imposing sanctions and/or
monetary penalties shall become final and executory after fifteen (15) calendar days from receipt of the decision, unless a motion for reconsideration is timely filed, duly signed by the President (or equivalent) of the concerned participant and copy furnished the Head of the 7 More than three (3) violations in a caiendar year
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appropriate Bangko Sentral department, The decision of the Bangko Sentral on the motion for reconsideration shall be final and executory.
Section 6. The amount of fine due from a participant shall be deducted
from its SA with the Bangko Sentral. lf a participant does not have such an SA, the fine shall be collected from its designated bank's SA."
Section 2. This Memorandum shall take effect fifteen (15) calendar days fotlowing
its publication either in the Official Cazette or in a ne\ryEpaper of general circulation. For information and guidance. -/ - lt / Digitally egned by Lli M. Remolora Jt ' \ Date:2o24-if1'l 1l:53:44+08'oo' ELt M. REMOLONA, JR. Covernor 11 Decr-ber2ci24
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