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Manila Bulletin devider Business devider Banking & Finance devider BSP orders banks to flag risky clients through intensified negative news screening

BSP orders banks to flag risky clients through intensified negative news screening

Published May 28, 2025 02:57 pm

At A Glance

  • All Bangko Sentral ng Pilipinas (BSP)-supervised financial institutions (BSFIs) have been ordered to strengthen their risk management procedures by integrating the screening of negative news reports—such as fraud, crime, and scandals involving customers—into their customer due diligence and transaction monitoring processes.

All Bangko Sentral ng Pilipinas (BSP)-supervised financial institutions (BSFIs) have been ordered to strengthen their risk management procedures by integrating the screening of negative news reports—such as fraud, crime, and scandals involving customers—into their customer due diligence and transaction monitoring processes.

All BSFIs are “reminded to incorporate negative media report (NMR) screening as an integral procedure in the conduct of customer due diligence, complementing the on-going transaction monitoring system and processes,” the BSP said in Memorandum No. M-2025-017, issued on Tuesday, May 27.

NMR pertains to “published or televised adverse news, advisories, and/or reports on certain individuals and entities.”

The central bank noted that reports linked to possible money laundering, terrorist financing, or related risks could “trigger further review or look back on customers’ transactions and activities,” especially if that customer is mentioned in such reports.

As such, the BSP expects banks to adopt certain policies in the conduct of NMR screening results. The prescribed procedure involves updating risk assessments based on emerging financial threats.

A bank must update its assessments on “newly identified financial crime threats and emerging trends relevant to its products and services.”

Banks are also told to include relevant anti-money laundering and countering the financing of terrorism (AML/CFT) trends that “may have an impact on its operations and affected controls.”

Banks and financial institutions are also instructed to regularly update their list of sources for NMRs and maintain a database of individuals or entities flagged in such reports. These sources may include news articles, public registries, court and legislative records, as well as widely reported hearings and investigations.

Additionally, banks are expected to step up background checks by screening for negative news during customer onboarding and transaction reviews, including checks on ultimate beneficial owners and key business partners.

Depending on the findings, they may need to apply stricter monitoring, limit account access, or even end relationships. Banks must also have strong internal systems to alert senior management and the board about major risks.

Related Tags

Bangko Sentral ng Pilipinas (BSP) BSP-supervised financial institutions (BSFIs) negative media report (NMR) anti-money laundering/countering the financing of terrorism (AML/CFT)
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