Amending Certain Rules and Regulations Relative to the Collection and Remittance of Taxes Paid to AABs thru OTC and EFPS

January 10, 2008 REVENUE REGULATIONS NO. 02-08 SUBJECT : Amending Certain Rules and Regulations Relative to the Collection and Remittance of Taxes Paid to Authorized Agent Banks (AABs) thru Over-the-Counter (OTC) and Electronic Filing and Payment System (EFPS) and Amending Further the Memorandum of Agreement Relative to the Accreditation of the AABs TO : All Internal Revenue Officers and Others Concerned BACKGROUND Pursuant to the provisions of Executive Order No. 937 dated March 1, 1984, vesting the Bureau of Internal Revenue (BIR) the primary responsibility of enforcing the collection of taxes through the banking system in relation to Section 12 of the National Internal Revenue Code of 1997 which mandate AABs to receive and remit tax payments, several Revenue Regulations were issued and individual agreements were executed between the BIR and the bank concerned. Contained in those agreements are the duties and responsibilities of both parties. Despite the execution of these agreements and the incentives given in the form of a float period, numerous complaints were received from taxpayers against a number of AABs e.g., non-acceptance of tax payments made through over-the-counter; limiting the number of taxpayers being serviced; non-acceptance of payments from non-depositors, among others. This situation has forced the taxpayers to swamp other banks causing undue inconvenience to the public in general and affect the collection efforts of the BIR. 2008tax To address these problems, it is imperative to make the necessary changes to the existing policies relative to the collection and remittance of taxes paid to AABs. SECTION 1 . Scope and Objectives. These Regulations shall cover OTC and EFPS payments in order to rationalize the granting of incentives to AABs and the imposition of penalties to effectively utilize and maximize the banking system in receiving internal revenue tax payments. CaESTA SECTION 2 . Execution of New Memorandum of Agreement (MOA). All banks presently authorized to collect internal revenue taxes may continue to do so until such time that a new MOA as prescribed in Annex "A" hereof shall thereupon be executed among the BIR, Bureau of Treasury (BTr) and the banks which have qualified for accreditation. SECTION 3 . Incentives. Considering the incentive given to AABs is in the form of "float period" (for purposes of these regulations, float period shall mean the period beginning on the day after the date of collection until the prescribed remittance day. For example, if the float period is six (6) days and the taxes were collected on June 1, then the remittance shall be made on June 7), the following guidelines shall be strictly followed: 3.1 The determination of float period shall be done semi-annually based on the number of OTC transactions processed/accepted by the AABs on the same semester of the preceding year, and compliance with the obligations and conditions stated in the MOA. The notice shall be sent semi-annually ( i.e., for the first semester, notice will be sent on or before December of the previous year; likewise, for the second semester, notice will be sent on or before June of the current year). The EFPS float period shall be dependent on the OTC float period. The higher the number of OTC transactions processed/accepted, the longer the float period of an AAB. The OTC float period shall be six (6), eight (8) or ten (10) days, while for EFPS the float period shall range from three (3) to five (5) days. However, for those with no OTC transaction or falling below the threshold for a particular semester under evaluation, the float period shall be one (1) day less than the minimum float period prescribed. The guidelines and procedures in the determination of float period for a particular semester applicable to AABs shall be covered by a separate issuance. 3.2 For EFPS Transactions All internal revenue collections shall be credited to the account of the BTr on the date of collection and remitted on the date prescribed in a written communication by the Assistant Commissioner, Collection Service to the concerned AAB and BTr. The float period for EFPS shall be half of the float period for OTC transactions as notified by the BIR. 3.3 For OTC Transactions [this shall include payments thru Debit System, Electronic Service Machine (ESM), G-Cash] All internal revenue collections shall be credited to the account of the BTr on the date of collection and remitted on the date prescribed in a written communication by the Assistant Commissioner, Collection Service to the concerned AAB and BTr. 3.4. For AABs accredited for the first time, the applicable float period shall be the minimum as notified by the BIR. SHIETa SECTION 4 . Penalties. The penalties imposed on AABs for non-compliance with the provisions of MOA as provided in Revenue Regulations No. 15-94 as amended by RR 19-2001 is hereby revised as per attached "Annex A-2" of the MOA. All penalties imposed, after the effectivity of this Revenue Regulations, on procedural errors, as well as violations on remittance procedures and other violations relative to MOA, Bank Bulletins and applicable revenue issuances, shall not be subject to compromise. SECTION 5 . Transitory Provisions. Prior to the execution of the new MOA, all existing AABs shall: 5.1. Comply with the responsibilities indicated in the existing MOA; 5.2. File a Letter of Intent indicating the list of branches for accreditation and submit necessary documents relative thereto within thirty (30) days from effectivity of these Regulations; and 5.3. Settle outstanding penalties not later than thirty (30) days from receipt of written notice based on the following: 5.3.1 Procedural Errors/Delay in Submission of Reportorial Requirements For Calendar Year 2007 and prior years 60% of total Penalties imposed For Calendar Year 2008 Full payment 5.3.2 Penalties for Late Remittance of Tax Collections Full payment of penalties imposed shall be paid, except for those who have pending application for compromise settlement filed and received not later than December 31, 2007 for which the Bank Accreditation Committee (BAC) has resolved/decided; provided further, that payment must be made within the prescribed period stated in the BAC decision. aICHEc 5.4. The float period that AAB shall follow for EFPS and OTC transactions from the time of execution of the new MOA until June 30, 2008 shall be based on the notice to be given during the signing of the new MOA. SECTION 6 . Revocation of Authority to Collect Internal Revenue Taxes. The authority of an AAB to collect internal revenue taxes shall be revoked upon failure to file letter of intent to renew accreditation, submit documentary requirements, and settle outstanding penalties as notified by the BIR within the specified period. Likewise, after proper evaluation of BAC, revocation of authority to collect internal revenue taxes shall also be resorted to, in cases of AABs' violation of the provisions of the MOA and non-payment of penalties imposed. SECTION 7 . Repealing Clause. The provisions of any revenue regulations, revenue memorandum order, revenue memorandum circular, or any other revenue issuances inconsistent with this Revenue Regulations are hereby repealed, amended or modified accordingly. SECTION 8 . Effectivity Clause. This Revenue Regulations shall take effect fifteen (15) days after publication in a newspaper of general circulation. (SGD.) MARGARITO B. TEVES Secretary of Finance Recommending Approval: (SGD.) LILIAN B. HEFTI Commissioner of Internal Revenue ANNEX A MEMORANDUM OF AGREEMENT KNOW ALL MEN BY THESE PRESENTS: This Memorandum of Agreement executed and entered into by and between: The BUREAU OF INTERNAL REVENUE (BIR), a government agency created and existing under the laws of the Philippines, with principal office at the BIR National Office Building, BIR Road, East Avenue, Diliman, Quezon City, represented by its Commissioner, ______________ hereinafter referred to as "BIR", The BUREAU OF TREASURY, a duly constituted government Bureau under the Department of Finance, Republic of the Philippines with principal office at Palacio del Gobernador Building, Aduana, Intramuros, Manila, represented by the Treasurer of the Philippines, ____________ hereinafter referred to as "BTr", and The (Name of AAB) , an accredited agent bank, hereinafter referred to as the "AAB", represented by its (Name of Authorized Representative and Position) , with principal office located at ______________________; WITNESSETH: WHEREAS, to protect the interest of the Government, there is a need to secure the payments made by taxpayers through authorized agent banks (AABs) and enable timely generation and submission of accurate tax collection information and management reports; WHEREAS, the AAB's obligation to collect, pursuant to government auditing rules and regulations, carries with it the responsibility to remit accurately and on time all such collections to the Bureau of Treasury; WHEREAS, the BIR, the BTr and AAB recognize the need to adopt security measures to safeguard the collections of revenues and put in place a system which will ensure that access to information on such transactions shall be limited only to the duly authorized representative of the BIR, the BTr and AAB; WHEREAS, to assure taxpayers' convenience, there is a need for sufficient number of offices/locations where the taxpayers can make their payments; WHEREAS, authorized field auditors of the Commission on Audit (COA) and the BIR may, at any reasonable time, examine any document or record of the bank pertaining to the collection and remittance of internal revenue taxes. WHEREFORE, for and in consideration of the foregoing premises, the parties hereto have mutually agreed, as they hereby agree, that: The BIR Shall: 1. Reserve the right to limit or withdraw the authority of the AAB to accept tax payments or to limit the areas where the AAB can collect, or to direct the AAB to provide bank services in area/s where it has branch/es, which is not adequately served by other collecting banks; 2. Conduct field verification of AAB's compliance with BIR rules and regulations with regard to its responsibility as collecting agents; 3. Suspend the authority to collect internal revenue taxes or terminate this Agreement in case of violation of any of the terms and conditions stated herein, or at anytime cancel the AAB's accreditation if the interest of the government is prejudiced. The suspension/cancellation of the AAB's branch accreditation shall not necessarily result in the suspension/cancellation of the AAB's Head Office (AAB-HO) accreditation. However, the suspension/cancellation of the AAB-HO's accreditation automatically results in the suspension/cancellation of the AAB-Branch/es' accreditation; 4. Initiate civil, criminal, or other special actions against the AAB or the officers thereof, if necessary, pursuant to the provisions of Revenue Regulations No. 4-97, Sec. 7 (b) which states that "any diversion, non-remittance or under-remittance of the taxes collected by AABs through fault or negligence of the bank accepting such payment shall subject the bank to civil and criminal liabilities provided for under Sections 248 and 274 (now 275) of the Tax Code, as amended, and other existing laws, rules and regulations." 5. Inform/advise AAB, copy furnish the Bankers Association of the Philippines (BAP), of advises/updates, bank bulletins, and other revenue issuances affecting the collection system not later than forty eight (48) hours from issuance thereof by the Commissioner or his duly authorized representative. Amendments affecting technology or system changes and its implementation should take effect not later than thirty (30) days from the availability of the new BIR technology or system, unless there is a valid reason to request for a longer period to comply on the part of the AAB; 6. Train the trainers of the AAB on any filing and payment systems and enhancements thereto, including the effects thereof on AABs; 7. Provide information to the AAB's central collection units regarding exception reports from Revenue District Offices (RDOs) and the Revenue Data Centers (RDCs), including penalties thereon, on a monthly basis, within ten (10) days after receipt of the Collection Programs Division-Collection Service (CS) of said reports; 8. Respond formally to clarifications on procedural and technical issues raised by the AAB within fifteen (15) days from receipt of the request. Clarifications affecting all AABs shall be disseminated to the AAB member, copy furnish the BAP; 9. Ensure utmost confidentiality of data and information provided by the AAB in connection with this Agreement; 10. Notify the AAB of the applied float period for both EFPS and Over-the-Counter (OTC) transactions. For OTC, the float period shall be based on the number of transactions processed/accepted by the AAB and its compliance with the obligations and conditions stated in this MOA. Notice shall be given a month prior to the semester of application. There shall be a semi-annual determination of the float period for OTC transactions; and TIcEDC 11. Issue a certification to the BTr that the AAB incurred an over-remittance of tax collection due to erroneous or double reporting, copy furnished the concerned AAB. The BTR Shall: 1. Receive data/information on daily collection/remittances of internal revenue taxes from the AAB; 2. Record daily collection and remittance of internal revenue taxes in its books of accounts; 3. Reconcile collection/remittance data with the BIR as often as necessary; 4. Ensure that the data/information shared pursuant to this MOA shall be treated with utmost confidentiality; 5. Inform BIR of AAB's violation of the provisions embodied in the "Undertaking" submitted to the BTr; 6. Request BSP to credit the Demand Deposit Account (DDA) of the AAB for the amount representing its over-remittance of internal revenue collections fifteen (15) days after confirmation by the BIR of such over-remittance; and 7. In case of Electronic Filing and Payment System (EFPS): a. Issue endorsement to the BIR that the AAB has committed to comply with all its requirements for the implementation of EFPS; Provided, that should the AAB fail to comply with its undertaking with the BTr, said endorsement shall become ineffective; b. Receive daily collection data/information on all tax payment transactions credited to the BTr-BIR Hinged Account through the AAB's e-banking channel. The Hinged Account shall be taken to mean as a settlement account which is zeroed at the end of the day to a liability account in favor of the BTr; and c. Allow BIR a reviewing access to BTr-BIR Hinged Account. CIDTcH The AAB Shall: 1. Comply with and submit all requirements prescribed in the applicable issuances listed in ANNEX "A-1", herewith attached, and such other issuances that may be subsequently issued by the BIR, and shoulder all expenses concerning the accomplishment and submission thereof; 2. Abide by the rules and regulations promulgated by the BIR in connection with this Agreement, such as but not limited to: 2.1 Provide satisfactory taxpayers services such as: 2.1.1 To accept ALL tax payments during regular banking hours and to extend banking hours during tax deadlines; 2.1.2 To open bank operations two (2) Saturdays immediately prior to April 15 of every year and extend banking hours from 3:00 PM to 5:00 PM from April 1 to income tax payment deadline; 2.1.3 To accept check payments even after check clearing time especially during tax deadlines; 2.1.4 To accept tax payments even after the prescribed due date; 2.1.5 To accept other banks' checks; 2.1.6 To accept checks/payments even from non-clients; 2.1.7 To accept down-loaded and photocopied tax returns but originally filled-up and signed by the taxpayer; 2.1.8 Not to impose any other additional fees on top of the tax payments from the taxpayers; 2.1.9 Not to set up limits as to the number of forms and taxpayers to be serviced; 2.1.10 Not to designate any particular hour/day for acceptance of tax payments during banking hours; 2.1.11 Not to require opening of deposit/accounts as a pre-requisite in accepting tax payments; 2.2 Have adequate infrastructure (manpower, branch offices, computer and communication technology) to remit accurate daily tax collections and transmit all documents and information on time; 2.3 Assign bank personnel who have satisfactorily undertaken the required trainings on the system of collection of internal revenue taxes through banks and technical systems (e. g. BIR-CBRS, EDTS and LBDES); 2.4 Maintain at least 80% of AAB branches accredited, as applicable; 2.5 Comply with BIR reporting requirements as to timeliness and accuracy, i.e., error-free collection of information within 48-hours from the time of collection for banks under the Electronic Data Transmission System (EDTS), except during transition period, upon approval of the BIR and during deadlines where a 72-hour transmission is authorized; and 2.6 Comply with regulations/orders that may be prescribed in the future relative to the tax collection system. 3. Pay the penalties in accordance with existing issuances and abide by the sanctions, if any, in accordance with the schedule of penalties and sanctions as provided in Annex "A-2" ; 4. Hold tax payments in a fiduciary capacity for the account of the national government (Bureau of Treasury). Such funds held in trust must then be considered as separate from other funds in its custody; 5. Authorize the Bangko Sentral ng Pilipinas (BSP) through its Accounting Department, to debit its Demand Deposit Accounts (DDA) corresponding to the total daily collections due for remittance depending on the float period for EFPS and OTC as notified by the BIR, such amount to be credited by BSP to the "Special Account-BIR Collection" of the Treasurer of the Philippines. Remittances of AAB's own tax liabilities shall follow the procedures defined in RMO 4-99 dated October 27, 1998; 6. Allow authorized field auditors of the COA and the BIR to verify any document or record of the AAB pertaining to collection and remittance of internal revenue taxes provided the law on secrecy of bank deposits is strictly observed; and provided, further, that such verification shall be made only during banking days, subject to prior written notice to the AAB issued by the Commissioner of BIR; TSDHCc 7. Accept and process all tax returns with payments; 8. Inform the BIR of any corporate structural changes including, but not limited to, merger, buy-out, consolidation and similar changes; and 9. Protect all information received from the BIR and taxpayers pursuant to this agreement and treat them with strictest confidentiality. This Agreement shall be effective from the date of signing hereof until such time that it is terminated by all parties or by the AAB subject to the approval of the BIR, or by the BIR/BTr in case of violation of any terms and conditions stated herein or for any reasonable cause, with thirty (30) days advance notice. IN WITNESS WHEREOF, we sign this Agreement on this ____ day of _____________________, _____ , in _____________. BUREAU OF INTERNAL REVENUE By: _____________________________ Commissioner of Internal Revenue BUREAU OF TREASURY By: _______________________ Treasurer of the Philippines NAME OF AAB By: ____________ President ACKNOWLEDGMENT ANNEX A-1 SCHEDULE OF ISSUANCES GOVERNING AUTHORIZED AGENT BANKS (AABs) Issuances No. Date Subject RR5-84 June 1984 Regulations Implementing EO 937 s. 1984 prescribing rules, guidelines & procedures to implement the utilization of the Banking System in receiving and counting of internal tax payments. caITAC RR 1-85 1/28/86 Amendment of the penalties stipulated in the agreement prescribed in RR 5-84. RR 15-94 8/8/94 Further amending the penalties stipulated in the MOA bet. BIR and AABs as prescribed in RR 5-84 and RR 1-85 RMO 61-94 6/24/94 Prescribing the procedures for processing and submission of Batch Control Sheet (BCS) in diskette by all accredited banks RMO 4-97 1/21/97 Amendment of RMO 22-95 dated Aug. 4, 1995 Delegating the signing/approval of memoranda, communications papers and other document on claims for tax refund/credit RR 4-97 1/31/97 Revenue Regulations prescribing the Acceptable Modes of Payment of Internal Revenue Taxes through AABs and their subsidiaries and the Enrollment of Taxpayers required thereunder RMO 11-97 3/25/97 Authorized Bank Accounts of Regional Offices and their Signatories RMO 18-97 4/10/97 Signatories of Checks drawn against Regional Banks Account. RMO 19-97 4/18/97 Prescribing the Policies and Procedures to Implement RR 4-97 Prescribing the Acceptable Modes of Payment of Internal Revenue Taxes and requiring the Enrollment of Taxpayers with AABs RMO 40-97 6/30/97 Clarifications on the implementation of RR # 4-97 & RMO No. 19-97 on the acceptable modes of payment RR 6-98 7/13/98 Amending Sec. 2 of RR 4-97 relative to the Acceptable Modes of Payment of Internal Revenue Taxes RMO 42-98 5/18/98 Prescribing the policies, guidelines and procedures for processing payment data from Accredited Agent Banks (AABs) under non-computerized RDOs using the Limited Bank Data Entry System (LBDES) replacing the New Payment Control System (NPCS) dctai RMC 1-99 1/8/99 Amending the Date of the Effectivity of RMO 4-99 RMO 1-99 9/17/98 Guidelines for the Transmittal of the Duplicate Copies of All Tax Returns received at the Revenue Data Center to the Revenue District Offices under the ITS Implementation RMO 4-99 10/27/98 Prescribing the policies and procedures for processing and monitoring of commercial and universal banks' own tax liabilities RMO 13-99 10/13/98 Prescribing the policies, guidelines and procedures for payment capability roll-out RMO 20-99 2/10/99 Standard procedures for the submission and processing of payment data and documents from Accredited banks (AABs) under Revenue District Offices (RDOs) within and outside Metro Manila/Metro Cebu amending RMO Nos. 1-99 and 42-98 RMO 31-99 4/16/99 Amendment to RMO No. 18-97 on Signatories of Checks Drawn Against Regional Bank Accounts RMO 37-99 4/8/99 Procedures for non-ITS Revenue District Offices (RDOs) in conducting bank branch performance check RMO 39-99 5/10/99 Amendment to RMO No. 31-99 on signatories of checks drawn against Regional Bank Accounts RMO 46-99 5/25/99 Procedures to address problems encountered by Revenue Accounting Division on CBR on-line inquiry facility RR 14-93 8/31/93 Payment of taxes by checks and bank debit memo RR 15-94 8/8/94 Further amendment of the penalties stipulated in the agreement prescribed in the Revenue Regulations No. 5-84 and 1-85 RR 13-96 8/23/96 Further Clarification on the Date of Remittance of Internal Revenue Collections by Authorized Agent Banks as prescribed by Revenue Regulations No. 15-94 RR 18-2001 11/13/2001 Guidelines on the Monitoring of the Basis of Property Transferred and Shares Received, pursuant to a Tax-Free Exchange of Property for Shares under Sec. 40 (c) (2) of the NIRC of 1997, Prescribing the Penalties for Failure to Comply with such Guidelines, and Authorizing the imposition of Fees for the Monitoring Thereof. RR 19-2001 11/6/2001 Amendment to the agreement between the BIR and AABs relative to the collection of internal revenue tax liabilities RMO 25-2001 10/16/2001 Revision to RMO 63-94 Clarifying the Process on the receipt, processing, control, transmittal and collection of Returned/Dishonored Checks received through AABs under the jurisdiction of Computerized and Non-Computerized RDOs (formerly NPCS) as well as Large Taxpayers Service and LTDOs RMO 28-2001 10/22/2001 Guidelines and Procedures in the Reconciliation of Collection and Remittances of AABs at the RDO Level. RMO 30-2001 11/12/2001 Revising the Policies, guidelines and procedures in the processing of application for Bank accreditation; renewal of Accreditation and Disaccreditation of Authorized Agent Banks (AABs); AABs Merger/Buy-out; Change of Names and/or Addresses; Monitoring of Performance and Evaluation of AABs; and Imposition of Penalties on AABs Violations and Settlement of Unremitted Collection RR 16-2002 10/11/02 Modes and Procedure for the Payment of Internal Revenue Taxes Through Authorized Agent Banks Amending Revenue Regulations No. 4-97, as amended by Revenue Regulations No. 6-98 RR 16A-2002 11/7/2002 Prescribes Nov. 19, 2002 as the Effectivity date of RR 16-2002 relative to the Modes and Procedures for the Payment of Internal Revenue Taxes through AABs RMC 16-2004 3/10/2004 Publishes the Full Text of Bank Bulletin No. 2003-11 relative to Internal Tax Payment through Debit Memo RR 27-2004 4/26/04 Guidelines and procedures in granting the Accredited Agent Bank's request for refund of over-remittance of tax collection RMO 49-2004 12/10/2004 Clarifies and Reiterates the Policies and Guidelines on the Proper Crediting of Collection of Internal Revenue Taxes RMO 20-2005 7/26/05 Prescribing the Policies, Guidelines and Procedure on the Adoption of Mobile Payment (M-Payment) as an Additional Mode of Payment of Certain Internal Revenue Taxes All Bank Advisories ANNEX A-2 SCHEDULE OF PENALTIES NATURE OF VIOLATIONS PENALTIES A. Procedural Errors/Violations 1. Failure to Submit Consolidated Report P200.00 per day but not to exceed 25% of Daily Collection (CRDC) within the of tax collected prescribed period 2. Failure to Transmit Collection Data P200.00 per day but not to exceed 25% processed under LBDES and EFPS of tax collected within the prescribed period 3. Submission of Incomplete/Inaccurate P200.00 per BCS but not to exceed 25% Reports, such as but not limited to the of the tax collected following: 3.1 No Bank Code in BCS/Incorrect numbering 3.2 No tax type indicated 3.3 No date of collection 3.4 Unmatched BCS information with actual returns different TIN/s no TIN of TP 3.5 BCS total amount do not tally with total amount from documents 3.6 No signature of authorized bank official 4. Acceptance/Submission of Tax Returns Equal to or less than 10 errors per BCS with incomplete data: No Penalty, But in excess of 10 errors P200.00 per erroneous return received 4.1 No Signature of Taxpayer/Authorized Representative 4.2 No Name of Taxpayer 4.3 No TIN 4.4 No Machine Validation/Transaction Receipt for Efficient Service Machine (ESM) 4.5 Payment on return differs from payment on Collection and Bank Reconciliation (CBR) 4.6 Returns submitted without corresponding BCS 5. Acceptance of Checks P1,000 per check 5.1 Not in accordance with RR 16-2002 5.2 Invalid or Dishonored checks due to error of the bank B. Remittance Violations 1. Late Remittance (shall mean full remittance Prevailing interbank borrowing after due date provided the delay shall not rate + 5% until the total amount and exceed 15 days from due date) increments are fully paid 2. Under remittance (shall mean any of the Double the amount of under-remittance following but not limited to: + 25% surcharge + 1/4 of 1% interest per day but shall not be less than a. remittance beyond 15 days from due prevailing interbank rate + 5% until the date whatever the circumstance; total amount and increments are fully b. remittance based on BIR notice of paid discrepancy ( e.g. BSP list of remittance vs. CRDC , BCS vs. CRDC, taxpayer's complaint of non-remittance of payment). 3. Non-Remittance (shall mean no remittance Double the amount of under-remittance is made) + 25% surcharge + 1/4 of 1% interest per day but shall not be less than prevailing interbank rate + 5% until the total amount and increments are fully paid; plus disaccreditation of bank branch and criminal liability in accordance with _____. C. Non-Compliance with AABs obligation stated in 2.1 of the MOA 1. 1st Offense supported by written Reminder Letter to AAB-Branch copy complaint of Taxpayer, RDO and furnished AAB-Head Office other concerned party 2. 2nd Offense P1,000 per verified violation per branch 3. 3rd Offense P3,000 per verified violation per branch 4. 4th Offense P5,000 per verified violation per branch 5. 5th Offense Warning and suspension for thirty (30) days per branch 6. More than five (5) offenses Referred to Bank Accreditation Committee (BAC) for disaccreditation of the branch D. Non-Payment of Penalties within the Referred to Bank Accreditation prescribed period as stated in the Notice Committee (BAC) for disaccreditation of the branch Published in The Manila Bulletin on March 2, 2008 .