5 - BANK SECRECY LAW Flashcards
What is the primary purpose of the Philippine Bank Deposits Law?
To promote the deposit of money in banks and other depository institutions and to protect the privacy of depositors.
What is the Bank Secrecy Law all about?
The Bank Secrecy Law is a measure aimed at maintaining the confidentiality of bank deposits and preventing the unauthorized disclosure of financial information.
What types of deposits are protected under the Bank Secrecy Law?
All deposits, including peso deposits, foreign currency deposits, trust accounts, and investments in government bonds.
Can any government official or employee examine or inquire into bank deposits?
No, under the Bank Secrecy Law, only certain officials, such as court judges, may order the examination of bank deposits.
What are the exceptions to the confidentiality rule under RA 1405 (Peso Deposits)?
The following instances allow for the disclosure of deposit information:
a. Written permission of the depositor
b. Cases of impeachment
c. Order of a competent court in cases of bribery or dereliction of duty
d. Order of a competent court in cases where the money deposited is the subject of litigation
e. Order of a competent court or tribunal in cases involving unexplained wealth
f. Order of a competent court in cases of violation of AMLA
g. Inquiry by the Commissioner of BIR for tax purposes
h. Disclosure to the Treasurer of the Philippines for dormant deposits
i. Report of banks to AMLC of covered transactions
j. Order of the CA examination by law enforcement officers in terrorism cases
k. Examination by law enforcement officers in cases of crime
Can the Commissioner of BIR inquire into bank deposits for tax purposes?
Yes, under the Bank Secrecy Law, the Commissioner of BIR may inquire into bank deposits for tax purposes with the written consent of the depositor.
Can banks report dormant deposits to the Treasurer of the Philippines after 10 years?
Yes, under the Unclaimed Balances Act (RA 3936), banks must report dormant deposits to the Treasurer of the Philippines after 10 years.
Does the Bank Secrecy Law apply to foreign currency bank deposits?
Yes, the Bank Secrecy Law applies to all bank deposits, including foreign currency deposits.
What is the exception for foreign currency deposits in cases of terrorism?
An independent auditor hired by the bank to conduct its regular audit may examine foreign currency bank deposits for audit purposes only.
Can the Monetary Board examine bank deposits as part of a special or general examination?
Yes, under the Bank Secrecy Law, the Monetary Board can examine bank deposits as part of a special or general examination specifically authorized by the Monetary Board.
Can the PDIC inquire into bank deposits in cases of unsafe or unsound banking practices?
Yes, under the Bank Secrecy Law, the PDIC can inquire into bank deposits when there is a finding of unsafe or unsound banking practices.
Does the Bank Secrecy Law apply to banks in cases of kidnapping, hijacking, or other serious offenses?
Under the Bank Secrecy Law, the examination of bank deposits is allowed in the following cases:
a. Kidnapping for ransom
b. Comprehensive Dangerous Drugs Act
c. Hijacking
d. Destructive arson and murder
e. Similar offenses punishable under the penal laws of other countries
f. Terrorism
g. Conspiracy to commit terrorism
h. Financing of terrorism
What is the intention of Congress regarding the placement of Philippine currency bank deposits beyond the reach of creditors?
It is not the intention of Congress to place Philippine currency bank deposits beyond the reach of creditors.
Can the CA examine bank deposits in cases of terrorism under the Human Security Act?
Yes, under the Bank Secrecy Law, the CA can examine bank deposits as authorized by the Human Security Act in cases of terrorism.
Can banks disclose information about deposits under the Unclaimed Balances Act?
Yes, banks must report dormant deposits to the Treasurer of the Philippines under the Unclaimed Balances Act.
What types of crimes are considered exceptions to confidentiality under the AMLA?
Crimes such as:
a. Kidnapping for ransom
b. Comprehensive Dangerous Drugs Act violations
c. Hijacking
d. Destructive arson and murder
e. Similar offenses punishable under the penal laws of other countries
f. Terrorism
g. Conspiracy to commit terrorism
h. Financing of terrorism
are considered under the Bank Secrecy Law for the examination of bank deposits.
Can the AMLC report covered and/or suspicious transactions to the CA?
No, the AMLC reports to the Monetary Board, not the CA, under the Bank Secrecy Law.
Are garnishments of bank deposits allowed under the Bank Secrecy Law?
Yes, garnishments of bank deposits are allowed as an incidental part of the execution process.
Can the PDIC conduct examinations of banks in cases of unsafe or unsound banking practices?
Yes, the PDIC can conduct examinations of banks to investigate unsafe or unsound banking practices.
Can an independent auditor hired by the bank to conduct its regular audit examine bank deposits?
Yes, under the Bank Secrecy Law, an independent auditor hired by the bank may examine bank deposits for audit purposes only.
Can the Monetary Board order the examination of bank deposits in cases of crime?
No, the Monetary Board cannot order examinations of bank deposits in cases of crime; only a competent court can do so.
Can the AMLC investigate crimes related to the financing of terrorism?
Yes, under the Bank Secrecy Law, the AMLC can investigate crimes related to the financing of terrorism.
Can banks disclose information about dormant deposits to the Treasurer of the Philippines?
Yes, under the Unclaimed Balances Act, banks must report dormant deposits to the Treasurer of the Philippines.
Can the PCGG examine bank deposits in cases of ill-gotten wealth accumulated by former President Marcos?
Yes, the PCGG can examine bank deposits in cases of ill-gotten wealth accumulated by former President Marcos.
Can the PDIC examine bank deposits in cases of bankruptcy?
No, under the Bank Secrecy Law, the PDIC can only inquire into bank deposits in cases of unsafe or unsound banking practices.
Can the Monetary Board issue guidelines for the examination of bank deposits?
Yes, the Monetary Board can issue guidelines for the examination of bank deposits.
Are trust accounts covered by the Bank Secrecy Law?
Yes, trust accounts are considered confidential under the Bank Secrecy Law.
Can banks disclose information about trust accounts to beneficiaries?
No, under the Bank Secrecy Law, banks cannot disclose information about trust accounts to beneficiaries.
Are investments in government bonds covered by the Bank Secrecy Law?
Yes, investments in government bonds are considered confidential under the Bank Secrecy Law.
Can banks report covered transactions to the AMLC?
Yes, under the Bank Secrecy Law, banks must report covered transactions to the AMLC.
Can the CA conduct examinations of banks in cases of terrorism?
Yes, under the Bank Secrecy Law, the CA can conduct examinations of banks in cases of terrorism.
Can the Monetary Board impose penalties on banks that fail to report covered transactions?
Yes, under the Bank Secrecy Law, the Monetary Board can impose penalties on banks that fail to report covered transactions.
Are dormant deposits subject to examination under the Unclaimed Balances Act?
Yes, under the Unclaimed Balances Act, dormant deposits are subject to examination.
Can the PDIC recover deposits in cases of bankruptcy?
No, under the Bank Secrecy Law, the PDIC can only inquire into bank deposits in cases of unsafe or unsound banking practices.
Can the Monetary Board order the examination of bank deposits in cases of crime?
No, under the Bank Secrecy Law, a competent court, not the Monetary Board, must order examinations of bank deposits in cases of crime.
Can the CA examine bank deposits in cases of bribery or dereliction of duty?
Yes, under the Bank Secrecy Law, the CA can examine bank deposits as authorized by a competent court in cases of bribery or dereliction of duty.
Can the AMLC report suspicious transactions to the Monetary Board?
Yes, under the Bank Secrecy Law, the AMLC can report suspicious transactions to the Monetary Board.
Can banks disclose information about covered transactions to the CA?
No, under the Bank Secrecy Law, banks cannot disclose information about covered transactions to the CA without first reporting them to the AMLC.
Are trust accounts covered by the Bank Secrecy Law in cases of crime?
Yes, under the Bank Secrecy Law, trust accounts are considered confidential in cases of crime.
Can the Monetary Board conduct examinations of banks in cases of terrorism?
Yes, under the Bank Secrecy Law, the Monetary Board can conduct examinations of banks in cases of terrorism.
