Bank Deposit Secrecy Law

Question 1

What are the two main purpose of the Bank Secrecy Law?

Answer 1

1. Discourage private hoarding
2. Encourage people to deposit into banks

Question 2

What is the Republic Act for Bank Secrecy Law?

Answer 2

1405

Question 3

What are the prohibited acts according to RA 1405

Answer 3

• disclosure by any official, employee, or independent auditor of any information concerning deposits other than those authorized by the bank
• examination, inquiry, or looking into of deposits by any person, official, bureau or office.

Question 4

What is the nature of all deposits?

Answer 4

Absolutely Confidential

Question 5

What types of deposits are covered by RA 1405

Answer 5

1. All deposits of whatever nature
2. Investment in Bonds issued by the Government
3. Trust Accounts

Question 6

Deposits of investment in bonds need to be issued by ____ to be covered by RA 1405

Answer 6

Government

Question 7

Exceptions of examining and disclosing deposits apply to?

Answer 7

Peso Deposits

Question 8

WIth regards to exceptions under the BSL, permissions are required to be written or oral. T or F

Answer 8

False. There must be written permission from the depositor.

Question 9

What type of cases is included among the exceptions of the prohibited acts under the BSL?

Answer 9

impeachment cases

Question 10

What are the two exceptions under BSL that need an order of a competent court before it is allowed?

Answer 10

1. Cases of bribery or abandonment of duty of public officials, including plunder
2. Cases where the money in question is the subject of litigation

Question 11

Ill-gotten wealth is an exception, however, the definition is under what republic act?

Answer 11

RA 3019, or the Anti-graft and Corrupt Practices Act

Question 12

What two kinds of exceptions can be allowed by the Commissioner of BIR?

Answer 12

1. For the computation of the net estate
2. If there is an offer of compromise tax liability by reason of financial liability

Question 13

In other exceptions, what also needs an order of competent court before it is an exception?

Answer 13

1. Cases involving ill-gotten wealth
2. In case of violation of the Anti-Money Laundering Act where there is probable cause of money laundering

Question 14

Exception: What are some instances in which violations of AMLA do not require an order from a competent court?

Answer 14

• Kidnapping for ransom
  -Comprehensive Dangerous Drugs Act
  -Hijacking
• Big Violations

Question 15

Exception: To who? What Subject is under scrutiny? and how many ears is the exception under the Unclaimed Balances Act?

Answer 15

Disclosure to the Treasurer. Dormant Deposits. At least 10 years

Question 16

What instances regarding banks reports constitute an exception?

Answer 16

reports to the anti-money laundering council of covered and/or suspicious transactions

Question 17

Exception: From order what entity and what law is the basis for the examination by law enforcement officers in terrorism case?

Answer 17

Court of Appeals; Human Security Act of 2007

Question 18

Exceptions: An examination is made in the course of a _______________and
is specifically authorized by the __________ after being satisfied that there is reasonable ground to believe that_______ has been or is
being committed and it is necessary to look into the deposit.

Answer 18

general or special examination of bank; Monetary Board; Bank Fraud or Serious Irregularity

Question 19

Exceptions: An examination is made by an ___________ hired by the bank to conduct its
_________ provided that the examination is for audit purposes only and the results
thereof shall be for the exclusive use of the bank

Answer 19

independent auditor; regular audit

Question 20

Examination by ____ who may inquire into bank deposits when there is finding of ____ _____ ____

Answer 20

PDIC; Unsafe Banking Practices

Question 21

Examination by _______ in the conduct of its investigation to recover ill-gotten wealth accumulated by _____

Answer 21

PCGG; Former president marcos

Question 22

Is there a violation of RA 1405 from garnishment?

Answer 22

No.

Question 23

What is the penalty upon the violation of RA 1405

Answer 23

May be both or either
1. Imprisonment of not more than 5 years (5 or less)
2. Fine not exceeding 20,000

Question 24

What are unclaimed balances?

Answer 24

deposits of money or indebtednes of any kind,

Question 25

What are requisites of Unclaimed Balances?

Answer 25

Deposits on a bank of a
1. Depositor believed to be dead
2. Depositor who has not made any deposit or withdrawals for 10 years or more

Question 26

What is the duty of the bank regarding Unclaimed Balances?

Answer 26

To report to the Treasurer of the Philippines, who will then inform the solicitor general of such deposits.

Question 27

What is the 5 step procedure of unclaimed balances?

Answer 27

1. A notice will be given to the depositor
2. Report to the Treasurer of the PH
3. The solicitor general will initiate the escheat
4. Publication of a list of unclaimed balance
5. Unclaimed balance will be deposited to the Treasurer of PH to give to the Government.