Bank Deposit Secrecy Law Flashcards
What are the two main purpose of the Bank Secrecy Law?
- Discourage private hoarding
- Encourage people to deposit into banks
What is the Republic Act for Bank Secrecy Law?
1405
What are the prohibited acts according to RA 1405
- 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.
What is the nature of all deposits?
Absolutely Confidential
What types of deposits are covered by RA 1405
- All deposits of whatever nature
- Investment in Bonds issued by the Government
- Trust Accounts
Deposits of investment in bonds need to be issued by ____ to be covered by RA 1405
Government
Exceptions of examining and disclosing deposits apply to?
Peso Deposits
WIth regards to exceptions under the BSL, permissions are required to be written or oral. T or F
False. There must be written permission from the depositor.
What type of cases is included among the exceptions of the prohibited acts under the BSL?
impeachment cases
What are the two exceptions under BSL that need an order of a competent court before it is allowed?
- Cases of bribery or abandonment of duty of public officials, including plunder
- Cases where the money in question is the subject of litigation
Ill-gotten wealth is an exception, however, the definition is under what republic act?
RA 3019, or the Anti-graft and Corrupt Practices Act
What two kinds of exceptions can be allowed by the Commissioner of BIR?
- For the computation of the net estate
- If there is an offer of compromise tax liability by reason of financial liability
In other exceptions, what also needs an order of competent court before it is an exception?
- Cases involving ill-gotten wealth
- In case of violation of the Anti-Money Laundering Act where there is probable cause of money laundering
Exception: What are some instances in which violations of AMLA do not require an order from a competent court?
- Kidnapping for ransom
-Comprehensive Dangerous Drugs Act
-Hijacking - Big Violations
Exception: To who? What Subject is under scrutiny? and how many ears is the exception under the Unclaimed Balances Act?
Disclosure to the Treasurer. Dormant Deposits. At least 10 years
What instances regarding banks reports constitute an exception?
reports to the anti-money laundering council of covered and/or suspicious transactions
Exception: From order what entity and what law is the basis for the examination by law enforcement officers in terrorism case?
Court of Appeals; Human Security Act of 2007
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.
general or special examination of bank; Monetary Board; Bank Fraud or Serious Irregularity
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
independent auditor; regular audit
Examination by ____ who may inquire into bank deposits when there is finding of ____ _____ ____
PDIC; Unsafe Banking Practices
Examination by _______ in the conduct of its investigation to recover ill-gotten wealth accumulated by _____
PCGG; Former president marcos
Is there a violation of RA 1405 from garnishment?
No.
What is the penalty upon the violation of RA 1405
May be both or either
1. Imprisonment of not more than 5 years (5 or less)
2. Fine not exceeding 20,000
What are unclaimed balances?
deposits of money or indebtednes of any kind,
What are requisites of Unclaimed Balances?
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
What is the duty of the bank regarding Unclaimed Balances?
To report to the Treasurer of the Philippines, who will then inform the solicitor general of such deposits.
What is the 5 step procedure of unclaimed balances?
- A notice will be given to the depositor
- Report to the Treasurer of the PH
- The solicitor general will initiate the escheat
- Publication of a list of unclaimed balance
- Unclaimed balance will be deposited to the Treasurer of PH to give to the Government.
