Bank Secrecy Law

Question 1

Purpose of Bank Secrecy

Answer 1

discourage hoarding money at home

encourage placing of bank deposit to allow money circulation in the economy

Question 2

Scope of Bank Secrecy Law

clue: deposit - TAG

Answer 2

1. Trust accounts
2. All deposits with banks or banking institutions
3. Government bonds - Investment

Question 3

Prohibited acts under Bank Secrecy Law

clue: disclosure, examination

Answer 3

1. Unlawful disclosure by any BANKS, including independent auditor, of information on deposits
2. examination and inquiry of bank deposits by ANY persons including government

Question 4

Exceptions to the Prohibitions of Bank Secrecy Law
Peso Deposit
(WO BERI)

Answer 4

1. written permission
2. Order of competent court(bri, dere, unexplained,liti), competent court or AMLC, Ombudsman, CA(terrorism)
3. BIR inquiry - gross estate tax, tax info request by foreign tax authority under treaty
4. Examination by BSP, PDIC, COA, PCGG, independent auditor
5. Reports - unclaimed balances, AMLA
6. Impeachment case - Pres, VP, SC, Ombudsman, CE, COA, CSC

Question 5

Exceptions to the Prohibitions of Bank Secrecy Law
FC Deposit
WATE

Answer 5

1. written consent
2. AMLA
3. Terrorism
4. BSP, PDIC, COA, PCGG (no independent auditor)

Question 6

Garnishment is a violation of Bank Secrecy Law

Answer 6

False

Question 7

Exceptions to Garnishment

Answer 7

1. FC deposit (except transient foreigner)

2. Rules of court

Question 8

Penalty for Violation Bank Secrecy Law

Answer 8

Penalty Peso FCDU

Imp max 5 yrs 1 - 5 yrs

Fine max 20k 5k - 25k

Question 9

Bank Secrecy Law is RA____________

Answer 9

RA 1405