Banking Laws

Question 1

RA1405, As Amended

Answer 1

Bank Secrecy Law

Question 2

2 Prohibited Acts under Bank Secrecy Law

Answer 2

1. To disclose any information concerning deposits
2. To inquire, examine or look into bank deposits or bonds issued by government

Question 3

Bank Secrecy Law Exceptions

WIObmu CARO TEA

Answer 3

1. Written Permission
2. Impeachment Cases
3. Order of Competent Court
   a. brivery or dereliction
   b. deposits are subject for litigation
   c. unexplained wealth
4. Comissoner of BIR inquiry
5. AMLC order
6. Reports to Treasurer of PH and AMLC
7. Ombudsman order
8. Terrorism Cases upon order of CA
9. Examination by: BSP, PDIC, COA PCGG
10. Auditor hired by bank tp conduct regular audit

Question 4

A legal procedure by which a creditor can collect what a debtor owes by reaching the debtor’s property when it is in the hands of someone other than the debtor.

Answer 4

Garnishment

Question 5

Is there any violation of bank secrecy law for Garnishment?

Answer 5

No. Since the amount of deposit is not actually disclosed

Question 6

PDIC ACT____

Answer 6

RA 3591 As Amended

Question 7

PDIC insured deposits not exceed to____

Answer 7

P500,000

Question 8

Examples of types of deposits covered in PDIC:

Answer 8

1. Savings deposits
2. Special Savings
3. Demand/checking account
4. Negotiable Order of Withdrawals
5. Certificate of Time Deposits
6. Foreign Currency Deposit

Question 9

PDIC - Deposits not Entitled to Payment:

SHAOUI

Answer 9

1. Splitting of deposit
   1.a broken down and transferred
   1.b 120 days prior to or during closure order
   1.c for pupose of availing maximun deponinsurance
2. Head Office’s deposit of foreign bank in its PH branch
3. AMLA - deposits thatbare unlawful defined by AMLA
4. Outside PH deposits payable
5. Unfunded, Fictitious or Fraudulent
6. Unsafe and unsound banking practices determined by PDIC
7. Invesments products like bonds and securities trust accounts and other similar instruments

Question 10

PDIC-Who are the depositor?
Accounts:
1. Juan - “BY” Pedro?
2. Juan - “ITF: Pedro?
3. Juan - “FAO” Pedro?

Answer 10

1. Juan
2. Pedro
3. Pedro

Question 11

PDIC
Notes: Joints Accounts are insured_____

Answer 11

Separately

Question 12

Period for PDIC to settle claim?

Answer 12

6 months

Question 13

Failure to settle the claim by PDIC within___is responsible to imprisonment from___to____

Answer 13

6 months; 6mos to 1 year

Question 14

T or F?
1. Trust Accounts are covered by bank secrecy laws

2. Invesetments in government bonds are covered by bank secrecy law?

Answer 14

T
T

Question 15

Stages of Money Laudering:

Answer 15

1. Placement - insertion of dirty money
2. Layering - sending money thru other banks
3. Integration - the money re-enters mainstream economy it legitimate looking

Question 16

AMLA - RA___, as amended by RA___

Answer 16

9160, 9194

Question 17

AMLC is composed of:

Answer 17

1. Chairman: BSP Governor
2. Members:
   a. Comissioner of Insurance Comission
   b. Chairman of SEC

Question 18

AMLA Covered transactions:

Other Entities: total amount in excess of_____within one banking day

Casinos: in excess of____

Real State Developers/Brokers:
In excess of______

Answer 18

1. 500K
2. 5M
3. 7.5M

Question 19

AMLA - Wheter covered transaction or suspicious transaction, covered entities need only to prepare a_______ report

Answer 19

Suspicious Transaction

Question 20

Foreign Currency deposits are generally exempt from garnishment

Answer 20

True

Question 21

Which of the following may be conaidered as an insured deposit?

I. Savings deposit
II. Certificates of Deposit
III. Foreign Currency Deposit

Answer 21

All

Question 22

AMLA covered institutions shall report to the ALMC all covered transactions within____

Answer 22

5 working days from occurence thereof

Question 23

Lawyers and Accountants are covered by AMLA?

Answer 23

No