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RFBT (Oct 2023 CPALE) > Banking Laws > Flashcards

Banking Laws Flashcards

1
Q

Which of the following is not a prohibited act under Secrecy of Bank Deposits?

a. Examination of bonds issued by the government by A, a third person

b. Disclosure of J, employee of Metrobank, information regarding K’s deposits

c. Disclosure of L, employee of Security Bank, information regarding M’s (depositor) peso deposits, in which M gave a written permission

d. None of the choices

A

c.

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1
Q

J had an account with Cathay United Bank - Manila in the amount of P350,000 and an an account with the same bank in Taiwan amounting to P200,000. J deposited P80,000 each to both banks. Which of the following deposits are protected under RA 1405?

A

Manila branch only.

The covered deposits under Secrecy of Bank Deposits only covers all deposits in banks in the Philippines.

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2
Q

Which of the following is covered under RA 1405?

a. All deposits of J with Maybank Philippines

b. Trust Accounts

c. Investment in bonds issued by Philippine government

d. All of the choices

A

d.

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3
Q

The following requires order of a competent court as an exception for the prohibition of examination/inspection/inquiry of peso deposits. Which is the exception to the exception?

a. Bribery committed by A, a government officer

b. Determination of net estate by BIR Commissioner

c. Unexplained wealth under RA 3019

d. Choices a and c

A

b.

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4
Q

The following are exceptions for Foreign Currency Deposits under RA 1405 except for one:

a. There is written consent
b. Examination by COA
c. Existence of probable cause in anti-terrorism
d. Persons charged with the crime of arson

A

d.

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5
Q

True or false: there is violation of the bank secrecy law if garnishment is exercised by the creditor of the depositor

A

False.

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6
Q

Which of the following deposits are not exempt from garnishment?

a. Foreign currency deposits
b. Civil forfeiture suit
c. Deposits which are exempt under the rules of court
d. Choices a and c

A

b.

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7
Q

The penalty for violating the bank secrecy law, leading to imprisonment of 1-5 years and/or a fine of P5,000 - P25,000 is for what kind of deposit?

A

Foreign currency deposit

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8
Q

For peso deposits, what are the penalties involved if the bank secrecy law is violated?

A

Fine: Not to exceed P20,000
Imprisonment: Not to exceed 5 years

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9
Q

Under the PDIC Act, how much is the maximum insured deposit?

A

P500,000

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10
Q

The amount of coverage may be increased in the following circumstances:

A
  1. Conditions arise that threatens the monetary and financial stability of the banking system
  2. Approval by:
    • Unanimous vote of BOD of PDIC
    • President of PH
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10
Q

The amount of coverage may be increased in the following circumstances:

A
  1. Conditions arise that threatens the monetary and financial stability of the banking system
  2. Approval by:
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11
Q

Coverage of PDIC Act

A
  1. Deposit liabilities of any bank/banking institution
  2. Businesses which may engage in the business of receiving deposits
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12
Q

If J has an account for BDO - Agoo, La Union, BDO - Baguio City, and BPI - Manila, and the amounts in the accounts are P400,000, P200,000, and P300,000, how much of the accounts are insured?

A

P800,000.

BDO - Agoo P400,000
BDO - Baguio P100,000 (max. P500k per bank, regardless of bank location)
BPI - Manila P300,000

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13
Q

What are the penalties for violation of the Bank Secrecy Law (RA 1405) if it involves Peso Deposits?

A

Imprisonment: not to exceed 5 yrs.

Fine: Not to exceed P20,000

HINT: Peso deposits: “do not exceed” is the penalty

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14
Q

What are the penalties for violation of the Bank Secrecy Law (RA 1405) if it involves Foreign Currency Deposits?

A

Imprisonment: 1-5 yrs.

Fine: P5,000 - P25,000

HINT: Foreign Currency has a range.

15
Q

How much is the insured deposit under the PDIC Law?

A

Up to P500,000.

16
Q

Coverage of PDIC:

A

1.Deposit liabilities of any bank/banking institution engaged in business of receiving deposits; or

  1. Those which thereafter may engage in such business as in #1
17
Q

The following items are not entitled to payment of insurance from PDIC, except:

a. Deposit accounts that are unfunded and fictitious/fraudulent
b. Deposits determined to be from unlawful activity as defined under AMLA
c. Deposit products that resulted from splitting of deposit
d. Deposit account in a local bank, funded.

A

d.

18
Q

How much is the amount due to H when Eastwest Bank and Metrobank (in which H has an account in these banks amounting to P700,000 and P350,000, respectively) closed down?

A

Eastwest: P500,000 (maximum)

Metrobank: P350,000

19
Q

Erica has two bank accounts in BPI, namely:

BPI - Baguio: P200,000
BPI - Manila: P400,000

How much can Erica collect from BPI?

A

P0.

BPI will NOT pay Erica; the PDIC will. If the question pertains to PDIC, the answer would be P500,000.

20
Q

The following are some “bank accounts” held by Emma in BDO:

Emma Orteza by Konrad Uychoco = P400,000

Emma Orteza ITF Fred Marquez = P300,000

Emma Orteza FAO Janine Besitan = P200,000

How much are the insured deposits of Emma?

A

P400,000

“In Trust For (ITF)” account and “For the Account of (FAO)” account belongs to Fred and Janine, respectively, and shall not form part of Emma’s account.

21
Q

The following are the bank accounts held by J:

Savings account = P100,000
For the account of L = P200,000
J, K, and M = P600,000
J and M&M Corp. = P200,000

How much are the insured deposits?

A

P300,000

Savings account P100,000
+ J, K, and M (P600,000/3) P200,000 = P300,000

1) For account of L belongs to L, not J
2) For J, K, and M, if held jointly by 2 or more natural persons or by two or more juridical entities, the maximum insured deposit shall be divided into as many equal shares as there are individuals, juridical persons, or entities

3) J and M&M Corp. account: If held by a juridical person or entity jointly with one or more natural persons, max. insured deposit shall be presumed to belong entirely to such juridical person/entity

22
Q

True or false: The P500,000 entitlement to joint deposits is separate from the P500,000 applicable to the individually-owned accounts by the depositor, giving him a maximum of P500,000 insurance coverage.

A

False.

It should be a maximum of P1,000,000 insurance coverage.

23
Q

When shall PDIC commence determination of insured deposits due to depositors of a closed bank?

A

Upon actual takeover of closed bank

24
Q

When shall the PDIC publish the notice to the depositors of the closed bank their insured deposits due?

A

1) Once a week, for at least 3 consecutive weeks in a newspaper of general circulation; or

2) In a newspaper circulated in the community/ies where closed bank or its branches are located.

25
Q

This is a crime committed by any person knowing that any monetary instrument or property represents, involves or relates to, the proceeds of an unlawful activity.

a. Money laundry
b. Money laundering
c. Laundry moneying
d. Laundrying money

A

b.

26
Q

A transaction in cash or other equivalent monetary instrument involving a total amount in excess of P500,000 within 1 banking day

A

Covered transaction

27
Q

For casinos, what is the amount of cash transaction required to be classified as a covered transaction?

A

In excess of P5,000,000

28
Q

C, a jeepney driver in Manila, deposited P400,000 to Metrobank. In this case, can C be reported?

A

Yes. This is a suspicious transaction, as this is not consistent to his earnings as a Jeepney driver, regardless of whether it exceeds P500,000 or not

29
Q
A

RFBT (Oct 2023 CPALE) (13 decks)

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