Banking Laws (MCQ) Flashcards
XYZ Corporation obtained a loan from ABC Bank secured by a real estate mortgage on its land. XYZ Corporation defaulted payment , and so the mortgage was foreclosed and the land was sold at public auction. The redemption period of XYZ Corporation is:
a. Within three (3) months from the date of the auction sale.
b. Within one (1) year from the date of the auction sale.
c. Until the registration of the certificate of foreclosure sale with the Register of Deeds, but in no case exceeding three (3) months.
d. Until the registration of the certificate
b. Within one (1) year from the date of the auction sale.
BCD Banking Corporation was able to acquire a house and lot that was mortgaged to it in good faith by way of security for a loan. As a general rule, the bank is required by law to dispose the real property within period of:
a. Six(6) months
b. One(1) year
c. Five (5) years
d. Ten (10) years
c. Five (5) years
Under R.A. No 1405, otherwise known as the Bank Secrecy Law, which of the following acts of a bank official is covered by the Bank Secrecy Law?
a. Disclosing the amount of deposit of a judgment debtor to the court sheriff who is executing a garnishment order against him.
b. Disclosing the name of the drawer of a check to the payee.
c. Disclosing the amount of deposit of a taxpayer to a duty authorized BIR officer who is examining his income tax liability.
d. Disclosing the amount of deposit exceeding P500,000 in one (1) banking day to the Anti-Money Laundering Council.
c. Disclosing the amount of deposit of a taxpayer to a duty authorized BIR officer who is examining his income tax liability.
X, a government employee, purchased Land Bank bonds with a total value of P1,000,000 and receives bi-annual interest income from his investment. Under the Bank Secrecy Law , X’s investment may be inquired into without need of a court order by the:
a. Public Prosecutor handling an estafa case against X.
b. BIR officer auditing the value-added taxes of X.
c. Credit investigator of a lending institution where X applied for a loan.
d. None of the foregoing.
d. None of the foregoing.
X maintained the following deposit at CDP Bank:
P600,000 – saving deposit in the name of “X and /Y”
200,000 – time deposit in the name of “XYZ Partnership”
300,000 – current account in the name of “X”
ABC Bank was liquidated by the Bangko Sentral ng Pilipinas due to financial reverses.
How much can X personally recover from the Philippine Deposit Insurance Corporation (PDIC)?
a. P900,000
b. 600,000
c. 500,000
d. 300,000
c. 500,000
R.A. Act No. 3765, otherwise known as the Truth in Lending Act, applies to:
a. Pawnshops
b. Small-loan money lenders
c. Both (a) and (b)
d. Neither (a)nor (b)
c. Both (a) and (b)
Under R.A. No. 6426, otherwise known as the Foreign Currency Deposit Act, which of the following statements relative foreign currency deposits is false?
a. The foreign currency deposits maintained abroad by Filipino citizens are not covered by the provisions of the Act.
b. Depositary banks which have been qualified by the Monetary Board to function under the expanded foreign currency deposit system are exempt in maintaining the fifteen percent (15%) foreign currency for their liabilities in the form of foreign currency deposit with the Bangko Sentral.
c. Foreign currency deposits are of absolutely confidential nature, except upon the written permission of the depositor.
d. Foreign currency deposits are subject to attachment, garnishment or any other order or process of the court.
d. Foreign currency deposits are subject to attachment, garnishment or any other order or process of the court.
What is the primary purpose of the Anti-Money Laundering Act of 2001 (Republic Act
No. 9160)?
(a) To regulate the banking industry
(b) To prevent money laundering activities
(c) To increase government revenue
(d) To promote economic growth
(b) To prevent money laundering activities
Which of the following is NOT considered a covered transaction under the Anti-
Money Laundering Act?
(a) Transactions between a bank and a properly identified client
(b) Transactions exceeding Php 4,000,000
(c) Unusually large and complex transactions
(d) Transactions with an underlying trade obligation
(d) Transactions with an underlying trade obligation
Which entity is responsible for supervising insurance companies in the Philippines?
(a) The Central Bank
(b) The Department of Finance
(c) The Insurance Commission
(d) The Securities and Exchange Commission
(c) The Insurance Commission
What type of entity is considered a ‘covered institution’ under the Anti-Money
Laundering Act?
(a) Only banks
(b) Banks, insurance companies, and securities dealers
(c) Only government offices
(d) Only foreign exchange corporations
(b) Banks, insurance companies, and securities dealers
What is the minimum capital requirement for establishing a joint stock insurance
company performing life insurance business under the Insurance Law?
(a) PHP 500,000
(b) PHP 1,000,000
(c) PHP 2,000,000
(d) PHP 10,000,000
(b) PHP 1,000,000
In the context of the Anti-Money Laundering Act, what is the definition of ‘unlawful
activity’?
(a) Any activity involving illegal gambling
(b) Any activity involving fraud or deception
(c) Any act that involves illegal activities such as corruption, kidnapping, and smuggling
(d) Any activity that generates income without proper documentation
(c) Any act that involves illegal activities such as corruption, kidnapping, and smuggling
What is the required minimum equity capital for a mutual insurance company under
the Insurance Law?
(a) PHP 100,000
(b) PHP 250,000
(c) PHP 500,000
(d) It varies depending on the class of business
(d) It varies depending on the class of business
Under the Bank Secrecy Act, which of the following is a condition for the release of
information on bank deposits?
(a) The depositor’s written permission
(b) Approval from a government agency
(c) A warrant issued by a judge
(d) The depositor’s verbal consent
(a) The depositor’s written permission
Under the Anti-Money Laundering Act, which government entity is tasked with investigating and prosecuting money laundering offenses?
(a) The Securities and Exchange Commission
(b) The Anti-Money Laundering Council
(c) The National Bureau of Investigation
(d) The Department of Justice
(b) The Anti-Money Laundering Council
Which of the following is an example of an unlawful activity under the Anti-Money
Laundering Act?
(a) Tax evasion
(b) Money laundering through illegal gambling
(c) Bank fraud
(d) All of the above
(d) All of the above
What is the legal definition of ‘reinsurance business’ under the Insurance Law?
(a) Insuring the same risks as another company
(b) Transferring risk to another insurer
(c) Selling insurance policies to third parties
(d) Adjusting claims for insurance companies
(b) Transferring risk to another insurer
What is required for a mutual insurance company with limited contributions to settle
uncovered damage?
(a) Requesting additional contributions equal to members’ original contributions
(b) Using reserves from the government
(c) Reinsuring the risk
(d) Imposing higher premiums on members
(a) Requesting additional contributions equal to members’ original contributions
What is the definition of ‘covered transaction’ under the Anti-Money Laundering Act?
(a) A transaction involving amounts over Php 4,000,000
(b) A transaction that is public
(c) A transaction between two government entities
(d) A transaction between two parties without documentation
(a) A transaction involving amounts over Php 4,000,000
Under the Insurance Law, which of the following is classified as a life insurance
business?
(a) Crop insurance
(b) Health insurance
(c) Old-age pension insurance
(d) General liability insurance
(c) Old-age pension insurance
The stage in the money laundering process where funds are being constantly moved or recharacterized to conceal their origins. This stage is known as:
a. Placement
b. Layering
c. Integration
d. None of the foregoing
b. Layering
At which of the three stages of money laundering is it generally easiest to detect money laundering activity?
a. Placement
b. Layering
c. Integration
d. None of the foregoing
a. Placement
An accountant goes to a casino in Manila with illegal money and converts it into chips. He
later emerges with a large amount of winnings. This placement technique is known as:
a. Assets conversion
b. Insurance purchase
c. Alternative remittance
d. Gambling
d. Gambling
A Thailand-based smuggling group sets up a company and transfers the title of an office
building to this company. A related offshore company buys the office building for a
substantial premium. The sales price is recorded as return of investment plus profit. This integration technique is known as using:
a. Credit and debit cards
b. Corporate financing
c. Asset sales and purchases
d. Consultants
c. Asset sales and purchases
A foreigner makes a down payment in cash to purchase an apartment in Quezon City. The
rest of the payment is made through financing arranged by his offshore company. This
placement technique is known as:
a. Assets conversion
b. Insurance purchase
c. Alternative remittance
d. Gambling
a. Assets conversion
Harvey deposits her illegal funds into her lawyer’s trust account. The lawyer then acts as an intermediary transferring the funds into several accounts opened for a shell corporation to assist Harvey in hiding the funds. This is known as:
a. Placement
b. Layering
c. Integration
d. None of the foregoing
b. Layering
Statement I: Money launderers are generally criminals trying to hide money from the drug
trade
Statement II: Trusts are legal arrangements for holding funds or assets for a specified
purpose. These funds or assets are managed by a trustee for the benefit of a specified
beneficiary or beneficiaries. Trusts can act as a layering tool because they enable creation of
false paper trails and transactions
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
b. Only Statement II is true
At the integration stage illegal money is:
a. Difficult to trace
b. Fairly easy to trace
c. Cannot be trace
d. None of the foregoing
a. Difficult to trace
Which of the following statement is correct about Integration:
a. Cannot happen without layering
b. Can occur without layering
c. Cannot happen without placement
d. Can occur without placement
b. Can occur without layering
It refers to the normal level of customer due diligence that is appropriate in cases where there is medium risk of money laundering or terrorism financing.
a. Customer Due Diligence
b. Average Due Diligence
c. Reasonable Due Diligence
d. Enhanced Due Diligence
b
It refers to a provisional remedy aimed at preserving monetary instruments or properties in any way related to an unlawful activity or money laundering offense defined herein, during the pendency of civil forfeiture proceedings.
a. Interlocutory Order
b. Freeze Order
c. Asset Preservation Order
d. Executive Order
c
Under the AMLA, “Identification Document” (ID) refers to any of the following evidence of
identity of Filipino students, except:
a. PhilID
b. School ID signed by the school principal or head of the educational institution
c. Passport
d. Birth Certificate issued by the Philippine Statistics Authority
c
Under the AMLA, “Beneficial Owner” refers to any natural person who:
a. Ultimately owns or controls the customer and/or on whose behalf a transaction or
activity is being conducted
b. Has ultimate effective control over a juridical person or legal arrangement
c. Owns, at least, twenty percent (20%) shares, contributions or equity interest in a
juridical person or legal arrangement
d. All of the foregoing
d
The Anti-Money Laundering Law is a law that seeks to prevent money laundering activities
by providing for more transparency in the Philippine Financial System, hence the following institutions are covered by the law, except:
a. bank and any financial institutions
b. pawnshops
c. casino operators
d. None of the foregoing
d
Under the Anti-Money Laundering Law, a covered institution is required to maintain a
system of verifying the true identity of their clients as well as persons purporting to act on
behalf of
a. those doing business with such clients.
b. unknown principals.
c. the covered institution.
d. such clients.
d
Under the AMLA, “Covered Transaction” refers to:
a. A transaction in cash or other equivalent monetary instrument exceeding One Million
pesos (PHP1,000,000.00)
b. A transaction with or involving jewelry dealers, dealers in precious metals and
dealers in precious stones in cash or other equivalent monetary instrument
exceeding One Million pesos (Php1,000,000.00)
c. A casino cash transaction exceeding One Million Pesos (PHP1,000,000.00) or its equivalent in other currency
d. None of the foregoing
b
Money laundering is a crime committed by any person who knowing that any instrument or
property represents, involves, or relates to the proceeds of any unlawful activity. Except:
a. transacts said monetary instrument or property;
b. converts or transfers, disposes of, moves, acquires, possess or uses said monetary
instrument or property;
c. conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument;
d. None of the foregoing
d
The following are policies of the AMLA, except:
a. to protect and preserve the integrity and confidentiality of bank accounts
b. to ensure that the Philippines shall not be used as money laundering site for the
proceeds of any unlawful activity
c. to prevent money-laundering activities by providing more transparency in the
Philippine financial system
d. to generate foreign investors in investing in the Philippines
d
It is a transaction in cash or other equivalent monetary instrument involving a total amount
in excess of P500,000.00 within one (1) banking day.
a. covered transaction
b. covered persons
c. suspicious transactions
d. unlawful activity
a
The following are covered persons, except:
a. banks supervised or regulated by BSP
b. insurance companies regulated by the Insurance Commission
c. casinos regulated by PAGCOR
d. None of the foregoing
a
Statement I: Covered institutions must record the true identity of its clients and all persons
purporting to act on their behalf based on official documents, and keep a system of verifying their true identity as a system of verifying their legal existence and organizational structure.
Statement II: Peso and foreign currency non-checking numbered accounts shall be allowed.
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
c
Under the AMLA, All records of all transactions of covered institutions shall be maintained
and safely stored for ___ year(s) from the date of transactions.
a. 1
b. 2
c. 3
d. 5
d
The following are obligations of a covered institution, except:
a. Arms-length rule
b. Customer identification
c. Record keeping
d. Reporting of covered and suspicious transactions
a
Under the AMLA, With respect to closed accounts, the records on customer identification, account files and business correspondences, shall be preserved and safely stored for at least ___ years from the date when they were closed.
a. 2
b. 3
c. 5
d. 6
c
The following are Unlawful activities under the AMLA, except:
a. Kidnapping for ransom under Article 267 of Revised Penal Code (RPC);
b. Sections in RA 9165 or Comprehensive Dangerous Drugs Act of 2002;
c. Espionage under the RPC
d. Plunder under RA 7080;
c
Suspicious transactions with covered institutions, regardless of the amount involved, where any of the following circumstances exist are considered unlawful: except:
a. There is no underlying legal or trade obligation, purpose or economic justification;
b. The client is not popularly known;
c. The amount involved is not commensurate with the business or financial capacity of
the client;
d. Taking into account all known circumstances, it may be perceived that the client’s
transaction is structured in order to avoid being the subject of reporting requirements
b
Statement I: Lawyers and accountants acting as independent legal professionals are required to report covered and suspicious transactions if the relevant information was obtained in circumstances in their professional capacity.
Statement II: Covered persons and their officers and employees are prohibited from
communicating directly or indirectly, in any manner or by any means, to any person or entity or the media the fact that a covered or suspicious transaction has been reported or is about to be reported, the contents of the report or any other information relating thereto.
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
b
The following are predicate crimes under the AMLA, except;
a. Jueteng and Masiao punished as illegal gambling under PD 1602;
b. Malicious mischief in open seas under RPC;
c. Qualified theft under Art. 310 of RPC;
d. Smuggling under RA Nos. 455 and 1937;
b
If AMLA violation is committed by public officers and private persons in conspiracy with the former, jurisdiction shall be vested in
a. Sandiganbayan
b. Ombudsman
c. Regional Trial Court
d. Department of Justice
a
The following are unlawful activities under the AMLA, except:
a. Violation of Section 6 of RA 8042 or the Migrant Workers and Overseas Filipino Act of
1995, as amended by RA 10022;
b. Violation of RA 8293 or the Intellectual Property Code of the Philippines;
c. Violation of the Trust Receipt Law;
d. Violations of PD 1612 or the Anti-Fencing Law
c
It shall refer to accounts, the funds and sources of which originated from and/or are
materially linked to the monetary instrument(s) or property(ies) subject of the freeze order in AMLA.
a. Splitting of Account
b. Related interest
c. Related Accounts
d. Substitute Account
c
Tax evasion is now a predicated offense under the AMLA, where the deficiency basic tax due
in the final assessment for each tax type per taxable year are
a. in excess of Seven million five hundred thousand pesos (P7,500,000)
b. in excess of Ten million pesos (P10,000,000)
c. in excess of Twenty-five million pesos (P25,000,000)
d. in excess of fifty million pesos (P50,000,000)
c
When the transaction is both covered and suspicious transaction, covered person will
a. report this as covered transaction
b. report this as suspicious transaction
c. report this as partly covered and partly suspicious transaction
d. not report because this is ambiguous transaction.
b
Which of the following does not belong to the group of a covered person under the Anti-
Money Laundering Act?
a. Pre-need companies
b. Holding companies
c. Insurance brokers
d. Pawnshops
d
Statement I: To be considered Suspicious transactions, the threshold amount is irrelevant as long as any of the circumstances mentioned by law are present.
Statement II: When the transactions involved an amount in excess of P500,000 for bank
transaction this is automatically reported as covered transaction even when the client is not
properly identified.
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
d
It is the final stage of the money laundering at which the ‘laundered’ property is reintroduced
into the legitimate economy?
a. Placement stage
b. Integration stage
c. Layering stage
d. None of the foregoing
b
It states that no administrative, criminal or civil proceedings shall lie against any person for
having made a covered transaction or suspicious transaction report in the regular
performance of his duties and in good faith, whether or not such reporting results in any
criminal prosecution under the AMLA or any other Philippine law.
a. Confidentiality of Reporting
b. Enhanced Due Diligence
c. Transaction Reporting
d. Safe Harbor Provision
d
When the transaction is determined to be both a covered transaction and a suspicious
transaction, the covered person shall be required to report the same as
a. Covered transaction
b. Suspicious transaction
c. Mixed transactions
d. Not be reported because the transaction is ambiguous transaction.
b
Anti-Money Laundering Law as amended is a law that seeks to prevent money laundering
activities by providing for more transparency in the Philippine Financial System, hence the
following institutions are covered by the law, except:
a. bank and any financial institutions
b. Pawnshops
c. casino operators
d. Dealer of antique
d
The maximum period of freeze order issued by the court of appeal is?
a. 20 days
b. 30 days
c. 3 months
d. 6 months
d
The following belong to the declared policy of the state with regard the promulgation of the
Anti-Money Laundering Act or Republic Act No. 9160 as amended, except:
a. to protect and preserve the integrity and confidentiality of bank accounts
b. to ensure that the Philippines shall not be used as a money laundering site for the
proceeds of any unlawful activity
c. to develop educational programs, including awareness campaign on the pernicious effects, the methods and techniques used, and the viable means of preventing money laundering and the effective ways of prosecuting and punishing offenders
d. to extend cooperation in transnational investigations and prosecutions of persons
involved in money laundering activities wherever committed
c
With respect to “payable-through accounts,” covered persons are required to satisfy
themselves that the respondent bank:
a. Has performed customer due diligence obligations on its customers that have direct
access to the accounts of the correspondent bank
b. Is able to provide relevant customer due diligence information upon request to the
correspondent bank
c. Both A and B
d. Neither A nor B
c
Statement I: Covered persons are allowed from entering into, or continuing, correspondent banking relationships with shell banks and should have measures to satisfy themselves that respondent financial institutions do not permit their accounts to be used by shell banks.
Statement II: A covered person shall always apply enhanced due diligence on both the entity and its beneficial owners when dealing with a shell company.
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
b
The following accounts shall be prohibited and may be the subject of the Supervising
Authorities’ annual testing for the sole purpose of determining the existence and true identity
of their owners:
a. Anonymous Accounts and Accounts under Fictitious Names.
b. Numbered Accounts
c. Both A and B
d. Neither A nor B
c
Under the AMLA, those not exceeding the threshold amount to be determined by the BSP or its equivalent in foreign currency, they shall include accurate and meaningful originator and beneficiary information. The following information shall remain with the transfer or related message through the payment chain, except:
a. the name of the originator
b. the name of the beneficiary
c. the TIN number of the originator
d. an account number of the originator and beneficiary, or in its absence, a unique
transaction reference number
c
Covered persons shall develop clear, written and graduated customer acceptance policies and procedures including a set of criteria for customers that are likely to pose low, normal or high risk to their operations. The criteria may include the following, except:
a. the nature of the service or product to be availed of by the customers
b. the purpose of the account or transaction
c. the fact that a customer came from a low risk jurisdiction
d. the existence of suspicious transaction indicators
c
Covered persons shall apply enhanced due diligence on the customer if it acquires
information in the course of its customer account or transaction monitoring that:
a. Raises doubt as to the accuracy of any information or document provided or the
ownership of the entity
b. Justifies reclassification of the customer from low or normal risk to high risk pursuant
to Implementing Rules and Regulations
c. Indicates that any of the circumstances for the filing of a Suspicious Transaction
Report exists
d. All of the foregoing
d
The Philippine Deposit Insurance Corporation (PDIC) has the following roles except:
a. Deposit Insurance
b. Co-regulator of Banks
c. Arbiter of conflict between depositor(s) and closed banks
d. Liquidator of closed banks
c
For suspicious transactions, “occurrence” refers to:
a. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding ten (10) calendar days from the date of transaction.
b. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding fifteen (15) calendar days from the date of transaction.
c. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding five (5) calendar days from the date of transaction.
d. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding thirty (30) calendar days from the date of transaction.
a
Statement I: Covered institutions must record the true identity of its clients and all persons
purporting to act on their behalf based on official documents, and keep a system of verifying their true identity as a system of verifying their legal existence and organizational structure.
Statement II: Peso and foreign currency non-checking numbered accounts shall be allowed.
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
c
It refers to an order issued by the Monetary Board of the BSP, based on the bank
examination report submitted by the Corporation, after due notice and hearing, and after finding the said report meritorious by the Monetary Board, prohibiting a bank, its directors, officers, employees, and/or agents concerned, from performing and continuing to perform certain acts, concerning the bank’s deposit operations that is determined to be unsafe and unsound banking by the Corporation.
a. Monetary Board Circular
b. Cease and Desist Order
c. Interlocutory Order
d. Executive Order
b
Legal devices can be used to set up an entity to segregate assets or funds managed by an
individual or institution for the benefit of a specified beneficiary. The deed establishing the entity does not necessarily name the beneficiary but this person can control the entity’s assets and funds. Such entities are called:
a. Offshore banks
b. Trusts
c. Shell companies
d. Front companies
b
Under the PDIC law, the following are composition of Deposit Insurance Fund (DIF), except:
a. The Permanent Insurance Fund, which is the total capital provided by the NG
(National Government)
b. Assessment Collections, net of the expenses and charges
c. Revaluation surplus
d. Reserves for insurance and financial assistance losses
c
The PDIC shall not pay deposit insurance for the following accounts or transactions, except:
a. Investment products such as bonds and securities, trust accounts, and other similar
instruments which do not fall under the definition of a Deposit.
b. Deposit accounts or transactions which are fictitious or fraudulent, as determined by
the Corporation
c. Deposit accounts or transactions constituting unsafe and unsound banking, as
determined by the Corporation, in consultation with the BSP, after due notice and
hearing, and publication of a directive to cease and desist issued by the BSP against
such deposit accounts, transactions or unsafe and unsound banking.
d. None of the foregoing
d
The following are the composition of the board of directors of the Philippine Deposit
Insurance Corporation (PDIC), except:
a. Secretary of Finance
b. Chairperson of Securities and Exchange Commission (SEC)
c. President of the PDIC, who shall be appointed by the President of the Philippines
d. Governor of the BSP
b
Statement I – The PDIC shall insure deposits of all banks and investment houses.
Statement II – the PDIC shall promote and safeguard the interests of the depositing public by providing insurance coverage on all insured deposits and helping maintain a sound and stable banking system.
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
b
The following are the qualifications of the board of directors of the PDIC, except:
a. Good moral character
b. Unquestionable integrity and responsibility
c. At least 45 years old
d. Recognized competence in economics, banking and finance, law, management
administration or insurance
c
Which of the following is NOT a function of the PDIC?
a. Insurance
b. Bank examination
c. Corporate rehabilitation
d. Receivership of closed banks
c
Statement I – A joint account regardless of the whether the conjunction “and”, “or”, “and/or”
is used shall be insured separately from any individually-owned deposit account.
Statement II – The aggregate of the interest of each co-owner over several joint accounts
whether owned by the same or different combinations of individuals, juridical persons or entities, shall likewise be subject to the maximum insured deposit of P500,000
a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false
c
Under the PDIC Law, the following are classification of deposit insurance by account, except:
a. Single account
b. Joint account
c. Negotiable order of withdrawal (NOW) account
d. Account “by”, “In trust for” or “for the account of” another person
c
The following are requirements for claiming the insured deposits under the PDIC law, except:
a. Original evidence of deposits such as savings passbook, certificate of time deposit,
bank statement, used or unused checks, or ATM card
b. One (1) valid original photo-bearing identification document (ID) with clear signature of depositor/claimant
c. Original copy of a notarized General Power of Attorney (GPA) for claimants who
are not the signatories in the bank records.
d. For depositors below eighteen (18) years old, photocopy of birth certificate from the
Philippine Statistics Authority (PSA) or a duly certified copy issued by the local civil
registrar, and valid ID of the parent
c
Under R.A. 10846 (Amendments to PDIC law), all payments by the Corporation of insured
deposits in closed banks partake of the nature of public funds, and as such, must be
considered a/an:
a. Deferred credit
b. Preferred credit
c. Uninsured account
d. Equitable mortgage
b
PDIC covers only the risk of a –
a. bank losses due to theft
b. bank closure ordered by the Monetary Board
c. bank losses due to fire, closure by reason of strike
d. banks losses due to existence of public disorder, revolution or civil war
b
The insurance premium assessed against the bank under the PDIC law is:
a. 1/5 of 1% per annum of the assessment base of the bank
b. 1/5 of 2% per annum of the assessment base of the bank
c. 1/4 of 1% per annum of the assessment base of the bank
d. 1/4 of 2% per annum of the assessment base of the bank
a
The depositor of the closed insured bank has ____________ to file his deposit insurance claim.
a. 6 months from date of bank takeover
b. 9 months from date of bank takeover
c. 12 months from date of bank takeover
d. 24 months from date of bank takeover
d
The depositor account per bank record shows “Juan Dela Cruz for the account of Maria Dela
Cruz”. Who is the depositor in this case?
a. Juan Dela Cruz
b. Maria Dela Cruz
c. Both Juan Dela Cruz and Maria Dela Cruz equally
d. Neither A nor B, because it is not allowed by law
b
The depositor account per bank record shows “Juan Dela Cruz in trust for Maria Dela Cruz”.
Who is the depositor in this case?
a. Juan Dela Cruz
b. Maria Dela Cruz
c. Both Juan Dela Cruz and Maria Dela Cruz equally
d. Neither A nor B, because it is not allowed by law
b
The depositor account per bank record shows “Juan Dela Cruz by Maria Dela Cruz”. Who is
the depositor in this case?
a. Juan Dela Cruz
b. Maria Dela Cruz
c. Both Juan Dela Cruz and Maria Dela Cruz equally
d. Neither A nor B, because it is not allowed by law
a
The following are not covered by insurable deposit, except?
a. Unit Investment Trust Fund (UITF)
b. Mutual fund
c. Time deposit
d. Fictitious bank account
c
Mr. Juan Dela Cruz has the following account at YunYun Bank:
Depositor Nature of account Amount
Juan Dela Cruz Savings account P 260,000
Juan Dela Cruz in trust for Pedro Dela Cruz Time deposit account 60,000
Juan Dela Cruz for the account of Maria Dela Cruz Savings account 70,000
Juan Dela Cruz by Alexander De Jesus Time deposit 280,000
Juan Dela Cruz by Enrico Solomon Unit Investment Trust
Fund (UITF)
390,000
Juan Dela Cruz and Pete Dela Cruz Time deposit 80,000
Juan Dela Cruz and/or Maria Uy Checking account 600,000
XYZ Incorporation and/or Juan Dela Cruz Savings account 180,000
Juan Dela Cruz or Pete Dela Cruz or Bobby Dela
Cruz
Savings account 300,000
Juan Dela Cruz or Pete Dela Cruz Mutual fund 90,000
If YunYun bank was ordered closed by the Monetary Board, the total amount of uninsured deposit of Juan Dela Cruz for his single account?
a. P-0-
b. P40,000
c. P100,000
d. P170,000
b
Iya is a depositor of Drew Bank. She has three (3) deposit accounts all under her name. One,
in checking account, one in saving account and another one in time deposit account. Each
account has a balance of P250,000. Drew Bank became insolvent. Philippine Deposit
Insurance Corporation closed the Bank. Hailey therefore is unable to withdraw from all of the
accounts. She then filed her claims with the Philippine Deposit Insurance Corporation.
Which statement is most accurate?
a. Iya can claim a total of P500,000 for all the three (3) accounts.
b. Iya can only claim from one (1) account of P250,000.
c. Iya can claim a total of P750,000from all the three (3) accounts.
d. Iya cannot claim anything from any of the deposit accounts.
a
Keisha maintains a savings deposit in the amount of P1 Million with ABC Bank Corporation. Keisha also has obtained a loan from ABC Bank Corporation in the amount of P1 Million, In case of default,
a. Deposit accounts are usually earmarked for specific purpose hence offsetting is not
legally possible.
b. ABC Bank can set-off the loan from the savings account being maintained by
Keisha with ABC Bank.
c. Off-setting is not possible because the obligation of Keisha is a “simple loan”.
d. Set-off is not possible because legal compensation is not allowed in banking
transaction.
b
Hubby and his wife, Wiffy, opened and maintained 3 deposit accounts (Savings, Checking and Time) with Allied Bank Recto with P200,000 each account and maintained the same deposits with the same amount in Allied Bank Makati. If Allied bank becomes insolvent the Philippine Deposit Insurance Corporation will be bound to be liable to the spouses for its
insurance liability equivalent to:
a. Two deposits
b. One deposit
c. Six deposits
d. Three deposits
b
Under the PDIC law, a bank can be placed under receivership when, if allowed to continue in business, its depositors or creditors would incur:
a. Possible losses
b. Inevitable losses
c. Probable losses
d. A slight chance of losses
c
Under the PDIC law amendments, may PDIC pay the insured deposits of a depositor without netting out depositor’s loan obligation with the closed bank?
a. Yes, but only using the closed bank’s records alone.
b. Yes, even based on evidence of deposits and not on the closed bank’s records
alone.
c. No, because it will violate the principles of legal compensation.
d. No, because it will violate of the right to due process of the bank.
b
What is the mode of payment by PDIC of claims of depositors from a closed bank?
a. By cash
b. By making available to each depositor a transferred deposit in another insured bank
in an amount equal to insured deposit of such depositor
c. By checks, promissory note or bill of exchange
d. Either A or B
d
What is the effect of payment by PDIC of insured deposits to depositors?
a. PDIC shall be legally subrogated to all rights of depositor against the closed bank
to the extent of such payment.
b. PDIC may recover from the assets of the closed in so far as the payment made by PDIC
is beneficial to depositors.
c. PDIC may only recover from the assets of the closed bank if the payment is with the
consent of the closed bank.
d. PDIC may not recover from the assets of the closed bank if the payment is without the
knowledge or against the will of the closed bank.
a
The possibility that failure of one bank to settle net transactions with other bank will trigger
a chain reaction, depriving other banks of funds lending to a general shutdown of normal
clearing and settlement activity.
a. General risk
b. Systematic risk
c. Universal risk
d. Credit risk
b
The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit records of an individual without court order except:
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
a
Which of the following is an exception to the secrecy of bank deposits which are in Philippine Pesos, but NOT an exception to the secrecy of foreign currency deposits?
a. Upon Bangko Sentral ng Pilipinas (SSP) inquiry into or examination of deposits or
investments with any bank, when the inquiry or examination is made in the course of
the SSP’s periodic special examination of said bank to ensure compliance with the
Anti-Money Laundering Act (AMLA)
b. Upon Philippine Deposit Insurance Corporation (PDIC) and SSP inquiry into and
examination of deposit accounts in case there is a finding of unsafe or unsound
banking practice
c. Upon inquiry in cases of impeachment
d. Upon inquiry by the Commissioner of Internal Revenue in the event a taxpayer files an application to compromise his tax liabilities on the ground of financial incapacity.
c
What can a bank lawfully do or omit to do without violating its duty to exercise extraordinary diligence in the handling of deposits?
a. Allowing a crossed check to be cashed provided that the payee is personally known to
the bank.
b. Accepting as deposit a check which is not indorsed by the payee, provided that the
check is a manager’s check.
c. Closing a demand deposit account with prior notice to a depositor who has been
misusing such account repeatedly overdrawing against it.
d. Disclosing information regarding “and/or” savings account where one of the two
depositors has given his written permission for such disclosure.
d
The right to secrecy of bank deposits:
a. Being part of municipal law, does not apply to deposits in branches of foreign banks in
the Philippines.
b. Is a constitutional right which may, however, be regulated by statute.
c. Cannot be invoked in the absence of an express statutory provision.
d. If violated will render the information obtained thereby inadmissible as evidence in any proceeding against the depositor.
c
Aki, a private individual, maintains a dollar deposit with Maharlika Bank. Aki is suspected to be the leader of a Kidnap for Ransom Gang and he is suspected of depositing all ransom
money in said deposit account which are all in US Dollars. The police want to open said
account to know if there are really deposits in big amounts. Which statement is most
accurate?
a. The same rules under Secrecy of Bank Deposit Act will apply.
b. An approval from the Monetary Board is necessary to open the account.
c. Because the deposit is in US Dollars, it is covered by the Foreign Currency Deposit Act
which allows disclosure only upon the written permission of the depositor.
d. Approval from the Court is necessary to order disclosure of the account.
a
Corona V is being charged for violation of Anti-Graft and Corrupt Practices because he is
suspected of having accumulated unexplained wealth. Corona V maintains deposit accounts
with MODERNA Bank. The Ombudsman filed criminal cases against Corona V before the
Sandiganbayan. Can the Court issue subpoenas against MODERNA Bank to produce all documents pertaining to all the deposit accounts of Corona V?
a. Yes, because there is already a pending case and provided the subpoena must be
specific as to which account.
b. Yes, it is enough that the specific bank is identified.
c. No, because the issuance of the subpoena has no real legal basis.
d. Even without a subpoena, information about the deposit accounts of Mandalorian can be submitted to the Sandiganbayan because it will be used in a pending case.
a
All of the following are exceptions to the Bank Secrecy Law, except:
a. Upon order of the competent court in cases involving Graft and Corrupt Practices Act
b. Examination by an independent auditor hired by the bank
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire into or
examine deposit accounts pursuant to explanation
d. In- camera inspection by the Ombudsman
d
All foreign currency deposits are considered of an absolutely confidential in nature and shall
exempt from attachment, garnishment or any other order or process of any court, legislative
body, government agency or any administrative body whosoever. The following are the exemption to the secrecy of foreign currency deposit except:
a. Upon the written permission of the depositor
b. Upon order of competent court in cases of violation of AMLA when it established that
there is a probable cause that the deposits or investments involved are in any way
related to a money laundering offense
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire into or
examine deposit accounts pursuant to explanation
d. The PDIC with prior approval of the Monetary Board
d
Under the Bank Secrecy Law, it is hereby declared to be the policy of the government:
a. to give encouragement to the people to deposit their money in banking
institutions
b. to encourage private hoarding
c. Both A and B
d. Neither A nor B
a
Which of the following statements presents the correct legal principle?
a. It shall be unlawful for any official or employee of a banking institution to disclose to any person any information concerning deposits.
b. The Secrecy of Bank Deposit Account does not prohibit attachment or garnishment of
bank accounts, which does not involve revealing specific information of deposits.
c. Both A and B
d. Neither A nor B
c
The Philippine Deposit Insurance Commission and the Bangko Sentral ng Pilipinas may
inquire into bank deposits when:
a. there is a request for tax information of specific taxpayers made by a foreign tax
authority pursuant to a tax treaty
b. there is a finding of unsafe or unsound banking practices
c. when there is probable cause that the deposits or investments are related to an
unlawful activity or a money laundering offense
d. necessary to examine and gather information on the deposits, placements, trust
accounts, assets and records in a bank or financial institution in connection with antiterrorism case
b
The following are Authorized Disclosures in the Bank Secrecy Law, except:
a. when there is probable cause that the deposits or investments are related to an
unlawful activity or a money laundering offense
b. turn-over to the CIR of the amount in bank accounts as may be sufficient to satisfy
the writ of garnishment issued to collect delinquent taxes
c. submission of report, and turn-over to, the court officer or executing sheriff of
garnished amounts pursuant to a writ of garnishment in satisfaction of a judgment
d. disclosure by a bank officer or employee upon order of the court in connection with a
deposit in a closed bank that was used in the perpetration of anomalies
a
All deposits of whatever nature with banks or banking institutions in the Philippines may not
be examined, inquired or looked into by any person, government official, bureau or office,
except upon:
a. Written permission of the depositor
b. In cases of impeachment
c. Upon order of competent court in cases of bribery or dereliction of duty of public
officials
d. All of the foregoing
d
The Commissioner of Internal Revenue (CIR) is authorized to inquire into bank deposits in
the following instances, except:
a. an application for compromise of tax liability
b. determination of a decedent’s gross estate under the NIRC
c. determination of the gross income of a corrupt public official
d. request for tax information of specific taxpayers made by a foreign tax authority
pursuant to a tax treaty under The Exchange of Information on Tax Matters Act of
2009
c
