Law On Other Business Transactions

Question 1

The amount due to any bona fide depositor for legitimate deposits in an insured bank net of any obligation of the depositor to the insured bank as of the date of closure, but not to exceed 500,000 or its equivalent in foreign currency.

Answer 1

Insured Deposit

Question 2

A deposit in an insured bank made available to a depositor by the PDIC as payment of insured deposit of such depositor in a closed bank and assumed by another insured bank.

Answer 2

Transfer Deposit

Question 3

Deposit Account not Entitled to Payment

Answer 3

1. Investment products (bonds and securities, trust accounts, and other similar instruments)
2. Unfunded, fictitious or fraudulent deposits
3. Unsafe and unsound banking practices
4. Deposits that are proceeds of unlawful activity

Question 4

Per depositor, per capacity rule

Answer 4

Calculation of Liability

Question 5

Who are NOT required to file claims?

Answer 5

Depositors with deposits of Php 500,000 and below are not required provided they:
1. Have no obligations with the closed bank, or have not acted as co-makers of these obligations, or are not spouses of the borrowers.
2. Have complete mailing addresses found in the bank records or have updated their addresses through the Mailing Address Update Form (MAUF)

Question 6

Who are required to file claims?

Answer 6

1. Depositors with valid deposit accounts of more than Php 500,000.
2. Outstanding obligations with the Bank (as borrower, co-maker, or spouse of borrower).
3. Incomplete mailing address in bank records or failed update of MAUF.
4. Accounts under names of unregistered entities or associations.
5. Accounts not eligible for early payment (regardless of account and balance).
   6 Who are deceased, whose filing of claims is thru legal heirs.

Question 7

The policy of the government to give encouragement to the people to deposit their money in banking institutions and to discourage private hoarding so that the same may be properly utilized by banks in authorized loans to assist in the economic development of the country.

Answer 7

Secrecy of Bank Deposits (Purpose)

Question 8

Secrecy of Bank Deposits
Prohibited Acts

Answer 8

1. No person, government official, bureau or office may examine, inquire into or look into such deposits.
2. No official or employee of any banking institution may disclose to any unauthorized person any information concerning said deposits.

Question 9

Deposits Covered- _____________ with banks or banking institutions in the Philippines are here by considered as of an absolutely confidential nature and may not be examined.

Answer 9

All peso-denominated deposits of whatever nature

Question 10

A bank account, electronic money account, investment account, insurance policy, membership account, and other similir contract or service agreement, business or professional relationships between a covered person and its customers where funds or any monetary instrument of the latter are held by the former.

Answer 10

Account

Question 11

A monetary instrument, property or both.

Answer 11

Asset

Question 12

The normal level of customer due diligence that is appropriate in cases where there is medium risk of money laundering or terrorism financing.

Answer 12

Average due diligence

Question 13

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, 20% shares, contributions or equity interest in a juridical person or legal arrangement.

Answer 13

Beneficial Owner

Question 14

The financial institution, which receives the wire transfer from the originating/ordering financial institution, directly or through an intermediary financial institution, and makes the funds available to the beneficiary.

Answer 14

Beneficiary Financial Institution

Question 15

Front facing photograph, fingerprint, iris scan, and/or such other unique identifiable features of an individual.

Answer 15

Biometric Information

Question 16

Transactions involving the receipt of cash by a casino paid by or on behalf of a customer; or transactions involving the payout cash by a casino to a customer or to any person in his behalf.

Answer 16

Casino cash transaction

Question 17

Persons who are widely and publicly known, socially or professionally, to maintain a particularly close relationship with the PEP, and include persons who are in a position to conduct substantial domestic and international financial transactions on behalf of the PEP.

Answer 17

Close relationship/Associate

Question 18

The provision of banking services by one bank, called the corresponding bank, to another bank, called the respondent bank.

Answer 18

Correspondent Banking

Question 19

A person engaged in the business of providing the following services for customers, who need to perform or offer a service or activity, but are not capable of doing or do not want to do so directly due to financial or operational reasons, or business judgement:
a. acting as a formation agent of juridical persons;
b. acting as a director or corporate secretary of a company, a partner of a partnership, or a similar position in relation to other juridical persons;
c. providing a registered office; business address or accommodation, correspondence or administrative address for a company, a partnership or any juridical person or legal arrangement;
d. acting as a nominee shareholder for another person.

Answer 19

Company Service Provider

Question 20

A wire transfer that combines a payment message sent directly by the originating/ordering financial institution to the beneficiary financial institution with the routing of the funding instruction, called the cover, from the originating/ordering financial institution to the beneficiary financial institution through one or more intermediary financial institutions.

Answer 20

Cover Payment

Question 21

A report on a covered transaction filed by a covered person before AMLC.

Answer 21

Covered Transaction Report

Question 22

Any wire transfer where the originating and/or beneficiary financial institutions are located in different countries.
Any chain of wire transfers in which one of the financial institutions involved is located in a different country.

Answer 22

Cross-border Wire Transfer

Question 23

Any person who keeps or maintains an account, or otherwise transacts business with a covered person.

Answer 23

Customer/Client

Question 24

The procedure of identifying and verifying true identity, of customers, and their agents and beneficial owners, including understanding and monitoring of their transactions and activities.

Answer 24

Customer Due Diligence

Question 25

The process of determining the identity of the customer vis-a-vis the valid and acceptable identification document submitted to, and/or presented before, the covered person.

Answer 25

Customer Identification Process

Question 26

The process of validating the truthfulness of the information, and confirming the authenticity of the identification documents provided by the customer.

Answer 26

Customer Verification Process

Question 27

An individual or entity who buys and/or sells precious metals, precious stones, and/or jewelry in the course of its business activities.

Answer 27

Dealer in Precious Metals and Stones/Jewelry Dealer

Question 28

Business and professions, which are not under the supervision or regulation of the BSP,SEC and IC, and designated as covered persons under AMLA.

Answer 28

Designated Non-financial Business and Professions (DNFBP)

Question 29

The process of identifying the purpose and intended nature of the account, transaction, or business or professional relationship.

Answer 29

Determination of the purpose of relationship (DPR)

Question 30

Any wire transfer where the originating and beneficiary financial institutions are located in the same country.
Any chain of wire transfers that takes place entirely within the borders of a single country, even though the system used to transfer the payment message may be located in another country.

Answer 30

Domestic Wire Transfer

Question 31

A person’s full name, sex, date and place of birth, address, citizenship or nationality, and such other personal information from which the identity of a person can be ascertained.

Answer 31

Demographic Data

Question 32

Enhanced level of scrutiny intended to provide a more comprehensive understanding of the risks associated with the client, as well as confirmation of factual information provided by the client, to mitigate risks presented.

Answer 32

Enhanced Due Diligence (EDD)

Question 33

A provisional remedy aimed at blocking or restraining monetary instruments or properties in any way related to an unlawful activity.

Answer 33

Freeze Order (FO)