Money Laundering

Question 1

is an act or series
or combination of acts whereby
proceeds of an unlawful activity,
whether in cash, property or other
assets, are converted, concealed or
disguised to make them appear to
have originated from legitimate
sources.

Answer 1

Money laundering

Question 2

has been described by many as
the lifeblood of crime and
is a major threat to the economic and social well-being of societies.

Answer 2

Money laundering

Question 3

is a serious threat

Answer 3

Money laundering

Question 4

WHY MONEY LAUNDERING
A SERIOUS PROBLEM?

Answer 4

it provides funds for
terrorists, drug traffickers, arms
dealers, and criminal groups.

Question 5

refers to the laws, regulations
and procedures intended to
prevent criminals from
disguising illegally obtained
funds as legitimate income.

Answer 5

Anti-money laundering (AML)

Question 6

Can Money Laundering be Stopped?

Answer 6

cannot be completely stopped but it
can be reduced through constant vigilance.

Question 7

3 Stages of Money Laundering

Answer 7

1. Placement
2. Layering
3. Integration

Question 8

involves initial placement or introduction of the illegal money.

Answer 8

Placement

Question 9

involves a series of financial
transactions during which the dirty money is passed through a series of procedures, putting layer upon layer of persons and financial activities into the laundering process.

Answer 9

Layering

Question 10

the money is once again made available to the criminal with the occupational and geographic origin obscured or concealed.

Answer 10

Integration

Question 11

Goal: deposit criminal proceeds into financial system

Answer 11

Placement

Question 12

Goal: conceal the criminal origin of proceeds

Answer 12

Layering

Question 13

Goal: Create an Apparent Legal origin for criminal proceeds

Answer 13

Integration

Question 14

is the Philippines’ financial intelligence unit, which is tasked to implement the AMLA

Answer 14

Anti-Money Laundering Council (AMLC)

Question 15

(AMLC) is composed of:

Answer 15

1) Governor of the Bangko Sentral ng Pilipinas (BSP) as Chairman.
2) Commissioner of the Insurance Commission (IC) as member.
3) Chairman of the Securities and Exchange Commission (SEC) as member.

Question 16

KYC RULE

Answer 16

Know
Your
Client

Question 17

What are the covered institutions in AMLC?

Answer 17

Banks
pawnshops
Insurance companies, pre-need companies
SecuritiesPhilippine Gaming Corporations

Question 18

are a critical function to assess
customer risk and a legal requirement to comply with Anti-Money Laundering (AML) laws.

Answer 18

KYC Proceedures

Question 19

KYC Proceedures

Answer 19

1) Customer Identification
2) Customer Due Diligence
3) On Data Privacy

Question 20

Vice Mayor to Kagawad, Medium Businesses

Answer 20

Normal Risk

Question 21

No possibility you will get involved in illegal activities (Students, Sari-sari stores)

Answer 21

Low Risk

Question 22

PEPS (Vice Mayor, Mayor, Big Companies)

Answer 22

High Risk

Question 23

Relatives of high-risk politicians

Answer 23

First Degree

Question 24

Customer Identification:

Answer 24

✔ Name
✔ Date of birth
✔ Address
✔ Identification number

Question 25

Transaction in cash or other equivalent monetary instruments involving a total amount in excess of P500,000.00 within one business day.

Answer 25

Covered transactions

Question 26

✔ there is no underlying legal or trade obligation, purpose or economic justification

Answer 26

Suspiscious transactions

Question 27

Such data will only be used for the purposes specified at the time the information is collected or as permitted by law, unless otherwise agreed with the client.

Answer 27

On Data Privacy

Question 28

The privacy of individual client data will be respected in accordance with the laws and regulations of individual jurisdictions.

Answer 28

On Data Privacy

Question 29

✔ the client is not properly identified

Answer 29

suspicious transactions

Question 30

✔ the amount involved is not commensurate with the business or financial capacity of the client;

Answer 30

suspicious transactions

Question 31

other offenses punishable under the AMLA, as amended:

Answer 31

Failure to keep records Malicious reporting Breach of Confidentiality Administrative offenses

Question 32

is committed by any responsible official or employee of a covered institution who fails to maintain and safely store all records of transactions for 5 years from the dates the transactions were made or when the accounts were closed.

Answer 32

Failure to keep records

Question 33

is committed by any person who, with malice or in bad faith, reports or files a completely unwarranted or false information regarding a money laundering transaction against any person.

Answer 33

Malicious reporting

Question 34

The penalty is 6 months to 4 years imprisonment and a fine of not less than P100,000.00 but not more than P500,000.00.

Answer 34

Malicious reporting

Question 35

In case the prohibited information is reported by media, the responsible reporter, writer, president, publisher, manager, and editor-in-chief are held criminally liable.

Answer 35

Breach of Confidentiality

Question 36

when you break a rule in your contact.

Answer 36

Breach of Contract

Question 37

The AMLC, after due investigation, can impose fines from P100,000.00 to P500,000.00 on officers and employees of covered institutions or any person who violates the provisions of the AMLA.

Answer 37

Administrative offenses

Question 38

They show the results of operation, financial condition, changes in owner’s equity, and sources and uses of cash.

Answer 38

FINANCIAL STATEMENTS

Question 39

are the product of financial Accounting.

Answer 39

FINANCIAL STATEMENTS

Question 40

discusses the business enterprise’s products, services, facilities, and future directions in both numbers and narrative form.

Answer 40

Review of Operations

Question 41

provides comparative financial statement information and covers important points such as profitability, sales, dividends, market price of share capital, and asset acquisitions.

Answer 41

Highlights

Question 42

4 types of audit opinions:

Answer 42

Unqualified Opinion Qualified Opinion Disclaimer of Opinion Adverse Opinion

Question 43

When a severe scope limitation exists, the auditor may decide to offer a disclaimer of opinion. A disclaimer indicates that the auditor was unable to form an opinion on the fairness of the financial statements.

Answer 43

Disclaimer of Opinion

Question 44

if the company has placed a “scope limitation” on CPA’s work.

Answer 44

Qualified Opinion

Question 45

the CPA is satisfied that the business enterprise’s financial statements present fairly its financial position and results of operations

Answer 45

Unqualified Opinion