WI ruarvie scuneorrar eure REGULATORY FRAMEWORK FOR GUSINESS TRANSACTIONS ‘COVERAGE: Banking Laws Direction: Read and select the best answer for the folowing questions |, What isthe government instrumentality created in 1963 by virtue of Republic Act 3591 to insure the deposits of | all banks which are entitled to the benefits of insurance and considered as an an attached agency of the Department of Finance? ‘8 Development Bank ofthe Philippines (DBP) '. Landbank of the Philippines (LBP) ‘Philippine Deposit insurance Corporation (PDIC) 44. Bangko Sentral ng Pilipinas (BSP) 2 Under the amendment to PDIC Charter, may PDIC pay the insured deposit of depositor without neting out ‘depositors loan cbligation with the coved bank? ‘a. No because it wll violate ofthe right to due process ofthe bank. '. No because it wil violate the principles of legal compensation, ‘Yes but ony using the closed bank’s records alone, ‘Yes even based on evidence of deposits and not onthe closed bank's records. aloe. 3, May PDIC proceed directly to liquidation ofa closed bank even without undergoing 90-day receivership period? ‘a No because i s violative of right to propery of the overs ofthe bank ‘No because its violative of right ro procedural due process of the owners ofthe bank. «Yes because it would enhance te recovery rate for creditors of closed bank. Yes because it would result to further dissipation of essets ofa closed bank. 4 Which ofthe following deposits is not insured by PDIC? ‘& Savings Deposit i. Special Savings ‘Negotiable Order of Withdrawal 4. Cemtfcate of Time Deposits Telegraphic noes or Telegram notes 5. Which of the following is insured by PDIC? ‘8. Demand or Checking acsount '. lnvestment in bonds issued by government Investment in stocks ofa private corporation 4. Trustaccount © Money market placement 6. Which ofthe following is insured by PDIC? ‘Savings deposit Demand drat ©. Telegraphic notes Telegram notes 7. Which of the following deposits is not insured by PDIC? ‘Savings Deposit in Mevobank Manila Branch '. Cerificate of Time Deposit in Philippine National Bank Makati Branch Bank Deposit in Japan Bank Tokyo Branch 4. Special Savings in Bank of Philippine Islands Taguig Branch 18. Which ofthe following deposits i insured by PDIC? ‘Deposit accounts that are funded b,. Deposit accounts that ae fitvious or fraudulent ©. Deposit accounts constituting cr emanating from unsafe or unsound business practices ‘4. Deposit accounts tht are determined tobe proceeds from an unlawful activity as defined in AMLA 9. What isthe posible maximum deposit Insurance coverage ifs depositor has several valid single accounts in a closed bank? % a 1,500,000 Leone ee ror eee eerrenl "CEAR- Regulatory Framework for Businass Tonsactions (RFBT 8616) Page 1 of 14‘valid joint accounts ine closed bank? ‘P1,000,000 ', Ps00,000 . P750,000 4. P1,500,000 11, Angel Locsin nas the following four deposit accounts ina closed bank (BDO): | 7 “Angel Lovin, Savings epost BDO-Lip Ci bran’ | 10, What i the possible maximum deposit i ‘Kim Domingo Forte Asnun of Axgel Leta Tine Deport BDO Mani Ciy branch ‘Andre Tones In Tux Fo Agel Locsin, Sings Depsk BDO-Tagug City franc ‘Ange! Loess Busnes: (Sole Propecorip)~ Checking Aca BDO-Paay Cry ranch 60,00 ‘What isthe maximum deposit insurance coverage by PDIC in o far as Angel Locsin is concerned? ‘= P1,000,000 '. P1,200,000 fs PS00,000 800,000 12, Ellen Adama has the following deposit accounts in a closed bank (BDO): ‘les Adarand Jot Lapd Gre Sevings Dept BOO Lipa Cy branch Peano ‘len Adtran Tom Cra Time Depost BDO-Manil iy bch sia lle Adv tod Mark Cr Checking Account ~BDO-Pu Cy Wanch ‘What isthe maimam deposit inerance coverage Ey PIG m a as len Adan concerned? a P1,000,000 b. P1200,000 = 500,000 &. 800,000 ‘What isthe maximum deposi insurance coverage by PDIC in so far as Kim Domingo is concemed? ‘a. P1,000,000 '. P1:200,000 P500,000 & 800,000 14, Colleen Garcia has the following deposit accounts in a closed bank (BDO): Coleen Garcia's Busia (Sle Propo Checking Aseuat~BDO-Psny Cy branch ano00 (Cate Garcia Sevings Depot BDO Taguig iy be ooa00 (Clee Gari ana ly Cried Tame Depot BDO Man hy brie e000 (Clee Grcic and Joh Paro nd Rex ean ates Res Sap Depest BDO-Lipa Cy branch ‘What isthe maximum deposit insurance coverage by PDIC in so far as Coleen Garci is concemed? ‘a P,000,000 1,200,000 . P500,000 ' a P575/000 15, Ana is a partner of ABC Partnership. She is also a stockholder of Ana Corporation Ana has the fellowing deposit sccounts ina closed bank (BDO): ‘at's Buloes (Sole Fropionbi Ching Aczaurt~BDO-Paig Cy ae re ‘os Suing: Depot BDO. Tog ly bch a ‘Asan Bea nd Calan Dan Tine Depot BOO Man City ranch fecion ‘anand ADC Parhip Cheng Acsoent~ BDO Pasay Ciy branch $0.00 i ‘end Ara Corporation Checking Assur BDO- Maat ly rch ae ‘Aas fon payable w BDO Quezon Cy Bach How much may Ana collect from PDIC? ‘a 525,000 '. Pe25,000 800,000 . 4. P1,000,000 Page 2 of 14 (CPAR — Reaulatory Framework for Basiness Transactions (RFBT 8616)16, Amsnuine te ftowing deposits t BP Bake 60,000 seins deposi tna of Aan B 200,00 tine epi ino ane ADC Parmenip 300000 —cuent ccout inte nan of A = How mas can A recover fu PDIC i PL Bank was gute by B © P900,000 ad © Poo. © Psso0m Poo 17 Incase of join account berween a juridical person and a natural person, who shall be ented othe maximum insured ‘deposit of P500,000 in such joint account? ‘Jriical person bb Nanwal person Both juridical person and natural person equally ‘d._Neither juridical person nor natural person "8, What is the prescriptive period for depositors to fle their deposit insurance claims to PDIC from date of takeover by PDIC of closed bank? ‘Within 2 yeas from PDIC’s takeover ofthe closed bank 'b, Within I yeas from PDIC's takeover ofthe elosed bank ‘& Within years ftom PDIC's takeover ofthe closed benk 4. Within years fom PDIC's takeover ofthe closed bank 19. As a general rule, what isthe threshold amount ofthe bank deposit tobe required to file deposit insurance claims to Poicr ‘8 Balance of more than P100,000 . Balance of more than PIO,000 ©: Balance of more than PLOD Balance of more then PI,000 20. The following are the depositors who are required to fle deposit insurance claims to PDIC in order wo recover their las from 3 closed banks except ‘& Depositrs with valid deposit accounts with balances of more than Php 100,000 '. Deposits who have outstanding obligations with the closed bank regardless of amount of deposits. & Depositrs with account balances of tess than Php 00,000 who have no updsted addresses inthe bank records iho have not updated their addresses through the Maling Address Update Form (MAU) fared By the 44 Depositrs who maintain ther accounts under the name of busines ene, regardless of type of aecouat end ‘account balance © Depostors with counts no eligible for nly payment, regal ot typeof account and secu balance pet advice of PDIC. £ Deposiors with ascount balances of less than Php100,000 who have updated addresses in the bank records or ‘ho have updated thir addresses through the Mailing Adstess pate Forms (MAU) issued bythe PDIC. 21. Whats the mode of payment by PDIC of claims of depositors from a closed ark? By cash By making available © each depositor & transfered deposit in anther insured tank in an amount equa 10 insured deposit of such depositor By checks, promissory note or bill of exchange Either A or B oP as 22. What isthe maximum period fr payment by PDIC to éepositrs of their claims from o closed bank in order ot to make PDIC's office ible fr failure to pay du to grave abuse of eiscretion. gross aeglgence, bad faith x malice? ‘8 Within 2 years from the date of fling of deposit nsurane cei to PDIC 1. Within 1 year ftom the date offing of deposit insurance elim to PIC © Within 6 mont from the date of fling of deposi insurance claim tw FDIC 44 Within3 montis from te date of fling of deposit insurance claim to PDIC 23, Whats the effect of payment by PDIC of insured deposits to depositors? * '& PDIC may recover fom the astets ofthe closed in so far 4s the payment made by PDIC is beneficial to Sepecitos. '. PDIC shall be legally subrogated to all rights of depositor against the closed bank to the extent of such Payment © PDIC tay not recover from the assets ofthe closed bank if te pavment is without the knowledge or against ‘the will ofthe closed bank 4 PDIC may only recover fiom the assets of the closed bank i the payment i withthe consent of the closed Dank. a CAR Regulatory Framework for Business Tansactons (RFBT 8616) Page 3 of 142A, Under Republic Act No, 1495, what is the nature of bank deposit and investment in government bonds? ‘Asa general rue, they ae absoltely confidential in nature b. Asi general rule, they ae generally subject oan type of inspection. © They ere exempted from any type of inguiy. 2S. Under Republic Act No, 1405, the following instruments are considered absolutely confident innate, except & © Curent account or Demand account Investment in government bonds ‘Money market placement or Telegraphic Notes or Telegram notes 26, They refer to money o funds placed with abank the can be withdrawn on the depositors order or demand. Deposits 27. Which ofthe fling inguiies willbe considered a violation of Phlipine Peso deposit secrecy law? Pesioie inquiry of special examination of bank deposis by BSP to ensure compliance wit the Anti Money ‘Laundering Law. ‘Inquiry of bank deposits by BIR Commissone in relation to an applicstion for compromise of taxable ability ‘or determination of m decedent's goss estat under National Intemal Revere Code Inquiry of bank deposits by PDIC when ter is fading of unsafe or unsound barking Jaguiy of bark deposits by DOU Secretary forthe purpose of penecuon of the resbe ofthe opposing political party. 28, Under Republic Act No. 1405 aka. Philippine Peso Deposit Seceey Law, the bank deposits end investment ‘Government bonds may be inquired into inthe fellowing exceptional instances, except ‘Upon vriten permission er consent in writing by te depesitor . ‘In cases of impeachment of the President, Vice President, members of the Suprne Cour, members ofthe ‘Cosstaional Commission (Commission on Election, Civil Service Commission ind Comalssion on Audi) ‘od the Ombudsman for euipsbe violation of the Constintion, reason, bribery, graft and eomupton, other high crimes or bewayal of pubic must. (Ar. Xl, Se. 2, 1987 Philippine & Upon ander ofa competent cour in cases of bribary or dereliction of duty of public oficial. 4. Incases where the money deposited or invested isthe subject mater ofthe Ligation, © ncases of tx evasion eases fled by BIR Commissioner agaist etxpeyer. 29. Which ofthe following disclosures wil be considered a vielation of Philipine peso depot secrecy Iw? ‘© Reporting of uneaimed balanes ofa bank deposit to the Treasurer ofthe Philipines or Bureau of Treasury by sschorized bank officials, (Using of insider information abou the bank deposits by bank employees in order to determine the red ating (or eredi standing of ther depositors for purposes of offering ret cards '& Tum-over by authorized bank offiils fo the BIK Commissioner ofthe amount in bank accounts «8 may be ‘sufficient to satisfy the wrt of gumishment issued to ealetdelingveal axes. 44 Disclosure by a bank officer or employee upon order of » compeient court In connection with « deposit in & losed tank tut was used in the perpetrton of anomalies, as 30. A government employee, purchased DAP Bonds with atta value cf 100,000 and receives anu interest income ftom bis investment. Under Bank Secrecy Law, the investment ofthe goverment employee may be inguzed ino even ‘without need ofa court onerby the ‘& Public prosecutor handling estafa case against the govermert employee . BIR officer auditing the VAT ofthe government empleyec ‘Credit investigator ofa lending isttion where tbe goverament employee applied forthe loan 4. Nowe of te foregoing 31, Which ats covered ty Philippine Peso Deposit Secrecy Law aka, RA-No, 1405? ‘© Disclosing the amount of deposit ofa jagmentdeblor to the court shrif wo is exéeuting & gamishment ‘onder against i. ‘Disclosing the name of the drawer ofa check to the payee. '& Disclosing the amount of deposit of « taxpaber to a duly authorized BIR examiner who is examining his income tax lability. 4. Disclosing the amount of deposit exceeding PS00,00 in one barking day to Anti-Money Laundering Come, 32. The following are the exceptional cases when the BIR Commissioner may irspect bank deposits, except Wheater is sppletion ofcompromie iy by a wi: 0 te gan of ancl eapacty 18 To determine the gross esate for computation of ett tk lability © When a request (or tax information of specific taxpayers mae hy « foreign tax ashorty purses 1 & tak teeny under The Exchange of Information on Tax Matters Act of 2008 4. To determine the tuable income of policans CRAS.- Regulatory Fromework for Business Tonsacions (RFBT 8616) Page 40f 1433. Whats the penalty provided by law for volition of RA 1405 aka. Philippine Peso deposit secrecy Inw? 4 Imprisonment of not more than fve years o° fine of not more than P20,000 er both imprisonment ad fine. Imprisonment of not more than tn years or fine of nt more than P200,000 or both imprisonment and fine. ©. Imprisonment of not more than twenty years or fine of not more than P2,000,000 of both imprisonment nd Se, 4: imprisonment of not more than one year oF fine of wt more than P2,000 or both imprisonment and fine. 54. Unde Foreign Cuneny Depot Act ofthe Philipines or RA. 626, wht ithe only exception forthe abc confidential tre of Foreign Caren Bak Depts? {Upon rites persion or cenentn wring by he depositor. 1. Incase of impeachment of the Presiden, Vice Presiden members ofthe Sopreme Coun, embers of te Corsttstonl Commision (Commision on Elton, Cv Sere Conmision and Comision on Ati) tod te Ombudsman fr capable vlan of the Cention, reason, bey, af and como, other high eines orbereyal of pubic st (Ar XI, Ses. ,1987 Prine Conia) 6 Upunoréer ofa competent court ineaesof trey or cerlicion dy ot public efi. 4 tmeases whore the money deported orimesed ote sel mate fe lgalon 35. Which fate about Foreign Curreney Deposit Act also known as R.A. No, 6426? 1 The foreign currency deposis maintained abroad by Filipino cizens are not covered by the provisions ofthis os. 'b, Depositary banks which have been qualifed by the Monetary Board to furction under expanded foreign currency deposit sytem are exempt in maintain the fiten percent (15%) foreign curreney cover for their Libis inte form of foreign carency deposi with BSP © Foreign curency deposits are of absolutely conf dential nature, except upon the writen pemission of the Sepositor. 4. Foreign currency deposits are subject to attachment, gamishmen, or any other orde or proces of th cout. 36. A non-resident alien was convicted beyond reasonable doubt of rpg « minor. Such nantesident alien does not have ‘ary propeny in the Philippines excep a foreign cumency deposit witha domestic bank. May the cout issue a wrt OF {gamishment ofthe foreign curency depsit ofthat convicted non-esiden alien? No because Foreign Currency Deposit Act of the Philippines provides that foreign curency deposits are exempted from attachment or gamishment. >. Yes but only if the non-resident alien wil give his permission or consent in writing Yes because if that foreign currency deposit wil be exempted fiom gemishment, injustice would result especially toa ctzen aggrieved bya foreign guest 44. No because foreign cumency deposits are absolutly confidential in mlure and making an exception to the confidentially of foreign eumency depois wil discourage fren investments 37. What isthe penalty provided by R.A. No, 6426 for violation of conden y uf foreign cumency deposit act of he Philipines? ‘Imprisonment of not fess than 1 year nor more than $ yoarso: ive not lst than P,000 bat not more than 25,000 or both imprisonment and fine, ‘Imprisonment of not less than 2 years nor more than 10 years w ve mo es van P10,000 but net more than 50,000 or bot imprisonment and fine. Imprisonment of not less than 3 yeas no mote than 15 years a i: wet ess dan P20.000 but not more than 'P100,000 or both imprsoruent and fine, 4 Imprisonment of not less than ¢ year nor more than 20 years or fine 7 les than PSO,000 but not more than 500,000 or both imprisonment and fine 38, Which type of tank deposi of impeschable officer may be examined by impeachment court without consent of the Jmpeachabe office’? ‘2 Prilippine Peso Bark Deposit ‘Foreign Curency Bank Deposit © BothA and 4 Nelther A nor 38. Asa general rule, which pp of bank deposit may wot be subject to attachment. enovstna or gamishmeat? ‘Philippine Peso Bank Deport ‘Foreign Curency Bank Deposit & BothA ana B Neither A por 40, They include credits or deposits of money, bllon, security or other eviden'e of isebtedoess of any kind, and intrest ‘hereon with banks in favor of any person known 1 be dexd or who bas not ade hcther deposits or withdrawal dung ‘the preceding ten (10) years or mare Dormant accounts b. Unclaimed balances © Dead accounts 4 Closed deposits rarer peerseemery-srmenmroneeset tree CAR Regulatory Framework for Business Transactions (RFBT 8610) Page 5 of 1441. Which ofthe following credits may i nat covered by Uneaimed Balances Law? | £ Suiisotneney | its of money ‘Security of indebtedness ‘Bond indenture or oher evidence of indebedness of any kind Telegraphic note or Telegram note Patent or copyright or tademark 42. Which ofthe following institutions is not covered by Act No. 3936 also known as unclaimed balances law? a. Banks b Trust companies & Mutual building and loan association 4 Nonstock savings and loans association nape 43. Which govemment agency has the authority wo reactivate an unclaimed balance account? ‘= Burea of Internal Revenue Bureau of Customs Bureau of Treaty 4 Bureauof Unclaimed Balance ‘44, Wat petition may be filed by the Office of Solicitor Genera in behalf ofthe Republic ofthe Philippines inorder to forfeit unclsimed balances of «person who, dying estate and leaving oo ber etilled to his estate? ‘2 Pein for escheat 2. itn for quo warrant Peston for manda: Pettion for certorari 45, Which ote flowing cris may not beeches in fivor ofthe ste under Unclaimed Balas Law? ‘Telegraph nee © Mengy © Depo &. Donan das 46, Whats te obec of Ant: Money Laundering Law? 1 To poet and preserve thc neg an conde of bn scouts 8 To eave tat the Plies sal not be ads money lwndating st fr the proved of way ela sctivity © Consistent with is foreign policy, extend cooperation in transnational investigations and prosecutions of persons involved in money laundering atvtes wherever coramiteg 4 Allofthe above 47. Ie refers w a crime commited by any person who knowing tht any monetary instrument or property represents, Fnvolves or relates othe proceeds of any unlawfl activity, transects, converts transfer, disposes Of, moves, acquires, osstses or uses said monetary instuments or procedsof any unlawful activi) a Esl Forgery ‘&. Money laundering | Bribery ij 48, Which ofthe following is nt considered offense punishable nya? ‘eTransctng known proceeds f any unewl activi. | 1. |Convering, tastering, disposing of, acquiring, possessing, moying, or using known proceeds of any [nies sci. 6: IConceaing,disgaising the mie nate, source, locaton, moverent or ownecip of known proeats of any elawfil ctivity 4 Mere knowledge of proceds of ey unlawful activi 1 inning a in cio among er ce EE assent b !Aiding, abening, assisting or counseling the commissions of money laundering offenses punishable by Amti- ee Ce acm ny memati eee trie ory nce | bearer neste myst Ce ee ae iiay Lang Cont cord Become Ee a mens | [Money Laundering Counc CAR apn Fewer Oe Teams (RFBT 6B18) || Page 6 of 1+5. 2. 33. st. 5. 5. 31. ‘Which ofthe following is mots predict rime of Money Laundering Offense? 1% Swindling Adultery Fencing egal reersiment ‘Which of te following s mot a predate crime of Money Laundering Orfense? Voyeurism Extortion & Smuggling @. Homicide Which ofthe following is a predicate crime of Money Laundering Offense? & Smugeling 6 & Actof Lasciviousness 4 Sevan] harassment Which ofthe following is a predicate crime of Money Laundering Offense? ‘a Jucteng and masao Sedition © Libel 4 Trespassing ‘Which of the following isa predicate crime of Money Laundering Offense? ‘Violation of BP 22 aka Bouncing Check Law . Violation of BP 68 aka. Corporation Code ofthe Piippines ©. Violation of Electronic Commerce Act of 2000 aka RA No. 8792. 4 Viblaion of Data Privacy Act ‘Which ofthe following is nota predicate crime of Money Laundering Offense? ‘Violations of ltllectual Propery Code . Fraudulent practices and other violations ofthe Secures Regulation Code ‘Forges and Counterfeiting Rebellion What i the Republic Act No, of Terorism Financing Prevention and Suppression Act (Law punishing Financing of Terror)? 2 RA.No, 10168 b, RA.No.9372 © RA.N0.9160 @ RALN0. 9194 ‘The following are predicate crimes that may authorize Anti-Money Laundering Council to ingure bank accounts even ‘without cour order from Courtof Appeals, except 8 Crnspping . Violation of Section 4, 5,6, 10,1, 12,13, 14,18 and 16 of Comprehensive Dangerous Drugs Act © Hijacking <¢. Kidnapping for Ranson, ‘The flowing ae predicate crimes that may authorize Anti-Money Laundering Council to inguire bank accounts even, ‘without court order from Court of Appeals, except ‘a Destructive arson Murder Financing of Teroriam, Teroriam and consprecy to commit terrorism Plunder It refers to a type of tansaction that shall be reported by a covered peron tothe Anti-Money Laundering Cound Decause the transcton breaches the quantitative teshold for reporting puxposes, ‘a. Covered transection b Suspicious ransaction © Reporable ransoction . <4. Exempted transaction ‘Asa general rae, wha iste quantitative threshold for any wansitio in eah o ober equivalent of «covered person suchas financial instions, lending companies, insurance companies, pened companies and other covered persons to be considered reportable ansaction to Anti-Money Laundering Council? ‘2 Attansation with amount exceeding Pl,000,000, ‘A transaction with amount exceeding P100,000 ©. A transaction with amount exceeding PS00,000 A transaction with amourt exceeding P5,000,000 OS EE OE CRAR.— Ry gulatory Framework for Business Tansscions (RFBT 8616) Page 7 of 146. 6s. o. ‘What i the quantitative threshold for reportable wansations involving foreign currency dealers, money dealers or ‘emittance company? ‘A transaction with amount exceeding P1,000,000 '. Atransection with amount exceeding PL00,000 © Atransaction with amount exceeding P500,000 4 A transaction with amount exceeding P5,000,000 In case of jewelry dealers, dealers of preclous metal oF dealer of precious stones, whet is the quantitative tiveshold for any transaction in cash or other equivalent to be considered reportable transaction to Anti-Money [Laundering Counc?” ‘&Attransaction with amount exceeding P1,000,000 . A transaction with amount exceeding P100,000 ©. A transaction with amount exceeding P500,000 4. A transaction with amount exceeding P 5,000,000 In case of easing, what isthe quantiative threshold for any transaction in eas or other equivalent to be considered reportable transaction to Anti-Money Laundering Counci? ‘& A ansaction with amount exceeding P1,000,000 ‘A wanenction with amount exeeeding P100,000 ‘A tansacton with amount exceeding PSO0,000 ‘A transaction with amount exceeding PS,000,000 1m case of Land Registration Authority and all Registry of Deeds, what is the quanstative threshold for any rea) ‘este transactions to be considered reportable transaction to Anti-Money Laundering Council? ‘a Atmanstction with amount exceeding P1,000,000 ‘A wansaction with amount exceeding P100,000, . Atzanatction wth amount exceeding PS00,000 4 A tamsction with amount exceeding ?5,000,000 refers wo 2 ype of transaction that shall sil be reported by a covered person tothe Anti-Money Laundering Council even ifthe eansaction does not beach the quantaive threshold for eporing purposes by reason ofthe usta nature ofthe transaction. ‘8 Covered transaction 1 Suspicious wansaction © Reporable ransaction 4 Exempted wansaction Which ofthe following is nota suspicious wanscton and therefore shall not be reported to Anti-Money Laundering Council? ‘Transaction that has no underlying legal or trade obligation, purpose or economic justification. 'b, Transaction in which te client is properly identified, ‘© Transtction in which the amount iavolved is not commensurate with she business or financial capacity ofthe lien. 4. Transnotion that deviates from the profil of the client. Which of the following is not a suspicious transaction and therefore that shall not be reported to Anti-Money Laundering Council? ‘Transaction that may be perceived thatthe clin’ ansastion is suctured in order to avoid being the subject ‘of reporting requirements under AMLA. tb, Transaction i any way related to a unlawful activity or any money laundeing activity or offense thats about to be commited s being or hasbeen commited. ‘&, Transaction tha deviates fom the clients transactions with the covered person. 4 Transaction entered into in the ondnacy course of business ofthe cle. Under implementing Rules and Regulations of AMLA issued by AMLC, the following ae peltcally exposed persons Cig Rik Geert enomne sen “Municipal or Regional Tal Cour Judge 2. ABP Oficial suchas Colonel or General {Senators or Congressmen or Mayor or Governor Chairman or Commissioners of COMELEC President or Vice-President £ fustice of CA, CTA, Sandiganbayan or Suprbme Court ich of the following i mot a covered perton and therefore is not required to report covered transstion or suspicious ‘transaction fo AntiMoney Laundering Council? ‘2 Banks, uas-bank, trast ene, or nonstock savings and loans associations '._ Foreign exchange dealers, eleetranie money issuers, of pawnshops Money changers or remittance and transfer companies 4. Real estate companies, rel estat brokers and real estate appraisers (R— Regulatory Framework for Busines Transactions (RFBT 8616) "Page 8 of 141. 2. B. 1. n. EAR. ‘Which of the following is mot a covered person and therefore isnot required fo report covered transaction or urpeious ‘wansction to Anti-Money Laundering Couneil? "Insurance companies o pre-need companies . Insurance agents, brokers, or profesional ensurers Holding company, holding company system or munal benefit extciation Convenient stores, grocery stores o supermarkets ‘Which ofthe following is mot a covered person and therefore isnot required to report covered transaction or suspicious teansaction to Anti-Money Laundering Coun? . Securities dealers, broker, salesmen, ivestment houses, and otber similar persons managing securities or rendering services such as investment agents b, Murua fds ot open-end companies, close-end investment, investment companies or issuers and other similar ‘© Other enites administering or otherwise dealing in commodities, cf financial derivatives based thereon, valuable objects, cash substtues and other similar monetary instuments or properties supervised and regulated by the SEC. 4 Educational institutions or hospitals or resturants Which of the folowing is exempted ‘tom reponing covered transaction er suspicious transaction to Anti-Money Laundering Count? . ‘© Law firm or editing firm if acting a independent legal professionals in relation wo information sonceming their clints or where disclosure of information would compromise client confidences or the attorney-client relationship 1 Jemelry dealers, deslers of precious metas or dealers of precious stones © Casino 4 Land Regisration Authority or Registry of Deeds ‘When is a Certified Public Accounturt cousidered a covered person requived to report covered transactions or ‘suspicious wansactions to Ansi Money Laundering Cov ‘4 When he renders auto review of istoneal financial statements or other asurance engagements When he provides management consultancy services. '& When he act as promoter rendering services for orgnizanon ofcontbtions fort creation, operation and manigemes of companies, 4 When he provides tx advisory serves. ‘When is « Certified Public Accountan: exempted ftom reporting covered transactions or sspicios transactions to ‘Anti-Money Laundering Council? ‘2 When be renders wx complince services oa cient, 5. When he manages lists money, secures or oter eset, When be provides services for management of ban, savings or exert secounts When he provides services for cretion, eperuion oF management of jee persons or arangerent, and ‘buying and sling business enties. Which ofthe following persons is not considered covered persens of Arti-Aon:y Laundring Law? ‘Auditing Firm rendering audit services concerning ther au. £0 Insurance company, 5. This principle means that no administrative, cris or evi proceedings shale egsinst any person for bavng made a covered transaction report in the repular performance of his dies ar ia resuls in any criminal prosecution under the AMILA or any other Philip fam ‘© Safe harbor provision {Immunity rom suit ©. Taxexemprion 4. Privity of interest fat, whether or nt such reporting ‘Asa.gneral rule, which court has original jrsdicton tory money laundering cases comite by private individuals? ‘Maniipal wal court (Court of Tax Appeals Regional Tri Cour, Saodiganbayan| ‘As an exception tothe general rule, which cour has original jurisieton oy money Iaundeting eases commited by public officers with salary grade of at east 26 and private persons in conspiracy with such public officers? ‘2 Municipal wal cour 1. Court of Tex Appeals Regional Tal Court 4 ‘Sandiganbayan seer. Regulatory Framework for Business Tensactions (RFT 8616) Page 9 of 14' 78. Which of the following statements abost prosecution of money laundering offenses is true? {The prosecution of money laundering and the unlawful activity shall proceed indepeadenly uch that any person may be charged with and convicted of both money laundering nd the vlawfu activity. The elements of money laundering are separate and distinct from the elements ofthe unlawful activi, & The elements of the unlawful activity, including the idemity of the perpetrators and the details of the ‘commission ofthe unlawful activity, need net be established ty proof beyond reasenable doubt inthe case for money laundering, i i 44. The clement of knowledge in money Imndesing offense may be established by direct or circumstantial evidence © Allofthe above: $0, irefers tothe financial icligence Of Anti-Money Laundering Law. ‘4 Anti-Money Laundering Council '. Monetary Board of Bangko Sentral ag Pilipinas © Insurance Commission Secures and Exchange Commission fhe Republic of the Philippines whichis entrusted with the implementation 41. Who among the following is wot pat of An Money Laundering Council? ‘2 BSP Governor as chairperson of AMLC 'b Insurance Commissioner as member of AMLC © SEC Chairperson as member of AMLC BIR Conmnissioner as member of AMLC 182 Whois” hirman ofthe Anti-Money Laundering Counci? ‘a. BSP Governor Insurance Commissioner 83, How shall the AMLC make decision inthe discharge ofits functions? By majority vote ofthe tee 1. By unanimous vote of ie tree ©. BY 17 vote of the tee 4 Any ofthe above 84, Which of the following statements about the preventive measures provided by Anti-Money Laundering Law is correct? ‘© Covered persons shall establish and record the tue identity of thelr clients based on oficial documents, as defined under Rule 3.of RIRR of AMLA. '. Covered persons shall conduct face-to-face contact at che commencemectof the relationship, of as reasonably practicable so as nt to interrupt the normal eonduct of business. fe. Both AandB & Neither A nor B i 85. Which of the following is mot a minimum customer identification to be required by a covered person from its clieat or canoer? Nar of customer, date end place of inh and Preset nd pene aes 3, Natonliyofeuiomer 1 Nur of wrk and mane of empayer | Name fel wltves ofc £86, Which ofthe following ot minimum customer secon be ee a coven en ofl or costo? 1 Conc number of casemer : 8 Specimen signe or omer ofthe cusomer ' 6. TIN, SS or GSIS umber if nplayed ref mpoyed a) Nae fal gitcns er ayes of euomer | 7. Which of be following isnot a minimum custome information or at mus be obit by covered pesos oF AMLA fom fs customers? a Nation | B.| 885, TIN or GSI number | Name of stoner 4 Facebok page ofcusomer ‘2, Numbered accounte | Nowehecking numbered acouns A | Anonymous accounts | 4. Fictitious accounts ' Cea EE FE 1 Page 10 of 14 88, Whichlf the following secouns is not probited by Anti-Money Lemndering Law? lf I'89. What isthe minimum retention period ofall records of customer identification and transaction documents of theit customers by a covered person under Anti-Money Laundering Law? ‘& At east I year fom te date of transaction or from date of closure ofthe account 'b Atlenst 3 yeas fom the date of tansaction or from date of closure ofthe account At east 5 years from the date of wansaction or fom date of closure ofthe account 4 At east 10 years fom te date of tsactan or from date of closure ofthe acount a 90. Unles changed by the AntisMoney Laundering Council, what isthe period for reporting all covered transactions of ‘suspicious transactions by a covered person to Anti-Money Laundering Council? ‘2 Within perio of) five working days rom the occurrence thereot 1. Within period of (15) fifteen working days fromthe occumeace thereof Within period of (5) five calendar days ftom the occurrence thereof 4 Within period of (15) fifteen calendar days fom the oscurence thereof 91, In case the Anti-Money Laundering Council decides to change perio for reporting all covered transactions or ‘suspicious transactions by covered person to Anti-Money Laundering Council, what isthe maximum period it may ‘extend the period for reporting? ‘Within period of (5) five working days from the occurrence thereof 'b Within period of (15) fifteen working days fromthe oesarence thereof Within period of 5) five calendar da fom the occurrence thereof 4 Within period of (15) fifteen calendar days from the occurence thereof 92. In case of suspicious vansactions, the word "eccurence” refers tothe date of determination ofthe suspicious nature ‘ofthe transaction, What isthe maximum period forthe determination of the suspicious nature ofthe tanscton by & covered person? ‘Within perio of (10) ten calendar days from the date of transaction Within period of (10) ten working days from the date of rans & Within period of) fve working days fom the date of ransactien 4. Within period of (5) fees calends days from the dae of tansnction| 93. Which court has the jurisiction to issu afreze oder on bank accounts ue verified ex prt petition bythe AMLC snd after determination tha probable cuss exists tat any monetary instranento- property in any Way elated toa unlawful activity? ‘& Cour of Appeals ‘Municipal Tal Cour ‘© Regional Til Court 4 Court of Tex Appeals 94, What isthe period allowed by AMLA to Cour of Appeals to resolve the veified ex pate petition Sled by the AMLC forthe itsuance of freeze order on bark accounts related to proceeds of any uaianvl aeviy? ‘Within 12 hours fom the fling ofthe ptton ‘Within 24 hours fom the fling ofthe petition ‘Within 36 hours fom the fling ofthe petition 4 Within 48 hours from the fling ofthe petition 95. Whats the validity period ofthe intl feeze order immediately issued by the Court cf Appeals upon ved ex parts petition bythe AMLC? ‘© Period of 10 days b. Period of30 days ©. Period of20 days Period of 60 days 96, What isthe maximum/otal period ofthe freee order that may be issued ty Coun of Appeals for bank seeounts which {saliegely related to proceeds of any unlawful activi? ‘4 Ut shallnotexceeds @2) two months, 1. shall not exceed (3) three months 6. ‘tshallnot exceed (1) one months. 4. It shall ot exceed (6) sx mont, 97. Which court has the jurisdiction to issue the asst preservation order conceming the proceeds related to any unlawful activi? ‘2 Court of Appeals ‘Municipal Trial Cour Regional Trial Court 4 Courtof Tex Appeals == gare aSne-seaiee-y-spspreanersemeeees rerrerrer CORR. Regulatory Framework for Business Vansactons (RFBT G61) Page 11 of 142% Wc or a tt iu med AVL ge ee ypu lavestment account in-luding related accounts with « bark ‘© pate application by AMLC ia cates of violation of AMLA? 3 naintion or non-bank ed ‘nstttion based oa the ‘© Cour of Appeals Municipal Trial Cour © Regional Trial Cou Court of Tax Appeals SP. Whats he petiod allowed by AMLA to Court of Appeals oreslve the weed ex pane peton led by the AMLC fo he uence of banking or of bank coum or invest accounts lad To poe fay elf vit ‘8 Within 12 hours from the filing ofthe petition 1. Within 24 hours from the Fling ofthe petition © Within 36 hours from the fing of he petition 4 Within 48 hours fom the filing ofthe petition Which court has the jurisdiction to entertain @petton for civil forfeiture of any monetary instrument or ‘ropery i in any way related tan unlewfulsctivity or a money laundering offense? 101 ‘2 Coutof Appeals 1, Muniipa Trial Cout © Regional Til Court 4. Courtof Appeals ‘What quantum of evidence must be presented to AMLC before it may file with the Regional Trial Court ‘rough Office of Soliitor General averted petition for civil forfeiture of any monetary instrument or propery in any way related to an unlawful ecvty ora money laundering offense? 102. 103. 104. os, 108. 1 Probable cause reponderance of evidence Proof beyond reasooable doubt (Clear and convincing evidence ‘What quantum of evidence Is necessary for conviction of crime of Money Laundering? Provable emus Preponderance of evidence ‘Proof beyond reasonable doubt ‘Clear and convincing evidence Bee peor Which ofthe following is necessary or condition precedent before the commencement or resoltin of petition “for civ fret of any monetary instrument or property inary way red to an urlawh sty or mone offense? Pr mil hag of ww vig Por coniton ola ey Pr cima re of eney nserig one Proc camicon ef money ining ose © Noncofe above When thr conviction fr money afer. o whom shal ost seamen opr oun to ie poser tus oii) f salle awarded y th goal i cou the couvices pes & |r eb te repr a su eee ecg pay & | sabe oehes bythe reson a coun ner oe Goreme he Rep of he Pipi. | at geo nmtac nonat cate ae ‘Wha ew phe peas une of worl checks? a jae bare clare | S| | vic oe ftowing prise act unde BP 2a known a ouncing Checks Law i Any person who (a) makes or draws and isues any check to apply oh account or for valve, (b) knowing etthe | Kime of issue that e does not have sufficient fend in or credit with the drawee bank forthe payment of such tc ul pen fs eeaetment (0) ch shes semen dred by te ree bank fr {insufficiency of fnds or credit or would have been dishonored forthe same reas had no the drawer, without any valid reason, ordered the bank o stop payment. Any person who, having sufficient funds in or credit with the frawee bank when he makes o draws and issues a check, shal iil to keep sufficient funds orto maintain a credit to cover the full amount of the check if resented within a period of ninety (90) days fom the date appearing thtreon, for which reason i i Sishonored bythe drawee bank. 1 | Either A or 8 I Both A and B ae Framework for Basins Tensactons (RFBT 8616) | | Page 12 of 14107, Whats the minimum number of days fr maining a balance in the checking account o cover the check he lssued forthe drawer to be exempted from convietion for violation of BP 22? A period oft least 90 days fom the maturity date ofeheck b. A petod of at east 120 days from maturity date of check © A parod of at east 150 days from maturity date of check A petod of at east 180 days from marty date of check 1Ok Wh of te loving isnot ene fae f BP 22 unc of worl hs oro unt ‘fund (NSF) check? Thane ttn. ning adams fan cacy cn ov | 5. There mast te Kowisge of ie ter nse orth tein of se dos ot ave lise: fds nore ith be re rhe pet a he cc nfl wo rae ¢ Tho use obras Sasa Sc 28 oye ate tae alr of cw cee ‘as ru eran es ta bot ce eek soe pom 4. Thowmat estan debate put fied ofc cba 108 ag Wat 2 the ees obligation on the part of the drawer of a funded check in order to exempt himself fom ‘rina Liablity for bouncing check? ‘© He must keep sufficient fund or maintain credit to cover the full unount of te check within a period of 90, days from the maturity date of the check. 1 He must keep sufficient fund or maintain credit to cover the full amount of the check within a perod of 30, days from the matty date of the check. He must keep sfficient fund or maintain credit o cover the full amount of the check within a period of 60 days from the matwty date ofthe check, 4 He mast kep suficient fund or maintain ereit to cover the ful amount ofthe check within priad of 120 ‘ays from the maturity date o he check. 110. What isthe pensty for violation of BP 22 or Bouncing Checks Law? ‘& Imprisonment of not les than 30 days but not more than (1) year or Fie of not less than but not more than double the amount of te check which fine shall inno cate exceed Two Hundred Thousand Pesos or both imprisonment and fine. ‘imprisonment of not less than 60 days but rot more than (2) years ot Fine of rot less than bat not more than ‘tale the amount of the check which fine shall in no case exceed Three Hundred Thousand Pesot of both ‘imprisonmeat and fine Timprisonment of rot less than 90 days but not more than (3) years or Fine of not less than but not more than ‘the smount of the check which fine shall in no cave exceed Pour Hundred Thousand Pesos of both imprisorneat and foe. 44. Imprisonment of not es than 120 days but not more than (8) years or Fine of not les than but nt more than the amount of the check which fine shall in no case exzeed Five Hundred Thousand Pesos or both imprisonment and fine. TU cha tH he ime faci evidence of he knowledge of iasuiciacy of ands or credit by he maker or raver ‘ofed ‘4 The making. draving and issuance of a check payment of which is refused by the drawse because of {insufficient finds in or credit with such bank, when presented within (120) days from the date ofthe check. , The making, drawing and issuance of « check payment of which is refused by the drawee because of inswficent funds ino credit with such bani, when presented within (30) day fem the dat of the check. 46 The making, drawing and issuance of a check payment of whichis refused by the dawee because of, {nuficient fans in or credit with sch bank, when presented within (0) days from the date ofthe check. 4& The making, drawing and issuance of a check payment of which is refused by the dawee because of {sufficient fans in or credit with such bank, when presented within (0) days from te date ofthe check. 112, What act may be presented by the maker or drawer of a check to desvay prima facie presumption of ‘nowedge of insufficiency of funds or credit as established bythe proveding number? ‘= The maker or drawer pays the holder thereof the amount dv tberecn, or makes arrangements for payment in | fl by the drewee of such check within (10) barking days ater receiving notice thet such check has not been paid by the awe. ' 1. The maker or drawer pays the holder thereof the amount due thereon, or makes aangements for payment fn fil by the drawee of such check within (15) banking days after receiving notice tat such check has not been pid bythe drawee. The maker or drawer pays the holder thereof the amount due thereon, of makes aangemeats for payment in fll by the drawee of such check within (5) banking days afer reclving notice that such check bas not been paid bythe drawee. 4. The maker or drawer pays the holder thereof the amount due thereon, of makes sangements far payment in full bythe drawee of such check within 20) banking days aer receiving notice that such check has not bees Dai by the drawee. a (CAR Regulatory Framework for Busnes Taactons (RFBT 6616) Page 13 of 141, M6, ‘Which ofthe following is uot a duty ofa drawee bank under BP 227 ‘When refising to pay the check to th holder thereof upoa presentment, to cause to be written, printed, or stamped in plan language thereon, or atached thereto, the reason for drawe's dishonor or refusal to pay the Lf there are no sufcient finds in or credit with such ¢ dawee bank regarding such check, such fact shall lays be explicitly stated in the notice of dishonor or refusal to be given by the drawee bank. Notwithstanding receipt ofan order to stop payment from the drawer of check, the drawee bank shall statin the notice that there were no sufficient fund in or credit with such bank forthe payment in full of such ‘heck, ifsuch be the fact. ‘The Gravee bank shall port the ect of isuance of worthless check to AML even if the amount does not ‘exceed the quanitative threshold to be considered covered wansaction. ‘The introduction in evidence of any unpaid and dishonored check, having the drawee's refusal to pay stamped ot written thereon or arached thereto, with the reason therefor ab aforesed, shall be prima facie evidence of the following elemens of crime of issuance of worthless checks, except b | i 4 us. norsk 116, ‘The making or issuance of sald check ‘The due presentment to the drawee bank ofthe check for payment end the dishonor thereof ‘The check. same was properly dishonored for the reason writen, stumped oratached by the drawoe on such dishonored check ‘The knowledge ofthe maker or draver ofthe insuficiency of fund or credit ofthe check he issued. ‘Under BP 2, it shall be construed as an arrengement or understanding withthe bank forthe payment of such Debit Crest Deposit ‘Account Whats the quantum of evidence required to sue or file criminal ave for riminal offense involving violation ‘of BP 22 for ituance of worthless checks? & 4 un, Probable cause or prime facie evidence Clear and convincing evidence Prependerance of evidence Proof beyond reasonable doubt, Whats the quantum of evidence required for conviction of criminal offense involving volton of BP 22 for ‘ssunnce of worthless checks? i a us, eeee us, Probable cause or prima facie evidence (Clear and convincing evidence Preponderance of evidence Proof beyond reasonable doubt, ‘Whats the quantum of evidence required for awarding of civil damages fr issuance of worthless checks? Probable cause or prime facie evidence Clear and convincing evidence Preponderance of evidence roof beyend resonable doubt In case of bouncing check isued in behalf ofan atl being or juriical person, who shall be eriminally liable for imprisonment? b a aeer 12. Juridical person Corporate officer who signed the bouncing check Both and b Neither Aor b R.A. 3765 eso known as Truth in Lending Act applies to: Pavnshops Small-ioun money lenders Both A and B [Neither A nor 8 1 refers tothe alidavit hat must be atached inthe document evidencing the contact of chatel morgage in ‘order to bind orto prejudice third persons This affidavit in chatel morgages sates thatthe merengor aad mortgagee 4o severally swear tha the foregoing chattel morigage is made for the purpose of securing the obligation specified in the conditions thereof, and not for any other and thst the sae i just and valid obligation and not entered into for xposes of frau. b a ‘Affidavit of Good Faith ‘Affidavit of Loss ‘Affidavit of Desistance ‘Affidavit of Recognition ED ey eRe Senter sree seen ee CRAR tygulatory Framework for Busnes Transactions (RFOT 8616) Page 14 of 14