REGULATORY FRAMEWORK ON LEGAL ISSUES IN BUSINESS

SEMI-FINAL EXAM
MULTIPLE CHOICE
1. Unclaimed Balance means: B
a. It shall refer to deposits of money, and interest thereon with banks and other financial
institutions
b. It shall be deposited with the Treasurer of the Philippines to the credit of the Government of
the Republic of the Philippines
c. Monetary claim in favor of any person known to be dead or who has not made further
deposits or withdrawals during the preceding years
d. Such claim shall remain in the possession of person’s depository bank
2. Applicant refers to: C
a. Person with deposit in a bank who maintains an active account
b. Depositor who requests for the transfer of the account from current to savings account
c. Depositor or his successor-in-interest who requests for the reactivation of the account
d. Person with unclaimed balance from a juridical person
3. Covered Institution refers to
a. All banks, trust companies, insurance companies, mutual building and loan associations
which reported to the Treasurer of the Philippines the unclaimed balance
b. Any bank which reported to the Treasurer of the Philippines the unclaimed balance
c. Institutions supervised and regulated by BSP, SEC and Insurance Commission
d. All banks, trust companies, insurance companies, mutual building and loan associations
which held the unclaimed balances
4. Affidavit of Undertaking is: B
a. A sworn statement executed by the bank’s authorized officer stating the potential liability
that may arise due to the granting of the applicant’s request
b. A sworn statement executed by the bank’s authorized officer absolving the Bureau of the
Treasury from any liability that may arise due to the granting of the applicant’s request
c. A sworn statement executed by the bank’s authorized officer approving the granting of the
applicant’s request
d. A sworn statement executed by the bank’s authorized officer implicating the Bureau of the
Treasury of any liability that may arise due to the granting of the applicant’s request
5. The following documents are required in the re-activation of unclaimed balance: D
a. Letter Request of the Depositor; Deed of Undertaking; Letter Request to Reactivate; Letters
Request of Covered Institution
b. Letter Request of the Depositor; Deed of Undertaking; Letter of Authority To Reactivate;
Letters Request of Covered Institution
c. Letter Request of the Depositor/Creditor; Affidavit of Undertaking; Letter Request to
Reactivate; Letters Request of Covered Institution
d. Letter Request of the Depositor/Creditor; Deed of Undertaking; Letter of Authority to
Reactivate; Letters Request of Covered Institution
6. The Authentication process on unclaimed balances shall mean that: A/D
a. The covered institution shall authenticate and verify the request for reactivation
b. Banks shall verify the request for reactivation and the signature of the depositor/creditor
c. The covered institution shall authenticate the signature of the depositor/creditor
d. Bank shall authenticate the request for reactivation and verify the signature of the
depositor/creditor
7. Money laundering is C
a. A crime whereby the unlawful activity are transacted, thereby making them appear to have
originated from legitimate sources
b. A crime whereby the proceeds of an activity are transacted, thereby making them appear to
have originated from legitimate sources
 c. A crime whereby the proceeds of an unlawful activity are transacted, thereby making them
appear to have originated from legitimate sources
d. A crime whereby the monetary instruments are deposited, thereby making them appear to
have originated from legitimate sources
8. The objectives of AMLA are: (except) C
a. To protect and preserve the integrity of the Philippine financial system, including the
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 relax strict bank deposits secrecy laws
d. To extend international cooperation among countries
9. The salient features of AMLA are: (except) D
a. Criminalizes money laundering
b. Provides for international cooperation
c. Creates a financial intelligence unit
d. Penalizes malicious reporting
10. Money laundering offenses include: (except) C
a. Transacts said monetary instrument or property
b. Conceals or disguises the true nature, source, location, disposition, movement or ownership
of or rights to said monetary instrument
c. Withdraws deposits and effects wire transfer to other accounts
d. Converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property
11. Unlawful activities related to AMLA are as follows: (except) C
a. Kidnapping for ransom and hijacking
b. Robbery and extortion
c. Hazing and squealing
d. Financing of terrorism and terrorism activities
12. Foreign exchange dealers are: C
a. Regulated by Insurance Commission
b. Regulated by Securities and Exchange Commission
c. Regulated by Bangko Sentral Ng Pilipinas
d. Regulated by Land Registration Authority
13. Other entities administering dealing in currency, commodities or financial derivatives are: B
a. Regulated by Insurance Commission
b. Regulated by Securities and Exchange Commission
c. Regulated by Bangko Sentral Ng Pilipinas
d. Regulated by Land Registration Authority
14. A covered transaction is C
a. A transaction in cash or other equivalent monetary instrument amounting Five Hundred
Thousand pesos (Php500,000.00)
b. A transaction in cash or other equivalent monetary instrument not exceeding Five Hundred
Thousand pesos (Php500,000.00)
c. A transaction in cash or other equivalent monetary instrument exceeding Five Hundred
Thousand pesos (Php500,000.00)
d. A transaction in cash or other equivalent monetary instrument of less than Five Hundred
Thousand pesos (Php500,000.00)
15. A Politically Exposed person is
a. One who has been entrusted with a prominent public function
b. someone who, through their prominent position or influence, is not susceptible to being
involved in bribery or corruption
c. One who has been entrusted with a prominent public function and generally presents a
higher risk for potential involvement in bribery and corruption.
d. One who has been appointed or elected in a prominent public function
16. Proceeds refer to B
a. An amount derived or realized from loan or winning
b. All monetary, financial or economic means, devices, documents, papers or things used in or
having any relation to any unlawful activity
c. An amount derived or realized from any activity
d. All monetary, financial or economic means, devices, documents, papers or things used in or
having any relation to any unlawful activity
17. Malicious reporting is A
a. An act of reporting or filing of a completely unwarranted or false information relative to
money laundering transaction against any person
b. An act of reporting or filing of a completely warranted information relative to money
laundering transaction against any person
c. An act of filing of an action of completely unwarranted or false information relative to any
transaction against any person
d. An act of reporting or filing of a information relative to money laundering transaction
against any person
18. AMLC may C
a. Inquire into any deposit or investment with any banks or non-banks when it has been
established that the deposits or investments involved are related to an unlawful activity
b. Inquire into or examine any particular deposit or investment with any banks or non-banks
upon order of any competent court when it has been established that there is no probable
cause that the deposits or investments involved are related to an unlawful activity
c. Inquire into or examine any particular deposit or investment with any banks or non-banks
upon order of any competent court when it has been established that there is probable
cause that the deposits or investments involved are related to an unlawful activity
d. Inquire into or examine any particular deposit or investment with any banks or non-banks
upon order of any competent court when it has been established that there is probable
cause that the deposits or investments involved are related to a lawful activity
19. Land Registration Authority and all its Registries of Deeds to submit to the AMLC C
a. Reports on all real estate transactions involving an amount of Five Hundred Thousand Pesos
(Php500,000.00) within fifteen (15) days from the date of registration of the transaction
b. Reports on all real estate transactions involving an amount of Five Hundred Thousand Pesos
(Php500,000.00) within ten (10) days from the date of registration of the transaction
c. Reports on all real estate transactions involving an amount in excess of Five Hundred
Thousand Pesos (Php500,000.00) within fifteen (15) days from the date of registration of the
transaction
d. Reports on all real estate transactions involving an amount in excess of Five Hundred
Thousand Pesos (Php500,000.00) within ten (10) days from the date of registration of the
transaction
20. PDIC mandates are: C
a. To act as insurer of depositing public, exercises supplementary supervision of banks, and
applies efficient management of receivership and liquidation functions.
b. To act as insurer of depositing public, exercises supplementary supervision of banks and
non-banks, and applies efficient management of receivership and liquidation functions
c. To act as provide deposit insurance coverage for the depositing public to help promote
public confidence and stability in the economy. It ensures prompt payment of insured
deposits, exercises complementary supervision of banks and non-banks, adopts responsive
resolution methods, and applies efficient management of receivership and liquidation
functions
d. To act as insurer of depositing public, exercises complementary supervision of banks, and
applies efficient management of receivership and liquidation functions.
21. The term insured deposit means D
a. The amount due to any bona fide depositor for legitimate deposits in a bank as of the date
of closure amounting to Five hundred thousand pesos (P500,000.00)
b. The amount due to any depositor for legitimate deposits in an insured bank as of the date of
closure amounting to Five hundred thousand pesos (P500,000.00)
 c. The amount due to any depositor for legitimate deposits in a bank as of the date of closure
but not to exceed Five hundred thousand pesos (P500,000.00)
d. The amount due to any bona fide depositor for legitimate deposits in an insured bank as of
the date of closure but not to exceed Five hundred thousand pesos (P500,000.00)
22. Which statement is true? B
a. The maximum amount then that a depositor may claim from PDIC is P1,000,000
b. The maximum amount then that a depositor may claim from PDIC is P500,000
c. The maximum amount then that a depositor may claim from PDIC is P1,500,000
d. The maximum amount then that a depositor may claim from PDIC is P100,000
23. Which statement is true? C
a. If the account is held by a juridical person jointly with a natural person, the maximum
insured deposit shall be presumed to belong entirely to the natural person.
b. If the account is held by a juridical person jointly with a natural person, the maximum
insured deposit shall not be presumed to belong entirely to the juridical person.
c. If the account is held by a juridical person jointly with a natural person, the maximum
insured deposit shall be presumed to belong entirely to the juridical person.
d. If the account is held by a juridical person jointly with a natural person, the maximum
insured deposit shall not be presumed to belong entirely to the natural person.
24. Which statement is true? D
a. Depositor needs not to file its deposit claim if he/she has an outstanding loan obligation
with the same closed bank
b. Depositor needs to file its deposit claim if he/she has an outstanding deposit balance of
P100,000.00 in the closed bank
c. Depositor needs not to file its deposit claim if he/she has an outstanding deposit balance of
P500,000.00 in the closed bank
d. Depositor needs not to file its deposit claim if he/she has an outstanding deposit balance of
P100,000.00 in the closed bank
25. PDIC shall pay deposit insurance in case of D
a. Deposit accounts or transactions are fictitious or fraudulent
b. Deposit accounts or transactions constituting, and/or emanating from, unsafe and unsound
banking practices
c. Investment products such as bonds and securities, trust accounts, and other similar
instruments
d. Deposit amount due to any bona fide depositor for legitimate deposits in an insured bank