CPA REVIEW SCHOOL OF THE PHILIPPINES

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS

COVERAGE: Banking Laws

Direction: Read and select the best answer for the following questions.

1. What is the 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?
a. Development Bank of the Philippines (DBP)
b. Landbank of the Philippines (LBP)
c. Philippine Deposit Insurance Corporation (PDIC)
d. Bangko Sentral ng Pilipinas (BSP)

2. Under the amendment to PDIC Charter, may PDIC pay the insured deposits of a depositor without netting out depositor’s loan obligation
with the closed bank?
a. No because it will violate of the right to due process of the bank.
b. No because it will violate the principles of legal compensation.
c. Yes but only using the closed bank’s records alone.
d. Yes even based on evidence of deposits and not on the closed bank’s records alone.

3. May PDIC proceed directly to liquidation of a closed bank even without undergoing 90-day receivership period?
a. No because it is violative of right to property of the owners of the bank.
b. No because it is violative of right to procedural due process of the owners of the bank.
c. Yes because it would enhance the recovery rate for creditors of closed bank.
d. Yes because it would result to further dissipation of assets of a closed bank.

4. Which of the following deposits is not insured by PDIC?

a. Savings Deposit
b. Special Savings
c. Negotiable Order of Withdrawal
d. Certificate of Time Deposits
e. Telegraphic notes or Telegram notes

5. Which of the following is insured by PDIC?

a. Demand or Checking account
b. Investment in bonds issued by government
c. Investment in stocks of a private corporation
d. Trust account
e. Money market placement

6. Which of the following is insured by PDIC?

a. Savings deposit
b. Demand draft
c. Telegraphic notes
d. Telegram notes

7. Which of the following deposits is not insured by PDIC?

a. Savings Deposit in Metrobank Manila Branch
b. Certificate of Time Deposit in Philippine National Bank Makati Branch
c. Bank Deposit in Japan Bank Tokyo Branch
d. Special Savings in Bank of Philippine Islands Taguig Branch

8. Which of the following deposits is insured by PDIC?

a. Deposit accounts that are funded
b. Deposit accounts that are fictitious or fraudulent
c. Deposit accounts constituting or emanating from unsafe or unsound business practices
d. Deposit accounts that are determined to be proceeds from an unlawful activity as defined in AMLA

9. What is the possible maximum deposit insurance coverage if a depositor has several valid single accounts in a closed bank?
a. P1,000,000
b. P500,000
c. P750,000
d. P1,500,000

10. What is the possible maximum deposit insurance coverage if a depositor has several valid single accounts and valid joint accounts in a
closed bank?
a. P1,000,000
b. P500,000
c. P750,000
d. P1,500,000

11. Angel Locsin has the following four deposit accounts in a closed bank (BDO):
Angel Locsin, Savings Deposit BDO-Lipa City branch P200,000
Kim Domingo For the Account of Angel Locsin , Time Deposit BDO-Manila City branch 100,000
Andrea Torres In Trust For Angel Locsin, Savings Deposit – BDO-Taguig City branch 300,000
Angel Locsin’s Business (Sole Proprietorship) – Checking Account – BDO-Pasay City branch 600,000
What is the maximum deposit insurance coverage by PDIC in so far as Angel Locsin is concerned?
a. P1,000,000
b. P1,200,000
c. P500,000
d. P800,000

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 12. Ellen Adarna has the following deposit accounts in a closed bank (BDO):
Ellen Adarna and John Lloyd Cruz Savings Deposit BDO-Lipa City branch P600,000
Ellen Adarna and Tom Cruz Time Deposit BDO-Manila City branch 800,000
Ellen Adarna and Mark Cruz Checking Account – BDO-Pasay City branch 900,000
What is the maximum deposit insurance coverage by PDIC in so far as Ellen Adarna is concerned?
a. P1,000,000
b. P1,200,000
c. P500,000
d. P800,000

13. Kim Domingo has the following deposit accounts in a closed bank (BDO):
Kim Domingo’s Modeling Business (Sole Proprietorship) Checking Account – BDO-Pasay City branch P300,000
Kim Domingo Savings Deposit – BDO-Taguig City branch 400,000
Kim Domingo and John Santos Time Deposit BDO-Manila City branch 600,000
Kim Domingo and Rey Langit Savings Deposit BDO-Lipa City branch 800,000
What is the maximum deposit insurance coverage by PDIC in so far as Kim Domingo is concerned?
a. P1,000,000
b. P1,200,000
c. P500,000
d. P800,000

14. Colleen Garcia has the following deposit accounts in a closed bank (BDO):
Colleen Garcia’s Business (Sole Proprietorship) Checking Account – BDO-Pasay City branch P200,000
Colleen Garcia Savings Deposit BDO-Taguig City branch 100,000
Colleen Garcia and Billy Crawford Time Deposit BDO-Manila City branch 300,000
Colleen Garcia and John Pedro and Rex Juan and James Reid Savings Deposit BDO-Lipa City branch 600,000
What is the maximum deposit insurance coverage by PDIC in so far as Colleen Garcia is concerned?
a. P1,000,000
b. P1,200,000
c. P500,000
d. P575,000

15. Ana is a partner of ABC Partnership. She is also a stockholder of Ana Corporation Ana has the following deposit accounts in a closed bank
(BDO):
Ana’s Business (Sole Proprietorship) Checking Account – BDO-Pasig City branch P350,000
Ana Savings Deposit BDO-Taguig City branch 400,000
Ana and Bea and Carla and Dana Time Deposit BDO-Manila City branch 600,000
Ana and ABC Partnership Checking Account – BDO-Pasay City branch 500,000
Ana and Ana Corporation Checking Account – BDO-Makati City branch 200,000
Ana’s loan payable to BDO – Quezon City Branch (100,000)
What is the maximum deposit insurance coverage by PDIC in so far as Ana is concerned?
a. P525,000
b. P625,000
c. P800,000
d. P1,000,000

16. A maintained the following deposits at BPI Bank:

P600,000 – savings deposit in the name of A and/or B
P200,000 – time deposit in the name ABC Partnership
P300,000 – current account in the name of A
How much can A personally recover from PDIC if BPI Bank was liquidated by BSP?
a. P900,000
b. P600,000
c. P550,000
d. P300,000

17. In case of joint account between a juridical person and a natural person, who shall be entitled to the maximum insured deposit of P500,000
in such joint account?
a. Juridical person
b. Natural person
c. Both juridical person and natural person equally
d. Neither juridical person nor natural person

18. What is the prescriptive period for depositors to file their deposit insurance claims to PDIC from date of takeover by PDIC of a closed
bank?
a. Within 2 years from PDIC’s takeover of the closed bank
b. Within 1 years from PDIC’s takeover of the closed bank
c. Within 3 years from PDIC’s takeover of the closed bank
d. Within 4 years from PDIC’s takeover of the closed bank

19. As a general rule, what is the threshold amount of the bank deposit to be required to file deposit insurance claims to PDIC?
a. Balance of more than P100,000
b. Balance of more than P10,000
c. Balance of more than P100
d. Balance of more than P1,000

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 20. The following are the depositors who are required to file deposit insurance claims to PDIC in order to recover their claims from a closed
bank, except
a. Depositors with valid deposit accounts with balances of more than Php100,000.
b. Depositors who have outstanding obligations with the closed bank regardless of amount of deposits.
c. Depositors with account balances of less than Php100,000 who have no updated addresses in the bank records or who have not
updated their addresses through the Mailing Address Update Form (MAUF) issued by the PDIC.
d. Depositors who maintain their accounts under the name of business entities, regardless of type of account and account balance.
e. Depositors with accounts not eligible for early payment, regardless of type of account and account balance per advice of PDIC.
f. Depositors with account balances of less than Php100,000 who have updated addresses in the bank records or who have
updated their addresses through the Mailing Address Update Form (MAUF) issued by the PDIC.

21. 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

22. What is the maximum period for payment by PDIC to depositors of their claims from a closed bank in order not to make PDIC’s officer
liable for failure to pay due to grave abuse of discretion, gross negligence, bad faith or malice?
a. Within 2 years from the date of filing of deposit insurance claim to PDIC
b. Within 1 year from the date of filing of deposit insurance claim to PDIC
c. Within 6 months from the date of filing of deposit insurance claim to PDIC
d. Within 3 months from the date of filing of deposit insurance claim to PDIC

23. What is the effect of payment by PDIC of insured deposits to depositors?

a. PDIC may recover from the assets of the closed in so far as the payment made by PDIC is beneficial to depositors.
b. PDIC shall be legally subrogated to all rights of depositor against the closed bank to the extent of such payment.
c. 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.
d. PDIC may only recover from the assets of the closed bank if the payment is with the consent of the closed bank.

24. Under Republic Act No. 1405, what is the nature of bank deposit and investment in government bonds?
a. As a general rule, they are absolutely confidential in nature.
b. As a general rule, they are generally subject to any type of inspection.
c. They are exempted from any type of inquiry.
d. None of the above.

25. Under Republic Act No. 1405, the following instruments are considered absolutely confidential in nature, except
a. Savings deposit
b. Time deposit
c. Current account or Demand account
d. Investment in government bonds
e. Money market placement or Telegraphic Notes or Telegram notes

26. They refer to money or funds placed with a bank that can be withdrawn on the depositor’s order or demand.
a. Deposits
b. Trust funds
c. Money market placements
d. Deposit substitutes

27. Under Republic Act No. 1405 a.k.a. Philippine Peso Deposit Secrecy Law, the bank deposits and investment in government bonds may be
inquired into in the following exceptional instances, except
a. Upon written permission or consent in writing by the depositor.
b. In cases of impeachment of the President, Vice President, members of the Supreme Court, members of the Constitutional
Commission (Commission on Elections, Civil Service Commission and Commission on Audit) and the Ombudsman for culpable
violation of the Constitution, treason, bribery, graft and corruption, other high crimes or betrayal of public trust. (Art. XI, Sec. 2,
1987 Philippine Constitution)
c. Upon order of a competent court in cases of bribery or dereliction of duty of public officials.
d. In cases where the money deposited or invested is the subject matter of the litigation.
e. In cases of tax evasion cases filed by BIR Commissioner against a taxpayer.

28. Which of the following inquiries will be considered a violation of Philippine Peso deposit secrecy law?
a. Periodic inquiry or special examination of bank deposits by BSP to ensure compliance with the Anti-Money Laundering Law.
b. Inquiry of bank deposits by BIR Commissioner in relation to an application for compromise of taxable liability or determination
of a decedent’s gross estate under National Internal Revenue Code.
c. Inquiry of bank deposits by PDIC when there is finding of unsafe or unsound banking practices.
d. Inquiry of bank deposits by DOJ Secretary for the purpose of persecution of the members of the opposing political party.

29. Which of the following disclosures will be considered a violation of Philippine peso deposit secrecy law?
a. Reporting of unclaimed balances of a bank deposit to the Treasurer of the Philippines or Bureau of Treasury by authorized bank
officials.
b. Using of insider information about the bank deposits by bank employees in order to determine the credit rating or credit
standing of their depositors for purposes of offering credit cards.
c. Turn-over by authorized bank officials to the BIR Commissioner of the amount in bank accounts as may be sufficient to satisfy
the writ of garnishment issued to collect delinquent taxes.
d. Disclosure by a bank officer or employee upon order of a competent court in connection with a deposit in a closed bank that was
used in the perpetration of anomalies.

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 30. A government employee, purchased DBP Bonds with a total value of P100,000 and receives annual interest income from his investment.
Under Bank Secrecy Law, the investment of the government employee may be inquired into even without need of a court order by the
a. Public prosecutor handling estafa case against the government employee
b. BIR officer auditing the VAT of the government employee
c. Credit investigator of a lending institution where the government employee applied for the loan
d. None of the foregoing

31. Which act is covered by Domestic Bank Deposit Secrecy Law a.k.a. R.A. No. 1405?
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 duly authorized BIR examiner who is examining his income tax
liability.
d. Disclosing the amount of deposit exceeding P500,000 in one banking day to Anti-Money Laundering Council.

32. The following are the exceptional cases when the BIR Commissioner may inspect bank deposits, except
a. When there is application of compromise liability by a taxpayer on the ground of financial incapacity
b. To determine the gross estate for computation of estate tax’s liability
c. When a request for tax information of specific18 taxpayers made by a foreign tax authority pursuant to a tax treaty under The
Exchange of Information on Tax Matters Act of 2009
d. To determine the taxable income of politicians

33. What is the penalty provided by law for violation of RA 1405 a.k.a. Philippine Peso deposit secrecy law?
a. Imprisonment of not more than five years or fine of not more than P20,000 or both imprisonment and fine.
b. Imprisonment of not more than ten years or fine of not more than P200,000 or both imprisonment and fine.
c. Imprisonment of not more than twenty years or fine of not more than P2,000,000 or both imprisonment and fine.
d. Imprisonment of not more than one year or fine of not more than P2,000 or both imprisonment and fine.

34. Under Foreign Currency Deposit Act of the Philippines or R.A. 6426, what is the only exception for the absolutely confidential nature of
Foreign Currency Bank Deposits?
a. Upon written permission or consent in writing by the depositor.
b. In cases of impeachment of the President, Vice President, members of the Supreme Court, members of the Constitutional
Commission (Commission on Elections, Civil Service Commission and Commission on Audit) and the Ombudsman for culpable
violation of the Constitution, treason, bribery, graft and corruption, other high crimes or betrayal of public trust. (Art. XI, Sec. 2,
1987 Philippine Constitution)
c. Upon order of a competent court in cases of bribery or dereliction of duty of public officials.
d. In cases where the money deposited or invested is the subject matter of the litigation.

35. Which is false about Foreign Currency Deposit Act also known as R.A. No. 6426?
a. The foreign currency deposits maintained abroad by Filipino citizens are not covered by the provisions of this act.
b. Depositary banks which have been qualified by the Monetary Board to function under expanded foreign currency deposit system
are exempt in maintain the fifteen percent (15%) foreign currency cover for their liabilities in the form of foreign currency
deposit with BSP.
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.

36. A non-resident alien was convicted beyond reasonable doubt of raping a minor. Such non-resident alien does not have any property in the
Philippines except a foreign currency deposit with a domestic bank. May the court issue a writ of garnishment of the foreign currency
deposit of that convicted non-resident alien?
a. No because Foreign Currency Deposit Act of the Philippines provides that foreign currency deposits are exempted from
attachment or garnishment.
b. Yes but only if the non-resident alien will give his permission or consent in writing.
c. Yes because if that foreign currency deposit will be exempted from garnishment, injustice would result especially to a
citizen aggrieved by a foreign guest.
d. No because foreign currency deposits are absolutely confidential in nature and making an exception to the confidentially of
foreign currency deposits will discourage foreign investments.

37. What is the penalty provided by R.A. No. 6426 for violation of confidentiality of foreign currency deposit act of the Philippines?
a. Imprisonment of not less than 1 year nor more than 5 years or fine not less than P5,000 but not more than P25,000 or
both imprisonment and fine.
b. Imprisonment of not less than 2 years nor more than 10 years or fine not less than P10,000 but not more than P50,000 or both
imprisonment and fine.
c. Imprisonment of not less than 3 years nor more than 15 years or fine not less than P20,000 but not more than P100,000 or both
imprisonment and fine.
d. Imprisonment of not less than 4 year nor more than 20 years or fine not less than P50,000 but not more than P500,000 or both
imprisonment and fine.

38. Which type of bank deposit of impeachable officer may be examined by impeachment court without consent of the impeachable officer?
a. Philippine Peso Bank Deposit
b. Foreign Currency Bank Deposit
c. Both A and B
d. Neither A nor B

39. As a general rule, which type of bank deposit may not be subject to attachment, execution or garnishment?
a. Philippine Peso Bank Deposit
b. Foreign Currency Bank Deposit
c. Both A and B
d. Neither A nor B

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 40. They include credits or deposits of money, bullion, security or other evidence of indebtedness of any kind, and interest thereon with banks
in favor of any person known to be dead or who has not made further deposits or withdrawal during the preceding ten (10) years or more.
a. Dormant accounts
b. Unclaimed balances
c. Dead accounts
d. Closed deposits

41. Which of the following credits may is not covered by Unclaimed Balances Law?
a. Credits of money
b. Deposits of money
c. Security of indebtedness
d. Bond indenture or other evidence of indebtedness of any kind
e. Telegraphic note or Telegram note
f. Patent or copyright or trademark

42. Which of the following institutions is not covered by Act No. 3936 also known as unclaimed balances law?
a. Banks
b. Trust companies
c. Mutual building and loan association
d. Nonstock savings and loans association

43. Which government agency has the authority to reactivate an unclaimed balance account?
a. Bureau of Internal Revenue
b. Bureau of Customs
c. Bureau of Treasury
d. Bureau of Unclaimed Balance

44. What petition may be filed by the Office of Solicitor General in behalf of the Republic of the Philippines in order to forfeit unclaimed
balances of a person who, dying intestate and leaving no heir entitled to his estate?
a. Petition for escheat
b. Petition for quo warranto
c. Petition for mandamus
d. Petition for certiorari

45. Which of the following credits may not be escheated in favor of the state under Unclaimed Balances Law?
a. Telegraphic note
b. Money
c. Deposit
d. Demand draft

46. What is the objective of Anti-Money Laundering Law?

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. Consistent with its foreign policy, to extend cooperation in transnational investigations and prosecutions of persons involved in
money laundering activities wherever committed
d. All of the above

47. It refers to a crime committed by any person who knowing that any monetary instrument or property represents, involves, or relates to the
proceeds of any unlawful activity, transacts, converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instruments
or proceeds of any unlawful activity.
a. Estafa
b. Forgery
c. Money laundering
d. Bribery

48. Which of the following is not considered offense punishable as money laundering?
a. Transacting known proceeds of any unlawful activity.
b. Converting, transferring, disposing of, acquiring, possessing, moving, or using known proceeds of any unlawful activity.
c. Concealing, disguising the true nature, source, location, movement, or ownership of known proceeds of any unlawful activity.
d. Mere knowledge of proceeds of any unlawful activity.

49. Which of the following is not considered offense punishable as money laundering?
a. Attempting or conspiring to commit money laundering offenses punishable by Anti-Money Laundering Law.
b. Aiding, abetting, assisting or counseling the commissions of money laundering offenses punishable by Anti-Money Laundering
Law.
c. Performing or failing to perform any act as a result of which facilitates the commission of money laundering offenses punishable
by Anti-Money Laundering Law.
d. Failing to report suspicious or reportable transactions to Anti-Money Laundering Council by a covered institution of Anti-Money
Laundering Law.
e. Mere employment in a covered institution required to report suspicious or reportable transactions to Anti-Money
Laundering Council.

50. Which of the following is not a predicate crime of Money Laundering Offense?
a. Swindling
b. Adultery
c. Fencing
d. Illegal recruitment

51. Which of the following is not a predicate crime of Money Laundering Offense?
a. Voyeurism
b. Extortion
c. Smuggling
d. Homicide

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 52. Which of the following is a predicate crime of Money Laundering Offense?
a. Smuggling
b. Rape
c. Act of Lasciviousness
d. Sexual harassment

53. Which of the following is a predicate crime of Money Laundering Offense?

a. Jueteng and masiao
b. Sedition
c. Libel
d. Trespassing

54. Which of the following is a predicate crime of Money Laundering Offense?

a. Violation of BP 22 a.k.a. Bouncing Check Law
b. Violation of BP 68 a.k.a. Corporation Code of the Philippines
c. Violation of Electronic Commerce Act of 2000 a.k.a. RA No. 8792
d. Violation of Data Privacy Act

55. Which of the following is not a predicate crime of Money Laundering Offense?
a. Violations of Intellectual Property Code
b. Fraudulent practices and other violations of the Securities Regulation Code
c. Forgeries and Counterfeiting
d. Rebellion

56. What is the Republic Act No. of Terrorism Financing Prevention and Suppression Act (Law punishing Financing of Terrorim)?
a. R.A. No. 10168
b. R.A. No. 9372
c. R.A. No. 9160
d. R.A. No. 9194

57. The following are predicate crimes that may authorize Anti-Money Laundering Council to inquire bank accounts even without court order
from Court of Appeals, except
a. Carnapping
b. Violation of Section 4, 5, 6, 9, 10, 11, 12, 13, 14, 15 and 16 of Comprehensive Dangerous Drugs Act
c. Hijacking
d. Kidnapping for Ranson

58. The following are predicate crimes that may authorize Anti-Money Laundering Council to inquire bank accounts even without court order
from Court of Appeals, except
a. Destructive arson
b. Murder
c. Financing of Terrorism, Terrorism and conspiracy to commit terrorism
d. Plunder

59. It refers to a type of transaction that shall be reported by a covered person to the Anti-Money Laundering Council because the transaction
breaches the quantitative threshold for reporting purposes.
a. Covered transaction
b. Suspicious transaction
c. Reportable transaction
d. Exempted transaction

60. As a general rule, what is the quantitative threshold for any transaction in cash or other equivalent of a covered person such as financial
institututions to be considered reportable transaction to Anti-Money Laundering Council?
a. A transaction with amount exceeding P1,000,000
b. A transaction with amount exceeding P100,000
c. A transaction with amount exceeding P500,000
d. A transaction with amount exceeding P5,000,000

61. What is the quantitative threshold for reportable transactions involving foreign currency dealers, money dealers or remittance company?
a. A transaction with amount exceeding P1,000,000
b. A transaction with amount exceeding P100,000
c. A transaction with amount exceeding P500,000
d. A transaction with amount exceeding P5,000,000

62. In case of jewelry dealers, dealers of precious metals or dealers of precious stones, what is the quantitative threshold for any transaction in
cash or other equivalent to be considered reportable transaction to Anti-Money Laundering Council?
a. A transaction with amount exceeding P1,000,000
b. A transaction with amount exceeding P100,000
c. A transaction with amount exceeding P500,000
d. A transaction with amount exceeding P5,000,000

63. In case of casino, what is the quantitative threshold for any transaction in cash or other equivalent to be considered reportable transaction to
Anti-Money Laundering Council?
a. A transaction with amount exceeding P1,000,000
b. A transaction with amount exceeding P100,000
c. A transaction with amount exceeding P500,000
d. A transaction with amount exceeding P5,000,000

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 64. In case of Land Registration Authority and all Registry of Deeds, what is the quantitative threshold for any real estate transactions to be
considered reportable transaction to Anti-Money Laundering Council?
a. A transaction with amount exceeding P1,000,000
b. A transaction with amount exceeding P100,000
c. A transaction with amount exceeding P500,000
d. A transaction with amount exceeding P5,000,000

65. It refers to a type of transaction that shall still be reported by a covered person to the Anti-Money Laundering Council even if the
transaction does not breach the quantitative threshold for reporting purposes by reason of the unusual nature of the transaction.
a. Covered transaction
b. Suspicious transaction
c. Reportable transaction
d. Exempted transaction

66. Which of the following is not a suspicious transaction and therefore shall not be reported to Anti-Money Laundering Council?
a. Transaction that has no underlying legal or trade obligation, purpose or economic justification.
b. Transaction in which the client is properly identified.
c. Transaction in which the amount involved is not commensurate with the business or financial capacity of the client.
d. Transaction that deviates from the profile of the client.

67. Which of the following is not a suspicious transaction and therefore that shall not be reported to Anti-Money Laundering Council?
a. Transaction that may be perceived that the client's transaction is structured in order to avoid being the subject of reporting
requirements under AMLA.
b. Transaction is any way related to an unlawful activity or any money laundering activity or offense that is about to be committed,
is being or has been committed.
c. Transaction that deviates from the client's transactions with the covered person.
d. Transaction entered into in the ordinary course of business of the client.

68. Under Implementing Rules and Regulations of AMLA issued by AMLC, the following are politically exposed persons (High Risk
Government Personnel), except
a. Municipal or Regional Trial Court Judge
b. AFP Official such as Colonel or General
c. Senators or Congressmen or Mayor or Governor
d. Chairman or Commissioners of COMELEC, COA and CSC
e. President or Vice-President
f. Justice of CA, CTA, Sandiganbayan or Supreme Court

69. Which of the following is not a covered person and therefore is not required to report covered transaction or suspicious transaction to Anti-
Money Laundering Council?
a. Banks, quasi-banks, trust entities, or nonstock savings and loans associations
b. Foreign exchange dealers, electronic money issuers, or pawnshops
c. Money changers or remittance and transfer companies
d. Real estate companies, real estate brokers and real estate appraisers

70. Which of the following is not a covered person and therefore is not required to report covered transaction or suspicious transaction to Anti-
Money Laundering Council?
a. Insurance companies or pre-need companies
b. Insurance agents, brokers, or professional reinsurers
c. Holding company, holding company system or mutual benefit association
d. Convenience stores, grocery stores or supermarkets

71. Which of the following is not a covered person and therefore is not required to report covered transaction or suspicious transaction to Anti-
Money Laundering Council?
a. Securities dealers, brokers, salesmen, investment houses, and other similar persons managing securities or rendering services
such as investment agents
b. Mutual funds or open-end companies, close-end investment, investment companies or issuers and other similar
c. Other entities administering or otherwise dealing in commodities, or financial derivatives based thereon, valuable objects, cash
substitutes and other similar monetary instruments or properties supervised and regulated by the SEC.
d. Educational institutions or hospitals or restaurants

72. Which of the following is exempted from reporting covered transaction or suspicious transaction to Anti-Money Laundering Council?
a. Law firm or auditing firm if acting as independent legal professionals in relation to information concerning their clients
or where disclosure of information would compromise client confidences or the attorney-client relationship
b. Jewelry dealers, dealers of precious metals or dealers of precious stones
c. Casino
d. Land Registration Authority or Registry of Deeds

73. When is a Certified Public Accountant considered a covered person required to report covered transactions or suspicious transactions to
Anti-Money Laundering Council?
a. When he renders audit or review of historical financial statements or other assurance engagements.
b. When he provides management consultancy services.
c. When he acts as promoter rendering services for organization of contributions for the creation, operation and
management of companies.
d. When he provides tax advisory services.

74. When is a Certified Public Accountant exempted from reporting covered transactions or suspicious transactions to Anti-Money Laundering
Council?
a. When he renders tax compliance services to a client.
b. When he manages client's money, securities or other assets.
c. When he provides services for management of bank, savings or current accounts.
d. When he provides services for creation, operation or management of juridical persons or arrangements, and buying and selling
business entities.

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 75. Which of the following persons is not considered covered persons of Anti-Money Laundering Law?
a. Auditing Firm rendering audit services concerning their audit fee
b. Insurance company
c. Banking institution
d. Stock brokers

76. This principle means that No administrative, criminal or civil proceedings shall lie against any person for having made a covered
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. Safe harbor provision
b. Immunity from suit
c. Tax exemption
d. Privity of interest

77. As a general rule, which court has original jurisdiction to try money laundering cases committed by private individuals?
a. Municipal trial court
b. Court of Tax Appeals
c. Regional Trial Court
d. Sandiganbayan

78. As an exception to the general rule, which court has original jurisdiction to try money laundering cases committed by public officers with
salary grade of at least 26 and private persons in conspiracy with such public officers?
a. Municipal trial court
b. Court of Tax Appeals
c. Regional Trial Court
d. Sandiganbayan

79. Which of the following statements about prosecution of money laundering offenses is true?
a. The prosecution of money laundering and the unlawful activity shall proceed independently such that any person may be charged
with and convicted of both money laundering and the unlawful activity.
b. The elements of money laundering are separate and distinct from the elements of the unlawful activity.
c. The elements of the unlawful activity, including the identity of the perpetrators and the details of the commission of the unlawful
activity, need not be established by proof beyond reasonable doubt in the case for money laundering.
d. The element of knowledge in money laundering offense may be established by direct or circumstantial evidence.
e. All of the above

80. It refers to the financial intelligence unit of the Republic of the Philippines which is entrusted with the implementation of Anti-Money
Laundering Law.
a. Anti-Money Laundering Council
b. Monetary Board of Bangko Sentral ng Pilipinas
c. Insurance Commission
d. Securities and Exchange Commission

81. Who among the following is not part of Anti-Money Laundering Council?
a. BSP Governor as chairperson of AMLC
b. Insurance Commissioner as member of AMLC
c. SEC Chairperson as member of AMLC
d. BIR Commissioner as member of AMLC

82. Who is the chairman of the Anti-Money Laundering Council?

a. BSP Governor
b. Insurance Commissioner
c. SEC Chairperson
d. BIR Commissioner

83. How shall the AMLC make decision in the discharge of its functions?
a. By majority vote of the three
b. By unanimous vote of the three
c. By 1/3 vote of the three
d. Any of the above

84. Which of the following statements about the preventive measures provided by Anti-Money Laundering Law is correct?
a. Covered persons shall establish and record the true identity of their clients based on official documents, as defined under Rule 3
of RIRR of AMLA.
b. Covered persons shall conduct face-to-face contact at the commencement of the relationship, or as reasonably practicable so as
not to interrupt the normal conduct of business.
c. Both A and B
d. Neither A nor B

85. Which of the following is not a minimum customer identification to be required by a covered person from its client or customer?
a. Name of customer, date and place of birth and Present and permanent address
b. Nationality of customer
c. Nature of work and name of employer
d. Name of all relatives of customer

86. Which of the following is not a minimum customer identification to be required by a covered person from its client or customer?
a. Contact number of customer
b. Specimen signature or biometrics of the customer
c. TIN, SSS or GSIS number if employed or self-employed
d. Name of all girlfriends or boyfriends of customer

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 87. Which of the following is not a minimum customer information or documentation that must be obtained by covered persons of AMLA
from its customers?
a. Nationality
b. SSS, TIN or GSIS number
c. Name of customer
d. Facebook page of customer

88. Which of the following accounts is not prohibited by Anti-Money Laundering Law?
a. Numbered accounts
b. Non-checking numbered accounts
c. Anonymous accounts
d. Fictitious accounts

89. What is the minimum retention period of all records of customer identification and transaction documents of their customers by a covered
person under Anti-Money Laundering Law?
a. At least 1 year from the date of transaction or from date of closure of the account
b. At least 3 years from the date of transaction or from date of closure of the account
c. At least 5 years from the date of transaction or from date of closure of the account
d. At least 10 years from the date of transaction or from date of closure of the account

90. Unless changed by the Anti-Money Laundering Council, what is the period for reporting all covered transactions or suspicious transactions
by a covered person to Anti-Money Laundering Council?
a. Within a period of (5) five working days from the occurrence thereof
b. Within a period of (15) fifteen working days from the occurrence thereof
c. Within a period of (5) five calendar days from the occurrence thereof
d. Within a period of (15) fifteen calendar days from the occurrence thereof

91. In case the Anti-Money Laundering Council decides to change period for reporting all covered transactions or suspicious transactions by a
covered person to Anti-Money Laundering Council, what is the maximum period it may extend the period for reporting?
a. Within a period of (5) five working days from the occurrence thereof
b. Within a period of (15) fifteen working days from the occurrence thereof
c. Within a period of (5) five calendar days from the occurrence thereof
d. Within a period of (15) fifteen calendar days from the occurrence thereof

92. In case of suspicious transactions, the word "occurrence" refers to the date of determination of the suspicious nature of the transaction.
What is the maximum period for the determination of the suspicious nature of the transaction by a covered person?
a. Within a period of (10) ten calendar days from the date of transaction
b. Within a period of (10) ten working days from the date of transaction
c. Within a period of (5) five working days from the date of transaction
d. Within a period of (15) fifteen calendar days from the date of transaction

93. Which court has the jurisdiction to issue a freeze order on bank accounts upon verified ex parte petition by the AMLC and after
determination that probable cause exists that any monetary instrument or property is in any way related to an unlawful activity?
a. Court of Appeals
b. Municipal Trial Court
c. Regional Trial Court
d. Court of Tax Appeals

94. What is the period allowed by AMLA to Court of Appeals to resolve the verified ex parte petition filed by the AMLC for the issuance of
freeze order on bank accounts related to proceeds of any unlawful activity?
a. Within 12 hours from the filing of the petition
b. Within 24 hours from the filing of the petition
c. Within 36 hours from the filing of the petition
d. Within 48 hours from the filing of the petition

95. What is the validity period of the initial freeze order immediately issued by the Court of Appeals upon verified ex parte petition by the
AMLC?
a. Period of 10 days
b. Period of 30 days
c. Period of 20 days
d. Period of 60 days

96. What is the maximum/total period of the freeze order that may be issued by Court of Appeals for bank accounts which is allegedly related
to proceeds of any unlawful activity?
a. It shall not exceeds (2) two months.
b. It shall not exceed (3) three months.
c. It shall not exceed (1) one months.
d. It shall not exceed (6) six months.

97. Which court has the jurisdiction to issue the asset preservation order concerning the proceeds related to any unlawful activity?
a. Court of Appeals
b. Municipal Trial Court
c. Regional Trial Court
d. Court of Tax Appeals

98. Which court has jurisdiction to issue an order authorizing the AMLC to inquire or examine any particular deposit or investment account
including related accounts with a banking institution or non-bank financial institution based on the ex parte application by AMLC in cases
of violation of AMLA?
a. Court of Appeals
b. Municipal Trial Court
c. Regional Trial Court
d. Court of Tax Appeals

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 99. What is the period allowed by AMLA to Court of Appeals to resolve the verified ex parte petition filed by the AMLC for the issuance of
bank inquiry order of bank accounts or investment accounts related to proceeds of any unlawful activity?
a. Within 12 hours from the filing of the petition
b. Within 24 hours from the filing of the petition
c. Within 36 hours from the filing of the petition
d. Within 48 hours from the filing of the petition

100. Which court has the jurisdiction to entertain a petition for civil forfeiture of any monetary instrument or property is in any way related to an
unlawful activity or a money laundering offense?
a. Court of Appeals
b. Municipal Trial Court
c. Regional Trial Court
d. Court of Appeals

101. What quantum of evidence must be presented to AMLC before it may file with the Regional Trial Court through Office of Solicitor
General a verified petition for civil forfeiture of any monetary instrument or property is in any way related to an unlawful activity or a
money laundering offense?
a. Probable cause
b. Preponderance of evidence
c. Proof beyond reasonable doubt
d. Clear and convincing evidence

102. What quantum of evidence is necessary for conviction of crime of Money Laundering?
a. Probable cause
b. Preponderance of evidence
c. Proof beyond reasonable doubt
d. Clear and convincing evidence

103. Which of the following is necessary or condition precedent before the commencement or resolution of petition for civil forfeiture of any
monetary instrument or property is in any way related to an unlawful activity or a money laundering offense?
a. Prior criminal charge of unlawful activity
b. Prior conviction of unlawful activity
c. Prior criminal charge of money laundering offense
d. Prior conviction of money laundering offense
e. None of the above

104. When there is conviction for money laundering, to whom shall the monetary instrument or property found to be proceeds of an unlawful
activity go to?
a. It shall be awarded by the regional trial court to the convicted person.
b. It shall be awarded by the regional trial court to the innocent contracting party.
c. It shall be forfeited by the regional trial court in favor of the Government of the Republic of the Philippines.
d. It shall be given to nonstock nonprofit charitable institutions.

105. What law punishes or penalizes issuance of worthless checks?

a. BP 22
b. BP 68
c. BP 45
d. BP 13

106. Which of the following is punishable act under BP 22 also known as Bouncing Checks Law?
a. Any person who (a) makes or draws and issues any check to apply on account or for value, (b) knowing at the time of issue that
he does not have sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment, (c)
which check is subsequently dishonored by the drawee bank for insufficiency of funds or credit or would have been dishonored
for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment.
b. Any person who, having sufficient funds in or credit with the drawee bank when he makes or draws and issues a check, shall fail
to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90)
days from the date appearing thereon, for which reason it is dishonored by the drawee bank.
c. Either A or B
d. Both A and B

107. What is the minimum number of days for maintaining a balance in the checking account to cover the check he issued for the drawer to be
exempted from conviction for violation of BP 22?
a. A period of at least 90 days from the maturity date of check
b. A period of at least 120 days from maturity date of check
c. A period of at least 150 days from maturity date of check
d. A period of at least 180 days from maturity date of check

108. Which of the following is not an element of violation of BP 22 for issuance of worthless check or no sufficient fund (NSF) check?
a. There must be making, drawing, and issuance of any check to apply for account or for value.
b. There must be knowledge of the maker, drawer, or issuer that at the time of issue he does not have sufficient funds in or credit
with the drawee bank for the payment of the check in full upon its presentment.
c. There must be subsequent dishonor of the check by the drawee bank for insufficiency of funds or creditor dishonor for the same
reason had not the drawer, without any valid cause, ordered the bank to stop payment.
d. There must be criminal intent to defraud on the part of the drawer of the check.

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 109. What is the legal obligation on the part of the drawer of a funded check in order to exempt himself from criminal liability for bouncing
check?
a. He must keep sufficient fund or maintain credit to cover the full amount of the check within a period of 90 days from the
maturity date of the check.
b. He must keep sufficient fund or maintain credit to cover the full amount of the check within a period of 30 days from the maturity
date of the check.
c. He must keep sufficient fund or maintain credit to cover the full amount of the check within a period of 60 days from the maturity
date of the check.
d. He must keep sufficient fund or maintain credit to cover the full amount of the check within a period of 120 days from the
maturity date of the check.

110. What is the penalty for violation of BP 22 or Bouncing Checks Law?

a. Imprisonment of not less than 30 days but not more than (1) year or Fine of not less than but not more than double the
amount of the check which fine shall in no case exceed Two Hundred Thousand Pesos or both imprisonment and fine.
b. Imprisonment of not less than 60 days but not more than (2) years or Fine of not less than but not more than triple the amount of
the check which fine shall in no case exceed Three Hundred Thousand Pesos or both imprisonment and fine.
c. Imprisonment of not less than 90 days but not more than (3) years or Fine of not less than but not more than the amount of the
check which fine shall in no case exceed Four Hundred Thousand Pesos or both imprisonment and fine.
d. Imprisonment of not less than 120 days but not more than (4) years or Fine of not less than but not more than the amount of the
check which fine shall in no case exceed Five Hundred Thousand Pesos or both imprisonment and fine.

111. What is the prima facie evidence of the knowledge of insufficiency of funds or credit by the maker or drawer of a check?
a. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or
credit with such bank, when presented within (120) days from the date of the check.
b. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or
credit with such bank, when presented within (30) days from the date of the check.
c. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or
credit with such bank, when presented within (60) days from the date of the check.
d. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in
or credit with such bank, when presented within (90) days from the date of the check.

112. What act may be presented by the maker or drawer of a check to destroy prima facie presumption of knowledge of insufficiency of funds or
credit as established by the preceding number?
a. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee
of such check within (10) banking days after receiving notice that such check has not been paid by the drawee.
b. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee
of such check within (15) banking days after receiving notice that such check has not been paid by the drawee.
c. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the
drawee of such check within (5) banking days after receiving notice that such check has not been paid by the drawee.
d. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee
of such check within (20) banking days after receiving notice that such check has not been paid by the drawee.

113. Which of the following is not a duty of a drawee bank under BP 22?
a. When refusing to pay the check to the holder thereof upon presentment, to cause to be written, printed, or stamped in plain
language thereon, or attached thereto, the reason for drawee's dishonor or refusal to pay the same.
b. If there are no sufficient funds in or credit with such a drawee bank regarding such check, such fact shall always be explicitly
stated in the notice of dishonor or refusal to be given by the drawee bank.
c. Notwithstanding receipt of an order to stop payment from the drawer of check, the drawee bank shall state in the notice that there
were no sufficient funds in or credit with such bank for the payment in full of such check, if such be the fact.
d. The drawee bank report the act of issuance of worthless check to AMLC even if the amount does not exceed the
quantitative threshold to be considered covered transaction.

114. The introduction in evidence of any unpaid and dishonored check, having the drawee's refusal to pay stamped or written thereon or attached
thereto, with the reason therefor as aforesaid, shall be prima facie evidence of the following elements of crime of issuance of worthless
checks, except
a. The making or issuance of said check
b. The due presentment to the drawee bank of the check for payment and the dishonor thereof
c. The check same was properly dishonored for the reason written, stamped or attached by the drawee on such dishonored check.
d. The knowledge of the maker or drawer of the insufficiency of fund or credit of the check he issued.

115. Under BP 22, it shall be construed as an arrangement or understanding with the bank for the payment of such check.
a. Debit
b. Credit
c. Deposit
d. Account

116. What is the quantum of evidence required to sue or file a criminal case for criminal offense involving violation of BP 22 for issuance of
worthless checks?
a. Probable cause or prima facie evidence
b. Clear and convincing evidence
c. Preponderance of evidence
d. Proof beyond reasonable doubt

117. What is the quantum of evidence required for conviction of criminal offense involving violation of BP 22 for issuance of worthless checks?
a. Probable cause or prima facie evidence
b. Clear and convincing evidence
c. Preponderance of evidence
d. Proof beyond reasonable doubt

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 118. What is the quantum of evidence required for awarding of civil damages for issuance of worthless checks?
a. Probable cause or prima facie evidence
b. Clear and convincing evidence
c. Preponderance of evidence
d. Proof beyond reasonable doubt

119. In case of bouncing check issued in behalf of an artificial being or juridical person, who shall be criminally liable for imprisonment?
a. Juridical person
b. Corporate officer who signed the bouncing check
c. Both a and b
d. Neither A nor b

120. R.A. 3765 also known as Truth in Lending Act applies to:
a. Pawnshops
b. Small-loan money lenders
c. Both A and B
d. Neither A nor B

121. It refers to the affidavit that must be attached in the document evidencing the contract of chattel mortgage in order to bind or to prejudice
third persons. This affidavit in chattel mortgages states that the mortgagor and mortgagee do severally swear that the foregoing chattel
mortgage is made for the purpose of securing the obligation specified in the conditions thereof, and not for any other and that the same is a
just and valid obligation and not entered into for purposes of fraud.
a. Affidavit of Good Faith
b. Affidavit of Loss
c. Affidavit of Desistance
d. Affidavit of Recognition

-Nothing follows-

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