Polytechnic University of the Philippines

Sta. Mesa Manila

College of Accountancy and Finance
LAW 20033 – Regulatory Framework and Legal Issues in
Business

Republic Act 9160 AN ACT DEFINING THE CRIME OF MONEY LAUNDERING,

PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES

I. MULTIPLE CHOICE QUESTIONS. Select the best answer

1. Which stage in money laundering is where the launderer inserts dirty money
to legitimate financial institutions?

a. Placement

b. Layering

c. Integration

d. None of the above

2. The following are the covered entities under anti-money laundering, which is
not?

a. All entities supervised by BSP

b. Entities supervised by SEC

c. Entities supervised by Insurance Commission

d. None of the above

3. Freezing of monetary instruments and property upon order of Court of

Appeals shall be effective immediately for

a. 15 days unless extended by the court upon application by the AMLC

b. 20 days unless extended by the court upon application by the AMLC

c. 25 days unless extended by the court upon application by the AMLC

d. 30 days unless extended by the court upon application by the AMLC

4. Upon authority to inquire into bank deposits the court order is necessary
when the offense involved is

a. Kidnapping for ransom

b. Hijacking

c. Smuggling

d. Terrorism

5. All the members of the secretariat, as established by the AMLC, must have
served the following institutions for at least five (5) years, except for one.

a. Insurance Commission

b. Bangko Sentral ng Pilipinas

c. Securities and Exchange Commission

d. None of the above

6. In the record keeping of covered institutions, how many years do records

of closed accounts must be preserved and safely stored?

a. 5 years from the date the accounts are closed

b. 3 years from the date the accounts are closed

c. 1 year from the date the accounts are closed

d. None, because the records must be disposed of immediately.

7. Which of the following is a forfeiture provision under Section 12 of Republic

Act No. 9160?

a. Civil Forfeiture
b. Claim on Forfeited Assets
c. Payment in Lieu of Forfeiture
d. All of the above

8. Which of the following is not an instance where the order of forfeiture of the
monetary instrument or property subject of a money laundering offense
defined under Section 4 cannot be enforced.

a. It has been concealed, removed, converted or otherwise transferred to

prevent the same from being found or to avoid forfeiture thereof
 b. It is located inside the Philippines
c. Any particular monetary instrument or property cannot, with due
diligence, be located, or it has been substantially altered, destroyed,
diminished in value or otherwise rendered worthless by any act or omission,
directly or indirectly, attributable to the offender.
d. It has been commingled with other monetary instruments or property
belonging to either the offender himself or a third person or entity, thereby
rendering the same difficult to identify or be segregated for purposes of
forfeiture

9. The following are the policy for the enactment of AMLA, except one:

a. To protect and preserve the integrity and confidentiality of bank accounts.

b. To initiate investigations of covered transactions, money laundering
activities and other violations of this Act.
c. To ensure that the Philippines shall not be used as a money laundering
site for the proceeds of any unlawful activity
d. To extend cooperation in transitional investigation and prosecution of
persons involved in money laundering activities wherever committed.

10. Statement 1: The regional trial courts shall have jurisdiction to try all cases
on money laundering.

Statement 2: If the offender is a corporation, association, partnership or any

juridical person, the penalty shall be imposed upon the responsible officers,
as the case may be, who participated in the commission of the crime or who
shall have knowingly permitted or failed to prevent its commission.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are true
d. Both statements are false
II. TRUE OR FALSE QUESTIONS. Write TRUE if you think a statement is
True and FALSE if you think the statement is FALSE.

1. Republic Act No. 9170 is called the Anti-Money Laundering Act of 2001.
2. Monetary instruments may refer to coins or currency of legal tender of the
Philippines, or of any other country, drafts, checks and notes, etc.
3. The Anti-Money Laundering Council is composed of the Governor of the
Bangko Sentral ng Pilipinas as chairman, the Commissioner of the
Insurance Commission and the Chairman of the Securities and Exchange
Commission as members.
4. A breach in confidentiality may result in a punishment of imprisonment
ranging from three (3) to eight (8) years and a fine of not less than Five
hundred thousand Philippine pesos (Php500,000.00) but not more than
One million Philippine pesos (Php1,000,000.00).
5. A holding company includes any person who directly or indirectly controls
any unauthorized insurer.
6. Money laundering is a crime whereby the proceeds of lawful activity are
transacted.
7. An example of a suspicious transaction is when there is a simultaneous
transfer of funds to a group of customers’ accounts from a third party.
8. Proceeds refers to an amount derived or realized from a lawful activity.
9. The Sandiganbayan does not have the jurisdiction for money laundering
cases committed by public officers and private persons who are in
conspiracy with such public officers.
10. Supervising Authority refers to the appropriate supervisory of regulatory
agency, department or office supervising or regulating the covered
institutions.
 ANSWER KEY

Part 1 MULTIPLE CHOICE QUESTIONS

1. A 6. A
2. D 7. D
3. B 8. B
4. C 9. B
5. D 10. C

Part 2 TRUE OR FALSE QUESTIONS

1. FALSE 6. FALSE
2. TRUE 7. TRUE
3. TRUE 8. FALSE
4. TRUE 9. FALSE
5. FALSE 10. TRUE

GROUP 3 MEMBERS

ABORDO, AIZEL MIN A.

AVERILLA, KATRINA MAE A.

BAYRON, MIKE E.

CAYABYAB, DWYER SYDNEY

FRANCIA, MERYL KAYE A.

MADUCDOC, PHILLIP HENRY G.

REYEL, RAYMART C.

SANTIANO, JOHN CARLO B.

VOCAL, YSSA CLARIN M.