[REVIEWER ON COMMERCIAL LAW 9 Examination. An examination of banks requires the prior ‘consent of fe Monetary Board (MB), whereas an investigates does not require prior MB DIC a Pi, 4) Note: PDIC may commence Resolution un- ns Sand 11, R.A. No. 3591, as amended and administer the affairs of the closed bank. Banks closed by the Monetary Board shall NO LONGER Parry i 8 Other Relate Las BE REHABILITATED (sec ‘amended. ) A judge, officer ofthe court or any person who onder proces or cause implementation othe w tachment or execution rim under of RA, No. 3591 as amended. 0) (ThepowersotPDICasresivetincudesthepower to cllect loans and other claims ofthe closed bank, and for the purpose, modi, compromise or restructure the terms and conditions of such Toans or daims as may be deemed advantageous tothe interest ofthe creditors and daimantsof the dlosed bark See S13, R.A No. 359 as amended ©) The liability of the banks for deposits and. all other obligations as of closure pon. ‘No. 3591, ns amended by R.A. 2, ANTI-MONEY LAUNDERING ACT 201. Money Laundering — a crime committed by any person who knowing that any monetary instrument fF property represents, involves, or relates to the trans dps of Said monetary insu Aogus thet atte, sue ciclo omens of ght sney laundering referred to in (1), (2), o (3); (7) This ral comme by are report othe Anti-Money Laundering Council (AMLC) by any covered person knowing that @ covered or suspicious transaction is202. v REVIEWERON COMMERCIAL LAW sired under the AnteMoney Launderin ed thet A N51, amend fy Ay hes apres on Fer ne Covered tram tension ig Oe valent monetary instrument i sh oa amount In excess of PSOOOND 0 a 2 cates) he folowing we te Cra Senate nthe 2016 nko ene (ameter soe Benry spend ond by BS rere po ge other persons and their affiliates supervised or regu IRR, foreign exchange and remittance and transfer com re covered persons under the supervision of the BSP. 2. Persons supervised or regulated by IC, suchas: a, _ Insurance companies; b, _Pre-need companies; dealers, money Insurance brokers; Professional reinsurers; Parry ” Othe Red awe Reinsurance broker; Holding companies; Mutual benefit associations; and Allothe persons and ther subsidiaries and affiliates supervised or regulated by the IC. £ & h. Holding company systems; i Persons supervised or regulated by SEC, such as: 4 Securities dealers, brokers, salesmen, in- ‘vestment houses, and other similar persons ‘managing securities or rendering services, ‘such as investment agents, advisors, or con- saultants, b. mutual. funds or open-end investment ‘companies, close-end investment companies ‘or issuers, and other similar entities; other entities, administering or otherwise dealing in commodities, vatives based thereon, ‘ash substitutes, and other instruments or properties, supervised or regulated by the SEC. The following Designated _ Nor Financia Businesses and Professions (ONFEPS} Jewelry dealers and deters inp Company service providers which, as 2 rss, provide any of He following services oth partes 1. ating as formation agent juried Pev REVIEWER ON COMMERCIALLAW i providing a registered of, dress or accommodation ¢,'y dence or administatve ager | company Prieship ort hr legal person or rangement inating as (raranging for sneed slam tach | for another person. esta sericea © retina sooner Sater came reer Notes: (1) Notwithstanding the egy cto ty pana eee aE pre hf ie legal or accountng tants working in a private firm or as sole practitioners who by way of bus- ness provide purely legal, notarial or accounting services to their clients 208. Parry s B.Ovher Rls Las 2) (Casinos) are also now ‘covered entities (RA. No. 9160 as amended by R.A. No, 10927). Casino tefers to a business authorized by the appropriate government agency to engage in gaming operations: (a) “Internet-based casinos” shall refer a casinos in which persons participate casino shal reler te cage he ‘operation of which is undertaken on board a vessel, ship, boat or any other waterbased craft intended for gambl Suspicious transaction ‘Transactions with covered institutions regardless of the amounts involved, when any of the following circumstances exist: — a) ») ° 4) there is no underlying legal or trade obligation, [Purpose or economic justification; the cient isnot properly identied; the amount involved is not commensurate with, the business or financial capacity ofthe cient; taking into account all known circumstances, it ‘may be percsived that the client's transaction is structured in order to avoid being the subject of reporting requirements under the AMLA; smstances relating to the transaction sbserved to deviate from the profile ofREVIEWER ON COMMERCIAL LAW the transaction is in any way rela ‘unlawful activity or offense under the, am s is about to! is being or has been commie g) any ransaction thats similar oF analogous, a . of the foregoing. aay ‘Unlawful activity ‘Any act or omission oF series or comb there involving oF having relation to the fete (2007 Bar): % (1) Kidnapping for ransom under Article 267 No. 3815, othervse known as the Revised A Code, as amended; ‘ena (2) Sections 4, 5, 68, 9, 16 of RA. No. 9 =a Comprehensive Dangerous Drugs Act of 299 (9). Section 3 paragraphs B, CE, G, H and Lof Ra No. 3019, as amended, otherwise known ae Anti-Graft and Corrupt Practices Act; " (4) Plunder under R.A. No. 7080, as amended; (6) Robbery and extortion under Articles 294, 295, 1296, 298,300,301, and 302 ofthe Revised Pers Code, as amended (6) _Jueteng and Masiao punished as illegal gambling under PD. No. 1602; alles “ (@). Rizacy on the high seas under the Revised Pena Code, as amended and PD. No. 532; ‘Qualified theft under Article 310 of the Revised (10) Smuggling under R.A. Nos. 455 and 1937; (11) Violations of R.A. No. 8792, otherwise known as the Electronic Commerce Act of 2000; PaRrIV ” Other Raat Laws (12) Hijacking. and other violations under R.A. No. 6235; destructive arson and murder, as defined under the Revised Penal Code, as amended; (13) Terrorism and conspiracy to commit terrorism as defined and penalized under Sections 3 and 4 of RA. No, 9872; (08) Financing of terrorism under Section 4 and effenses puishable under Sectons 3 6,7, and 8 of RA. No. IOI, otervise known 2 the Terrorism Francing Frevention and Suppression Act of 2012; * on (17) Malversation of Public Funds and Property under ‘Ailes 217 and 222 of the Revised Penal Code, as Counterfeiting under Articles 163, 169 and 176 of the Revised Penal Forestry Code ofthe Philippines, as amended; 21) Violations of Sections 86 to 106 of Cha herwise known as the Phil 1998; 7942, otherwise known as the Philippine Mining Act of 1995;yw [REVIEWER ON COMMERCIAL LAW r, overt Lane % (23) Violations of Section 2710. (9, (9, (ang (9 telaaserroies ‘otherwise kn Ge offenses of a similar nature that eae Prot 2 the Wg are punishable under the penal laws of other ‘Resources Conservation and Protection, Act, ‘countries (Sec. 3[i] R.A. No. eer Ma a OE ‘Resources Management Protection Act; Cay 2.06. Obligations of covered institutions (Sec. 9) SS qubadianstodie am al known as the AntiCamapping Act of 29" amended; s as amended by sed_on official documents. They ‘maintain a system of verifying the true identity of ther clients and, incase of corporate ans of Stns 3, and 5 2a ie hoe leas eqs spat ie oak ee cig the Lawn on aga ae coee ree peat ero ar ehea Sethe mln lemon fl eons fe Dopeton of Freums, Ammonis malar Explosives; Record Keeping.— Allx e ‘i of covered institutions): (2 Walton of PD. No. 162 here Known of gad see areas =i so br 7 Wen See FAN 00 ey is a known as the Migrant Workers and Overseas and business corres rere ea oe uel ee Sitepnoele 10022; dates when they we ing of Covered and Suspicious Tans (2) Violation of RA. No 8293, otherwise known a ©) Reporting ’ me | Actions. Covered istittions shall report to the Intellectual Property Code ofthe Philppncy sees Costa aint el ee (0) Violation o Section # of RA. No. 995, cherie allcovered or suspicious wanton within ive own a the Ant-Photo and Video Voyeur, working daye from occurence thro ules Actot 20; [AMUC presebesaonger peso not exceeding ays Conviction of the urlwfl (G1) Violation of Section 4 of R.A. No. 9775, otherwise a tei Sr aown as the AntiChild Pomography Ad of = Safe Harbor Provisions (no parte petiion bythe AMLC; 2) CA Regulation Code of 2000; and must determine tat probable cause exist tvy are o 4 Othe lad Las 2 ny ef Areas wl remand the ce an ie sods ie et. 10, RA. No, S160, as amended by RA. No. nando 10927) rm s i ecze order Sa eran 1) The treezeorder(@) ast preservation ondet ~ieiately for 2 psiod of 20 aya fy tesued esha ime ony to the CA shall then conduct summary hearing amount CAG the partes determige aE Pep ur finds there is probable ‘ase to be considered as proceeds of a predicate offense, and thefreze order or The Cour of Appeals should acto the pein fez within 20 hous fom fling ofthe gate 208. AUTHORITY OF AMLC-TO INQUIRE INTO AND ‘Picafptons lad aday er ee EXAMINE BARK DERSSISS Be HR Ne oN, ing day, the computation of the 24-hour pant) ‘as amended by R.A, No. 10167) ‘shall exchude the nonworking daya (Se. 10, Ra inquire into or examine any No. 9160, as amended by R.A. No. 10167) | particular- deposit or investment, including, related Bled against a person whose an Eccouns, with any banking isttion or Ron-bank en frozen within the period determined the Court of Appeals, not exceeding ix monte the feeze order shall be deemed fea fate ty TRA. No 9160, os amended fy Ao 10927), Me i adainct be hey ine ‘le a motion to lift the freeze order and the coun i before the expiration of RA. No. 9160, a8 amended 57 and 10365). involved a elated o (1 anual Activ 2 (See enumeration in 3,05 above) or (2) a money 4) issue a. temporary restraining ee 1) order or a writ of injunction against any freee pean except the Supreme Court (Sec. y RELATED . A court order ex r except the Supreme Court (Sec. 10, RA, Na a INTS, Acoust ones ot money laundering case or civil forfeiture case ray issue on the same account depending upon the circumstances of the case, where the CouttREVIEWER ON COMMERCIAL LAW (@){ The Court_of Appeals must act “application within 24 hours from, tem NO COURT ORDER shall-be requiteq eS “pamintion of Bank deposits by abt fe se in (1). Kidnapping for af Act No. 3815, Revised Penal Code, (2) Sections 457.89, of Republic Act as the Comprehensive Dan ‘of 2002; wa Drugs Hijacking and other violations ung No. 6238 destructive arson and mata defined under the Revised Penal Code’ mended, including. those perpesse yg? men aact Sareea ving ) @ (12) which are punishable laws of other countries; and (5) Terrorism and conspiracy to commit terrorism as defined and penalized under RA. No. 9372, int and the related accounts shall comply with the requirements of Article Il, Sections 2 and 3 of the 1987 Constitution. Eugenio, GR. No. 174629, Bar) Section 11 of the AMLA providing for ex-purle application and inquiry by the AMLC into certain bank deposits and investments does not violate ary 14, 2008) (2005 i of AMLC to inquire into or examine PaRTIV B.Other Rete tas © of Appeals, eta, C.R. No 6). olaton ofthe right o privacy Supreme Cour explained hat he a, les Safeguards befor. a bank inquiry onder ensuring adherence tothe general stale confidential rte application for independent of the AMLCs ddemonstation_ of probable cause itself takes a finding of probable cause thatthe deposits or investments are related. t0 an unlawful activity under Section 3-0 a ‘money laundering offense under Seton 4 of the AMLA; (@) [A bank inquiry court onder ex pard for fla. acount i proceed by = tank inquiry court onder x prt forthe principal {cau wich oul overex ure orate comply with the ‘Article Ill, Sections 2 and 3“ REVIEWER ON COMMERCIAL LAW 3, TRUTH IN LENDING 301, TRUTHINLENDING ACT (R.A. No, 3765) ') Disclosure Requirement (1991, 2099 Bar) an ay ‘The law assures full disclosure the lender to give the borrower al ty regarding the transaction. Under Sean’ Se ll furnish to each person eae credit is extended, prior to the consy®, "4am of the transaction, 3 clear statement oo™2ton setting forth, to the extent applicabig “tty cordance with ules and regulations and ig lowing information, "° ty the Board th D delivered | tobe acquined be 2 5, to be credit rade-in; Me 38 down, 3). thedifeenebeveen be smount ting under clauses (1) and (2); 5) the fotal amount tobe financed; 6) the finance charge expressed in terms of pesos and centavos; and omit 7) the percentage that the finance bears tothe total amour a simple anni ‘unpaid balance imposition of interest and finance chargesis if not disclosed in the disc! in the disclosure statement, reference to a 4) Parry BOtber led Laws Rationale — To protect users of credit from lack of awareness ofthe tv cost there 0 FexeditL any oan, morgage, dood of ‘rust, advance, or discount; any conditional sales contract; any contract to sell, or sale ‘or for the delivery of, property or money; any purchase, or other acquisition of, or any credit upon the security of, any ebligation of claim arising out of any of the foregoing: ‘and any transaction or series of transactions ‘having a similar purpose or effect. 2) Finance charge — interest, fees, service charges, discounts, and such other charges incident to the extension of credit as the Board may, by regulation, preseribe.») REVIEWER ON COMMERCIAL LAW Ccedtor — ary person en 9 Srsns of extending credit Gn By Peso who ao pole haa Soke loans or sls mt services on a time, credit, erty op basis, either as principe len mel a a inet othe credit, the payment of a finance charge” i Sepseunt cae Shemp deemed in substantial compliance wi ed Eonp The bank gave the dees sat is oer fe cea ly and independent ase forthe same offense (UCPB ‘One year from the date of the date of execution of the Parry “s B Other Related Lams 4, CONSUMER ACT (RA. No, 7394) ime Act of the Philippines (RA. No. 7394) isclosure for consumer credits, Consumer” means a natural tho is a person who is purchase lessee, recipient or prospective purchase, lessor o recipient of consumer products, services of credit. 2) "Consumer credit” means any credit extended by a creditor to a consumer forthe sale or lease of any consumer product or service under which part or ll ‘ofthe price or payment therefor is payable at some future time, whether in full or in installments 3) “Consumer loan” means a loan made by the lender transactions pursuant to an other than a seller L. ») 2) all. charges, individually itemized, which are included inthe amount of credit extended but which ae not partof the finance charge; the total amount to be financed or the sum of the amounts refered to in paragraphs (a) and (b); the finance charge expressed in terms of pesos and centavos; 5) _ the effective interest rate; 6) the percentage thatthe finance charge bears to the total amount to be financed expressed as a simpleREVIEWER ON COMMERCIAL LAW te on the outstanding unpaig tion; brane the default, delinquency or similar cha » inthe event of late payments; and °° Payaby, 8) a description of any security interest hetg falar tobe retained or acuired by the othe Sanecion withthe extension of ced ‘Gentfication ofthe property to which thet? ea ates. Sean ‘Exempted Transaction (Art 145, R.A. No, 7394) 1) those involving extension of credits for by for commercial purposes, or to the Govern Sed govemmenal agencies and instrument junsleal ents orto organiza is 2) those in which the debtor is the one specifying teehee ed ates insurance contac, sale of bonds or anghes transactions. 5, HUMAN SECURITY ACT OF 2007 5.01, EXAMINATION AND SEQUESTRATION op DEPOSITS Republic Act No. 9372 which was passed March 6, 2007 entitled “An Act to Secure the Stat aa Protect our People from Terorism” otherwise known as the “Human Security Act of2007" (HSA forshortalls examination and sequestration of deposits based on certain conditions. EXAMINATION OF BANK DEPOSITS ‘The Court of Appeals designated as a specal court to handle antiterrorism cases may authorize in writing any law enforcement oficer andthe bers of his/her team duly authorized in weiing w antiterrorism council records in a bank or financial institution; and Parry ‘B. Other Related Laws, . ther of case the us the gathering of any relevant formation about such deposits, placements Accounts assets and records from a bank oF financial institution See 271154 4) Grounds, The Court of Appeals ‘ ‘ourt of Appeals may authorize the examination of accounts tera satsactory finding of the existence Of probable cause in a hearing called forthe Purpose, of 1) person charged with or suspected of the rime of terrorism or, conspiracy £0 commit erorism, of judicially declared and outlawed terocst organization, association, oF ‘group of persons; and. 3) of a member of such judicially declared and outlawed organization, association, or group of persons (Sec. 27, HSA). ») ‘committed by any person who commits an act punishable under any of the following, provisions of the Revised Penal Code 1) Article 122 (Piracy in General and Mutiny in the High Seas or in the Philippine Waters), 2) Article 134 (Rebellion or Insurrection): 3) Article 134-A (Coup d’tat), including ‘acts committed by private persons; 4) Article 248 (Murder); 5) Article 267 (Kidnapping and Serious legal Detention);v [REVIEWERON COMMERCIAL LAW 6) Article 324 (Crimes Involvi tion), M8 Desa. or under fe and Hazardous # Ne Waste Contl acter 6) _ Republic Act No. 5207 (Atomic Reprod Lay Aa a 10) Repble Act No. 623 (ans se, ln to a member of such organization, association, or group They, They shall be seized, i and frozen in order to prevent their 1) Presidential Decree No. 1866, 4, amended (Decree Codifying the Last Institution for such person and the government during the’ pendency of the Manufacture Delingin Aegean investigation of the persok suapeced of oF Disposition of Firearms, Ammunitec duringte pendency ofthe trl ofthe person or Explosives). ©) Penalty. A person convicted of the cine of terrorism shall suffer the penalty of 4) charged with any of the said crimes, as the ‘ase may be and theit use or disposition ‘while the case is pending shall be subject t© the approval ofthe court before which the ‘case or cases are pending (Se. 40, HSA). Indeterminate Sentence Law, as amended (Sec. 28, Act Na 9372) 4d) Effective Period. Thirty (30) days from the 6, THE TERRORISM FINANCING AND PREVENTION AND SUPPRESSION ACT (R.A. No. 10168) 601. Financing of terrorism Republic Act No, 10168 imposes criminal lability and ‘uses property or funds or makes funds or financial service or ot any means, with the unlawful and wi iginal period (Sec. 30, Act No 9372). }. SEQUESTRATION The Court of Appeals may likewise order the sequestration of deposits belonging:603. REVIEWER ON COMMERCIAL LAW unl ret Tey halle lyf ini rm eB a Ne ey s)he aly ld ingoetd on ny ) The Romer dec othr a ; ‘An attempt of ci ») ‘Authority of AMLC to investigate The AMLC is authorized to inv. any property or funds that are in any financing of terrorism or act of terrorism: (b) funds of any person o persons in relation oe? there is probable cause to believe that such peg persons are commiting or attempting or conpi commit: parpating nor faciitating the fang of terrorism or acts of terrorism apa: (a a) TheAMLCisauthorized toinquireintoor deposits and investments with any bank | institution or non-bank financial Authority to freeze terrorist organization, of associa whom there is probable cause to én committing or attempting or conspiring to commit, ‘The AMLC, either upon its own initiative orat | Vv Way reg) Pariy 8 Other Related Laws od of Participating in or facilitating the commission of financing of terrorism or acts of terrorism as defined herein. a) » Period of Effectvity of Freeze Order issued by AMLC — Twenty (20) days. Extendible by the Coutt of Appeals up to a period not exceeding ‘six months upon petition by AMLC. The 20-day. Period shall be tolled upon filing of a petition to extend the effectivity of the freeze order. The AMLC i aso authorized to ise a feze ‘order with respect to property or funds of designated organization, association, group ot any individual to comply with binding terrorism- related Resolutions, including. Resolution No. 1373, of the UN Security Council pursuant to of the Charter ofthe UN. Said feeze ‘order shall be effective until the basis for the ‘ume tol sal have ten ted bene, the 20-day limit does not apply). During cetfectivity ofthe freeze order, an aggrieved party ‘ay, within 20 days from issuance, file with the Court of Appe of the freeze effective judicial eth property or funds subject the ere oder unde! the imately preceding paragraph are found to be in any way raed fo facing of teria or acs of ers commited within the rsdn ofthe Philipines sid property or fund shal beth subj of Gl foreare procetings. ‘according to the principle of tion.