bank secrecy act

1. In garnishment, bank secrecy is
A. Violated if there is no consent of the depositor
B. Violated if the consent of the creditor is not written
C. Not violated since the amount of the deposit is not actually disclosed
D. Not violated since the information disclosed is limited to a few transactions

c

2. In a trust account where Person X is the trustor and Bank Y is the trustee, the Trust Agreement provides that the trust account covers deposit, placement or investment of funds by Bank Y for and on behalf of Person X. There appears to be a trustor-trustee relationship. Is this covered by the Secrecy of Bank Deposits Act?
A. Yes, as long as the money deposited under an account may be used by bank for authorized loans to third persons.
B. No, because only debtor-creditor relationships are covered by the Secrecy of Bank Deposits Act.
C. Yes, because the situation above involves a bank as the trustee.
D. No, as long as the bank acts as trustee only.

a

3. The bank secrecy law prohibits any person from
A. Disclosing any information concerning deposits to any person other than a bank director, official, or employee authorized by the bank
B. Examining, inquiring, or looking into deposits in banking institutions or bonds issued by the government
C. Disclosing sensitive information concerning deposits to any person other than a bank director, official, or employee authorized by the bank
D. Disclosing any information concerning deposits to any person other than a bank director, official, or employee authorized by the bank, and examining, inquiring, or looking into deposits in banking institutions or bonds issued by the government

b

4. Statement 1: An impeachment case, or any form of removal from public office, is one of the exceptions to the bank secrecy law.
Statement 2: There must be a pending case before a court of competent jurisdiction before the ombudsman can exercise its power to access bank accounts and records.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

b

8. Statement 1: The Deputy Commissioner of the BIR may examine, inquire and look into the bank deposits for the purpose of determining the gross estate of a deceased depositor.
Statement 2: The Deputy Commissioner of the BIR may examine, inquire and look into the bank deposits pursuant to a request for tax information of specific taxpayers made by a foreign tax authority pursuant to a tax treaty under The Exchange of Information on Tax Matters Act of 2009.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

d

10. Under the Bank Secrecy Law, people are encouraged to deposit their money in banking institutions so that
A. It may be utilized by way of authorized loans and to assist in economic development
B. People's private information regarding bank deposits will be protected
C. Money will be secure and less prone to theft
D. It may earn interest over time

a

11. One of the stated purposes of the bank secrecy law is
A. To prohibit disclosure of information concerning deposits
B. To discourage private hoarding
C. To encourage private hoarding
D. To discourage disclosure of information regarding deposits

b

13. Which of the following is not a covered deposit under the Secrecy of Bank Deposits Act?
A. Treasury bills
B. Dollar linked peso notes
C. Retail treasury bonds
D. Shares of stocks in a corporation

d

15. Statement 1: As a general rule, foreign currency deposits are exempt from garnishment.
Statement 2: As a general rule, the properties enumerated under Section 13, Rule 39 of the Rules of Court are exempt from garnishment.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

c

20. The following impeachment cases are an exemption to the bank secrecy rule, except
A. Removal from office of the President
B. Removal from office of the Senate President
C. Removal from office of the Chief Justice
D. Removal from office of the Vice President

b

22. Person X, while having a bank transaction, overheard a bank teller informing a co-employee that Person Y, one of its depositors who is a social media influencer, has just P5,000 in his bank account and that his next check might probably bounce. Person X disclosed this information to the public. Did Person X violate the Secrecy of Bank Deposits Act?
A. No, since Person X merely overheard the remark of the bank teller to a co-employee and it does not fall under any of the prohibited acts under the Secrecy of Bank Deposits Act.
B. Yes, Person X is liable because bank deposits are absolutely confidential.
C. Yes, Person X is liable because bank deposits must not be examined, inquired or looked into by any person.
D. No, since Person X was in good faith when he overheard the remark of the bank teller to a co-employee.

a

23. Which of the following is not exempt from garnishment?
A. Salaries, wages, or earnings for personal services within the four months preceding the levy as are necessary for the support of his family.
B. Monies, benefits, privileges, or annuities accruing or in any manner growing out of any life insurance.
C. Right to pension or gratuity from the Government.
D. Provisions for individual or family use sufficient for one year.

d

24. Andrea left a copy of her deposit slip in Ben's car. Ben saw the amount written on the deposit slip. The following day, Ben disclosed this information to Clara. Clara confronted Andrea in a public space and said out loud the amount of the deposit. Several people heard the conversation. Who may be held liable under the bank secrecy law?
A. Ben
B. Ben and Clara
C. Clara
D. None of the above

d

26. The bank secrecy law prohibits the independent auditor hired by the bank to conduct its regular audit from
A. Disclosing to any person other than a bank director, official, or employee authorized by the bank, any information concerning said deposits
B. Disclosing to any person other than a bank director, official, or employee authorized by the bank, private information concerning said deposits
C. Disclosing to any person other than a bank director, official, or employee authorized by the bank, sensitive information concerning said deposits
D. Disclosing any information concerning deposits to any person other than a bank director, official, or employee authorized by the bank, and examining, inquiring, or looking into deposits in banking institutions or bonds issued by the government

a

28. Is garnishment violative of the Secrecy of Bank Deposits Act?
A. No, since the amount of the deposit is not actually disclosed.
B. Yes, since bank deposits must be absolutely protected to encourage confidence among depositors.
C. No, since garnishment does not apply to bank accounts.
D. Yes, since the information on financial transactions of the depositor is disclosed.

a

29. Statement 1: Savings, current, and time deposits in banks are examples of deposits protected under the Secrecy of Bank Deposits Act, as amended.

Statement 2: An employee's payroll account is not protected under the Bank Secrecy Law, and his or her employer may conduct a bank inquiry for such account.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

a

30. Statement 1: As a general rule, it shall be unlawful for an official of a bank to disclose to any person any information concerning bank deposits. This prohibition does not apply to the bank's employees.
Statement 2: As a general rule, it shall be unlawful for an official of a bank to disclose to any person any information concerning bank deposits. This prohibition does not apply to the bank's independent auditor.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

d

31. Government bonds are (debatable)
A. Equity securities which are risk-free
B. Debt securities which are risk-free
C. Equity securities which have minimal risk
D. Debt securities which have minimal risk

b

33. All of the following are exceptions to the secrecy of bank deposits, except

A. Inquiry of the BIR Commissioner for the purpose of determining the gross estate of a deceased depositor
B. Inquiry of the PDIC when there is a finding of unfair or unsound banking practices
C. Inquiry of the Ombudsman for a case pending before a court of competent jurisdiction
D. Impeachment of the members of the congress

d

34. Person X is a bank teller who processed the transaction of Person Y, one of its depositors who is a social media influencer. Person X discovered that Person Y has just P5,000 in his bank account and that his next check might probably bounce. Person X disclosed this information to his bank manager. Did Person X violate the Secrecy of Bank Deposits Act?
A. No, since the bank manager is an official of the bank.
B. Yes, Person X is liable because bank deposits are absolutely confidential.
C. Yes, Person X is liable because bank deposits must not be examined, inquired or looked into by any person.
D. No, since Person X is not covered by the Secrecy of Bank Deposits Act.

a

35. Statement 1: The Bank Secrecy Law does not prohibit attachment or garnishment of bank accounts, which does not involve revealing specific information of deposits.
Statement 2: Foreign currency deposits are exempt from garnishment at all times.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

a

36. The government may inquire, examine, or look into
A. The bonds it issued
B. Any bank deposit
C. Both A and B
D. None of the above

d

38. Statement 1: One of the purposes of the Secrecy of Bank Deposits Act, as amended is to discourage private hoarding.
Statement 2: Another purpose of the Secrecy of Bank Deposits Act, as amended is to protect privacy rights of individuals.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

a

39. Which of the following is the declared purpose of the Secrecy of Bank Deposits Act?
A. To give discouragement to the people to deposit their money in banking institutions and to encourage private hoarding so that the same may be properly utilized by banks in authorized loans to assist in the economic development of the country.
B. To give encouragement to the people to deposit their money in banking institutions and to discourage private hoarding so that the same may be properly utilized by banks in authorized loans to assist in the economic development of the country.
C. To give encouragement to the people to deposit their money in banking institutions and to discourage private hoarding so that the same may be properly utilized by banks in authorized loans to assist in the social development of the country.
D. To give discouragement to the people to deposit their money in banking institutions and to encourage

b

42. A taxpayer's application for compromise is an exemption of the secrecy of his bank deposit, since he is required to execute a waiver prior to the processing of his request. Which type of compromise is this applicable to?
A. Compromise based on financial incapacity
B. Compromise based on doubtful validity of delinquent assessment only
C. Compromise based on doubtful validity of disputed assessment only
D. Compromise based on doubtful validity of disputed or delinquent assessment

a

43. An order of a competent court is an exception to the Secrecy of Bank Deposits Act, in the following cases, except:
A. Bribery or dereliction of duty of public officials.
B. Where the money deposited or invested is the subject of litigation.
C. Involving unexplained wealth under the Anti-Graft and Corrupt Practices Act.
D. Cases involving unlawful activities of kidnapping for ransom, narcotics offenses and hijacking.

d

44. Person X is a foreigner with a foreign currency deposit in the Philippines with Bank Y. Person X has an ongoing civil case where the foreign currency deposit is intended to be the subject of garnishment. Can the Philippine courts issue an order to garnish Person X's foreign currency deposit?
A. Yes, since the foreign currency deposit is subject of litigation.
B. No, since Person X's foreign currency deposit is exempt from garnishment. C. Yes, since the foreign currency deposit is subject of garnishment.
D. No, since Person X is protect by the Secrecy of Bank Deposits Act.

b

46. The secrecy of deposits must be waived by directors, officers, stockholders, and related interests who contract a loan or any form of financial accommodation with their bank or related bank. The form of waiver, under the law, is
A. Implied
B. Expressed
C. Presumed
D. Written

d

50. All of the following are protected under the bank secrecy law, except
A. Savings accounts
B. Junk bonds
C. Treasury bills
D. Trust accounts

b

52. Statement 1: The exceptions to the confidential nature of all deposits of whatever nature with banks or banking institutions in the Philippines is limited to those enumerated in the Secrecy of Bank Deposits Act, as amended.

Statement 2: All deposits and investments of whatever nature are covered under the Secrecy of Bank Deposits Act, as amended.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

d

55. Statement 1: Under the Secrecy of Bank Deposits Act, deposits covered are all deposits of whatever nature with banks or banking institutions in the Philippines, including Trust Accounts.
Statement 2: Under the Secrecy of Bank Deposits Act, deposits covered are all deposits of whatever nature with banks or banking institutions in the Philippines, excluding Trust Accounts.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

a

57. Person X is an independent bank auditor hired by Bank ABC. He encountered the transaction of Person Y, one of Bank ABC's depositors who is a social media influencer. Person X discovered that Person Y has just P5,000 in his bank account and that his next check might probably bounce. Person X disclosed this information to his college classmate. Did Person X violate the Secrecy of Bank Deposits Act?
A. No, since Person X merely chanced upon the information and it does not fall under any of the prohibited acts under the Secrecy of Bank Deposits Act. B. Yes, Person X is liable because bank deposits are confidential if disclosed to any person other than a bank director, official or employee.
C. Yes, Person X is liable because bank deposits must not be absolutely examined, inquired or looked into by any person.
D. No, since Person X was in good faith when he encountered upon the transaction of Person Y.

b

62. For the exception to be valid, the special or general examination of the bank specifically authorized by the Monetary Board must be based on ___________ to believe that a __________________ has been or is being committed
A. Probable cause; bank fraud or serious irregularity
B. Reasonable ground; bank fraud or serious irregularity
C. Direct evidence; bank fraud or major irregularity
D. Reasonable ground; bank fraud or major irregularity

b

63. Deposits may be garnished…
i. To satisfy the writ of garnishment issued to collect delinquent taxes
ii. Under the Foreign Currency Deposit Act
iii. Pursuant to a writ of garnishment in satisfaction of a judgment
A. i only
B. ii only
C. iii only
D. i and iii

d

68. Bank secrecy is not violated when
A. The depositor expressly permitted the inquiry
B. The inquiry is made pursuant to a pending case before the office of the prosecutor
C. A report is made for disclosure to the Treasurer of the Philippines for unclaimed balances under the Unclaimed Balances Act
D. The President of the Philippines issued an order requiring a bank inquiry of certain accounts

c

71. Statement 1: One of the purposes of the Secrecy of Bank Deposits Act is to give encouragement to the people to deposit their money in banking institutions.
Statement 2: One of the purposes of the Secrecy of Bank Deposits Act is to discourage private hoarding.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

c

72. Government bonds include
i. Treasury notes
ii. Trust accounts
iii. Treasury bills
A. i only
B. i and ii only
C. i and iii only
D. i ii, and iii

c

74. The term "deposit" under the Secrecy of Bank Deposits Act does not pertain to the contract of deposit under the New Civil Code. Instead, it pertains to the money or funds placed with a bank that can be withdrawn on the depositor's order or demand which is in the nature of ___________.
A. Bailment
B. Simple loan
C. Antichresis
D. Pledge

b

75. The following government agencies may look into the bank deposits, as may be allowed by law, except
A. Philippine Deposit Insurance Commission
B. Commission on Audit
C. Monetary Board of the Bangko Sentral ng Pilipinas
D. Presidential Truth Commission

d

77. Statement 1: The Philippine Deposit Insurance Commission may randomly inquire into bank deposits.
Statement 2: Bank secrecy does not apply when there is an order of a competent court or, in proper cases, by the AMLC where there is probable cause that money laundering has been committed.
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements are true
D. Both statements are false

b

79. Which of the following disclosure report is an exemption under the Secrecy of Bank Deposits Act?
A. Disclosure to the Treasurer of the Philippines on unclaimed balances under the Unclaimed Balances Act
B. Report of banks to the BSP on covered and/or suspicious transactions
C. Disclosure to the Governor of the BSP on unclaimed balances under the Unclaimed Balances Act
D. Report of banks to the Treasure of the Philippines on covered and/or suspicious transactions

a

80. A common exception to both peso deposits and foreign deposits is
i. When there is a written consent of the depositor
ii. Anti-terrorism cases under the Anti-Terrorism Act and Terrorist Financing Act
iii. Inquiry of the BIR Commissioner
A. i only
B. ii only
C. i and ii only
D. i ii, and iii

c

Person X is a US citizen residing in the Philippines. He has a foreign currency deposit with Bank ABC.
Unfortunately, his foreign currency deposit was the subject of litigation, and garnishment of the same was
prayed for. Can the Philippine courts order to garnish Person X's foreign currency deposit?
A. No, since Person X's foreign currency deposit is exempt from garnishment.
B. Yes, since the bank deposit is subject of litigation.
C. Yes, since a Filipino, not a foreigner, owns the foreign currency deposit.
D. No, since Person X is protected by the Secrecy of Bank Deposits Act.

a

3. Statement 1: The Commissioner of the BIR may validly inquire into the bank deposits of a deceased taxpayer
who has entered into a compromise agreement based on financial incapacity.
Statement 2: The Commissioner of the BIR may validly inquire into the bank deposits of a deceased taxpayer
who has an outstanding income tax liability prior to his death.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

d

4. Statement 1: Disclosures of a depositor to a third party regarding his own bank transactions does not violate
the Bank Secrecy Law.
Statement 2: Disclosures of an independent auditor to a third-party regarding bank transactions does not
violate the Bank Secrecy Law.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

a

5. Statement 1: One of the purposes of the Bank Secrecy Law is to give discouragement to the people to deposit
their money in banking institutions.
Statement 2: One of the purposes of the Bank Secrecy Law is to encourage private hoarding.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

d

6. Statement 1: Investments in Philippine government bonds are covered deposits under the Bank Secrecy Law.
Statement 2: Investments in dollar-linked peso notes issued by the Philippine government are covered
deposits under the Bank Secrecy Law.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements are true.
D. Both statements are false.

c

11. Person X is a bank employee who processed the transaction of Person Y amounting to P40,000. Person X felt that the money originated from an illegal activity, thus, he informed his bank manager about the bank transaction. Did Person X violate the Bank Secrecy Law?
A. No, since the bank manager is an official of the bank.
B. Yes, Person X is liable because bank transactions must not be shared to anyone, since these are
absolutely confidential, without known exceptions.
C. Yes, Person X is liable because bank deposits must not be examined, inquired or looked into by any
person.
D. No, since Person X is not covered by the Bank Secrecy Law.

a

12. Who may inquire into the bank deposits and investments for the purpose of determining the net estate of a deceased depositor and investor?
A. Commissioner of Internal Revenue
B. Assistant Commissioner of Internal Revenue
C. BIR Regional Director
D. BIR Examiner

a

13. As a general rule, _________ may not be the subject of garnishment.
A. Foreign currency deposits
B. Peso deposits
C. Deposits by a Filipino
D. Deposits by a foreigner

a

15. There is no secrecy of bank deposits when the banks report to the AMLC the following transactions:
A. Covered only
B. Suspicious only
C. Covered and suspicious
D. None can be reported without violating the secrecy of bank deposits

c

16. The Bank Secrecy Law covers deposits of whatever nature, which means that
A. It proscribes any restrictive interpretation of deposits
B. It covers all types of deposits as long as the rural bank generates profit from the fund
C. It includes deposits that are contemplated under the New Civil Code
D. It excludes funds which are not deposited in a universal bank registered with the Bangko Sentral ng
Pilipinas

a

17. Which court can order the disclosure of bank deposits in cases where the money deposited or invested is
the subject of litigation?
A. Court of Appeals
B. Regional Trial Court
C. Supreme Court
D. Any competent court

d

18. Which of the following best describes the practical purpose of the Bank Secrecy Law?
A. Filipinos are encouraged to deposit their money in banks so that they will be more likely to use digital currency.
B. Filipinos are discouraged to privately keep their money so that the same may be used for economic development.
C. Filipinos are encouraged to put their money in banks so that banks can generate profit for its
shareholders.
D. Filipinos are discouraged to privately hoard (e.g., keeping it in their personal safety box) so that untoward crimes within their personal homes will be avoided.

b

19. Under the _____________________, the BIR is authorized to inquire into bank deposits, in compliance with
the country's international obligations.
A. National Internal Revenue Code
B. Corporate Recovery and Tax Incentives for Enterprises
C. Exchange of Information on Tax Matters Act
D. Tax Reform for Acceleration and Inclusion Law

c

20. There is no secrecy of bank deposits if ordered by the ______, the examination by law enforcement officers
in terrorism cases.
A. Regional Trial Court
B. Court of Appeals
C. Municipal Trial Court
D. Supreme Court

b