Anti-Bouncing Checks Law and Philippine Economic Statutes

Comprehensive vocabulary flashcards covering the Anti-Bouncing Checks Law, Bank Secrecy, AMLA, PDIC, Labor Code, SSS, and Ease of Doing Business Act based on the lecture notes.

BP BLG. 22

The Anti-Bouncing Checks Law, which penalizes the making or drawing and issuance of a check without sufficient funds or credit.

Mala Prohibita

A classification of crimes where the act is penalized because it is prohibited by law, regardless of the intent; BP 22 is an example.

Type 1 Violation (BP 22)

The making, drawing, and issuance of any check to apply for account or for value when the drawer knows at the time of issue they do not have sufficient funds.

Type 2 Violation (BP 22)

Occurs when a drawer has sufficient funds at the time of issuance but fails to keep enough to cover the check if presented within $90$ days from the date of appearance.

Issuance (Check)

The first delivery of the instrument to the payee, complete in form, to a person who takes it as a holder.

Presumption of Knowledge (BP 22)

A prima facie evidence where any maker or drawer is presumed to know of the insufficiency of funds if the check is presented within $90$ days and the debt is not paid within $5$ banking days after receiving notice of dishonor.

Stale Check

A check that remains valid and negotiable for $180$ days from the date on the check, after which the bank will refuse to clear it.

Credit (BP 22)

Defined as an arrangement or understanding with the bank for the payment of a check.

RA 1405

The Law on Secrecy of Bank Deposits, which aims to discourage private hoarding and encourage the deposit of money in banks for economic development.

WIO CARO TEA

A mnemonic for Bank Secrecy exceptions: Written permission, Impeachment, Order of court (bribery/litigation/unexplained wealth), Commissioner of BIR inquiry, AMLC inquiry, Reports (unclaimed balances), Ombudsman power, Terrorism cases, and specific Examinations (BSP/PDIC/COA/PCGG).

RA 6426

The Foreign Currency Deposit Act, which mandates that foreign currency deposits are absolutely confidential and exempt from attachment, garnishment, or court orders.

Truth in Lending Act (RA 3765)

A law requiring creditors to provide full disclosure of finance charges to protect citizens from a lack of awareness regarding the true cost of credit.

Finance Charge

Includes interest, fees, service charges, discounts, and other charges incident to the extension of credit.

Effective Interest Rate (EIR)

The rate that exactly discounts estimated future cash flows through the life of the loan to the net amount of loan proceeds.

Anti-Money Laundering Act (RA 9160)

A law defining the crime where proceeds of an unlawful activity are transacted to make them appear to have originated from legitimate sources.

Placement (AMLA)

The first stage of money laundering where 'dirty' cash is integrated into the legitimate financial system, often via small transactions.

Layering (AMLA)

The most complex stage of money laundering where funds are moved through various accounts to distance them from the illicit source.

Integration (AMLA)

The final stage where money re-enters the economy through clean investments, appearing to be legitimately sourced.

Covered Transaction (AMLA)

A transaction in cash or equivalent exceeding $P500,000$ within one banking day.

Suspicious Transaction (AMLA)

A transaction, regardless of amount, where there is no underlying legal obligation, the client is not identified, or the amount is not commensurate with the client's capacity.

Maximum Deposit Insurance Coverage (MDIC)

The limit defined by PDIC, which is $P1,000,000$ per depositor, per bank, effective March 15, 2025.

Splitting of Deposit

A prohibited act occurring within $120$ days of a bank holiday or closure where a deposit exceeding the MDIC is broken up and transferred to other accounts to claim more insurance.

Four-Fold Test (Labor)

The criteria used to determine an employer-employee relationship: Selection/engagement, Payment of wages, Power of dismissal, and the Power of Control.

Night Shift Differential

Additional compensation of not less than $10\%$ of the regular wage for each hour of work performed between 10:00 PM and 6:00 AM.

Service Incentive Leave (SIL)

A mandatory benefit of $5$ days with pay per year for employees who have rendered at least one year of service.

13th Month Pay

A mandatory benefit equivalent to $\frac{1}{12}$ of the basic salary of an employee within a calendar year, payable not later than December 24.

Primary Beneficiaries (SSS)

The dependent spouse who has not remarried or cohabited, and the dependent legitimate, legitimated, legally adopted, or illegitimate children.

3-7-20 Rule

The prescribed processing times under the Ease of Doing Business Act: $3$ working days for simple, $7$ for complex, and $20$ for highly technical transactions.

Zero-Contact Policy

A provision in the Ease of Doing Business Act where no government officer shall have contact with an applicant except during preliminary assessment and evaluation of requirements.

Anti-Red Tape Authority (ARTA)

The agency attached to the Office of the President responsible for implementing national policies on anti-red tape and ease of doing business.