10 - Banking Laws

1. Melanie, an employee of ABC Bank, saw the bank account details of her archenemy, Brittany. Melanie revealed to her friend Hannah that Brittany has been depositing P450,000 weekly and now has an account balance of P92 million. Hannah, having this knowledge, informed Brittany's husband, Jeremy, of the bank balances. Jeremy was shocked, considering that he does not know of the huge amounts. Jeremy confronted Brittany in a public place, said out loud her bank balance resulting to seven (7) other people hearing information about Brittany's bank account. Who is liable for the violation of RA No. 1405?

A. Melanie only

B. Melanie and Hannah only

C. Melanie and Jeremy only

D. Melanie, Hannah, and Jeremy

A

2. Statement 1: Trust accounts are not covered by bank secrecy laws. Statement 2: Investments in government bonds are not covered by bank secrecy laws.

A. Only Statement 1 is true

B. Only Statement 2 is true

C. Both statements are true

D. Both statements are not true

D

3. Marites is a director in XYZ Bank. She intends to obtain a P4,000,000 housing loan from XYZ Bank. With this:

A. Marites has impliedly waived the secrecy of her bank deposits

B. Marites is required to execute a written waiver of secrecy of bank deposits

C. No waiver is required of Marites considering there is no showing that the loan exceeded 10% of the cash position of XYZ Bank

D. No waiver is required of Marites if Marites will be able to secure the approval of the Board of Directors without her vote

B

4. Which of the following is not an exception to the secrecy of deposits?

A. Crime of plunder

B. Impeachment cases of the Vice President

C. Cases involving unexplained wealth under the Anti-Graft and Corrupt Practices Act

D. Crime of theft where it is unknown where the funds were deposited

D

5. The Commissioner of Internal Revenue may inquire into the bank balance of a taxpayer in the following cases, except:

A. When taxpayer applies for compromise on the ground of financial incapacity

B. Pursuant to a request for tax information of specific taxpayers made by a foreign tax authority pursuant to a tax treaty

C. When taxpayer applies for abatement of taxes on the ground that there is a jeopardy assessment

D. For purposes of determining the gross estate of a deceased depositor

C

6. Which of the following statements is true regarding the examination of law enforcement officers of bank accounts in terrorism cases?

A. It must be upon order of the trial court

B. It must be upon order of the Court of Appeals

C. It must be upon order of the Supreme Court

D. Law enforcement officers cannot examine bank accounts in terrorism cases

B

7. Which of the following is a common exception on the secrecy of bank deposits for both peso deposits and foreign currency deposits?

A. Anti-Money Laundering Act

B. Human Security Act

C. PDIC Law

D. I, II, and III

D

8. Statement 1: Foreign currency deposits are generally exempt from garnishment. Statement 2: Garnishment is a violation of 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 not true

A

9. In order for a deposit to be considered as covered by the Unclaimed Balances Act, the person must be known to be dead or has not made further deposits or withdrawals for a period of:

A. At least 3 years

B. At least 5 years

C. At least 10 years

D. At least 20 years

C

10. Statement 1: The PDIC is empowered to examine and investigate banks. Statement 2: The PDIC shall act as insurers of deposits.

A. Only Statement 1 is true

B. Only Statement 2 is true

C. Both statements are true

D. Both statements are not true

C

11. Who is considered as the receiver of banks?

A. Courts

B. Philippine Deposit Insurance Corporation

C. Bangko Sentral ng Pilipinas

D. Securities and Exchange Commission

B

12. The amount of insured deposits for each legitimate deposit shall not exceed:

A. P500,000

B. P1,000,000

C. P2,000,000

D. P5,000,000

B

13. Which of the following may be considered as an insured deposit?

I. Savings deposit

II. Certificates of time deposit

III. Foreign currency deposit

A. I only

B. I and II only

C. I and II only

D. I, II, and III

D

14. There is splitting of deposits when a deposit account with an outstanding balance more than P500,000 is broken down and transferred to two or more accounts in the name of persons or entities who have no beneficial ownership in the transferred deposits in their names within:

A. 120 days immediately preceding or during a bank-declared holiday or immediately preceding a closure order issued by the Monetary Board

B. 180 days immediately preceding or during a bank-declared holiday or immediately preceding a closure order issued by the Monetary Board

C. 240 days immediately preceding or during a bank receivership or immediately preceding a closure order issued by the Monetary Board

D. 300 days immediately preceding or during a bank receivership or immediately preceding a closure order issued by the Monetary Board

A

15. Statement 1: Foreign currency deposits are considered as insured deposits under the PDIC Law. Statement 2: Deposits payable outside the Philippines are considered as insured deposits under the PDIC Law.

A. Only Statement 1 is true

B. Only Statement 2 is true

C. Both statements are true

D. Both statements are not true

A

16. Belinda had the following deposits with DEF Bank: Savings account #001 under her name, P100,000 Savings account #002 under her name, P80,000 Savings account #003 named after Belinda for the account of Minerva, P65,000 Savings account #004 under both Belinda and Minerva as co-depositors, P44,000 How much is insured deposit of Belinda?

A. P202,000

B. P224,000

C. P267,000

D. P289,000

A

17. Nanette had the following deposits with GHI Bank.

Account name is Nanette and Kylie, P600,000

Account name is Nanette or Kendra, P400,000

How much is Nanette's insured deposit?

A. P400,000

B. P450,000

C. P500,000 (P300,000 from the first deposit and P200,000 from the second deposit)

D. P500,000 (P250,000 from the first deposit and P250,000 from the third deposit)

C

18. A depositor is not required to file claims with the PDIC if his accounts have a balance:

A. of less than P100,000

B. not exceeding P100,000

C. of less than P50,000

D. not exceeding P50,000

B

19. A depositor must file his claim within:

A. 6 months from actual takeover of the closed bank

B. 1 year from actual takeover of the closed bank

C. 2 years from actual takeover of the closed bank

D. 4 years from actual takeover of the closed bank

C

20. All of the following are covered entities/persons, except:

A. Offshore banking units

B. Internet-based casinos

C. Lawyers acting as independent legal professionals

D. Register of Deeds

C

21. For a transaction in a casino to be included as a covered transaction, the single cash transaction must be in excess of:

A. P500,000

B. P1,000,000

C. P5,000,000

D. P10,000,000

C

22. Statement 1: All records of all transactions of covered institutions shall be maintained and safely stored for 10 years from the date of transactions under the AMLA. Statement 2: If the report of a covered institution does not result to criminal prosecution under the AMLA, the person reported may file a suit against the reporting institution for violation of the law on secrecy of bank deposits.

A. Only Statement 1 is true

B. Only Statement 2 is true

C. Both statements are true

D. Both statements are not true

D

23. MNO Bank received a deposit of P600,000 from Mr. X in a single day. Is MNO Bank required to report the deposit to the AMLC?

A. Yes, since the amount exceeded P500,000

B. No, since there is no probable cause that the money came from predicate crimes enumerated under the AMLA

C. No, since Mr. X has not yet been accused of a crime enumerated under the AMLA

D. No, since Mr. X has not yet been convicted of a crime enumerated under the AMLA

A

24. Covered institutions shall report to the AMLC all covered transactions:

A. Within 10 working days from occurrence thereof

B. Within 15 working days from occurrence thereof

C. Within 5 working days from occurrence thereof

D. Within 20 working days from occurrence thereof

C

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

A. President of the Philippines

B. The Chairman of the Securities and Exchange Commission

C. The Governor of the Bangko Sentral ng Pilipinas

D. The Secretary of Finance

C