AMLA

Question 1

The stage in the money laundering process where funds are being constantly moved or recharacterized to conceal their origins. This stage is known as:
a. Placement
b. Layering
c. Integration
d.None of the foregoing

Answer 1

b. Layering

Question 2

At which of the three stages of money laundering is it generally easiest to detect money laundering activity?

a. Placement
b. Layering
c. Integration
d.None of the foregoing

Answer 2

a. Placement

Question 3

An accountant goes to a casino in Manila with illegal money and converts it into chips. He later emerges with a large amount of winnings. This placement technique is known as:
a. Assets conversion
b. Insurance purchase
c. Alternative remittance
d. Gambling

Answer 3

d. Gambling

Question 4

A foreigner makes a down payment in cash to purchase an apartment in Quezon City. The rest of the payment is made through financing arranged by his offshore company. This placement technique is known as:
a. Assets conversion
b. Insurance purchase
c. Alternative remittance
d. Gambling

Answer 4

a. Assets conversion

Question 5

arvey deposits her illegal funds into her lawyer’s trust account. The lawyer then acts as an intermediary transferring the funds into several accounts opened for a shell corporation to assist Harvey in hiding the funds. This is known as:

a. Placement
b. Layering
c. Integration
d.None of the foregoing

Answer 5

b. Layering

Question 6

Statement I: Money launderers are generally criminals trying to hide money from the drug tradeStatement II: Trusts are legal arrangements for holding funds or assets for a specified purpose. These funds or assets are managed by a trustee for the benefit of a specified beneficiary or beneficiaries. Trusts can act as a layering tool because they enable creation of false paper trails and transactions

a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false

Answer 6

b. Only Statement II is true

Question 7

Which of the following statement is correct about Integration:
a. Cannot happen without layering
b. Can occur without layering
c. Cannot happen without placement
d. Can occur without placement

Answer 7

b. Can occur without layering

Question 8

At the integration stage illegal money is:
a. Difficult to trace
b. Fairly easy to trace
c. Cannot be trace
d. None of the foregoing

Answer 8

a. Difficult to trace

Question 9

A Thailand-based smuggling group sets up a company and transfers the title of an office building to this company. A related offshore company buys the office building for a substantial premium. The sales price is recorded as return of investment plus profit. This integration technique is known as using:

a. Credit and debit cards
b. Corporate financing
c. Asset sales and purchases
d. Consultants

Answer 9

c. Asset sales and purchases

Question 10

It refers to the normal level of customer due diligence that is appropriate in cases where there is medium risk of money laundering or terrorism financing.

a. Customer Due Diligence
b. Average Due Diligence
c. Reasonable Due Diligence
d. Enhanced Due Diligence

Answer 10

b. Average Due Diligence

Question 11

It refers to a provisional remedy aimed at preserving monetary instruments or properties in any way related to an unlawful activity or money laundering offense defined herein, during the pendency of civil forfeiture proceedings.
a. Interlocutory Order
b. Freeze Order
c. Asset Preservation Order
d. Executive Order

Answer 11

c. Asset Preservation Order

Question 12

Under the AMLA, “Beneficial Owner” refers to any natural person who:
a. Ultimately owns or controls the customer and/or on whose behalf a transaction or activity is being conducted
b. Has ultimate effective control over a juridical person or legal arrangement
c. Owns, at least, twenty percent (20%) shares, contributions or equity interest in a juridical person or legal arrangement
d. All of the foregoing

Answer 12

d. All of the foregoing

Question 13

Under the AMLA, “Identification Document” (ID) refers to any of the following evidence of identity of Filipino students, except:
a. PhilID
b. School ID signed by the school principal or head of the educational institution
c. Passport
d. Birth Certificate issued by the Philippine Statistics Authority

Answer 13

c. Passport

Question 14

Under the AMLA, “Covered Transaction” refers to:

a. A transaction in cash or other equivalent monetary instrument exceeding One Million pesos (PHP1,000,000.00)
b. A transaction with or involving jewelry dealers, dealers in precious metals and dealers in precious stones in cash or other equivalent monetary instrument exceeding One Million pesos (Php1,000,000.00)
c. A casino cash transaction exceeding One Million Pesos (PHP1,000,000.00) or its equivalent in other currency
d. None of the foregoing

Answer 14

b. A transaction with or involving jewelry dealers, dealers in precious metals and dealers in precious stones in cash or other equivalent monetary instrument exceeding One Million pesos (Php1,000,000.00)

Question 15

Under the Anti-Money Laundering Law, a covered institution is required to maintain a system of verifying the true identity of their clients as well as persons purporting to act on behalf of

a. those doing business with such clients
b.unknown principals.
c. the covered institution.
d. such clients

Answer 15

d. such clients

Question 16

The Anti-Money Laundering Law is a law that seeks to prevent money laundering activities by providing for more transparency in the Philippine Financial System, hence the following institutions are covered by the law, except:
a. bank and any financial institution
b. spawnshops
c. casino operators
d. None of the foregoing

Answer 16

d. None of the foregoing

Question 17

The following are policies of the AMLA, except:

a. to protect and preserve the integrity and confidentiality of bank accounts
b. to ensure that the Philippines shall not be used as money laundering site for the proceeds of any unlawful activity
c. to prevent money-laundering activities by providing more transparency in the Philippine financial system
d. to generate foreign investors in investing in the Philippines

Answer 17

d. to generate foreign investors in investing in the Philippines

Question 18

Money laundering is a crime committed by any person who knowing that any instrument or property represents, involves, or relates to the proceeds of any unlawful activity. Except:
a. transacts said monetary instrument or property;
b. converts or transfers, disposes of, moves, acquires, possess or uses said monetary instrument or property;
c. conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary instrument;
d. None of the foregoing

Answer 18

d. None of the foregoing

Question 19

It is a transaction in cash or other equivalent monetary instrument involving a total amount in excess of P500,000.00 within one (1) banking day.
a. covered transaction
b. covered persons
c. suspicious transactions
d. unlawful activity

Answer 19

a. covered transaction

Question 20

The following are covered persons, except:

a. banks supervised or regulated by BSP
b. insurance companies regulated by the Insurance Commission
c. casinos regulated by PAGCOR
d. None of the foregoing

Answer 20

d. None of the foregoing

Question 21

The following are obligations of a covered institution, except:
a. Arms-length rule
b. Customer identification
c. Record keeping
d. Reporting of covered and suspicious transactions

Answer 21

a. Arms-length rule

Question 22

Statement I: Covered institutions must record the true identity of its clients and all persons purporting to act on their behalf based on official documents, and keep a system of verifying their true identity as a system of verifying their legal existence and organizational structure.Statement II: Peso and foreign currency non-checking numbered accounts shall be allowed.

a. Only Statement I is true
b. Only Statement II is true
c. Both Statements are true
d. Both Statements are false

Answer 22

c. Both Statements are true

Question 23

Under the AMLA, All records of all transactions of covered institutions shall be maintained and safely stored for ___ year(s) from the date of transactions.

a. 1
b. 2
c. 3
d. 5

Answer 23

d. 5

Question 24

Under the AMLA, With respect to closed accounts, the records on customer identification, account files and business correspondences, shall be preserved and safely stored for at least ___ years from the date when they were closed.

a. 2
b. 3
c. 5
d. 6

Answer 24

c. 5

Question 25

Suspicious transactions with covered institutions, regardless of the amount involved, where any of the following circumstances exist are considered unlawful: except: a. There is no underlying legal or trade obligation, purpose or economic justification; b. The client is not popularly known; c. The amount involved is not commensurate with the business or financial capacity of the client; d. Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements

Answer 25

b. The client is not popularly known;

Question 26

Statement I: Lawyers and accountants acting as independent legal professionals are required to report covered and suspicious transactions if the relevant information was obtained in circumstances in their professional capacity.Statement II: Covered persons and their officers and employees are prohibited from communicating directly or indirectly, in any manner or by any means, to any person or entity or the media the fact that a covered or suspicious transaction has been reported or is about to be reported, the contents of the report or any other information relating thereto. a. Only Statement I is true b. Only Statement II is true c. Both Statements are true d. Both Statements are false

Answer 26

b. Only Statement II is true

Question 27

The following are Unlawful activities under the AMLA, except: a. Kidnapping for ransom under Article 267 of Revised Penal Code (RPC); b. Sections in RA 9165 or Comprehensive Dangerous Drugs Act of 2002; c. Espionage under the RPC d. Plunder under RA 7080;

Answer 27

c. Espionage under the RPC

Question 28

The following are predicate crimes under the AMLA, except; a. Jueteng and Masiao punished as illegal gambling under PD 1602; b. Malicious mischief in open seas under RPC; c. Qualified theft under Art. 310 of RPC; d. Smuggling under RA Nos. 455 and 1937;

Answer 28

b. Malicious mischief in open seas under RPC;

Question 29

The following are unlawful activities under the AMLA, except: a. Violation of Section 6 of RA 8042 or the Migrant Workers and Overseas Filipino Act of 1995, as amended by RA 10022; b. Violation of RA 8293 or the Intellectual Property Code of the Philippines; c. Violation of the Trust Receipt Law; d. Violations of PD 1612 or the Anti-Fencing Law

Answer 29

c. Violation of the Trust Receipt Law;

Question 30

If AMLA violation is committed by public officers and private persons in conspiracy with the former, jurisdiction shall be vested in a. Sandiganbayan b. Ombudsman c. Regional Trial Court d. Department of Justice

Answer 30

a. Sandiganbayan

Question 31

It shall refer to accounts, the funds and sources of which originated from and/or are materially linked to the monetary instrument(s) or property(ies) subject of the freeze order in AMLA. a. Splitting of Account b. Related interest c. Related Accounts d. Substitute Account

Answer 31

c. Related Accounts

Question 32

Tax evasion is now a predicated offense under the AMLA, where the deficiency basic tax due in the final assessment for each tax type per taxable year are a. in excess of Seven million five hundred thousand pesos (P7,500,000) b. in excess of Ten million pesos (P10,000,000) c. in excess of Twenty-five million pesos (P25,000,000) d. in excess of fifty million pesos (P50,000,000)

Answer 32

c. in excess of Twenty-five million pesos (P25,000,000)

Question 33

When the transaction is both covered and suspicious transaction, covered person will a. report this as covered transaction b. report this as suspicious transaction c. report this as partly covered and partly suspicious transaction d. not report because this is ambiguous transaction.

Answer 33

b. report this as suspicious transaction

Question 34

.Which of the following does not belong to the group of a covered person under the AntiMoney Laundering Act? a. Pre-need companies b. Holding companies c. Insurance brokers d. Pawnshops

Answer 34

d. Pawnshops

Question 35

Statement I: To be considered Suspicious transactions, the threshold amount is irrelevant as long as any of the circumstances mentioned by law are present.Statement II: When the transactions involved an amount in excess of P500,000 for bank transaction this is automatically reported as covered transaction even when the client is not properly identified. a. Only Statement I is true b. Only Statement II is true c. Both Statements are true d. Both Statements are false

Answer 35

d. Both Statements are false

Question 36

It is the final stage of the money laundering at which the ‘laundered’ property is reintroduced into the legitimate economy? a. Placement stage b. Integration stage c. Layering stage d. None of the foregoing

Answer 36

b. Integration stage

Question 37

Anti-Money Laundering Law as amended is a law that seeks to prevent money laundering activities by providing for more transparency in the Philippine Financial System, hence the following institutions are covered by the law, except: a. bank and any financial institutions b. Pawnshops c. casino operators d. Dealer of antique

Answer 37

d. Dealer of antique

Question 38

The maximum period of freeze order issued by the court of appeal is? a. 20 days b. 30 days c. 3 months d. 6 months

Answer 38

d. 6 months

Question 39

When the transaction is determined to be both a covered transaction and a suspicious transaction, the covered person shall be required to report the same as a. Covered transaction b. Suspicious transaction c. Mixed transactions d. Not be reported because the transaction is ambiguous transaction.

Answer 39

b. Suspicious transaction

Question 40

The following belong to the declared policy of the state with regard the promulgation of the Anti-Money Laundering Act or Republic Act No. 9160 as amended, except: a. to protect and preserve the integrity and confidentiality of bank accounts b. to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity c. to develop educational programs, including awareness campaign on the pernicious effects, the methods and techniques used, and the viable means ofpreventing money laundering and the effective ways of prosecuting andpunishing offenders d. to extend cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever committed

Answer 40

c. to develop educational programs, including awareness campaign on the pernicious effects, the methods and techniques used, and the viable means ofpreventing money laundering and the effective ways of prosecuting andpunishing offenders

Question 41

It states that no administrative, criminal or civil proceedings shall lie against any person for having made a covered transaction or suspicious transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any criminal prosecution under the AMLA or any other Philippine law. a. Confidentiality of Reporting b. Enhanced Due Diligence c. Transaction Reporting d. Safe Harbor Provision

Answer 41

d. Safe Harbor Provision

Question 42

With respect to "payable-through accounts," covered persons are required to satisfy themselves that the respondent bank: a. Has performed customer due diligence obligations on its customers that have direct access to the accounts of the correspondent bank b. Is able to provide relevant customer due diligence information upon request to the correspondent bank c. Both A and B d. Neither A nor B

Answer 42

c. Both A and B

Question 43

Statement I: Covered persons are allowed from entering into, or continuing, correspondent banking relationships with shell banks and should have measures to satisfy themselves that respondent financial institutions do not permit their accounts to be used by shell banks.Statement II: A covered person shall always apply enhanced due diligence on both the entity and its beneficial owners when dealing with a shell company. a. Only Statement I is true b. Only Statement II is true c. Both Statements are true d. Both Statements are false

Answer 43

b. Only Statement II is true

Question 44

Under the AMLA, those not exceeding the threshold amount to be determined by the BSP or its equivalent in foreign currency, they shall include accurate and meaningful originator and beneficiary information. The following information shall remain with the transfer or related message through the payment chain, except: a. the name of the originator b. the name of the beneficiary c. the TIN number of the originator d. an account number of the originator and beneficiary, or in its absence, a unique transaction reference number

Answer 44

c. the TIN number of the originator

Question 45

Covered persons shall develop clear, written and graduated customer acceptance policies and procedures including a set of criteria for customers that are likely to pose low, normal or high risk to their operations. The criteria may include the following, except: a. the nature of the service or product to be availed of by the customers b. the purpose of the account or transaction c. the fact that a customer came from a low risk jurisdiction d. the existence of suspicious transaction indicators

Answer 45

c. the fact that a customer came from a low risk jurisdiction

Question 46

Covered persons shall apply enhanced due diligence on the customer if it acquires information in the course of its customer account or transaction monitoring that: a. Raises doubt as to the accuracy of any information or document provided or the ownership of the entity b. Justifies reclassification of the customer from low or normal risk to high risk pursuant to Implementing Rules and Regulations c. Indicates that any of the circumstances for the filing of a Suspicious Transaction Report exists d. All of the foregoing

Answer 46

d. All of the foregoing

Question 47

The following accounts shall be prohibited and may be the subject of the Supervising Authorities' annual testing for the sole purpose of determining the existence and true identity of their owners: a. Anonymous Accounts and Accounts under Fictitious Names. b. Numbered Accounts c. Both A and B d. Neither A nor B

Answer 47

c. Both A and B

Question 48

For suspicious transactions, "occurrence" refers to: a. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding ten (10) calendar days from the date of transaction. b. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding fifteen (15) calendar days from the date of transaction. c. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding five (5) calendar days from the date of transaction. d. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding thirty (30) calendar days from the date of transaction.

Answer 48

a. the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding ten (10) calendar days from the date of transaction.

Question 49

Legal devices can be used to set up an entity to segregate assets or funds managed by an individual or institution for the benefit of a specified beneficiary. The deed establishing the entity does not necessarily name the beneficiary but this person can control the entity's assets and funds. Such entities are called: a. Offshore banks b. Trusts c. Shell companies d. Front companies

Answer 49

b. Trusts

Question 50

Statement I: Covered institutions must record the true identity of its clients and all persons purporting to act on their behalf based on official documents, and keep a system of verifying their true identity as a system of verifying their legal existence and organizational structure. Statement II: Peso and foreign currency non-checking numbered accounts shall be allowed. a. Only Statement I is true b. Only Statement II is true c. Both Statements are true d. Both Statements are false

Answer 50

c. Both Statements are true