BANK SECRECY Flashcards
(15 cards)
The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit records of an individual without court order except:
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
a. In an examination to determine gross estate of a decedent.
Which of the following is an exception to the secrecy of bank deposits which are in Philippine Pesos, but NOT an exception to the secrecy of foreign currency deposits?
a. Upon Bangko Sentral ng Pilipinas (BSP) inquiry into or examination of deposits or investments with any bank, when the inquiry or examination is made in the course of the SSP’s periodic special examination of said bank to ensure compliance with the Anti-Money Laundering Act (AMLA)
b. Upon Philippine Deposit Insurance Corporation (PDIC) and SSP inquiry into andexamination of deposit accounts in case there is a finding of unsafe or unsoundbanking practice
c. Upon inquiry in cases of impeachment
d. Upon inquiry by the Commissioner of Internal Revenue in the event a taxpayer files an application to compromise his tax liabilities on the ground of financial incapacity.
c. Upon inquiry in cases of impeachment
What can a bank lawfully do or omit to do without violating its duty to exercise extraordinary diligence in the handling of deposits?
a. Allowing a crossed check to be cashed provided that the payee is personally known to the bank.
b. Accepting as deposit a check which is not indorsed by the payee, provided that the check is a manager’s check.
c. Closing a demand deposit account with prior notice to a depositor who has been misusing such account repeatedly overdrawing against it.
d. Disclosing information regarding “and/or” savings account where one of the two depositors has given his written permission for such disclosure.
d. Disclosing information regarding “and/or” savings account where one of the two depositors has given his written permission for such disclosure.
The right to secrecy of bank deposits:
a. Being part of municipal law, does not apply to deposits in branches of foreign banks in the Philippines.
b. Is a constitutional right which may, however, be regulated by statute.
c. Cannot be invoked in the absence of an express statutory provision.
d. If violated will render the information obtained thereby inadmissible as evidence in any proceeding against the depositor
c. Cannot be invoked in the absence of an express statutory provision.
Corona V is being charged for violation of Anti-Graft and Corrupt Practices because he is suspected of having accumulated unexplained wealth. Corona V maintains deposit accounts with MODERNA Bank. The Ombudsman filed criminal cases against Corona V before the Sandiganbayan. Can the Court issue subpoenas against MODERNA Bank to produce all documents pertaining to all the deposit accounts of Corona V?
a. Yes, because there is already a pending case and provided the subpoena must be specific as to which account.
b. Yes, it is enough that the specific bank is identified.
c. No, because the issuance of the subpoena has no real legal basis.
d. Even without a subpoena, information about the deposit accounts of Mandalorian can be submitted to the Sandiganbayan because it will be used in a pending case.
a. Yes, because there is already a pending case and provided the subpoena must be specific as to which account.
Aki, a private individual, maintains a dollar deposit with Maharlika Bank. Aki is suspected to be the leader of a Kidnap for Ransom Gang and he is suspected of depositing all ransom money in said deposit account which are all in US Dollars. The police want to open said account to know if there are really deposits in big amounts. Which statement is most accurate?
a. The same rules under Secrecy of Bank Deposit Act will apply.
b. An approval from the Monetary Board is necessary to open the account.
c. Because the deposit is in US Dollars, it is covered by the Foreign Currency Deposit Act which allows disclosure only upon the written permission of the depositor.
d. Approval from the Court is necessary to order disclosure of the account.
Ya. The same rules under Secrecy of Bank Deposit Act will apply.
All foreign currency deposits are considered of an absolutely confidential in nature and shall exempt from attachment, garnishment or any other order or process of any court, legislative body, government agency or any administrative body whosoever. The following are the exemption to the secrecy of foreign currency deposit except:
a. Upon the written permission of the depositor
b. Upon order of competent court in cases of violation of AMLA when it established that there is a probable cause that the deposits or investments involved are in any way related to a money laundering offense
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire into or examine deposit accounts pursuant to explanation
d. The PDIC with prior approval of the Monetary Board
d. The PDIC with prior approval of the Monetary Board
All of the following are exceptions to the Bank Secrecy Law, except:
a. Upon order of the competent court in cases involving Graft and Corrupt Practices Act
b. Examination by an independent auditor hired by the bank
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire into or examine deposit accounts pursuant to explanation
d. In- camera inspection by the Ombudsman
d. In- camera inspection by the Ombudsman
Under the Bank Secrecy Law, it is hereby declared to be the policy of the government:
a. to give encouragement to the people to deposit their money in banking institutions
b. to encourage private hoarding
c. Both A and B
d. Neither A nor B
a. to give encouragement to the people to deposit their money in banking institutions
All deposits of whatever nature with banks or banking institutions in the Philippines may not be examined, inquired or looked into by any person, government official, bureau or office, except upon:
a. Written permission of the depositor
b. In cases of impeachment
c. Upon order of competent court in cases of bribery or dereliction of duty of public officials
d. All of the foregoing
v
Which of the following statements presents the correct legal principle?
a. It shall be unlawful for any official or employee of a banking institution to disclose to any person any information concerning deposits.
b. The Secrecy of Bank Deposit Account does not prohibit attachment or garnishment of bank accounts, which does not involve revealing specific information of deposits.
c. Both A and B
d. Neither A nor B
c. Both A and B
The Philippine Deposit Insurance Commission and the Bangko Sentral ng Pilipinas may inquire into bank deposits when:
a. there is a request for tax information of specific taxpayers made by a foreign tax authority pursuant to a tax treaty
b. there is a finding of unsafe or unsound banking practices
c. when there is probable cause that the deposits or investments are related to an unlawful activity or a money laundering offense
d. necessary to examine and gather information on the deposits, placements, trust accounts, assets and records in a bank or financial institution in connection with antiterrorism case
b. there is a finding of unsafe or unsound banking practices
The following are Authorized Disclosures in the Bank Secrecy Law, except:
a. when there is probable cause that the deposits or investments are related to an unlawful activity or a money laundering offense
b. turn-over to the CIR of the amount in bank accounts as may be sufficient to satisfy the writ of garnishment issued to collect delinquent taxes
c. submission of report, and turn-over to, the court officer or executing sheriff of garnished amounts pursuant to a writ of garnishment in satisfaction of a judgment
d. disclosure by a bank officer or employee upon order of the court in connection with a deposit in a closed bank that was used in the perpetration of anomalies
a. when there is probable cause that the deposits or investments are related to an unlawful activity or a money laundering offense
The Commissioner of Internal Revenue (CIR) is authorized to inquire into bank deposits in the following instances, except:
a. an application for compromise of tax liability
b. determination of a decedent’s gross estate under the NIRC
c. determination of the gross income of a corrupt public official
d. 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
c. determination of the gross income of a corrupt public official
The following persons are not liable under the Bank Secrecy Law, except:
a. Any person or government official who, or any government bureau or office that, examines, inquires or looks into a bank deposit or government bond investment in any of the instances not allowed in Section 2 of the Bank Secrecy Law
b. Any official or employee of a banking institution who makes a disclosure concerning bank deposits to another in any instance not allowed
c. Any person who commits a violation of any of the provisions of the law
d. All of the foregoing
d. All of the foregoing
