Banking laws

Question 1

1. What is the government instrumentality created in 1963 by virtue of Republic Act 3591 to insure the
   deposits of all banks which are entitled to the benefits of insurance and considered as an an attached
   agency of the Department of Finance?
   a. Development Bank of the Philippines (DBP)
   b. Landbank of the Philippines (LBP)
   c. Philippine Deposit Insurance Corporation (PDIC)
   d. Bangko Sentral ng Pilipinas (BSP)
2. Under the amendment to PDIC Charter, may PDIC pay the insured deposits of a depositor without
   netting out depositor’s loan obligation with the closed bank?
   a. No because it will violate of the right to due process of the bank.
   b. No because it will violate the principles of legal compensation.
   c. Yes but only using the closed bank’s records alone.
   d. Yes even based on evidence of deposits and not on the closed bank’s records alone.
3. May PDIC proceed directly to liquidation of a closed bank even without undergoing 90-day receivership
   period?
   a. No because it is violative of right to property of the owners of the bank.
   b. No because it is violative of right to procedural due process of the owners of the bank.
   c. Yes because it would enhance the recovery rate for creditors of closed bank.
   d. Yes because it would result to further dissipation of assets of a closed bank.
4. Which of the following deposits is not insured by PDIC?
   a. Savings Deposit
   b. Special Savings
   c. Negotiable Order of Withdrawal
   d. Certificate of Time Deposits
   e. Telegraphic notes or Telegram notes
5. Which of the following is insured by PDIC?
   a. Demand or Checking account
   b. Investment in bonds issued by government
   c. Investment in stocks of a private corporation
   d. Trust account
   e. Money market placement

Answer 1

1 C
2 D
3 C
4 E
5 A

Question 2

6. Which of the following is insured by PDIC?
   a. Savings deposit
   b. Demand draft
   c. Telegraphic notes
   d. Telegram notes
7. Which of the following deposits is not insured by PDIC?
   a. Savings Deposit in Metrobank Manila Branch
   b. Certificate of Time Deposit in Philippine National Bank Makati Branch
   c. Bank Deposit in Japan Bank Tokyo Branch
   d. Special Savings in Bank of Philippine Islands Taguig Branch
8. Which of the following deposits is insured by PDIC?
   a. Deposit accounts that are funded
   b. Deposit accounts that are fictitious or fraudulent
   c. Deposit accounts constituting or emanating from unsafe or unsound business practices
   d. Deposit accounts that are determined to be proceeds from an unlawful activity as defined in
   AMLA
9. What is the possible maximum deposit insurance coverage if a depositor has several valid single
   accounts in a closed bank?
   a. P1,000,000
   b. P500,000
   c. P750,000
   d. P1,500,000
10. What is the possible maximum deposit insurance coverage if a depositor has several valid single
    accounts and valid joint accounts in a closed bank?
    a. P1,000,000
    b. P500,000
    c. P750,000
    d. P1,500,000

Answer 2

6 A
7 C
8 A
9 B
10 A

Question 2

15. Ana is a partner of ABC Partnership. She is also a stockholder of Ana Corporation Ana has the following deposit accounts in a closed bank (BDO):
    Ana’s Business (Sole Proprietorship) Checking Account – BDO-Pasig City branch P350,000
    Ana Savings Deposit BDO-Taguig City branch 400,000
    Ana and Bea and Carla and Dana Time Deposit BDO-Manila City branch 600,000
    Ana and ABC Partnership Checking Account – BDO-Pasay City branch 500,000
    Ana and Ana Corporation Checking Account – BDO-Makati City branch 200,000
    Ana’s loan payable to BDO – Quezon City Branch (100,000)
    What is the maximum deposit insurance coverage by PDIC in so far as Ana is concerned?
    a. P525,000
    b. P625,000
    c. P800,000
    d. P1,000,000
16. A maintained the following deposits at BPI Bank:
    P600,000 – savings deposit in the name of A and/or B
    P200,000 – time deposit in the name ABC Partnership
    P300,000 – current account in the name of A
    How much can A personally recover from PDIC if BPI Bank was liquidated by BSP?
    a. P900,000
    b. P600,000
    c. P550,000
    d. P300,000

Answer 2

15 A
16 C

🧠 PDIC Coverage Principles
Maximum coverage per depositor per bank: ₱500,000
Joint accounts: Divided equally among co-depositors unless stated otherwise.
Partnership accounts: Treated as separate from individual partners.
Corporation accounts: Treated separately from stockholders.
Sole proprietorship: Treated as personal deposit of the owner.
Accounts in the name of a corporation or partnership: Not attributed to individual stockholders or partners.
Loans: Do not reduce PDIC coverage.

Question 2

11. Angel Locsin has the following four deposit accounts in a closed bank (BDO):
    Angel Locsin, Savings Deposit BDO-Lipa City branch
    P200,000
    Kim Domingo For the Account of Angel Locsin
    , Time Deposit BDO-Manila City branch
    100,000
    Andrea Torres In Trust For Angel Locsin, Savings Deposit – BDO-Taguig City
    branch
    300,000
    Angel Locsin’s Business (Sole Proprietorship) – Checking Account – BDO-Pasay City branch
    600,000
    What is the maximum deposit insurance coverage by PDIC in so far as Angel Locsin is concerned?
    a. P1,000,000
    b. P1,200,000
    c. P500,000
    d. P800,000
12. Ellen Adarna has the following deposit accounts in a closed bank (BDO):
    Ellen Adarna and John Lloyd Cruz Savings Deposit BDO-Lipa City branch
    P600,000
    Ellen Adarna and Tom Cruz Time Deposit BDO-Manila City branch
    800,000
    Ellen Adarna and Mark Cruz Checking Account – BDO-Pasay City branch
    900,000
    What is the maximum deposit insurance coverage by PDIC in so far as Ellen Adarna is concerned?
    a. P1,000,000
    b. P1,200,000
    c. P500,000
    d. P800,000

Answer 2

11 C
12 C

Question 2

13. Kim Domingo has the following deposit accounts in a closed bank (BDO):
    Kim Domingo’s Modeling Business (Sole Proprietorship) Checking Account – BDO-Pasay
    City branch
    P300,000
    Kim Domingo Savings Deposit – BDO-Taguig City branch
    400,000
    Kim Domingo and John Santos Time Deposit BDO-Manila City branch
    600,000
    Kim Domingo and Rey Langit Savings Deposit BDO-Lipa City branch
    800,000
    What is the maximum deposit insurance coverage by PDIC in so far as Kim Domingo is concerned?
    a. P1,000,000
    b. P1,200,000
    c. P500,000
    d. P800,000
14. Colleen Garcia has the following deposit accounts in a closed bank (BDO):
    Colleen Garcia’s Business (Sole Proprietorship) Checking Account – BDO-Pasay City branch
    P200,000
    Colleen Garcia Savings Deposit BDO-Taguig City branch
    100,000
    Colleen Garcia and Billy Crawford Time Deposit BDO-Manila City branch
    300,000
    Colleen Garcia and John Pedro and Rex Juan and James Reid Savings Deposit BDO-Lipa City
    branch 600,000
    What is the maximum deposit insurance coverage by PDIC in so far as Colleen Garcia is concerned?
    a. P1,000,000
    b. P1,200,000
    c. P500,000
    d. P575,000

Answer 2

13 A
14 D

Question 3

17. In case of joint account between a juridical person and a natural person, who shall be entitled to the
    maximum insured deposit of P500,000 in such joint account?
    a. Juridical person
    b. Natural person
    c. Both juridical person and natural person equally
    d. Neither juridical person nor natural person
18. What is the prescriptive period for depositors to file their deposit insurance claims to PDIC from date of
    takeover by PDIC of a closed bank?
    a. Within 2 years from PDIC’s takeover of the closed bank
    b. Within 1 years from PDIC’s takeover of the closed bank
    c. Within 3 years from PDIC’s takeover of the closed bank
    d. Within 4 years from PDIC’s takeover of the closed bank
19. As a general rule, what is the threshold amount of the bank deposit to be required to file deposit
    insurance claims to PDIC?
    a. Balance of more than P100,000
    b. Balance of more than P10,000
    c. Balance of more than P100
    d. Balance of more than P1,000
20. The following are the depositors who are required to file deposit insurance claims to PDIC in order to
    recover their claims from a closed bank, except
    a. Depositors with valid deposit accounts with balances of more than Php100,000.
    b. Depositors who have outstanding obligations with the closed bank regardless of amount of
    deposits.
    c. Depositors with account balances of less than Php100,000 who have no updated addresses in the
    bank records or who have not updated their addresses through the Mailing Address Update Form
    (MAUF) issued by the PDIC.
    d. Depositors who maintain their accounts under the name of business entities, regardless of type of
    account and account balance.
    e. Depositors with accounts not eligible for early payment, regardless of type of account and
    account balance per advice of PDIC.
    f.
    Depositors with account balances of less than Php100,000 who have updated addresses in the
    bank records or who have updated their addresses through the Mailing Address Update Form
    (MAUF) issued by the PDIC.

Answer 3

17 A
18 A
19 A
20 F

Question 4

21. What is the mode of payment by PDIC of claims of depositors from a closed bank?
    a. By cash
    b. By making available to each depositor a transferred deposit in another insured bank in an amount
    equal to insured deposit of such depositor
    c. By checks, promissory note or bill of exchange
    d. Either A or B
22. What is the maximum period for payment by PDIC to depositors of their claims from a closed bank in
    order not to make PDIC’s officer liable for failure to pay due to grave abuse of discretion, gross
    negligence, bad faith or malice?
    a. Within 2 years from the date of filing of deposit insurance claim to PDIC
    b. Within 1 year from the date of filing of deposit insurance claim to PDIC
    c. Within 6 months from the date of filing of deposit insurance claim to PDIC
    d. Within 3 months from the date of filing of deposit insurance claim to PDIC
23. What is the effect of payment by PDIC of insured deposits to depositors?
    a. PDIC may recover from the assets of the closed in so far as the payment made by PDIC is
    beneficial to depositors.
    b. PDIC shall be legally subrogated to all rights of depositor against the closed bank to the extent of
    such payment.
    c. PDIC may not recover from the assets of the closed bank if the payment is without the
    knowledge or against the will of the closed bank.
    d. PDIC may only recover from the assets of the closed bank if the payment is with the consent of
    the closed bank.
24. Under Republic Act No. 1405, what is the nature of bank deposit and investment in government bonds?
    a. As a general rule, they are absolutely confidential in nature.
    b. As a general rule, they are generally subject to any type of inspection.
    c. They are exempted from any type of inquiry.
    d. None of the above.
25. Under Republic Act No. 1405, the following instruments are considered absolutely confidential in
    nature, except
    a. Savings deposit
    b. Time deposit
    c. Current account or Demand account
    d. Investment in government bonds
    e. Money market placement or Telegraphic Notes or Telegram notes

Answer 4

21 D
22 C
23 B
24 A
25 E

Question 5

26. They refer to money or funds placed with a bank that can be withdrawn on the depositor’s order or
    demand.
    a. Deposits
    b. Trust funds
    c. Money market placements
    d. Deposit substitutes
27. Under Republic Act No. 1405 a.k.a. Philippine Peso Deposit Secrecy Law, the bank deposits and
    investment in government bonds may be inquired into in the following exceptional instances, except
    a. Upon written permission or consent in writing by the depositor.
    b. In cases of impeachment of the President, Vice President, members of the Supreme Court,
    members of the Constitutional Commission (Commission on Elections, Civil Service
    Commission and Commission on Audit) and the Ombudsman for culpable violation of the
    Constitution, treason, bribery, graft and corruption, other high crimes or betrayal of public trust.
    (Art. XI, Sec. 2, 1987 Philippine Constitution)
    c. Upon order of a competent court in cases of bribery or dereliction of duty of public officials.
    d. In cases where the money deposited or invested is the subject matter of the litigation.
    e. In cases of tax evasion cases filed by BIR Commissioner against a taxpayer
28. Which of the following inquiries will be considered a violation of Philippine Peso deposit secrecy law?
    a. Periodic inquiry or special examination of bank deposits by BSP to ensure compliance with the
    Anti-Money Laundering Law.
    b. Inquiry of bank deposits by BIR Commissioner in relation to an application for compromise of
    taxable liability or determination of a decedent’s gross estate under National Internal Revenue
    Code.
    c. Inquiry of bank deposits by PDIC when there is finding of unsafe or unsound banking practices.
    d. Inquiry of bank deposits by DOJ Secretary for the purpose of persecution of the members of the
    opposing political party.
29. Which of the following disclosures will be considered a violation of Philippine peso deposit secrecy
    law?
    a. Reporting of unclaimed balances of a bank deposit to the Treasurer of the Philippines or Bureau
    of Treasury by authorized bank officials.
    b. Using of insider information about the bank deposits by bank employees in order to determine
    the credit rating or credit standing of their depositors for purposes of offering credit cards.
    c. Turn-over by authorized bank officials to the BIR Commissioner of the amount in bank accounts
    as may be sufficient to satisfy the writ of garnishment issued to collect delinquent taxes.
    d. Disclosure by a bank officer or employee upon order of a competent court in connection with a
    deposit in a closed bank that was used in the perpetration of anomalies.
30. A government employee, purchased DBP Bonds with a total value of P100,000 and receives annual
    interest income from his investment. Under Bank Secrecy Law, the investment of the government
    employee may be inquired into even without need of a court order by the
    a. Public prosecutor handling estafa case against the government employee
    b. BIR officer auditing the VAT of the government employee
    c. Credit investigator of a lending institution where the government employee applied for the loan
    d. None of the foregoing

Answer 5

26 A
27 E
28 D
29 B
30 D

Question 6

31. Which act is covered by Domestic Bank Deposit Secrecy Law a.k.a. R.A. No. 1405?
    a. Disclosing the amount of deposit of a judgment debtor to the court sheriff who is executing a
    garnishment order against him.
    b. Disclosing the name of the drawer of a check to the payee.
    c. Disclosing the amount of deposit of a taxpayer to a duly authorized BIR examiner who is
    examining his income tax liability.
    d. Disclosing the amount of deposit exceeding P500,000 in one banking day to Anti-Money
    Laundering Council.
32. The following are the exceptional cases when the BIR Commissioner may inspect bank deposits, except
    a. When there is application of compromise liability by a taxpayer on the ground of financial
    incapacity
    b. To determine the gross estate for computation of estate tax’s liability
    c. When a request for tax information of specific18 taxpayers made by a foreign tax authority
    pursuant to a tax treaty under The Exchange of Information on Tax Matters Act of 2009
    d. To determine the taxable income of politicians
33. What is the penalty provided by law for violation of RA 1405 a.k.a. Philippine Peso deposit secrecy
    law?
    a. Imprisonment of not more than five years or fine of not more than P20,000 or both imprisonment
    and fine.
    b. Imprisonment of not more than ten years or fine of not more than P200,000 or both
    imprisonment and fine.
    c. Imprisonment of not more than twenty years or fine of not more than P2,000,000 or both
    imprisonment and fine.
    d. Imprisonment of not more than one year or fine of not more than P2,000 or both imprisonment
    and fine.
34. Under Foreign Currency Deposit Act of the Philippines or R.A. 6426, what is the only exception for the
    absolutely confidential nature of Foreign Currency Bank Deposits?
    a. Upon written permission or consent in writing by the depositor.
    b. In cases of impeachment of the President, Vice President, members of the Supreme Court,
    members of the Constitutional Commission (Commission on Elections, Civil Service
    Commission and Commission on Audit) and the Ombudsman for culpable violation of the
    Constitution, treason, bribery, graft and corruption, other high crimes or betrayal of public trust.
    (Art. XI, Sec. 2, 1987 Philippine Constitution)
    c. Upon order of a competent court in cases of bribery or dereliction of duty of public officials.
    d. In cases where the money deposited or invested is the subject matter of the litigation.
35. Which is false about Foreign Currency Deposit Act also known as R.A. No. 6426?
    a. The foreign currency deposits maintained abroad by Filipino citizens are not covered by the
    provisions of this act.
    b. Depositary banks which have been qualified by the Monetary Board to function under expanded
    foreign currency deposit system are exempt in maintain the fifteen percent (15%) foreign
    currency cover for their liabilities in the form of foreign currency deposit with BSP.
    c. Foreign currency deposits are of absolutely confidential nature, except upon the written
    permission of the depositor.
    d. Foreign currency deposits are subject to attachment, garnishment, or any other order or process
    of the court.

Answer 6

31 C
32 D
33 A
34 A
35 D

Question 7

36. A non-resident alien was convicted beyond reasonable doubt of raping a minor. Such non-resident alien
    does not have any property in the Philippines except a foreign currency deposit with a domestic bank.
    May the court issue a writ of garnishment of the foreign currency deposit of that convicted non-resident
    alien?
    a. No because Foreign Currency Deposit Act of the Philippines provides that foreign currency
    deposits are exempted from attachment or garnishment.
    b. Yes but only if the non-resident alien will give his permission or consent in writing.
    c. Yes because if that foreign currency deposit will be exempted from garnishment, injustice would
    result especially to a citizen aggrieved by a foreign guest.
    d. No because foreign currency deposits are absolutely confidential in nature and making an
    exception to the confidentially of foreign currency deposits will discourage foreign investments.
37. What is the penalty provided by R.A. No. 6426 for violation of confidentiality of foreign currency
    deposit act of the Philippines?
    a. Imprisonment of not less than 1 year nor more than 5 years or fine not less than P5,000 but not
    more than P25,000 or both imprisonment and fine.
    b. Imprisonment of not less than 2 years nor more than 10 years or fine not less than P10,000 but
    not more than P50,000 or both imprisonment and fine.
    c. Imprisonment of not less than 3 years nor more than 15 years or fine not less than P20,000 but
    not more than P100,000 or both imprisonment and fine.
    d. Imprisonment of not less than 4 year nor more than 20 years or fine not less than P50,000 but
    not more than P500,000 or both imprisonment and fine.
38. Which type of bank deposit of impeachable officer may be examined by impeachment court without
    consent of the impeachable officer?
    a. Philippine Peso Bank Deposit
    b. Foreign Currency Bank Deposit
    c. Both A and B
    d. Neither A nor B
39. As a general rule, which type of bank deposit may not be subject to attachment, execution or
    garnishment?
    a. Philippine Peso Bank Deposit
    b. Foreign Currency Bank Deposit
    c. Both A and B
    d. Neither A nor B
40. They include credits or deposits of money, bullion, security or other evidence of indebtedness of any
    kind, and interest thereon with banks in favor of any person known to be dead or who has not made
    further deposits or withdrawal during the preceding ten (10) years or more.
    a. Dormant accounts
    b. Unclaimed balances
    c. Dead accounts
    d. Closed deposits

Answer 7

36 C
37 A
38 A
39 B
40 B

Question 8

41. Which of the following credits may is not covered by Unclaimed Balances Law?
    a. Credits of money
    b. Deposits of money
    c. Security of indebtedness
    d. Bond indenture or other evidence of indebtedness of any kind
    e. Telegraphic note or Telegram note
    f.
    Patent or copyright or trademark
42. Which of the following institutions is not covered by Act No. 3936 also known as unclaimed balances
    law?
    a. Banks
    b. Trust companies
    c. Mutual building and loan association
    d. Nonstock savings and loans association
43. Which government agency has the authority to reactivate an unclaimed balance account?
    a. Bureau of Internal Revenue
    b. Bureau of Customs
    c. Bureau of Treasury
    d. Bureau of Unclaimed Balance
44. What petition may be filed by the Office of Solicitor General in behalf of the Republic of the Philippines
    in order to forfeit unclaimed balances of a person who, dying intestate and leaving no heir entitled to his
    estate?
    a. Petition for escheat
    b. Petition for quo warranto
    c. Petition for mandamus
    d. Petition for certiorari
45. Which of the following credits may not be escheated in favor of the state under Unclaimed Balances
    Law?
    a. Telegraphic note
    b. Money
    c. Deposit
    d. Demand draft

Answer 8

41 F
42 D
43 C
44 A
45 D

Question 9

46. What is the objective of Anti-Money Laundering Law?
    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. Consistent with its foreign policy, to extend cooperation in transnational investigations and
    prosecutions of persons involved in money laundering activities wherever committed
    d. All of the above
47. It refers to a crime committed by any person who knowing that any monetary instrument or property
    represents, involves, or relates to the proceeds of any unlawful activity, transacts, converts, transfers,
    disposes of, moves, acquires, possesses or uses said monetary instruments or proceeds of any unlawful
    activity.
    a. Estafa
    b. Forgery
    c. Money laundering
    d. Bribery
48. Which of the following is not considered offense punishable as money laundering?
    a. Transacting known proceeds of any unlawful activity.
    b. Converting, transferring, disposing of, acquiring, possessing, moving, or using known proceeds
    of any unlawful activity.
    c. Concealing, disguising the true nature, source, location, movement, or ownership of known
    proceeds of any unlawful activity.
    d. Mere knowledge of proceeds of any unlawful activity.
49. Which of the following is not considered offense punishable as money laundering?
    a. Attempting or conspiring to commit money laundering offenses punishable by Anti-Money
    Laundering Law.
    b. Aiding, abetting, assisting or counseling the commissions of money laundering offenses
    punishable by Anti-Money Laundering Law.
    c. Performing or failing to perform any act as a result of which facilitates the commission of money
    laundering offenses punishable by Anti-Money Laundering Law.
    d. Failing to report suspicious or reportable transactions to Anti-Money Laundering Council by a
    covered institution of Anti-Money Laundering Law.
    e. Mere employment in a covered institution required to report suspicious or reportable transactions
    to Anti-Money Laundering Council.
50. Which of the following is not a predicate crime of Money Laundering Offense?
    a. Swindling
    b. Adultery
    c. Fencing
    d. Illegal recruitment

Answer 9

46 D
47 C
48 D
49 E
50 B

Question 9

56. What is the Republic Act No. of Terrorism Financing Prevention and Suppression Act (Law punishing
    Financing of Terrorim)?
    a. R.A. No. 10168
    b. R.A. No. 9372
    c. R.A. No. 9160
    d. R.A. No. 9194
    e.
57. The following are predicate crimes that may authorize Anti-Money Laundering Council to inquire bank
    accounts even without court order from Court of Appeals, except
    a. Carnapping
    b. Violation of Section 4, 5, 6, 9, 10, 11, 12, 13, 14, 15 and 16 of Comprehensive Dangerous Drugs
    Act
    c. Hijacking
    d. Kidnapping for Ranson
58. The following are predicate crimes that may authorize Anti-Money Laundering Council to inquire bank
    accounts even without court order from Court of Appeals, except
    a. Destructive arson
    b. Murder
    c. Financing of Terrorism, Terrorism and conspiracy to commit terrorism
    d. Plunder
59. It refers to a type of transaction that shall be reported by a covered person to the Anti-Money
    Laundering Council because the transaction breaches the quantitative threshold for reporting purposes.
    a. Covered transaction
    b. Suspicious transaction
    c. Reportable transaction
    d. Exempted transaction
60. As a general rule, what is the quantitative threshold for any transaction in cash or other equivalent of a
    covered person such as financial institututions to be considered reportable transaction to Anti-Money
    Laundering Council?
    a. A transaction with amount exceeding P1,000,000
    b. A transaction with amount exceeding P100,000
    c. A transaction with amount exceeding P500,000
    d. A transaction with amount exceeding P5,000,000

Answer 9

56 A
57 A
58 D
59 A
60 C

Question 9

51. Which of the following is not a predicate crime of Money Laundering Offense?
    a. Voyeurism
    b. Extortion
    c. Smuggling
    d. Homicide
52. Which of the following is a predicate crime of Money Laundering Offense?
    a. Smuggling
    b. Rape
    c. Act of Lasciviousness
    d. Sexual harassment
53. Which of the following is a predicate crime of Money Laundering Offense?
    a. Jueteng and masiao
    b. Sedition
    c. Libel
    d. Trespassing
54. Which of the following is a predicate crime of Money Laundering Offense?
    a. Violation of BP 22 a.k.a. Bouncing Check Law
    b. Violation of BP 68 a.k.a. Corporation Code of the Philippines
    c. Violation of Electronic Commerce Act of 2000 a.k.a. RA No. 8792
    d. Violation of Data Privacy Act
55. Which of the following is not a predicate crime of Money Laundering Offense?
    a. Violations of Intellectual Property Code
    b. Fraudulent practices and other violations of the Securities Regulation Code
    c. Forgeries and Counterfeiting
    d. Rebellion

Answer 9

51 D
52 A
53 A
54 C
55 D

Question 9

61. What is the quantitative threshold for reportable transactions involving foreign currency dealers, money
    dealers or remittance company?
    a. A transaction with amount exceeding P1,000,000
    b. A transaction with amount exceeding P100,000
    c. A transaction with amount exceeding P500,000
    d. A transaction with amount exceeding P5,000,000
62. In case of jewelry dealers, dealers of precious metals or dealers of precious stones, what is the
    quantitative threshold for any transaction in cash or other equivalent to be considered reportable
    transaction to Anti-Money Laundering Council?
    a. A transaction with amount exceeding P1,000,000
    b. A transaction with amount exceeding P100,000
    c. A transaction with amount exceeding P500,000
    d. A transaction with amount exceeding P5,000,000
63. In case of casino, what is the quantitative threshold for any transaction in cash or other equivalent to be
    considered reportable transaction to Anti-Money Laundering Council?
    a. A transaction with amount exceeding P1,000,000
    b. A transaction with amount exceeding P100,000
    c. A transaction with amount exceeding P500,000
    d. A transaction with amount exceeding P5,000,000
64. In case of Land Registration Authority and all Registry of Deeds, what is the quantitative threshold for
    any real estate transactions to be considered reportable transaction to Anti-Money Laundering Council?
    a. A transaction with amount exceeding P1,000,000
    b. A transaction with amount exceeding P100,000
    c. A transaction with amount exceeding P500,000
    d. A transaction with amount exceeding P5,000,000
65. It refers to a type of transaction that shall still be reported by a covered person to the Anti-Money
    Laundering Council even if the transaction does not breach the quantitative threshold for reporting
    purposes by reason of the unusual nature of the transaction.
    a. Covered transaction
    b. Suspicious transaction
    c. Reportable transaction
    d. Exempted transaction

Answer 9

61 C
62 A
63 D
64 C
65 B

Question 10

66. Which of the following is not a suspicious transaction and therefore shall not be reported to Anti-Money
    Laundering Council?
    a. Transaction that has no underlying legal or trade obligation, purpose or economic justification.
    b. Transaction in which the client is properly identified.
    c. Transaction in which the amount involved is not commensurate with the business or financial
    capacity of the client.
    d. Transaction that deviates from the profile of the client.
67. Which of the following is not a suspicious transaction and therefore that shall not be reported to Anti
    Money Laundering Council?
    a. Transaction that may be perceived that the client’s transaction is structured in order to avoid
    being the subject of reporting requirements under AMLA.
    b. Transaction is any way related to an unlawful activity or any money laundering activity or
    offense that is about to be committed, is being or has been committed.
    c. Transaction that deviates from the client’s transactions with the covered person.
    d. Transaction entered into in the ordinary course of business of the client.
68. Under Implementing Rules and Regulations of AMLA issued by AMLC, the following are politically
    exposed persons (High Risk Government Personnel), except
    a. Municipal or Regional Trial Court Judge
    b. AFP Official such as Colonel or General
    c. Senators or Congressmen or Mayor or Governor
    d. Chairman or Commissioners of COMELEC
    e. President or Vice-President
    f.
    Justice of CA, CTA, Sandiganbayan or Supreme Court
69. Which of the following is not a covered person and therefore is not required to report covered
    transaction or suspicious transaction to Anti-Money Laundering Council?
    a. Banks, quasi-banks, trust entities, or nonstock savings and loans associations
    b. Foreign exchange dealers, electronic money issuers, or pawnshops
    c. Money changers or remittance and transfer companies
    d. Real estate companies, real estate brokers and real estate appraisers
70. Which of the following is not a covered person and therefore is not required to report covered
    transaction or suspicious transaction to Anti-Money Laundering Council?
    a. Insurance companies or pre-need companies
    b. Insurance agents, brokers, or professional reinsurers
    c. Holding company, holding company system or mutual benefit association
    d. Convenience stores, grocery stores or supermarkets

Answer 10

66 B
67 D
68 F
69 D
70 D

Question 11

71. Which of the following is not a covered person and therefore is not required to report covered
    transaction or suspicious transaction to Anti-Money Laundering Council?
    a. Securities dealers, brokers, salesmen, investment houses, and other similar persons managing
    securities or rendering services such as investment agents
    b. Mutual funds or open-end companies, close-end investment, investment companies or issuers
    and other similar
    c. Other entities administering or otherwise dealing in commodities, or financial derivatives based
    thereon, valuable objects, cash substitutes and other similar monetary instruments or properties
    supervised and regulated by the SEC.
    d. Educational institutions or hospitals or restaurants
72. Which of the following is exempted from reporting covered transaction or suspicious transaction to
    Anti-Money Laundering Council?
    a. Law firm or auditing firm if acting as independent legal professionals in relation to information
    concerning their clients or
    where disclosure of information would compromise client
    confidences or the attorney-client relationship
    b. Jewelry dealers, dealers of precious metals or dealers of precious stones
    c. Casino
    d. Land Registration Authority or Registry of Deeds
73. When is a Certified Public Accountant considered a covered person required to report covered
    transactions or suspicious transactions to Anti-Money Laundering Council?
    a. When he renders audit or review of historical financial statements or other assurance
    engagements.
    b. When he provides management consultancy services.
    c. When he acts as promoter rendering services for organization of contributions for the creation,
    operation and management of companies.
    d. When he provides tax advisory services.
74. When is a Certified Public Accountant exempted from reporting covered transactions or suspicious
    transactions to Anti-Money Laundering Council?
    a. When he renders tax compliance services to a client.
    b. When he manages client’s money, securities or other assets.
    c. When he provides services for management of bank, savings or current accounts.
    d. When he provides services for creation, operation or management of juridical persons or
    arrangements, and buying and selling business entities.
75. Which of the following persons is not considered covered persons of Anti-Money Laundering Law?
    a. Auditing Firm rendering audit services concerning their audit fee
    b. Insurance company
    c. Banking institution
    d. Stock brokers

Answer 11

71 D
72 A
73 C
74 A
75 A

Question 12

81. Who among the following is not part of Anti-Money Laundering Council?
    a. BSP Governor as chairperson of AMLC
    b. Insurance Commissioner as member of AMLC
    c. SEC Chairperson as member of AMLC
    d. BIR Commissioner as member of AMLC
82. Who is the chairman of the Anti-Money Laundering Council?
    a. BSP Governor
    b. Insurance Commissioner
    c. SEC Chairperson
    d. BIR Commissioner
83. How shall the AMLC make decision in the discharge of its functions?
    a. By majority vote of the three
    b. By unanimous vote of the three
    c. By 1/3 vote of the three
    d. Any of the above
84. Which of the following statements about the preventive measures provided by Anti-Money Laundering
    Law is correct?
    a. Covered persons shall establish and record the true identity of their clients based on official
    documents, as defined under Rule 3 of RIRR of AMLA.
    b. Covered persons shall conduct face-to-face contact at the commencement of the relationship, or
    as reasonably practicable so as not to interrupt the normal conduct of business.
    c. Both A and B
    d. Neither A nor B
85. Which of the following is not a minimum customer identification to be required by a covered person
    from its client or customer?
    a. Name of customer, date and place of birth and Present and permanent address
    b. Nationality of customer
    c. Nature of work and name of employer
    d. Name of all relatives of customer

Answer 12

81 D
82 A
83 B
84 C
85 D

Question 12

76. This principle means that No administrative, criminal or civil proceedings shall lie against any person
    for having made a covered 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. Safe harbor provision
    b. Immunity from suit
    c. Tax exemption
    d. Privity of interest
77. As a general rule, which court has original jurisdiction to try money laundering cases committed by
    private individuals?
    a. Municipal trial court
    b. Court of Tax Appeals
    c. Regional Trial Court
    d. Sandiganbayan
78. As an exception to the general rule, which court has original jurisdiction to try money laundering cases
    committed by public officers with salary grade of at least 26 and private persons in conspiracy with such
    public officers?
    a. Municipal trial court
    b. Court of Tax Appeals
    c. Regional Trial Court
    d. Sandiganbayan
79. Which of the following statements about prosecution of money laundering offenses is true?
    a. The prosecution of money laundering and the unlawful activity shall proceed independently such
    that any person may be charged with and convicted of both money laundering and the unlawful
    activity.
    b. The elements of money laundering are separate and distinct from the elements of the unlawful
    activity.
    c. The elements of the unlawful activity, including the identity of the perpetrators and the details of
    the commission of the unlawful activity, need not be established by proof beyond reasonable
    doubt in the case for money laundering.
    d. The element of knowledge in money laundering offense may be established by direct or
    circumstantial evidence.
    e. All of the above
80. It refers to the financial intelligence unit of the Republic of the Philippines which is entrusted with the
    implementation of Anti-Money Laundering Law.
    a. Anti-Money Laundering Council
    b. Monetary Board of Bangko Sentral ng Pilipinas
    c. Insurance Commission
    d. Securities and Exchange Commission

Answer 12

76 A
77 C
78 D
79 E
80 A

Question 13

86. Which of the following is not a minimum customer identification to be required by a covered person
    from its client or customer?
    a. Contact number of customer
    b. Specimen signature or biometrics of the customer
    c. TIN, SSS or GSIS number if employed or self-employed
    d. Name of all girlfriends or boyfriends of customer
87. Which of the following is not a minimum customer information or documentation that must be obtained
    by covered persons of AMLA from its customers?
    a. Nationality
    b. SSS, TIN or GSIS number
    c. Name of customer
    d. Facebook page of customer
88. Which of the following accounts is not prohibited by Anti-Money Laundering Law?
    a. Numbered accounts
    b. Non-checking numbered accounts
    c. Anonymous accounts
    d. Fictitious accounts
89. What is the minimum retention period of all records of customer identification and transaction
    documents of their customers by a covered person under Anti-Money Laundering Law?
    a. At least 1 year from the date of transaction or from date of closure of the account
    b. At least 3 years from the date of transaction or from date of closure of the account
    c. At least 5 years from the date of transaction or from date of closure of the account
    d. At least 10 years from the date of transaction or from date of closure of the account
90. Unless changed by the Anti-Money Laundering Council, what is the period for reporting all covered
    transactions or suspicious transactions by a covered person to Anti-Money Laundering Council?
    a. Within a period of (5) five working days from the occurrence thereof
    b. Within a period of (15) fifteen working days from the occurrence thereof
    c. Within a period of (5) five calendar days from the occurrence thereof
    d. Within a period of (15) fifteen calendar days from the occurrence thereof

Answer 13

86 D
87 D
88 B
89 C
90 A

Question 14

91. In case the Anti-Money Laundering Council decides to change period for reporting all covered
    transactions or suspicious transactions by a covered person to Anti-Money Laundering Council, what is
    the maximum period it may extend the period for reporting?
    a. Within a period of (5) five working days from the occurrence thereof
    b. Within a period of (15) fifteen working days from the occurrence thereof
    c. Within a period of (5) five calendar days from the occurrence thereof
    d. Within a period of (15) fifteen calendar days from the occurrence thereof
92. In case of suspicious transactions, the word “occurrence” refers to the date of determination of the
    suspicious nature of the transaction. What is the maximum period for the determination of the suspicious
    nature of the transaction by a covered person?
    a. Within a period of (10) ten calendar days from the date of transaction
    b. Within a period of (10) ten working days from the date of transaction
    c. Within a period of (5) five working days from the date of transaction
    d. Within a period of (15) fifteen calendar days from the date of transaction
93. Which court has the jurisdiction to issue a freeze order on bank accounts upon verified ex parte petition
    by the AMLC and after determination that probable cause exists that any monetary instrument or
    property is in any way related to an unlawful activity?
    a. Court of Appeals
    b. Municipal Trial Court
    c. Regional Trial Court
    d. Court of Tax Appeals
94. What is the period allowed by AMLA to Court of Appeals to resolve the verified ex parte petition filed
    by the AMLC for the issuance of freeze order on bank accounts related to proceeds of any unlawful
    activity?
    a. Within 12 hours from the filing of the petition
    b. Within 24 hours from the filing of the petition
    c. Within 36 hours from the filing of the petition
    d. Within 48 hours from the filing of the petition
95. What is the validity period of the initial freeze order immediately issued by the Court of Appeals upon
    verified ex parte petition by the AMLC?
    a. Period of 10 days
    b. Period of 30 days
    c. Period of 20 days
    d. Period of 60 days

Answer 14

91 B
92 A
93 A
94 B
95 C

Question 15

96. What is the maximum/total period of the freeze order that may be issued by Court of Appeals for bank
    accounts which is allegedly related to proceeds of any unlawful activity?
    a. It shall not exceeds (2) two months.
    b. It shall not exceed (3) three months.
    c. It shall not exceed (1) one months.
    d. It shall not exceed (6) six months.
97. Which court has the jurisdiction to issue the asset preservation order concerning the proceeds related to
    any unlawful activity?
    a. Court of Appeals
    b. Municipal Trial Court
    c. Regional Trial Court
    d. Court of Tax Appeals
98. Which court has jurisdiction to issue an order authorizing the AMLC to inquire or examine any
    particular deposit or investment account including related accounts with a banking institution or non
    bank financial institution based on the ex parte application by AMLC in cases of violation of AMLA?
    a. Court of Appeals
    b. Municipal Trial Court
    c. Regional Trial Court
    d. Court of Tax Appeals
99. What is the period allowed by AMLA to Court of Appeals to resolve the verified ex parte petition filed
    by the AMLC for the issuance of bank inquiry order of bank accounts or investment accounts related to
    proceeds of any unlawful activity?
    a. Within 12 hours from the filing of the petition
    b. Within 24 hours from the filing of the petition
    c. Within 36 hours from the filing of the petition
    d. Within 48 hours from the filing of the petition
100. Which court has the jurisdiction to entertain a petition for civil forfeiture of any monetary instrument or
     property is in any way related to an unlawful activity or a money laundering offense?
     a. Court of Appeals
     b. Municipal Trial Court
     c. Regional Trial Court
     d. Court of Appeals

Answer 15

96 D
97 C
98 A
99 B
100 C

Question 16

101. What quantum of evidence must be presented to AMLC before it may file with the Regional Trial Court
     through Office of Solicitor General a verified petition for civil forfeiture of any monetary instrument or
     property is in any way related to an unlawful activity or a money laundering offense?
     a. Probable cause
     b. Preponderance of evidence
     c. Proof beyond reasonable doubt
     d. Clear and convincing evidence
102. What quantum of evidence is necessary for conviction of crime of Money Laundering?
     a. Probable cause
     b. Preponderance of evidence
     c. Proof beyond reasonable doubt
     d. Clear and convincing evidence
103. Which of the following is necessary or condition precedent before the commencement or resolution of
     petition for civil forfeiture of any monetary instrument or property is in any way related to an unlawful
     activity or a money laundering offense?
     a. Prior criminal charge of unlawful activity
     b. Prior conviction of unlawful activity
     c. Prior criminal charge of money laundering offense
     d. Prior conviction of money laundering offense
     e. None of the above
104. When there is conviction for money laundering, to whom shall the monetary instrument or property
     found to be proceeds of an unlawful activity go to?
     a. It shall be awarded by the regional trial court to the convicted person.
     b. It shall be awarded by the regional trial court to the innocent contracting party.
     c. It shall be forfeited by the regional trial court in favor of the Government of the Republic of the
     Philippines.
     d. It shall be given to nonstock nonprofit charitable institutions.
105. What law punishes or penalizes issuance of worthless checks?
     a. BP 22
     b. BP 68
     c. BP 45
     d. BP 13

Answer 16

101 A
102 C
103 E
104 C
105 A

Question 17

106. Which of the following is punishable act under BP 22 also known as Bouncing Checks Law?
     a. Any person who (a) makes or draws and issues any check to apply on account or for value, (b)
     knowing at the time of issue that he does not have sufficient funds in or credit with the drawee
     bank for the payment of such check in full upon its presentment, (c) which check is subsequently
     dishonored by the drawee bank for insufficiency of funds or credit or would have been
     dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to
     stop payment.
     b. Any person who, having sufficient funds in or credit with the drawee bank when he makes or
     draws and issues a check, shall fail to keep sufficient funds or to maintain a credit to cover the
     full amount of the check if presented within a period of ninety (90) days from the date appearing
     thereon, for which reason it is dishonored by the drawee bank.
     c. Either A or B
     d. Both A and B
107. What is the minimum number of days for maintaining a balance in the checking account to cover the
     check he issued for the drawer to be exempted from conviction for violation of BP 22?
     a. A period of at least 90 days from the maturity date of check
     b. A period of at least 120 days from maturity date of check
     c. A period of at least 150 days from maturity date of check
     d. A period of at least 180 days from maturity date of check
108. Which of the following is not an element of violation of BP 22 for issuance of worthless check or no
     sufficient fund (NSF) check?
     a. There must be making, drawing, and issuance of any check to apply for account or for value.
     b. There must be knowledge of the maker, drawer, or issuer that at the time of issue he does not
     have sufficient funds in or credit with the drawee bank for the payment of the check in full upon
     its presentment.
     c. There must be subsequent dishonor of the check by the drawee bank for insufficiency of funds or
     creditor dishonor for the same reason had not the drawer, without any valid cause, ordered the
     bank to stop payment.
     d. There must be criminal intent to defraud on the part of the drawer of the check.
109. What is the legal obligation on the part of the drawer of a funded check in order to exempt himself from
     criminal liability for bouncing check?
     a. He must keep sufficient fund or maintain credit to cover the full amount of the check within a
     period of 90 days from the maturity date of the check.
     b. He must keep sufficient fund or maintain credit to cover the full amount of the check within a
     period of 30 days from the maturity date of the check.
     c. He must keep sufficient fund or maintain credit to cover the full amount of the check within a
     period of 60 days from the maturity date of the check.
     d. He must keep sufficient fund or maintain credit to cover the full amount of the check within a
     period of 120 days from the maturity date of the check.
110. What is the penalty for violation of BP 22 or Bouncing Checks Law?
     a. Imprisonment of not less than 30 days but not more than (1) year or Fine of not less than but not
     more than double the amount of the check which fine shall in no case exceed Two Hundred
     Thousand Pesos or both imprisonment and fine.
     b. Imprisonment of not less than 60 days but not more than (2) years or Fine of not less than but not
     more than triple the amount of the check which fine shall in no case exceed Three Hundred
     Thousand Pesos or both imprisonment and fine.
     c. Imprisonment of not less than 90 days but not more than (3) years or Fine of not less than but not
     more than the amount of the check which fine shall in no case exceed Four Hundred Thousand
     Pesos or both imprisonment and fine.
     d. Imprisonment of not less than 120 days but not more than (4) years or Fine of not less than but
     not more than the amount of the check which fine shall in no case exceed Five Hundred
     Thousand Pesos or both imprisonment and fine.

Answer 17

106 C
107 A
108 D
109 A
110 A

Question 18

114. The introduction in evidence of any unpaid and dishonored check, having the drawee's refusal to pay stamped or written thereon or attached thereto, with the reason therefor as aforesaid, shall be prima facie evidence of the following elements of crime of issuance of worthless checks, except a. The making or issuance of said check b. The due presentment to the drawee bank of the check for payment and the dishonor thereof c. The check same was properly dishonored for the reason written, stamped or attached by the drawee on such dishonored check. d. The knowledge of the maker or drawer of the insufficiency of fund or credit of the check he issued. 115. Under BP 22, it shall be construed as an arrangement or understanding with the bank for the payment of such check. a. Debit b. Credit c. Deposit d. Account 116. What is the quantum of evidence required to sue or file a criminal case for criminal offense involving violation of BP 22 for issuance of worthless checks? a. Probable cause or prima facie evidence b. Clear and convincing evidence c. Preponderance of evidence d. Proof beyond reasonable doubt 117. What is the quantum of evidence required for conviction of criminal offense involving violation of BP 22 for issuance of worthless checks? a. Probable cause or prima facie evidence b. Clear and convincing evidence c. Preponderance of evidence d. Proof beyond reasonable doubt

Answer 18

114 D 115 B 116 A 117 D

Question 18

111. What is the prima facie evidence of the knowledge of insufficiency of funds or credit by the maker or drawer of a check? a. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within (120) days from the date of the check. b. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within (30) days from the date of the check. c. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within (60) days from the date of the check. d. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within (90) days from the date of the check. 112. What act may be presented by the maker or drawer of a check to destroy prima facie presumption of knowledge of insufficiency of funds or credit as established by the preceding number? a. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within (10) banking days after receiving notice that such check has not been paid by the drawee. b. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within (15) banking days after receiving notice that such check has not been paid by the drawee. c. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within (5) banking days after receiving notice that such check has not been paid by the drawee. d. The maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within (20) banking days after receiving notice that such check has not been paid by the drawee. 113. Which of the following is not a duty of a drawee bank under BP 22? a. When refusing to pay the check to the holder thereof upon presentment, to cause to be written, printed, or stamped in plain language thereon, or attached thereto, the reason for drawee's dishonor or refusal to pay the same. b. If there are no sufficient funds in or credit with such a drawee bank regarding such check, such fact shall always be explicitly stated in the notice of dishonor or refusal to be given by the drawee bank. c. Notwithstanding receipt of an order to stop payment from the drawer of check, drawee bank shall state in the notice that there were no sufficient funds in or credit with such bank for the payment in full of such check, if such be the fact. the d. The drawee bank report the act of issuance of worthless check to AMLC even if the amount does not exceed the quantitative threshold to be considered covered transaction.

Answer 18

111 D 112 C 113 D

Question 19

118. What is the quantum of evidence required for awarding of civil damages for issuance of worthless checks? a. Probable cause or prima facie evidence b. Clear and convincing evidence c. Preponderance of evidence d. Proof beyond reasonable doubt 119. In case of bouncing check issued in behalf of an artificial being or juridical person, who shall be criminally liable for imprisonment? a. Juridical person b. Corporate officer who signed the bouncing check c. Both a and b d. Neither A nor b 120. R.A. 3765 also known as Truth in Lending Act applies to: a. Pawnshops b. Small-loan money lenders c. Both A and B d. Neither A nor B 121. It refers to the affidavit that must be attached in the document evidencing the contract of chattel mortgage in order to bind or to prejudice third persons. This affidavit in chattel mortgages states that the mortgagor and mortgagee do severally swear that the foregoing chattel mortgage is made for the purpose of securing the obligation specified in the conditions thereof, and not for any other and that the same is a just and valid obligation and not entered into for purposes of fraud. a. Affidavit of Good Faith b. Affidavit of Loss c. Affidavit of Desistance d. Affidavit of Recognition

Answer 19

118 C 119 B 120 C 121 A