B.

A h KING LAWS

SECRECY OF BANK DEPOSITS ( RA 1405) EXCEPTIONS FOR FOREIGN CURRENCY DEPOSITS

PURPOSE OF THE LAW 1 .
Written consent

☆ to
discourage private hoarding AMLA
.

2 .

☆ encourage people to deposit g. Human security Act

authorized Examination by BSP , PDK COAG PCEE

↳ may be utilized by way of want 4 4 .
,

assist in economic recovery

GARNISHMENT

PROHIBITED Acts →
no violation of the bank since
secrecy law
It shall be unlawful for :
the amount is not disclosed
i. Bank ( any official or
employee or independent
auditor ) Exempt garnishment
:
from

disclose information aside

to from authorized 1 .

Foreign currency deposits

persons 2 .
Those
exempt under Rules of court

2. Any person , including the government

to inquire examine or look into PENALTIES

,

PESO DEPOSIT FC DEPOSITS !

DEPOSITS COVERED "

IMPRISONMENT to 1 to 5
up 5
yrs Yrs

i. All deposits of whatever nature (elem trust tiny max , zoo on sooo to 25M
,
Accounts) -

2. Investment in Bond by the government

EXCEPTIONS FOR PESO DEPOSIT CWIOBMUCARO TEA ]

PDIG ACT (RA 3591)

1. written permission Functions

2. impeachment cases → exclusive to peso deposits 1 .

Deposit insurer

order of courts :
3. competent 2. do -

regulator of banks
dereliction
☆ Bribery or
3 . Receiver and liquidator of closed banks
☆
money is
subject of litigation
☆ Unexplained wealth INSURED DEPOSITS

¢ Commissioner of BIR for net estate of a

net
insured deposits of any obligation to
.

deceased depositor the bank shall not exceed 500 ,

ooo
pesos .

5 , AMLC for probable cause of money laundering

6 . Reports : ADJUSTMENTS OF MAXIMUM DEPOSIT INSURANCE

☆ unclaimed balances 1 BSP determines threats in the and

monetary
.

☆ AMLO for covered or suspicious transactions financial liability of the banking system

-7 Ombudsman 2 Approval by unanimous vote of the Bob

.

of
under the ff . conditions :
pplc

i. case
pending of
a competent court
Approval by the President

2. account is
clearly identified
g. inspection is limited to subject matter SYSTEMATIC RISK

4. bank on holder must be notified → failure of one bank to settle causes a chain

8. Terrorism cases reaction

9. Examination

☆ BSP

☆ Pblc

☆ CoA

☆ PCGG

to .
Independent auditor
 DEPOSITS NOT ENTITLED TO PAYOUT (SHA OU
2) PROCEDURE FOR THE PDIC

1. splitting of deposit 1. commence the determination of insured deposits

balance upon its
actual takeover
☆ outstanding of more than sook

is broken down 4 transferred to two or 2 .

give notice to the depositors

more accounts w/ no beneficial ownership 3 .

publish notice at least once a week for 3

☆ within 120 days consecutive weeks

of
availing
'

☆ for the purpose the maximum

deposit insurance CERTIFICATE of DEPOSIT

Penalty
: no owner
/ holder shall be recognized unless his

☆ 6- 12 yrs imprisonment jor name is

registered .

fine ;
or
☆ 50 ,
ooo -

lo , on

B both PERIOD FOR THE DEPOSITOR TO FIVE §

2. Deposits by the head office of a foreign ENFORCE a Ar m

bank to its branch in Phil claim

i. period to file
3- AMLA ☆ 2 actual take over
yrs from
4. Deposits payable in a
place outside the
2. period to
enforce claim
Philippines ☆ 2 after the 2 yr period for
yrs
filing
s , unfunded and that a re fictitious 4 fraudulent
6. unsafe ! unsound banking practices proof OF WARM
7 .
Investment products pblc may require proof of claims to be filed

they not satisfied with the

it a re
validity
DETERMINATION OF Amount DUE requite determination of court
→
may a

1. Per bank

☆ 500 NO bank
, per EFFECT of non -
FILING OR non -
ENFORCEMENT

2 .
Per Depositor ,
Per Capacity Rate of CLAM WITH 1h THE PERIODS ABOVE

☆ all deposits in the same bank in the

① Rights to insured deposit shall be

4 capacity for benefit

same right his
barred ( against PDKD
be added together
shall
② Rights against the closed bank
BY , IN TRUST FORIITF) ,
FOR THE Account ☒ CFB shall revert to the depositor
1. JUAN BY PEDRO JUAN IS DEPOSITOR
shall be discharged from Uab
-

Pblc
③ .

2. JUAN ITF PEDRO -

PEDRO IS DEPOSITOR

3. JUAN FAO PEDRO -

PEDRO IS DEPOSITOR
MODES OF PAYMENT
3. Joint accounts
1- dash
their
☆ shall be insured
separately From 2 .

Transferred deposit to another insured

individual accounts bank
→
amount shall be divided equally unless

stated otherwise WITHHOLDING OF

PAYMENT
→
:* by juridical entity 9 natural PDK
may withhold payment for the payment
maximum insured belongs of any depositor
persons , liability of
to juridical person or
entity
EFFECT OF PAYMENT
PDIC shall be
subrogate to all rights
of the depositor against the closed
bank
 All REGISTRATION
payments by Pblc of insured deposits
in closed banks partake of the nature may register its business to the BSP

public Funds 1 Business hame

OF
.
.

Directors , Substantial
2.
Key Officers as

PERIOD FOR THE PDIC TO SETTLE CLAIM stakeholders

Contact
principal place of business
6 months 4
☆ -

From the date of filing 3,

failure to settle : bmths .

to lyr Details
imprisonment 4 . notarized Deed of Undertaking
5. Other information
TRUTH 1h LENDING ACT ( RA 3765)
DECLE RATION OF POLICY PENALTIES

☆ to protect its citizens from a lack

of 1 .
Fails to disclose information
awareness the Greater between :
of true cost of
credit a. F- 100

finance charge required

b. Twice the
REQUIRED INFORMATION (up to 2 , ooo ]

of the transaction
Prior to consummation ,

a clear statement PRESCLPTIVE PERIOD : ME YR FROM

in
writing
Cash price / delivered price THE DATE OF OCCURRENCE
of the
1-

o r service
property
:
2- down payment and /or trade -
in COSTS CREDITOR SHAW BE UABVE

3. difference between 192

4. Charges individually itemized 2 .
Willfully violates

5. total amount to be financed a . 1,000 to 5 No

,
fine ; or

tenths imprisonment ; or
6- finance charge in peso 9 centavos
b. . to lyr

both
7. Percentage of finance charge C-

SEC of BSP CIRCULAR NO

UNDER 5
no punishment or penalty in this
. .

755 : .
Act shall apply to the Government
amount to be
1.
financed
2. finance charge
3. net proceeds A finaljudgement shall be prima
4.
percentage of finance charge facie evidence against such defendant .

or Elk All matters will be an

estoppel .

Loan Documents 9 Marketing materials

☆ shall show
repayment schedule ANTI -

MONEY LAUNDERING ACT ( RA 9160)

Posters MONEY LAUNDERING

☆ shall be posted in conspicuous places m ☆

monetary instrument or
property
their principal place 9 branches ☆ proceeds of any unlawful activity
i. Transacts or attempts to transact
MANNER OF COMPUTING INTEREST 2, converts , transfers , disposes
shall be based on the outstanding balance 3 . conceals or disguises
4. Attempts or
conspires
5. Aids , abets or assists
 6. Performs or fails to perform any act 26. Anti-Carnapping Act
7. Failure to resort to the AMLC 27. Illegal/Unlawful Possession, Manufacture, Dealing In,
.

Acquisition or Disposition of Firearms, Ammunition or

.

STAGES OF MONEY LAUNDERING Explosives

28. Anti-Fencing Law
1. Placement -benefit from robbery or theft
2. Layering 29. Migrant Workers and Overseas Filipinos Act
3. Integration 30. Intellectual Property Code
UNLAWFUL ACTIVITIES 31. Anti-Photo and Video Voyeurism Act
32. Anti-Child Pornography Act
1. Kidnapping for ransom 33. Special Protection of Children Against Abuse,
2. Comprehensive Dangerous Drugs Act Exploitation and Discrimination
3. Anti-Graft and Corruption Practices Act 34. Securities Regulation Code
4. Plunder 35. Strategic Trade Management Act
5. Robbery and extortion -To engage in any activity prohibited by, or in
a. with violence or intimidation of persons contravention of, any orders or regulations issued by the
b. with physical injuries, committed in an uninhabited NSC-STMCom to implement the provisions of this Act
place and by a band, or with use of firearms on a 36. Tax Evasion
street, road or alley. 37. Felonies or offenses of a similar nature that are
c. Uninhabited house or public building or edifice punishable under the penal laws of other countries
devoted to worship
6. Jueteng and masiao COVERED ENTITIES
7. Piracy 1. Supervised and/or regulated by the BSP
8. Qualified theft a. Banks and quasi-banks
a. Coconuts in a coconut farm b. OBU
b. Fish in a fish pond c. Trust entities
c. Mail matter d. Non-stock savings and loan assoaciations
d. Vehicle or cattle e. Pawnshops
e. Abuse of confidence 2. Supervised and/or regulated by the SEC
f. Stolen thing was sold 3. Supervised and/or regulated by the Insurance Commission
9. Swindling or Estafa 4. Securities
10. Smuggling 5. Mutual Funds
11. Electronic Commerce Act 6. Jewelry
12. Hijacking 7. Foreign exchange
13. Destructive arson and murder 8. Casinos
14. Terrorism and conspiracy to commit terrorism 9. Real Estate Developers and Brokers
15. Financing of terrorism 10. Offshore Gaming Operators and their Service Providers
16. Bribery and Corruption of Public Officers
17. Frauds and Illegal Exactions and Transactions
18. Malversation of Public Funds and Property Lawyers and accountants are NOT covered with respect
19. Forgeries and Counterfeiting to privileged information covered by confidentiality
20. Anti-Trafficking in Persons Act
21. Revised Forestry Code
22. Philippines Fisheries Code
23. Philippine Mining Act
24. Wildlife Resources Conservation and Protection Act
25. National Caves and Cave Resources Management
Protection Act
OBLIGATIONS OF COVERED ENTITIES
1. Customer identification
-shall establish and record the true identity based
on official documents
2. Record keeping
-shall be maintained and safely for 5 years from the
date of transactions
3. Safe Harbor
-no administrative, criminal, or civil proceedings, shall
lie against any person for having made a transaction
report in the regular performance of his duties and
in good faith
4. Reportorial Requirements
a. Covered Transactions
- report to the AMLC within 5 working days from
occurrence unless the AMLC prescribes a longer
period not exceeding 15 working days
- total amount in excess of 500,000 within one
banking day
for casinos: cash transaction in excess of 5M
for real estate developers//brokers: 7.5M
b. Suspicious Transactions
- report within the next working day from
occurrence
Occurrence in suspicious transactions means the time the
entity has determined it suspicious, this shall not exceed
10 days from the date of transaction.
CIRCUMSTANCES OF A SUSPICIOUS
TRANSACTION
1. no underlying legal or trade obligation, purpose or
economic justification
2. client is not properly identified
3. amount involved is not commensurate with the
business or financial capacity of the client
4. client transaction is structured
5. deviate from the profile of the client and/or the
past transaction
6. any way related to an unlawful activity or offense
7. similar or analogous to any of the foregoing
Should a transaction be both a covered and suspicious
transaction, it shall be reported as a suspicious
transaction.
ANTI-MONEY LAUNDERING COUNCIL
Composed of:
1. BSP Governor as the BSP
2. Members:
a. Commissioner of Insurance Commission
b. Chairman of SEC
Functions:
1. To investigate suspicious and covered transactions
2. To require and receive covered transaction
reports
3. To issue orders addressed to the appropriate
Supervising Authority
4. To institute a civil forfeiture proceedings
5. Filing of complaints with the DOJ or Ombudsman
6. To initiate investigations
7. To freeze any monetary instrument or property
8. To implement measures against money laundering
9. To receive and take action
10. To develop educational programs
11. To enlist the assistances of the government
12. To impose administrative sanctions
13. Shall apply for the issuance of a search and
seizure order with any competent court
14. Shall apply for the issuance of subpoena with any
competent court
15. To implement targeted financial sanctions in
relation to weapons of mass destruction and its
financing
16. To preserve, manage, or dispose assets to a
freeze order
Freezing of Monetary Instrument or Property
- the Court of Appeals (upon application ex parte by AMLC)
may issue a freeze order effective immediately for a period of
20 days unless extended by the AMLC
OTHER AMENDMENTS
1. AMLC may issue ex parte a freeze order with delay
effective for 20 days in connection with financing or
proliferation of weapons for mass destruction
2, No court shall issue a TRO or writ of injustice except
for Court of Appeals or SC
3. Coordinate with BIR for Tax Evasion
AUTHORITY TO INQUIRE INTO DEPOSITS
The AMLC may inquire into deposits upon order of the
court when there is probable cause

COURT ORDER NOT NECESSARY

1. Kidnapping for Ransom
2. Comprehensive Dangerous Drugs Act
3. Hijacking and other violations
4. Destructive arson and murder
5. Terrorism and conspiracy to commit terrorism