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Questions and Answers
What is the purpose of the Bank Secrecy Law?
What is the purpose of the Bank Secrecy Law?
- To encourage people to deposit money in banking institutions and discourage private hoarding (correct)
- To limit the amount of money that can be deposited in banks
- To regulate the interest rates on bank deposits
- To impose taxes on bank deposits
What is the main source of the Bank Secrecy Law?
What is the main source of the Bank Secrecy Law?
- Senate Bill No. 1500
- Republic Act No. 1405 (correct)
- Presidential Decree No. 2000
- Executive Order No. 1000
What is the essence of Bank Secrecy according to the text?
What is the essence of Bank Secrecy according to the text?
- Bank officials are free to disclose information about deposits to anyone they choose
- All deposits with banks are considered absolutely confidential and may not be examined by any person or government official (correct)
- Banks are required to disclose all information about deposits to authorized government officials
- Depositors have no control over who can examine their deposits
What are the prohibited acts under the Bank Secrecy Law?
What are the prohibited acts under the Bank Secrecy Law?
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In what circumstances can deposit information be examined without the depositor's written permission?
In what circumstances can deposit information be examined without the depositor's written permission?
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Study Notes
Purpose of Bank Secrecy Law
- To prevent money laundering and other financial crimes
- Designed to prevent the use of banks for illegal activities
- Promotes financial transparency and regulation
Source of Bank Secrecy Law
- Title 12, Chapter 21, Section 1829b of the United States Code (USC)
- Also known as the "Bank Secrecy Act"
- Originally enacted in 1970, but amended numerous times
- Part of a broader effort to combat financial crime
Essence of Bank Secrecy
- Requires financial institutions to maintain records and report suspicious transactions
- This helps law enforcement agencies to detect and investigate financial crimes
- Banks and financial institutions are legally obligated to comply with the BSA
Prohibited Acts under the Bank Secrecy Law
- Structuring deposits to avoid reporting requirements
- Failing to file required Currency Transaction Reports (CTRs)
- Failing to file required Suspicious Activity Reports (SARs)
- Concealing or disguising the source of funds
- Engaging in other activities that violate the BSA
Circumstances for Examining Deposit Information
- With a valid warrant issued by a court
- With the depositor's written consent
- By authorized government agencies under certain circumstances
- For example, during investigations of suspected financial crimes
- National security or law enforcement purposes
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