Electronic Banking Safety Regulations
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Questions and Answers

Which criminal activity is NOT directly targeted by the Anti-Money Laundering Act (AMLA)?

  • Tax evasion
  • Insurance fraud (correct)
  • Market manipulation
  • Robbery and extortion

    • What is the threshold amount for cash transactions that must be reported to the AMLC?

  • $5,000
  • $20,000
  • $15,000
  • $10,000 (correct)

    • Which of the following is a reason for reporting suspicious transactions according to AMLA?

  • The amount involved is less than conventional market prices
  • There is a legal obligation tied to the transaction
  • The client has a history of high-value transactions
  • The transaction lacks economic justification (correct)

    • Which method is NOT commonly used to conceal illicit activity related to money laundering?

    <p>Invest in stock options</p> Signup and view all the answers

    Which of the following best describes a Multinational Corporation (MNC)?

    <p>An enterprise with headquarters in one country and operations in others</p> Signup and view all the answers

    What action should financial institutions take when handling large sums of cash according to AMLA?

    <p>Monitor suspicious activities and verify origins</p> Signup and view all the answers

    Which of the following is a characteristic of Coca-Cola as a Multinational Corporation?

    <p>Decentralized structure with regional control</p> Signup and view all the answers

    Which of the following illegal activities involves the corruption of public funds?

    <p>Bribery and graft</p> Signup and view all the answers

    Which country has the highest number of multinational companies (MNCs) based there?

    <p>United States</p> Signup and view all the answers

    How do other cultures typically perceive time in relation to deadlines?

    <p>Time is cyclical, focusing on doing things right.</p> Signup and view all the answers

    What does a commitment typically represent in the context of agreements?

    <p>A guarantee to follow through on a promise with resources.</p> Signup and view all the answers

    Which country has the least number of multinational companies based there, according to the content?

    <p>Switzerland</p> Signup and view all the answers

    What term describes the belief that one's own culture is superior to others?

    <p>Ethnocentrism</p> Signup and view all the answers

    What challenge may arise from workforce diversity within multinational companies?

    <p>Lack of cohesion among employees</p> Signup and view all the answers

    Which of the following is NOT typically a focus of cultures that perceive time as cyclical?

    <p>Worrying about deadlines</p> Signup and view all the answers

    What does managing diversity in multinational corporations primarily involve?

    <p>Balancing different cultural values and practices</p> Signup and view all the answers

    What is the primary function of electronic equipment safety in banking?

    <p>Ensure the integrity, authenticity, and confidentiality of data</p> Signup and view all the answers

    What should financial institutions do if they decide to terminate electronic banking services?

    <p>Report the termination reason to Central Banking</p> Signup and view all the answers

    Which of the following is NOT a measure for emergency treatment in electronic banking?

    <p>Regular staff training</p> Signup and view all the answers

    What aspect does the strict approval of electronic banking focus on?

    <p>Regulating laws about new banking transactions</p> Signup and view all the answers

    Which principle is emphasized in the risk management system for electronic banking?

    <p>Prudence</p> Signup and view all the answers

    What does safety evaluation in electronic banking primarily involve?

    <p>Inspecting safety strategies and controls</p> Signup and view all the answers

    What is a critical aspect that electronic banking aims to reduce?

    <p>Operation costs</p> Signup and view all the answers

    What must be assessed as part of the risk management strategy in electronic banking?

    <p>Safety test and control ability</p> Signup and view all the answers

    What does the term 'cultural differences' primarily refer to?

    <p>The perception that one's own culture is superior</p> Signup and view all the answers

    How does parochialism affect one's perspective?

    <p>It limits focus to one's own community or interests</p> Signup and view all the answers

    What challenge do multinational corporations (MNCs) face in different political environments?

    <p>The need to comply with varying local regulations</p> Signup and view all the answers

    Which of the following is a harmful effect of MNCs in the Philippines?

    <p>MNCs often do not pay appropriate taxes</p> Signup and view all the answers

    What is often a misconception individuals have regarding cultural differences?

    <p>That cultural practices should be evaluated based on personal beliefs</p> Signup and view all the answers

    What is one reason for the lack of Philippine multinational enterprises (MNEs)?

    <p>Lack of interest in expanding locally produced goods</p> Signup and view all the answers

    What is a common consequence of parochialism in business practices?

    <p>Failure to understand market diversity</p> Signup and view all the answers

    How do MNCs benefit from operating in countries with low labor rates?

    <p>They can increase their profit margins significantly</p> Signup and view all the answers

    What characterizes the operations of an international company?

    <p>Independent functioning of each country's operations</p> Signup and view all the answers

    Which of the following is NOT a challenge faced by multinational companies?

    <p>Lack of market differentiation</p> Signup and view all the answers

    How do transnational enterprises typically structure their operations?

    <p>Independent branches with decentralized control</p> Signup and view all the answers

    What impact does cultural diversity have on multinational business?

    <p>It shapes beliefs and influences business practices</p> Signup and view all the answers

    What is a significant risk faced by multinational corporations due to currency fluctuations?

    <p>Effects on pricing strategies</p> Signup and view all the answers

    Which of the following companies is an example of an international company?

    <p>Google</p> Signup and view all the answers

    In the context of a transnational corporation, what does a narrower focus typically refer to?

    <p>Focusing on specific products for individual markets</p> Signup and view all the answers

    What is an effect of competition in the global market for multinational companies?

    <p>Challenges in maintaining market share</p> Signup and view all the answers

    Study Notes

    Electronic Equipment Safety

    • Electronic banking minimizes operational costs and improves the bank's image and competitiveness.
    • Electronic equipment safety is a combination of technical and internal control systems to ensure data and process integrity, authenticity, and confidentiality.

    Strict Approval of Electronic Banking

    • Government agencies and institutions should regulate electronic banking transactions.

    Electronic Banking Termination Rules

    • Financial institutions with electronic banking services shutting down completely or partially must notify the Central Bank with the reason and disposal plan.

    Emergency Treatment Measures

    • Financial institutions should have emergency procedures in place to mitigate risks arising from service or product transfers caused by abnormal conditions.

    Safety Assessment Measures

    • Safety evaluations should occur during the development of electronic banking businesses, including:
      • Safety strategy analysis
      • Internal control assessment
      • Risk management evaluation.
      • Consumer security evaluation

    Anti-Money Laundering Act (AMLA) of 2001 (RA 9160)

    • Criminalizes activities like corruption, fraud, robbery, extortion, and plunder.
    • Targets money laundering activities, including:
      • Market manipulation
      • Illegal goods trading
      • Corruption of public funds
      • Tax evasion
      • Methods to conceal criminal activity and the money generated from it
      • Transferring cash to foreign countries.
      • Depositing cash in small amounts to avoid detection.
      • Using illicit cash to buy other cash instruments

    Report Suspicious Activity

    • Law enforcement investigates money laundering by analyzing financial records for inconsistencies or suspicious activities.
    • Financial institutions should identify the origin of large sums, monitor suspicious activities, and report cash transactions exceeding $10,000 (Php 500,000).
    • Transactions of Php 500,000 or less are reported to the AMLC if considered "suspicious" due to factors like:
      • Lack of legal or economic justification for a transaction
      • Client is not properly identified
      • Transaction amount is disproportionate to the client's capacity.

    Multinational Corporations (MNCs)

    • MNCs are:
      • Headquartered in one country but operate in several others.
      • Subsidiaries operate independently but belong to the same company.
    • Examples of MNCs:
      • Google
      • Nike
      • Netflix
      • TripleOne
      • Nestle
      • Johnson & Johnson
      • Coca-Cola
      • PepsiCo
      • Unilever.

    Transnational Enterprises

    • Have a decentralized structure with branches in various countries.
    • Parent company has limited control over foreign branches.
    • May have a narrower focus, targeting a specific market in a country or region.
    • Examples of Transnational Enterprises:
      • Toyota
      • Shell

    Challenges of Multinational Companies

    • Cultural Differences: Localizing products, marketing strategies, and corporate culture can be challenging.
    • Different Political and Legislative Environments: Adapting to varying regulations impacting products can be difficult.
    • Long Supply Chains: Coordinating transportation between countries can be complex.
    • Managing Geopolitical and Economic Risks: Political and economic instability in host countries pose challenges.
    • Global Market Competition: Competing with other global companies is challenging.
    • Currency Fluctuations: MNCs face risks due to changes in exchange rates.

    Cultural Diversity in Multinational Businesses

    • Culture shapes beliefs, behaviors, and identity.

    • Attitudes towards Appointments and Deadlines:

      • Different cultures perceive time differently, prioritizing “doing things right” over strict deadlines.

    • Attitudes towards Agreements and Commitments:

      • Promises of time, money, and support require consideration of cultural differences.

    • Cross-Country Differences in Individual Work Values and Attitudes:

      • Variation in work values and attitudes need to be understood in managing an MNC workforce.

    • Diversity can lead to a lack of cohesion.

    • Managing Diversity in MNCs during HRM is essential.

    • Challenges of working across cultures include:

      • Ethnocentrism: Believing one's own culture is superior, leading to biases.
      • Parochialism: Having a narrow perspective, focusing only on one's own community.

    Positive Aspects of Cultural Diversity

    • Cultural diversity can add value if managed effectively.

    Harmful effects of MNCs on the Philippines

    • Decline in interest in local products and businesses.
    • Exploitation of low labor rates.
    • Environmental pollution.
    • Inadequate tax payments.

    Multinational Enterprises Based in the Philippines

    • Factors contributing to the lack of Philippine MNEs include:
      • Limited access to funding
      • Lack of skilled labor
      • Government regulations
      • Market size
      • Cultural factors.

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    Related Documents

    Electronic Banking PDF

    Description

    This quiz explores the safety measures and regulations surrounding electronic banking, focusing on technical controls and governmental oversight. Participants will assess their understanding of emergency procedures and safety evaluations that financial institutions must implement. Test your knowledge on how these elements contribute to the integrity and confidentiality of electronic banking services.

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