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Which of the following actions is generally prohibited under the Law on Secrecy of Bank Deposits?
Which of the following actions is generally prohibited under the Law on Secrecy of Bank Deposits?
- Disclosing the depositor's account balance to unauthorized persons. (correct)
- Inquiring into the total number of accounts held at a specific bank branch.
- Revealing that a particular person maintains an account at the bank.
- Confirming the existence of a depositor's account without revealing the balance.
Under the Law on Secrecy of Bank Deposits, what fundamental relationship is established when a person places deposits in a bank?
Under the Law on Secrecy of Bank Deposits, what fundamental relationship is established when a person places deposits in a bank?
- Creditor-Debtor Relationship (correct)
- Guarantor-Beneficiary Relationship
- Principal-Agent Relationship
- Trustee-Beneficiary Relationship
The Law on Secrecy of Bank Deposits considers deposits to be in the nature of what type of transaction?
The Law on Secrecy of Bank Deposits considers deposits to be in the nature of what type of transaction?
- A simple loan (correct)
- An equity investment
- A trust agreement
- A collateral assignment
Which of the following is NOT an example of investments in government bonds as defined in the context of bank secrecy?
Which of the following is NOT an example of investments in government bonds as defined in the context of bank secrecy?
A government official is conducting a corruption investigation. Which action related to a suspect's bank account would typically require an exception to the Law on Secrecy of Bank Deposits?
A government official is conducting a corruption investigation. Which action related to a suspect's bank account would typically require an exception to the Law on Secrecy of Bank Deposits?
A bank employee suspects that a customer is involved in money laundering. Under the Law on Secrecy of Bank Deposits, what information can the bank disclose without violating the law?
A bank employee suspects that a customer is involved in money laundering. Under the Law on Secrecy of Bank Deposits, what information can the bank disclose without violating the law?
A private citizen is suing a business owner and believes the business owner is hiding assets in a bank account. What information about the business owner's bank account can the bank legally disclose to the private citizen without a court order?
A private citizen is suing a business owner and believes the business owner is hiding assets in a bank account. What information about the business owner's bank account can the bank legally disclose to the private citizen without a court order?
Which statement accurately describes the scope of the 'secrecy' ensured by the Law on Secrecy of Bank Deposits?
Which statement accurately describes the scope of the 'secrecy' ensured by the Law on Secrecy of Bank Deposits?
Which of the following scenarios would be considered a violation of the Law on Secrecy of Bank Deposits?
Which of the following scenarios would be considered a violation of the Law on Secrecy of Bank Deposits?
The Law on Secrecy of Bank Deposits aims to achieve which primary objectives?
The Law on Secrecy of Bank Deposits aims to achieve which primary objectives?
According to The New Central Bank Act, what condition necessitates a written waiver of secrecy of deposits?
According to The New Central Bank Act, what condition necessitates a written waiver of secrecy of deposits?
Which of the following is NOT covered by the Law on Secrecy of Bank Deposits?
Which of the following is NOT covered by the Law on Secrecy of Bank Deposits?
Under what circumstances can the bank deposits of a public official, their spouse, and unmarried children NOT be taken into consideration?
Under what circumstances can the bank deposits of a public official, their spouse, and unmarried children NOT be taken into consideration?
A bank employee discloses information about a client's account to a third party without the client's consent or a court order. What potential legal repercussions might the employee face?
A bank employee discloses information about a client's account to a third party without the client's consent or a court order. What potential legal repercussions might the employee face?
A government agency seeks to access a specific bank account, claiming it is essential for national security. What procedural requirements must they fulfill to comply with the Law on Secrecy of Bank Deposits?
A government agency seeks to access a specific bank account, claiming it is essential for national security. What procedural requirements must they fulfill to comply with the Law on Secrecy of Bank Deposits?
How does the Law on Secrecy of Bank Deposits interact with other banking laws regarding the disclosure of information?
How does the Law on Secrecy of Bank Deposits interact with other banking laws regarding the disclosure of information?
Which type of account is absolutely prohibited under the regulations mentioned?
Which type of account is absolutely prohibited under the regulations mentioned?
Under what specific circumstance is information about a customer's funds or properties permissible to disclose?
Under what specific circumstance is information about a customer's funds or properties permissible to disclose?
According to regulations, what is the primary purpose of the Supervising Authorities' annual testing regarding prohibited accounts?
According to regulations, what is the primary purpose of the Supervising Authorities' annual testing regarding prohibited accounts?
What is the critical requirement for covered persons maintaining customer accounts, as emphasized by the regulations?
What is the critical requirement for covered persons maintaining customer accounts, as emphasized by the regulations?
What information must be included in covered and suspicious transaction reports involving nonchecking numbered accounts?
What information must be included in covered and suspicious transaction reports involving nonchecking numbered accounts?
Under what circumstances can the AMLC examine bank deposits without a court order, according to the provided content?
Under what circumstances can the AMLC examine bank deposits without a court order, according to the provided content?
What is the maximum initial period for which the AMLC can freeze an account ex parte in relation to terrorism financing, without extension by the Court of Appeals?
What is the maximum initial period for which the AMLC can freeze an account ex parte in relation to terrorism financing, without extension by the Court of Appeals?
What is the confidentiality status of all deposits with an Association in the Philippines, according to the Revised Non-Stock Savings and Loan Association Act of 1997?
What is the confidentiality status of all deposits with an Association in the Philippines, according to the Revised Non-Stock Savings and Loan Association Act of 1997?
Which statement accurately describes the relationship between the Secrecy of Bank Deposits Law and foreign currency deposits?
Which statement accurately describes the relationship between the Secrecy of Bank Deposits Law and foreign currency deposits?
What is the maximum imprisonment penalty for violating the law regarding prohibited accounts?
What is the maximum imprisonment penalty for violating the law regarding prohibited accounts?
In which scenario is the garnishment of a bank account NOT considered a violation of the Secrecy of Bank Deposits Law?
In which scenario is the garnishment of a bank account NOT considered a violation of the Secrecy of Bank Deposits Law?
What are the penalties for the violation of the Law?
What are the penalties for the violation of the Law?
How does the Anti-Terrorism Council's request to the AMLC potentially influence the investigation and freezing of accounts related to terrorism financing?
How does the Anti-Terrorism Council's request to the AMLC potentially influence the investigation and freezing of accounts related to terrorism financing?
Which of the following situations requires written consent from the depositor to examine their bank deposits?
Which of the following situations requires written consent from the depositor to examine their bank deposits?
What is the role of probable cause in the context of investigating individuals involved in acts of terrorism, according to the content?
What is the role of probable cause in the context of investigating individuals involved in acts of terrorism, according to the content?
What is the significance of RA 10168 (Terrorism Financing Prevention and Suppression Act) in relation to bank deposit secrecy?
What is the significance of RA 10168 (Terrorism Financing Prevention and Suppression Act) in relation to bank deposit secrecy?
Under what condition is the Bangko Sentral NOT authorized to inquire into bank deposits or investments?
Under what condition is the Bangko Sentral NOT authorized to inquire into bank deposits or investments?
Which scenario necessitates a court order for law enforcement officers to access bank deposit information?
Which scenario necessitates a court order for law enforcement officers to access bank deposit information?
Which of the following is an instance of authorized disclosure of bank deposits without requiring explicit consent from the depositor?
Which of the following is an instance of authorized disclosure of bank deposits without requiring explicit consent from the depositor?
A writ of garnishment is issued to collect delinquent taxes from an individual. What action is the bank authorized to take?
A writ of garnishment is issued to collect delinquent taxes from an individual. What action is the bank authorized to take?
In what scenario can a bank officer or employee disclose information about a deposit in a closed bank?
In what scenario can a bank officer or employee disclose information about a deposit in a closed bank?
Which type of deposits are typically NOT covered by standard bank secrecy regulations, thus potentially subject to different disclosure rules?
Which type of deposits are typically NOT covered by standard bank secrecy regulations, thus potentially subject to different disclosure rules?
The Philippine Deposit Insurance Corporation (PDIC) and the Bangko Sentral may inquire into bank deposits under what circumstance?
The Philippine Deposit Insurance Corporation (PDIC) and the Bangko Sentral may inquire into bank deposits under what circumstance?
A sheriff presents a writ of garnishment to a bank, seeking to satisfy a judgment against a bank client. What is the bank's responsibility?
A sheriff presents a writ of garnishment to a bank, seeking to satisfy a judgment against a bank client. What is the bank's responsibility?
Under what circumstance is the Commissioner of Internal Revenue (CIR) authorized to potentially access taxpayer information?
Under what circumstance is the Commissioner of Internal Revenue (CIR) authorized to potentially access taxpayer information?
Which scenario allows for the disclosure of bank deposits, potentially waiving the Secrecy of Bank Deposits Law?
Which scenario allows for the disclosure of bank deposits, potentially waiving the Secrecy of Bank Deposits Law?
In which situation can the Anti-Money Laundering Council (AMLC) access bank deposits without a court order?
In which situation can the Anti-Money Laundering Council (AMLC) access bank deposits without a court order?
In which of the following cases is the Secrecy of Bank Deposits Law NOT violated?
In which of the following cases is the Secrecy of Bank Deposits Law NOT violated?
Under what specific legal circumstance is the disclosure of bank deposits permitted during impeachment proceedings?
Under what specific legal circumstance is the disclosure of bank deposits permitted during impeachment proceedings?
In what situation is a court order required to examine bank deposits, potentially waiving the Secrecy of Bank Deposits Law?
In what situation is a court order required to examine bank deposits, potentially waiving the Secrecy of Bank Deposits Law?
What condition must be met for a foreign tax authority to request tax information from the CIR regarding specific taxpayers?
What condition must be met for a foreign tax authority to request tax information from the CIR regarding specific taxpayers?
Aside from the exceptions provided under the Law on Secrecy of Bank Deposits, which of the following legislations may also require the disclosure of bank information?
Aside from the exceptions provided under the Law on Secrecy of Bank Deposits, which of the following legislations may also require the disclosure of bank information?
Flashcards
Compromise of Tax Liability
Compromise of Tax Liability
Allows the CIR to access information when compromising tax liability due to financial incapacity.
Secrecy of Bank Deposits Law
Secrecy of Bank Deposits Law
Prohibits unauthorized examination, inquiry, or disclosure of bank deposits.
Deposits
Deposits
Money or funds placed with a bank, withdrawable on demand (savings, current, time).
Decedent's Gross Estate
Decedent's Gross Estate
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Bank-Depositor Relationship
Bank-Depositor Relationship
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Tax Treaty Information Exchange
Tax Treaty Information Exchange
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Bank Secrecy Waiver
Bank Secrecy Waiver
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Investments in Government Bonds
Investments in Government Bonds
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Government Bonds
Government Bonds
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Impeachment Exception
Impeachment Exception
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Bribery/Dereliction Exception
Bribery/Dereliction Exception
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Examples of Government Bonds
Examples of Government Bonds
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AMLC with Court Order
AMLC with Court Order
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Purpose of Secrecy Law
Purpose of Secrecy Law
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Liable under Secrecy Law
Liable under Secrecy Law
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AMLC without Court Order
AMLC without Court Order
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Purpose of Bank Secrecy Law
Purpose of Bank Secrecy Law
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What deposits are covered?
What deposits are covered?
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Who violates the law?
Who violates the law?
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Other laws prohibiting disclosure?
Other laws prohibiting disclosure?
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Exception: Impeachment
Exception: Impeachment
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Exception: Court Order
Exception: Court Order
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The Anti-Graft and Corrupt Practices Act
The Anti-Graft and Corrupt Practices Act
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Exception: DOSRI Loans
Exception: DOSRI Loans
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Bank Placements
Bank Placements
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RA 10168
RA 10168
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Confidentiality of Foreign Currency Deposits
Confidentiality of Foreign Currency Deposits
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RA 6426
RA 6426
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Exceptions to Foreign Currency Deposit Secrecy
Exceptions to Foreign Currency Deposit Secrecy
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AMLC Authority to Freeze Accounts
AMLC Authority to Freeze Accounts
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Garnishment of Bank Accounts
Garnishment of Bank Accounts
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AMLA
AMLA
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Coup d'etat Law (RA 6968)
Coup d'etat Law (RA 6968)
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Police Power
Police Power
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Authorized Disclosures
Authorized Disclosures
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Reporting Unclaimed Balances
Reporting Unclaimed Balances
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Garnishment for Delinquent Taxes
Garnishment for Delinquent Taxes
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Writ of Garnishment
Writ of Garnishment
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Disclosure on Court Order (Closed Bank)
Disclosure on Court Order (Closed Bank)
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Deposits Not Covered
Deposits Not Covered
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Anonymous Accounts
Anonymous Accounts
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Accounts under Fictitious Names
Accounts under Fictitious Names
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Numbered Accounts
Numbered Accounts
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Reporting True Names
Reporting True Names
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Bank Secrecy
Bank Secrecy
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Association Deposit Confidentiality
Association Deposit Confidentiality
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Penalties for Violations
Penalties for Violations
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True Name Requirement
True Name Requirement
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Study Notes
- The Law on Secrecy of Bank Deposits prohibits the examination, inquiry, or looking into deposits by government officials, bureaus, or offices, and the disclosure by banking institutions to unauthorized persons regarding information about covered accounts.
- Banks are not allowed to disclose a depositor's account balance, but can disclose the existence of the account.
- The law aims to promote bank deposits, discourage private hoarding, and protect the confidentiality of bank deposits.
- The law covers all types of deposits with banks in the Philippines, including investments in government bonds, which are considered absolutely confidential.
- Deposits refer to money or funds placed with a bank that can be withdrawn, functioning as a simple loan, creating a creditor-debtor relationship.
- Investments in Government Bonds refer to investments in bonds issued by the Philippine government, its subdivisions, and instrumentalities, backed by the State's full taxing power and considered risk-free.
- Anyone who examines, inquires, or looks into a bank deposit or government bond investment without permission, or any bank official who discloses bank deposits unlawfully is liable, as is anyone who violates the law's provisions.
Exceptions to Bank Secrecy
- Exceptions under other laws exist for authorized disclosures.
- Exceptions exist under the Foreign Currency Deposits Act (RA 6426).
- Exceptions exist under the Human Security Act of 2007 (RA 9372).
- Exceptions exist under the Terrorism Financing and Prevention and Suppression Act (RA 10168).
- The law has exceptions in cases of written permission from the depositor, impeachment cases, court orders in bribery or dereliction of duty cases, and when the money is the subject of litigation.
- The Ombudsman can issue subpoenas, take testimony, and access bank records.
- Bank deposits of public officials, their spouse, and unmarried children can be considered under The Anti-Graft and Corrupt Practices Act.
- DOSRIs contracting loans must execute a written waiver of secrecy of deposits under The New Central Bank Act.
- The CIR is authorized in relation to tax compromise, determination of a decedent's gross estate, or a request for tax information under a tax treaty.
- The Anti-Money Laundering Council can access information with a court order if there is probable cause of unlawful activity.
- The Anti-Money Laundering Council can pursue cases without a court order when probable cause exists for certain predicate crimes.
- Under the Anti-Money Laundering Law, the AMLC may inquire into deposits with a court order based on probable cause related to unlawful activities.
Exceptions that don't require a court order
- Kidnapping for ransom.
- Violations under the Comprehensive Dangerous Drugs Act of 2002.
- Hijacking and other violations under RA 6235. The violations include destructive arson and murder perpetrated by terrorists.
- The BSP can inquire into bank deposits or investments to ensure compliance with The Anti-Money Laundering Law, conduct annual testing, and examine deposits during special examinations authorized by the Monetary Board.
- The PDIC and the BSP may inquire into bank deposits when there is a finding of unsafe or unsound banking practices.
Other exceptions
- The Court of Appeals may authorize law enforcement to examine bank information in connection with anti-terrorism cases.
- The Commission on Audit can examine government deposits.
- The Presidential Commission on Good Government can pursue investigations to recover wealth.
- Examination by an independent Auditor, hired by the Bank and for the Bank's exclusive use
- Coup d'etat Law (RA 6968, Oct 24,1990) when the State invokes its Police Power.
- Exceptions for authorized disclosures involve reporting unclaimed balances, turning over amounts to the CIR for tax collection, submitting reports for garnished amounts, and disclosure by a bank officer in connection with a deposit in a closed bank used for anomalies.
Deposits Excluded from Coverage
- Foreign currency deposits. Governed by Foreign Currency Deposit Act
- Funds not held as deposits by private individuals or entities.
Rules on Foreign Currency Deposits
- Deposits in foreign currency and offshore banking units are confidential.
- Waiver/Written consent of depositor under Section 8 of the Foreign Currency Deposits Act;
- The AMLC seeks to examine suspicious deposits under Section 11 of the Anti-Money Laundering Act.
- DOSRI are required to execute a written waiver.
- Under Sections 27 and 28 of the Human Security Act.
Human Security Act Rules
- It allows examination and sequestration of deposits under certain conditions.
- The Court of Appeals may authorize police to examine deposits, placements, trust accounts, and records in cases.
Terrorism Financing and Suppression Act Rules
- AMLC can investigate property or funds related to terrorism without a court order, and freeze accounts without delay, initially for 20 days, extendable by the CA up to six months.
Garnishment
- Bank accounts may be garnished, which doesn't violate Secrecy of Bank Deposits.
- Garnishment is when a court orders that money/property of a third party be seized to satisfy a debt.
- A writ of attachment freezes a defendant's assets pending the outcome of legal action. A garnishment is a court order directing a third party to seize assets to settle an unpaid debt.
Prohibited Activity
- Anonymous accounts, accounts under fictitious names, and all other similar accounts are absolutely prohibited.
- Peso and foreign currency non-checking numbered accounts are allowed.
- The BSP can conduct annual testing to determine the existence and identity of account owners. Prohibited (2016 IRR)
Prohibited (2016 IRR)
- Anonymous Accounts and Accounts under Fictitious Names: Covered persons shall maintain customers' account only in the true and full name of the account owner or holder. Anonymous accounts under fictitious names and all other similar accounts shall be absolutely prohibited.
- Numbered Accounts: Numbered accounts, except nonchecking numbered accounts, shall not be allowed.
- Covered and suspicious transaction reports involving nonchecking numbered accounts shall contain the true name of the account holder.
Prohibited Accounts (IRR 2018)
- Covered persons must maintain accounts in the true name of the account owner/holder.
Numbered Accounts
- Numbered accounts, except non-checking numbered accounts, are not allowed.
- CTRS and STRs involving non-checking numbered accounts must contain the true name of the account holder.
- The General Banking Law prohibits unauthorized disclosure of information, and The Thrift Banks Act and the Rural Banks Act also prohibit disclosure of information on funds.
Revised Non-Stock Savings and Association Act
- States that all deposits are considered confidential and may not be examined.
Penalties
- Violators may face imprisonment of up to five years or a fine of not more than P20,000.00, or both.
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Description
Explore key provisions of the Law on Secrecy of Bank Deposits. Understand prohibited actions, the nature of bank deposits, and exceptions for investigations. Learn about permissible disclosures and necessary authorizations.
