Podcast
Questions and Answers
What is the fate of unclaimed balances according to Act No. 3936?
What is the fate of unclaimed balances according to Act No. 3936?
- They will be distributed among the employees of the banks
- They will be used to fund the banks' operational expenses
- They will be deposited with the Insular Treasurer for the credit of the Government of the Philippine Islands (correct)
- They will be returned to the depositors' heirs
What is the duty of banks regarding unclaimed balances under Act No. 3936?
What is the duty of banks regarding unclaimed balances under Act No. 3936?
- Donate the unclaimed balances to charity organizations
- Use the unclaimed balances for their own investment purposes
- Return the unclaimed balances to the depositors' heirs
- Forward a statement to the Insular Treasurer of all credits and deposits held by them in favor of persons unheard from for ten years or more (correct)
What is the policy of the State regarding bank accounts under the Anti-Money Laundering Act?
What is the policy of the State regarding bank accounts under the Anti-Money Laundering Act?
- Allow unrestricted access to bank accounts
- Publicly disclose all bank account information
- Protect and preserve the integrity and confidentiality of bank accounts (correct)
- Share bank account details without consent
What is considered a 'covered transaction' under the Anti-Money Laundering Act?
What is considered a 'covered transaction' under the Anti-Money Laundering Act?
What is the purpose of implementing targeted financial sanctions under the Anti-Money Laundering Act?
What is the purpose of implementing targeted financial sanctions under the Anti-Money Laundering Act?
In the Philippines, which law explicitly provides that foreign currency deposits shall be exempt from garnishment?
In the Philippines, which law explicitly provides that foreign currency deposits shall be exempt from garnishment?
If a judgment creditor wants to go after a depositor's foreign currency deposit in the Philippines, which law prohibits this action?
If a judgment creditor wants to go after a depositor's foreign currency deposit in the Philippines, which law prohibits this action?
Abet has a P250,000 balance in his BPI Account and a $100,000 balance in his foreign currency deposit. Can a judgment creditor go after both accounts according to the laws mentioned?
Abet has a P250,000 balance in his BPI Account and a $100,000 balance in his foreign currency deposit. Can a judgment creditor go after both accounts according to the laws mentioned?
Which law does not contain a prohibition on garnishment of a depositor’s peso deposit in the Philippines?
Which law does not contain a prohibition on garnishment of a depositor’s peso deposit in the Philippines?
Under what circumstances can a judgment creditor go after a depositor's foreign currency deposit according to Philippine laws?
Under what circumstances can a judgment creditor go after a depositor's foreign currency deposit according to Philippine laws?
Flashcards
Fate of unclaimed balances (Act No. 3936)
Fate of unclaimed balances (Act No. 3936)
Deposited with the Insular Treasurer for the credit of the Government of the Philippine Islands.
Banks' duty regarding unclaimed balances (Act No. 3936)
Banks' duty regarding unclaimed balances (Act No. 3936)
Forward a statement to the Insular Treasurer of all credits and deposits held by them in favor of persons unheard from for ten years or more.
State policy on bank accounts (AML Act)
State policy on bank accounts (AML Act)
Protect and preserve the integrity and confidentiality of bank accounts.
Covered transaction (AML Act)
Covered transaction (AML Act)
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Purpose of targeted financial sanctions (AML Act)
Purpose of targeted financial sanctions (AML Act)
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Law exempting foreign currency deposits from garnishment
Law exempting foreign currency deposits from garnishment
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Law prohibiting garnishment of foreign currency deposit
Law prohibiting garnishment of foreign currency deposit
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Can a creditor seize both peso and foreign currency?
Can a creditor seize both peso and foreign currency?
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Law without prohibition on garnishment of peso deposit
Law without prohibition on garnishment of peso deposit
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Circumstances allowing garnishment of foreign currency deposit
Circumstances allowing garnishment of foreign currency deposit
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Study Notes
Act No. 3936
- Unclaimed balances are turned over to the National Treasury after a certain period of time.
- Banks are duty-bound to report and remit unclaimed balances to the National Treasury.
Anti-Money Laundering Act
- The State's policy is to ensure that bank accounts are not used for money laundering and terrorist financing.
- A 'covered transaction' is a transaction with a value of more than PHP500,000 or its equivalent in foreign currency.
- The purpose of implementing targeted financial sanctions is to prevent the financing of terrorism and proliferation of weapons of mass destruction.
Foreign Currency Deposits
- Foreign currency deposits are exempt from garnishment under Philippine law, specifically Republic Act No. 6426.
- A judgment creditor cannot go after a depositor's foreign currency deposit by virtue of Republic Act No. 6426.
- This exemption does not apply to peso deposits, which can be garnished by a judgment creditor.
- However, a judgment creditor may go after a depositor's foreign currency deposit if the court has obtained a judgment based on a fraud or illegal activity connected to the deposit.
Garnishment of Deposits
- A judgment creditor can go after a depositor's peso deposit, but not their foreign currency deposit, unless the latter is connected to a fraud or illegal activity.
- Republic Act No. 6426 is the law that exempts foreign currency deposits from garnishment, but it does not contain a prohibition on garnishment of peso deposits.
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