Fcda Q and A

1.
) ________ refer to funds in foreign currencies which are accepted and held by
authorized banks in the regular course of business with the obligation to return an
equivalent amount to the owner thereof, with or without interest.
a. Global Investments
b. Foreign Investments
c. Foreign currency deposits
d. Global deposits
ANSWER: C
2.) The following are liable under the Foreign Currency Deposit Act of the Philippines,
except:
a. Any person or government official who, or any government bureau or office

that, examines, inquires or looks into a foreign currency deposit without the
written permission of the depositor
b. Any official or employee of a banking institution who makes a disclosure

concerning foreign currency deposits to another, in any instance not allowed by
law
c. Anyone who shall attach, garnish, or subject the foreign currency deposit to any
other order or process of any court, legislative body, government agency or any
other administrative body
d. Any person who commits a willful violation of any of the provisions of

Republic Act No. 6425 or regulation issued by the Monetary Board pursuant to
the said law
ANSWER: D
3. Which of the following is/are true?
I. All foreign currency deposits are absolutely confidential and cannot be

examined, inquired, or looked into by any person, government official, bureau or
office, whether judicial or administrative or legislative, or any other private or
public entity.
II. Foreign currency deposits may be examined, inquired or looked into under the
limited exceptions in Republic Act No. 6426 and in other laws.
A. Statement 1 only
B. Statement 2 only
C. Neither statements
D. Both statements
ANSWER: D
4. Which of the following instances when confidentiality of the Foreign Currency Deposit
is not absolute is/are under the Foreign Currency Deposit Act of the Philippines and not
under other laws?
a. Foreign currency deposits may be examined, inquired or looked into when there
is written permission of the depositor.
b. Directors, officers, stockholders and related interests who contract a loan or any
form of financial accommodation with their bank or related bank are required to
execute a written waiver of secrecy of deposits
c. The Philippine Deposit Insurance Commission and the Bangko Sentral may
inquire into bank deposits when there is a finding of unsafe or unsound banking
practices.
d. The Commission on Audit is authorized to examine and audit government

deposits pertaining to the revenue and receipts of, and expenditures or uses of
funds and properties, owned or held in trust by, or pertaining to, the Government
or any of its subdivisions, agencies or instrumentalities, including government-
owned and controlled corporations with original charters.
ANSWER: A
I. Foreign investments refer to funds in foreign currencies which are accepted and held by
authorized banks in the regular course of business with the obligation to return an
equivalent amount to the owner thereof, with or without interest.
II. Foreign currency deposits are also exempt from attachment, garnishment, or any other
order or process of any court, legislative body, government agency or any administrative
body whatsoever.
a. Statement 1
b. Statement 2
c. Both statements
d. Neither
ANSWER: B
6. Which of the following is/are liable under the FOREIGN CURRENCY DEPOSIT ACT
OF THE PHILIPPINES?
I. Any person or government official who, or any government bureau or office

II. Any person or government official who, or any government bureau or office
that, examines, inquires or looks into a foreign currency deposit even with the
A. Statement 1
B. Statement 2
C. Both statements
D. Neither
ANSWER: A
7. The FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES is ________
a. REPUBLIC ACT NO. 1405

b. REPUBLIC ACT NO. 1406
c. REPUBLIC ACT NO. 6425
d. REPUBLIC ACT NO. 6426
ANSWER: D
. 8. Any official or employee of a banking institution who makes a disclosure concerning

foreign currency deposits to another, in any instance not allowed by law is liable is a
provision of which act ?

ANSWER: D
9. Any person or government official who, or any government bureau or office

written permission of the depositor is liable is a provision of which act?

ANSWER: D
10. Which of the following is/are liable under the FOREIGN CURRENCY DEPOSIT
ACT OF THE PHILIPPINES ?
I. Anyone who shall attach, garnish, or subject the foreign currency deposit to any
other order or process of any court, legislative body, government agency or any
other administrative body
II. Any person who commits a willful violation of any of the provisions of Republic
Act No. 6426 or regulation issued by the Monetary Board pursuant to the said law
A. Statement 1
B. Statement 2
C. Both statements
D. Neither
ANSWER: C
11.Which of the following is/are exceptions to the FOREIGN CURRENCY DEPOSIT

ACT OF THE PHILIPPINES ?
I. Directors, officers, stockholders and related interests who contract a loan or any
form of financial accommodation with their bank or related bank are required to
execute a written waiver of secrecy of deposits pursuant to The New Central Bank
Act
II. Directors, officers, stockholders and related interests who contract a loan or
any form of financial accommodation with their bank or related bank are required
to execute a written waiver of secrecy of deposits pursuant to The General
Banking Law.
A. Statement 1
B. Statement 2
C. Both statements
D. Neither
ANSWER: A
I. The Commissioner of Internal Revenue is authorized to inquire into bank

deposit accounts at all times.
II. The Commissioner of Internal Revenue is authorized to inquire into bank
deposit accounts in relation to some instances provided by law only.
A. Statement 1
B. Statement 2
C. Both statements
D. Neither
ANSWER: B
13. The Anti-Money Laundering Council may be authorized to examine and inquire into
bank deposits or investments with banking or non-bank financial institutions:
a. without court order, when there is probable cause that the deposits or
investments are related to an unlawful activity or a money laundering offense
b. without court order, when there is at least a possible cause that the deposits or
c. with court order, when there is probable cause that the deposits or investments
are related to an unlawful activity or a money laundering offense
d. with court order, when there is at least a possible cause that the deposits or
Answer: C
a. without need of court order, when probable cause exists that a particular deposit
or investment with any banking institution is related to certain predicate crimes, such as
kidnapping for ransom, violation of the Comprehensive Dangerous Drugs Act, hijacking
and other violations under Republic Act No. 6235, destructive arson and murder
b. without need of court order, when probable cause exists that a particular deposit
c. without need of court order, when certain cause exists that a particular deposit
d. without need of court order, when certain cause exists that a particular deposit
Answer: A
15. The Commissioner of Internal Revenue is authorized to inquire into bank deposit
accounts in relation to:
a. an application for compromise of tax liability or a determination of a decedents
gross estate under The National Internal Revenue Code
b. an application for compromise of tax liability or a determination of donor's tax
or a decedents gross estate under The National Internal Revenue Code
c. an application for compromise of tax liability or a determination of donor's tax,
income tax or a decedents gross estate under The National Internal Revenue Code
d. none of the above
Answer: A
16. The Commissioner of Internal Revenue is authorized to inquire into bank deposit
a. a request for tax information of Philippine-based taxpayers made by a foreign
tax authority pursuant to a tax treaty under The Exchange of Information on Tax Matters
Act of 2010
b. a request for tax information of specific taxpayers made by a foreign tax
authority pursuant to a tax treaty under The Exchange of Information on Tax Matters Act
of 2009
c. a request for tax information of Philippine-based taxpayers made by a foreign
tax authority pursuant to a tax treaty under The Exchange of Information on Tax Matters
Act of 2009
d. a request for tax information of specific taxpayers made by a foreign tax
authority pursuant to a tax treaty under The Exchange of Information on Tax Matters Act
of 2010
Answer: B
17. Which of the following statements is(are) correct:

I. The Anti-Money Laundering Council may be authorized to examine and inquire
into bank deposits or investments with banking or non-bank financial institutions with
court order, when there is at least a possible cause that the deposits or investments are
related to an unlawful activity or a money laundering offense
deposit accounts in relation to a request for tax information of Philippine-based taxpayers
made by a foreign tax authority pursuant to a tax treaty under The Exchange of
Information on Tax Matters Act of 2010
a. I only
b. II only
c. I and II
d. None of the above
Answer: D

court order, when there is certain cause that the deposits or investments are related to an
unlawful activity or a money laundering offense
deposit accounts in relation to a request for tax information of Philippine-based taxpayers
made by a foreign tax authority pursuant to a tax treaty under The Exchange of
Information on Tax Matters Act of 2009
a. I only
b. II only
c. I and II
Answer: D
19. The Bangko Sentral is authorized to, except:

a. inquire into bank deposits and investments in the course of a periodic or special
examination to ensure compliance with The Anti- Money Laundering Act, in accordance
with the rules of examination of the Bangko Sentral
b. examine bank deposits and investments in the course of a periodic or special
examination to ensure compliance with The Anti- Money Laundering Act, in accordance
with the rules of examination of the Bangko Sentral
c.conduct monthly testing which is limited to the determination of the existence
and true identity of the owners of numbered accounts
Answer: C
20. The _____________ may inquire into bank deposits when there is a finding of safe or
sound banking practices.
a. Philippine Deposit Insurance Commission
b. Bangko Sentral
c. Both A and C
Answer: D
21. The __________ is authorized to examine and audit government deposits pertaining
to the revenue and receipts of, and expenditures or uses of funds and properties, owned or
held in trust by, or pertaining to, the Government or any of its subdivisions, agencies or
instrumentalities, including government-owned and controlled corporations with original
charters.
a. Philippine Deposit Insurance Commission
b. Bangko Sentral
c. Commission on Audit
d. Government Control Authority
Answer: C

I. The Philippine Deposit Insurance Commission and the Bangko Sentral may
inquire into bank deposits when there is a finding of unsafe or unsound banking practices.
II. The Bangko Sentral is authorized to conduct monthly testing which is limited
to the determination of the existence and true identity of the owners of numbered
accounts
a. I only
b. II only
c. I and II
Answer: A

I. The Government Control Authority is authorized to examine and audit
government deposits pertaining to the revenue and receipts of, and expenditures or uses
of funds and properties, owned or held in trust by, or pertaining to, the Government or
any of its subdivisions, agencies or instrumentalities, including government-owned and
controlled corporations with original charters.
II. The Bangko Sentral is authorized to inquire into or examine bank deposits and
investments in the course of a periodic or special examination to ensure compliance with
The Anti- Money Laundering Act, in accordance with the rules of examination of the
PDIC.
a. I only
b. II only
c. I and II
Answer: D

court order, when there is probable cause that the deposits or investments are related to an
unlawful activity or a money laundering offense.
II. The Philippine Deposit Insurance Commission and the Bangko Sentral may
inquire into bank deposits when there is a finding of unsafe or unsound banking practices.
a. I only
b. II only
c. I and II
Answer: C
bank deposits or investments with banking or non-bank financial institutions without
need of court order, when ______ cause exists that a particular deposit or investment with
any banking institution is related to certain _______.
a. at least possible; predicate crimes
b. probable; money laundering crimes
c. at least possible; money laundering crimes
d. probable; predicate crimes
Answer: D
B. 26. Exceptions under Jurisprudence on Grounds of Equity includes 1 of the following:

a) Garnishment of a foreign currency deposit account of a resident citizen found
guilty of Digital Piracy
b) Garnishment of a foreign currency deposit account of a non-resident alien found
guilty of raping a minor
c) Garnishment of a foreign currency deposit account of a resident alien found guilty
of raping a minor
d) Garnishment of a foreign currency deposit account of a non-resident alien found
guilty of murdering a minor
D 27. The confidentiality of Foreign Currency Deposits is not Absolute in the

investigations to recover ill-gotten wealth accumulated by which president?
a) President Gloria Macapagal Arroyo
b) President Joseph Estrada
c) President Rodrigo Duterte
d) President Ferdinand Marcos
B 28. What Presidential Commission was tasked to investigate the ill-gotten wealth
accumulated by former President Ferdinand E. Marcos
a) Presidential Commission on the Status of Women
b) Presidential Commission on Good Government
c) Presidential Commission for the Urban Poor
d) Presidential Commission for investigation of ill-gotten wealth
A 29. What may be issued by the Presidential Commission on Good Government for the
investigations to recover ill-gotten wealth accumulated by former President Ferdinand E.
Marcos?
a) Subpoena
b) Letter of inquiry
c) Letter of intent
d) Protective order
D 30. The subpoenas issued by the Commission on Good Government for the
investigations to recover ill-gotten wealth accumulated by former President Ferdinand E.
Marcos may require which of the following:
a) The attendance and testimony of witnesses
b) Production of books, papers, contracts, and records
c) Production of the statement of accounts
d) All of the above
B 31. The garnishment of a foreign currency deposit account of a non-resident alien

found guilty of raping a minor was allowed on the basis of:
a) The permission of the depositor
b) Equity
c) money laundering offense
d) unlawful activity
B 32. Which are exceptions under Jurisprudence on Grounds of Equity:

a) The garnishment of a foreign currency account of a resident alien found guilty of
murdering a minor was allowed on the basis of equity
b) A co-payee of a check who filed a suit for recovery of sum of money was
considered, in a pro hac vice ruling by the Supreme Court, as a depositor in view
of the distinctive circumstances of the case
c) Both A and B
d) None of the above
B33. The Anti-Money Laundering Council may be authorized to examine and inquire into
a) without need of court order, when there is probable cause that the deposits or
Statement II
b) with court order, when probable cause exists that a particular deposit or
investment with any banking institution is related to certain predicate crimes, such
as kidnapping for ransom, violation of the Comprehensive Dangerous Drugs Act,
hijacking and other violations under Republic Act No. 6235, destructive arson and
murder
c) Both A and B
d) None of the Above
A 34. The interests on deposits under the Foreign Currency Deposit Act, belonging to
nonresidents not engaged in trade or business in the Philippines, shall be ____________
a) Subject to 20% final tax
b) Subject to 25% final tax
c) Subject to normal tax
d) exempt from tax
A 35. The _________ Shall promulgate such rules and regulations as may be necessary to
carry out the provisions of this Act which shall take effect after the publication of such
rules and regulations in the official gazette and in a newspaper of national circulation for
at least once a week for three consecutive weeks
a) Monetary Board
b) BIR
c) SEC
d) Secretary of Finance
D36. Statement I. The Commission on Good governance is authorized to examine and

audit government deposits pertaining to the revenue and receipts of, and expenditures or
uses of funds and properties, owned or held in trust by, or pertaining to, the Government
or any of its subdivisions, agencies or instrumentalities, including government-owned and
controlled corporations with original charters.
Statement II. The Commission on Human rights and the Monetary board may inquire
into bank deposits when there is a finding of unsafe or unsound banking practices..
Which of the following statements are false?

a) Statement I only
b) Statement II only
c) Both I and II
d) Neither of the statements
C 37. Statement I Directors, officers, stockholders and related interests who contract a
loan or any form of financial accommodation with their bank or related bank are required
to execute a written waiver of secrecy of deposits pursuant to The New Central Bank Act.
Statement II. The Commissioner of Internal Revenue is authorized to inquire into bank
deposit accounts in relation to an application for compromise of tax liability or a
determination of a decedents gross estate under The National Internal Revenue Code

a) Statement I only
c) Both I and II
D 38. The Commissioner of Internal Revenue is authorized to inquire into bank deposit
(1) an application for compromise of tax liability or a determination of a decedents
gross estate under The National Internal Revenue Code
(2) a request for tax information of specific18 taxpayers made by a foreign tax authority
pursuant to a tax treaty under The Exchange of Information on Tax Matters Act of 2009
a) Statement I only
c) Both I and II
B. 39. All of the following penalties may be given to an offender in violation of R.A.
6426 except:
e) fine of not less than Php 5,000 but not more than Php 25,000
f) imprisonment of less than 1 year to more than 5 years
g) both imprisonment and fine
h) imprisonment of not less than 1 year but not more than 5 years
D 40. For violation of the provisions, sanctions may also be imposed against
e) bank
f) bank director or officer
g) B only
h) both A and B
B 41. Statement I. The revocation of the authority of the bank to accept new foreign
currency deposits is one of the sanctions that may be imposed in violation of the
provisions.
Statement II. The administrative sanctions provided under Section 37 of the New Central
Bank Act cannot be used in imposing the sanction for violation.

e) Statement I only
f) Statement II only
g) Both I and II
h) Neither of the statements
A 42. Statement I. The penalties mentioned in R.A. 6426 that can be imposed upon
conviction are alternative in nature.
Statement II. An offender in violation of the Code can be subject to imprisonment for one
year or less.
Which of the following statements are true?

e) Statement I only
g) Both I and II
C 43. If the penalty to be given is a fine, the amount should be

e) Less than Php 5,000
f) Php 10,000 or greater but not exceeding Php 25,000
g) Php 5,000 or greater but not exceeding Php 25,000
h) None of the above
B 44. If the sanction to be imposed is imprisonment, the duration should be

e) Less than one year
f) One year or more but not exceeding five years
g) At least one year but may be extended by the court
h) None of the above
D 45. Administrative sanctions that may be imposed against a bank or any director or
officer are provided under
e) Section 7 of the the New Central Bank Act
f) Section 7 of R.A. 7653
g) Section 37 of R.A. 7563
h) Section 37 of the New Central Bank Act
B 46. Statement I. Only natural persons may deposit with Philippine banks foreign
currencies which are acceptable as part of the international reserve.
Statement II. There shall be no restriction on the withdrawal by the depositor of his
deposit or on the transferability of the same abroad except those arising from the contract
between the depositor and the bank.
Which of the following statements are true?

e) Statement I
f) Statement II
g) Both I and II
A 47. Who shall promulgate rules and regulations as may be necessary to carry out the
provisions of this Act?
e) Monetary Board of the Central Bank
f) President of the Philippines
g) Commissioner of Internal Revenue
h) Secretary of Finance
C 48. When shall R.A. 6426 take effect?
e) After publication in the Official Gazette
f) After publication in the Official Gazette or in a newspaper of circulation for at
least once a week for three consecutive weeks
g) After publication in the Official Gazette and in a newspaper of national
circulation for at least once a week for three consecutive weeks
h) After publication in the Official Gazette and in a newspaper of national
circulation for at least once a week for two consecutive weeks
D 49. Statement I. All foreign currency deposits authorized under this Act are considered
absolutely confidential in nature and except upon the written permission of the depositor,
in no instance shall foreign currency deposits be examined, inquired or looked into by
any person, government official, bureau or office.
Statement II. The insurance payment for deposits shall be in the same currency in which
the insured deposits are denominated.

e) Statement I only
g) Both I and II
B 50. All foreign currency deposit made under R.A. 6426 as amended by P.D. No. 1035,
as well as foreign currency deposits authorized under P.D. No. 1034, including interest
and all other income or earnings of such deposits are hereby exempted from:
a) All national internal revenue taxes
b) Any and all taxes irrespective of whether or not these deposits are made by
residents or nonresidents so long as the deposits are allowed under law
c) Any and all taxes but only to those deposits made by residents of the Philippines
d) Income tax, value-added tax and excise tax only

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1.

a. Any person or government official who, or any government bureau or office

b. Any official or employee of a banking institution who makes a disclosure

d. Any person who commits a willful violation of any of the provisions of

3. Which of the following is/are true?

I. All foreign currency deposits are absolutely confidential and cannot be

d. The Commission on Audit is authorized to examine and audit government

I. Any person or government official who, or any government bureau or office

7. The FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES is ________

a. REPUBLIC ACT NO. 1405

c. REPUBLIC ACT NO. 6425

d. REPUBLIC ACT NO. 6426

. 8. Any official or employee of a banking institution who makes a disclosure concerning

a. REPUBLIC ACT NO. 1405

9. Any person or government official who, or any government bureau or office

a. REPUBLIC ACT NO. 1405

11.Which of the following is/are exceptions to the FOREIGN CURRENCY DEPOSIT

12. Which of the following is/are true?

I. The Commissioner of Internal Revenue is authorized to inquire into bank

17. Which of the following statements is(are) correct:

18. Which of the following statements is(are) correct:

19. The Bangko Sentral is authorized to, except:

22. Which of the following statements is(are) correct:

23. Which of the following statements is(are) correct:

24. Which of the following statements is(are) correct:

B. 26. Exceptions under Jurisprudence on Grounds of Equity includes 1 of the following:

D 27. The confidentiality of Foreign Currency Deposits is not Absolute in the

B 31. The garnishment of a foreign currency deposit account of a non-resident alien

B 32. Which are exceptions under Jurisprudence on Grounds of Equity:

D36. Statement I. The Commission on Good governance is authorized to examine and

Which of the following statements are false?

Which of the following statements are false?

Which of the following statements are false?

Which of the following statements are true?

C 43. If the penalty to be given is a fine, the amount should be

B 44. If the sanction to be imposed is imprisonment, the duration should be

Which of the following statements are true?

Which of the following statements are false?

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