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) ________ 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:
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
ANSWER: D
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
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.
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?
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
written permission of the depositor
A. Statement 1
B. Statement 2
C. Both statements
D. Neither
ANSWER: A
ANSWER: D
ANSWER: D
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
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
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
investments are related to an unlawful activity or a money laundering offense
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
investments are related to an unlawful activity or a money laundering offense
Answer: C
14. 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 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
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. 6253, destructive arson and murder
c. without need of court order, when certain 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
d. without need of court order, when certain 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. 6253, destructive arson and murder
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
accounts in relation to:
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
a. I only
b. II only
c. I and II
d. None of the above
Answer: D
a. I only
b. II only
c. I and II
d. None of the above
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
d. none of the above
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
d. none of the above
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
a. I only
b. II only
c. I and II
d. None of the above
Answer: A
a. I only
b. II only
c. I and II
d. None of the above
Answer: D
a. I only
b. II only
c. I and II
d. None of the above
Answer: C
25. The Anti-Money Laundering Council may be authorized to examine and inquire into
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. 39. All of the following penalties may be given to an offender in violation of R.A.
6426 except:
a) fine of not less than Php 5,000 but not more than Php 25,000
b) imprisonment of less than 1 year to more than 5 years
c) both imprisonment and fine
d) 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
a) bank
b) bank director or officer
c) B only
d) 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.
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.
D 45. Administrative sanctions that may be imposed against a bank or any director or
officer are provided under
a) Section 7 of the the New Central Bank Act
b) Section 7 of R.A. 7653
c) Section 37 of R.A. 7563
d) 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.
A 47. Who shall promulgate rules and regulations as may be necessary to carry out the
provisions of this Act?
a) Monetary Board of the Central Bank
b) President of the Philippines
c) Commissioner of Internal Revenue
d) Secretary of Finance
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.
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