Unclaimed Balances Law (RA 3936) 1. Discuss the State Policy for the enactment of the Unclaimed Balances Law is one of the government’s fund New Central Bank Act (RA 7653) generating laws wherein millions of unclaimed pesos are collected and deposited at the Bureau of Treasury and “The State shall maintain a central monetary authority are credited in favor of the National Government every that shall function and operate as an independent and year. The purpose of which is so that the unclaimed accountable body corporate in the discharge of its balances will be able to be in circulation and be used by mandated responsibilities concerning money, banking, the government for public purpose as the National and credit. In line with this policy, and considering its Assembly may direct. unique functions and responsibilities, the central monetary authority established under this Act, while 5. Mr. Jose Mangilit is an employee of Union Carbon being a government-owned corporation, shall enjoy Philippines, Inc., a large manufacturing company fiscal and administrative autonomy.” based in Makati. He earns a salary which is just a bit more than what he needs for a comfortable living. He is thus able to still maintain a P10,000.00 savings 2. What are the grounds for the appointment of a account, a P20,000.00 checking account, a conservator under the New Central Bank Act? P50,000.00 money market placement and a P100,000.00 trust fund in Bombo Bank, a The bank or a quasi bank is in a state of (1) continuing medium-size commercial bank. inability or (2) unwillingness to maintain a condition a. State which of the four accounts are deemed of liquidity deemed adequate to protect the interest of insured by the Philippine Deposit Insurance depositors and creditors. (Sec. 29, RA 7653) Corporation 3. Distinguish “covered transaction” from The P10,000.00 savings account and the P20,000.00 “suspicious transaction” under the Anti-Money checking account are insured with the Philippine Deposit Laundering Act Insurance Corporation. The term “deposit” means the unpaid balance of money or its equivalent received by a Covered Transactions - every transaction in cash or bank in the usual course of business and for which it has other equivalent monetary instrument involving a total given or is obliged to give credit to a: (CCS-TT-PD) amount in excess of five hundred thousand pesos a. Commercial, (P500,000.00) within one (1) banking day b. Checking, c. Savings, Suspicious Transactions - those transactions with d. Time, or covered institutions, regardless of the amounts involved, e. Thrift account, or where any of the following circumstances exist: f. Which is evidenced by passbook check and/or (DUA-LICA) certificate of deposit, printed or issued in 1. There is no underlying legal or trade accordance with Central Bank rules and obligation, purpose or economic justification; regulations and other applicable laws, 2. The client is not properly identified; g. Together with such other obligations of a bank, 3. The amount involved is not commensurate which, consistent with banking usage and with the business or financial capacity of the practices, the Board of Directors shall determine client; and prescribe by regulations to deposit 4. Taking into account all known circumstances, it liabilities of the Bank. may be perceived that the client’s transaction is structured in order to avoid being the b. State which of the above accounts covered by subject of reporting requirements under the the Law on Secrecy of Bank Deposits Act (AMLA); 5. Any circumstance relating to the transaction which is observed to deviate from the profile of The P10,000.00 savings account and the P20,000.00 the client and/or the client’s past checking account are covered by the Law on Secrecy of transactions with the covered institution; Bank Deposits. All deposits of whatever nature with 6. The transaction is in any way related to an banks or banking institutions in the Philippines unlawful activity or offense that is about to be, including investments in bonds issued by the is being or has been committed; or Government of the Philippines, its political subdivisions 7. Any transaction that is similar or analogous to and its instrumentalities, are considered as of an any of the foregoing. absolutely confidential nature and may not be examined, inquired or looked into by any person, government official, bureau or office. 6. When Orient Bank was ordered closed by the countries, making deposits and withdrawals to Bangko Sentral ng Pilipinas on April 15, 2013, Mario continually vary the amount of money in the accounts, Daez had three (3) separate deposit accounts in his changing the money’s currency, and purchasing name with the said Bank, namely: P200,000 in time high-value items (boats, houses, cars, diamonds) to deposit; P100,000 in current deposit; and P50,000 in change the form of the money. This is the most complex savings deposit. Under the PDIC law, how much, if step in any laundering scheme, and it’s all about making any, could he recover from each of the three (3) the original dirty money as hard to trace as possible. separate accounts? Explain. “Integration” - the money re-enters the mainstream Under the PDIC Law, she can only recover the aggregate economy in legitimate-looking form -- it appears to come amount of P250,000.00 which is the maximum amount from a legal transaction. This may involve a final bank of insurance of any depositor. transfer into the account of a local business in which the launderer is “investing” in exchange for a cut of the 7. Mr. Xavier Montinola as the President of Xamon profits, the sale of a yacht bought during the layering Trading, Inc. executed a trust receipt in favor of the stage or the purchase of a $10 million screwdriver from Bank of the Philippine Islands (BPI) to secure the a company owned by the launderer. At this point, the importation by his company of certain goods. After criminal can use the money without getting caught. It’s release and sale of the imported goods, the proceeds very difficult to catch a launderer during the from the sale were not turned over to BPI. Would BPI integration stage if there is no documentation during be justified in filing a case of estafa against the previous stages. Montinola? Explain. 10. Under the Anti-Money Laundering Act, discuss Yes. BPI would be justified in filing a case for estafa the meaning of the “Safe Harbor Provision” against Mr. Xavier Montinola. The failure of an entrustee to turn over the proceeds of the sale of goods, documents Safe Harbor Provision: No administrative, criminal or or instruments covered by a trust receipt to the extent of civil proceedings shall lie against any person for having the amount owing to the entruster or as appears in the made a covered transaction report in the regular trust receipt or to return said goods, documents or performance of his duties and in good faith, whether or instruments if they were not sold or disposed of in not such reporting results in any criminal prosecution accordance with the terms of the trust receipt under the AMLA or any other Philippine law. (Rules and constitutes estafa. Moreover, if the violation or offense Regulations Implementing the Anti-Money Laundering is committed by a corporation, partnership, association Act of 2001) or other juridical entities, the penalty is imposed upon the directors, officers, employees or other officials or persons responsible for the offense. (Sia v. Court of Appeals and Section 13, PD 115)
8. Explain the rationale for the restrictions on DOSRI
accounts under the General Banking Law of 2000.
In view of its fiduciary responsibility over funds
borrowed from the public, the DOSRI parties should not lend these funds, in an amount exceeding their capital, to themselves. To do so would be irregular as it would constitute self-dealing or an insider transaction.
9. Under the Anti-Money Laundering Act, what is the
meaning of (a) Placement; (b) Layering; and (c) Integration?
“Placement” - Stage in Money Laundering where the
launderer inserts the dirty money into a legitimate financial institution. This is often in the form of cash bank deposits. This is the riskiest stage of the laundering process because large amounts of cash are pretty conspicuous, and banks are required to report high-value transactions.
“Layering” - involves sending the money through
various financial transactions to change its form and make it difficult to follow. Layering may consist of several bank-to-bank transfer, wire transfers between different accounts in different names in different
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