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Law on Secrecy of Bank Deposit and Unclaimed Balance Law

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

These are the money or funds placed with a bank that can be withdrawn on the depositor’s order or demand, such as deposit accounts in the form of savings, current, and time deposits.

a)

Deposit substitute

b)

Desposits

c)

Investment in government bonds

d)

Unclaimed balances

2.

It refers to investment in bonds issued by the government of the Philippines, its political subdivisions, and its instrumentalities.

a)

Deposit substitute

b)

Deposit

c)

Investment in government bonds

d)

Unclaimed balances

3.

What is the penalty provided by law for violation of Republic Act 1405?

a)

Imprisonment of not more than five (5) years, or fine of not more than P20,000, or both imprisonment and fine

b)

Imprisonment of not more than 10 years, or fine of not more than P20,000, or both imprisonment and fine.

c)

Imprisonment of not more than five (5) years, or fine of not more than P25,000, or both imprisonment and fine

d)

Imprisonment of not more than 10 years, or fine of not more than P25,000, or both imprisonment and fine

4.

Under Republic Act 1405, which of the following acts of a bank official is covered by the Bank Secrecy Law?

a)

Disclosing the amount of a deposit if a judgment debtor to the court sheriff who is executing a garnishment order against him

b)

Disclosing the name of the drawer of a check to the payee

c)

Disclosing the amount of deposit of a taxpayer to a duly authorized Bureau of Internal Revenue (BIR) officer who is examining his income tax liability

d)

Disclosing the amount of deposit exceeding P500,000 in one (1) banking day to the Anti-Money Laundering Council (AMLC)

5.

These include credits or deposits of money, bullion, security or other evidence of indebtedness of any kind, and interest thereon with banks, buildings and loan associations, and trust corporations, as hereinafter defined, in favor of any person known to be dead or who has not made further deposits or withdrawals during the preceding 10 years or more.

a)

Unclaimed balances

b)

Deposit substitutes

c)

Closed deposits

d)

Inactive accounts

6.

No official or employee of a banking institution may disclose to any unauthorized person any information concerning said deposits.

a)

True

b)

False

7.

Republic Act 1405 prohibits attachment or garnishment of bank accounts.

a)

True

b)

False

8.

Foreign currency deposits shall be exempt from attachment, garnishment, or any other order or process of any court, legislative body, government agency, or any administrative body whatsoever.

a)

True

b)

False

9.

Deposits that have become dormant for 10 years may be escheated in favor of the government.

a)

True

b)

False

10.

Foreign currency deposits may not be examined, inquired, or looked into even if there is a written permission of the depositor.

a)

True

b)

False