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AMLA

Total questions: 46

Worksheet time: 23mins

Name
Class
Date
1.

The following are policies of the AMLA, except:

a)

to protect and preserve the integrity and

confidentiality of bank accounts

b)

to ensure that the Philippines shall not be used as

money laundering site for the proceeds of any

unlawful activity

c)

to prevent money-laundering activities by providing

more transparency in the Philippine financial system

d)

to generate foreign investors in investing in the

Philippines

2.

Money laundering is a crime committed by any person

who knowing that any instrument or property

represents, involves, or relates to the proceeds of any

unlawful activity. Except:

a)

transacts said monetary instrument or property;

b)

converts or transfers, disposes of, moves,

acquires, possess or uses said monetary

instrument or property;

c)

conceals or disguises the true nature, source,

location, disposition, movement or ownership of or

rights with respect to said monetary instrument;

d)

failure to report to the AMLC by any covered person

knowing that covered or suspicious transactions is

required under the law

e)

Answer not given

3.

The following are covered persons, except:

a)

banks supervised or regulated by BSP

b)

insurance companies regulated by the Insurance

S2 - Covered persons and their officers and employees

Commission

c)

SEC supervised entities

d)

company service providers

e)

answer not given

4.

It is a transaction in cash or other equivalent monetary

instrument involving a total amount in excess of

P500,000.00 within one (1) banking day.

a)

covered transaction

b)

covered persons

c)

suspicious transactions

d)

unlawful activity

5.

The following are obligations of a covered institution,

except:

a)

Arms-length rule

b)

Customer identification

c)

Record keeping

d)

Reporting of covered and suspicious transactions

6.

S1 – Covered institutions must record the true identity of its clients and all persons purporting to act on their behalf based on official documents, and keep a system

of verifying their true identity as a system of verifying

their legal existence and organizational structure.

S2 - Peso and foreign currency non-checking numbered accounts shall be allowed

a)

All are correct

b)

All are wrong

c)

Only S1 is incorrect

d)

Only S2 is incorrect

7.

All records of all transactions of covered institutions shall be maintained and safely stored for ___ years from the date of transactions. With respect to closed accounts, the records on customer identification, account files and business correspondences, shall be preserved and safely stored for at

least ___ years from the date when they were closed.

a)

1-1

b)

2-2

c)

2-5

d)

3-5

e)

5-5

8.

Covered persons shall report to the AMLC all covered transactions and suspicious transactions within ___ working days from the occurrence thereof, unless the AMLC prescribes a different period of not exceeding ___ working days.

a)

5-5

b)

5-10

c)

5-15

d)

10-15

9.

Suspicious transactions with covered institutions, regardless of the amount involved, where any of the following circumstances exist are considered unlawful except:

a)

There is no underlying legal or trade obligation,

purpose or economic justification;

b)

The client is not properly groomed;

c)

The amount involved is not commensurate with the business or financial capacity of the client;

d)

Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements

10.

S1 - Lawyers and accountants acting as independent

legal professionals are required to report covered and suspicious transactions if the relevant information was obtained in circumstances in their professional capacity.

S2 - Covered persons and their officers and employees are prohibited from communicating directly or indirectly, in any manner or by any means, to any person or entity or the media the fact that a covered or suspicious transaction has been reported or is about to be reported, the contents of the report or any other information relating thereto.

a)

All are correct

b)

All are wrong

c)

Only S1 is incorrect

d)

Only S2 is incorrect

11.

The following are Unlawful activities under the AMLA, except:

a)

Kidnapping for ransom under Article 267 of RPC;

b)

Sections in RA 9165 or Comprehensive Dangerous Drugs Act of 2002;

c)

Espionage under the RPC

d)

Plunder under RA 7080;

e)

Robbery and Extortion under RPC

12.

S1 - Jurisdiction over AMLA cases is vested upon the

Regional Trial Court, or the Sandiganbayan if committed

by public officers and private persons in conspiracy with the former.

S2 - Any person may be charged with and convicted of

both the offense of money laundering and unlawful activity.

a)

All are correct

b)

All are wrong

c)

Only S1 is incorrect

d)

Only S2 is incorrect

13.

S1 – Composition of the PDIC Board is seven.

S2 – Composition of the AMLC Board is three.

a)

All are correct

b)

All are wrong

c)

Only S1 is incorrect

d)

Only S2 is incorrect

14.

Land Registration Authority and all its Registries of Deeds are to submit to the AMLC, reports on real estate transactions involving an amount in excess of ________________ pesos within fifteen (15) days from the date of the registration of the transaction and submit all other relevant documents of all real estate transactions.

a)

500,000

b)

7,500,000

c)

1 Million

d)

2 million

e)

5 million

15.

S1 - Only the Supreme Court has the sole authority to issue the freeze order in AMLA cases.

S2 - No court shall issue a temporary restraining order or a writ of injunction against any freeze order issued in AMLA, except the Supreme Court.

a)

All are correct

b)

All are wrong

c)

Only S1 is incorrect

d)

Only S2 is incorrect

16.

It shall refer to accounts, the funds and sources of which originated from and/or are materially linked to the monetary instrument(s) or property(ies) subject of the freeze order in AMLA.

a)

Splitting of Account

b)

Related interest

c)

Related Accounts

d)

Substitute Account

e)

Savings Account

17.

The following are predicate crimes, except;

a)

Jueteng and Masiao punished as illegal gambling under PD 1602;

b)

Malicious mischief in open seas under RPC;

c)

Qualified theft under Art. 310 of RPC;

d)

Swindling and other forms of swindling of RPC;

e)

Smuggling under RA Nos. 455 and 1937;

18.

The following are unlawful activities, except:

a)

Violations of PD 1612 or the Anti-Fencing Law;

b)

Violation of Section 6 of RA 8042 or the Migrant Workers and Overseas Filipino Act of 1995, as amended by RA 10022;

c)

Violation of RA 8293 or the Intellectual Property Code of the Philippines;

d)

Violation of Section 4 of RA 9995 or the Anti-Photo and Video Voyeurism

e)

Violation of the Trust Receipt Law

19.

If AMLA violation is committed by public officers and private persons in conspiracy with the former, jurisdiction shall be vested in –

a)

Ombusdman

b)

PCGG

c)

PDIC

d)

Regional Trial Court

e)

Sandiganbayan

20.

No court order shall be required for the examination of bank deposits by AMLC in cases involving, except:

a)

Kidnapping for ransom under Article 267 of RPC;

b)

Sections 4, 5, 8, 9, 10, 12, 13, 14, 15 and 16 of RA 9165, otherwise known as the Comprehensive Dangerous Drugs Act of 2002;

c)

Hijacking and other violations under RA 6235; destructive arson and murder as defined under RPC, including those perpetrated by terrorists against non-combatant persons and similar targets;

d)

Forgeries and counterfeiting of RPC

21.

It is a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate source.

a)

Swindling

b)

Money Laundering

c)

Misappropriation

d)

Smuggling

22.

How much shall be the transaction in cash or other equivalent monetary instrument in 1 banking day to be considered a “Covered Transaction”?

a)

P1,000,000.00

b)

750,000.00

c)

P500,000

d)

P250,000

23.

For a transaction to be considered a “Suspicious Transaction”, any of the following shall exist, except:

a)

There is underlying legal or trade obligation, purpose or economic justification.

b)

The client is not properly identified.

c)

The amount involved is not commensurate with the business or financial capacity of the client.

d)

None of the above.

24.

Which of the following is not considered as an unlawful activity?

a)

Qualified Theft

b)

Violation of Corporation Code

c)

Violation of Anti-Fencing Law

d)

Violations of Revised Forestry Code

25.

The following are Covered Persons except:

a)

Real estate developers

b)

Insurance companies

c)

banks

d)

Accountants

26.

Which among the following person is not guilty of money laundering?

a)

A person who knowing that the money he holds is a proceed of robbery, deposits the same in a bank.

b)

A person who knowing that the money he holds is a proceed of qualified theft, bought a brand new car using the said monetary instrument.

c)

A person, knowing that his neighbor holds a money which a proceed of kidnapping for ransom, did not report the same to the AMLC.

d)

A person who knowing that the money entrusted to him by his office superior for safekeeping is a proceed of smuggling, and kept the same in a safe in his home.

27.

Statement 1: Covered Transactions are reportable regardless of the amount of monetary instrument involved.

Statement 2: Suspicious Transaction are reportable only if the amount involved is P500,000.00

a)

True, True

b)

True, False

c)

False, False

d)

False, True

28.

Which of the following is a not a suspicious transaction?

a)

Melvin, a minimum wage earner, depositing P300,000.00 in her account in BDO.

b)

Ricky, a call center manager, deposits P100,000 three times weekly during the month of November.

c)

Jose, the pay-master of a construction company, regularly deposits P300,000.00 in his bank account that will be used to pay the salaries of the workers.

d)

Juan, who always deposits money in the bank below P500,000, in order not to fall under the covered transaction of AMLA

29.

Which of the following entities is not among the covered persons of AMLA?

a)

Thrift Bank of Lugi who receives deposits from corporations only

b)

A CPA-Lawyer who acts as auditor of Thrift Bank of Lugi

c)

Casino who regularly deposits money to Thrift Bank of Lugi

d)

Jewelry dealer of the President of Thrift Bank of Lugi

30.

Statement 1: Covered institutions, when reporting covered transactions to AMLC, are not deemed to have violated the Bank Secrecy Law; however, they cannot communicate the contents thereof, otherwise, they are criminally liable.

Statement 2: A bank officer after having made a covered transaction report in the regular course of his work in the bank, reported the same to AMLC, and the person who owns the deposit account was exposed with criminal charges for kidnapping for ransom is not liable administratively, criminally or civilly.

a)

True, True

b)

True, False

c)

False, False

d)

False, True

31.

Covered persons are required to maintain a system of verifying the identity of their clients, and shall maintain records of transactions of such clients for how many years?

a)

1 year

b)

3 years

c)

5 years

d)

10 years

32.

In case of prosecution of a private person for violation of AMLA, the case is to be filed in the proper court –

a)

MTC

b)

RTC

c)

CA

d)

Sandiganbayan

e)

Ombudsman

33.

For a transaction to be considered a “Suspicious Transaction”, any of the following shall exist except:

a)

There is underlying legal or trade obligation, purpose or economic justification.

b)

The client is not properly identified.

c)

The amount involved is not commensurate with the business or financial capacity of the client.

d)

None of the above.

34.

Which of the following is not a feature of the Anti-money Laundering Act?

a)

Creation of a Financial Intelligence Unit (FIU).

b)

Relaxation of strict bank deposit secrecy laws.

c)

Decriminalization of money laundering.

d)

Freezing/seizure/forfeiture recovery of dirty money/property.

35.

It refers to a type of transaction that shall be reported by a covered person to the Anti-Money Laundering Council because the transaction breaches the quantitative threshold for reporting purposes.

a)

Covered transaction

b)

Suspicious transaction

c)

Reportable transaction

d)

Exempted transaction

36.

It refers to a type of transaction that shall still be

reported by a covered person to the Anti-Money Laundering

Council even if the transaction does not breach the

quantitative threshold for reporting purposes by reason of

the unusual nature of the transaction.

a)

Covered transaction

b)

Suspicious transaction

c)

Reportable transaction

d)

Exempted transaction

37.

When is a Certified Public Accountant exempted from reporting covered transactions or suspicious transactions to Anti-Money Laundering Council?

a)

When he renders tax compliance services to a client.

b)

When he manages client's money, securities or other assets.

c)

When he provides services for management of bank, savings or current accounts.

d)

When he provides services for creation, operation or management of juridical persons or arrangements, and buying and selling business entities.

38.

Which of the following entities is not among the covered persons of AMLA?

a)

Thrift Bank of Lugi who receives deposits from corporations only

b)

A CPA-Lawyer who acts as auditor of Thrift Bank of Lugi

c)

Casino who regularly deposits money to Thrift Bank of Lugi

d)

Jewelry dealer of the President of Thrift Bank of Lugi

39.

Statement 1: Covered Transactions are reportable regardless of the amount of monetary instrument involved.

Statement 2: Suspicious Transaction are reportable only if the amount involved is P500,000.00

a)

True, True

b)

True, False

c)

False, False

d)

False, True

40.

Statement 1: The AMLC cannot freeze a bank account without court order.

Statement 2: Prior criminal charges is not needed before petition for civil forfeiture can be commenced.

a)

True, True

b)

True, False

c)

False, False

d)

False, True

41.

In case of casino, what is the threshold amount to be considered reportable transaction to Anti-Money Laundering Council?

a)

A transaction with amount exceeding g

P1,000,000

b)

A transaction with amount exceeding P100,000

c)

A transaction with amount exceeding P500,000

d)

A transaction with amount exceeding

P5,000,000

42.

When is a CPA considered a covered person?

a)

When he renders audit or review of historical financial statements or other assurance engagements.

b)

When he provides management consultancy services.

c)

When he acts as promoter rendering services for organization of contributions for the creation, operation and management of companies.

d)

When he provides tax advisory services

43.

Which of the following accounts is not prohibited by AMLA?

a)

Numbered accounts

b)

Non-checking numbered accounts

c)

Anonymous accounts

d)

Fictitious accounts

44.

Which of the following is not a predicate crime of Money Laundering Offense?

a)

Violations of Intellectual Property Code

b)

Fraudulent practices and other violations of the Securities Regulation Code

c)

Forgeries and Counterfeiting

d)

Rebellion

45.

In case of jewelry dealers, dealers of precious metals or

dealers of precious stones, what is the quantitative

threshold for any transaction in cash or other equivalent to

be considered reportable transaction to Anti-Money

Laundering Council?

a)

A transaction with amount exceeding

P1,000,000

b)

A transaction with amount exceeding P100,000

c)

A transaction with amount exceeding P500,000

d)

A transaction with amount exceeding

P5,000,000

46.

What is the validity period of the initial freeze order

immediately issued by the Court of Appeals upon verified ex

parte petition by the AMLC?

a)

Period of 10 days

b)

Period of 30 days

c)

Period of 20 days

d)

Period of 60 days