Bank Secrecy

Under R.A. 1405, which of the following is not covered by the Bank Secrecy Law?

• Investment in time deposit

• Savings deposit and demand deposit

• Investment in bonds issued by publicly traded corporations.

• Investment in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities

Banks are required by BSA to keep records of certain transactions. Which option describes records BSA requires banks to keep?

• Wire transfers of $1,000 or more

• Currency transactions exceeding $5,000

• Negotiable instrument sales for cash in amounts of $3,000 to $10,000

• List of individuals in the US illegally

What is the fundamental part of BSA that has procedures in place that help you identify your customer and assist the bank in monitoring both normal and unusual activity?

• Red Flag

• Customer Identification Program (CIP)

• Risk Assessment

• USA Patriot Act

Which of the following is not protected by Republic Act No. 1405 also known as Bank Secrecy Law?

• Money market placement

• Investment in government bonds

• Demand account

• Certificate of time deposit

The Bank, Board of Directors and employees can face serious consequences if they fail to follow procedures or adhere to the BSA requirements. All but one of the following can be a consequence of non-compliance.

• Restrictions on mergers, acquisitions and branching

• Terminate institutions deposit insurance

• Restrict new account openings and deposit amounts

• Cease and Desist Orders

• Personal fines and jail time for employees, and Officers of the bank

Which action is NOT part of the four basic components of BSA compliance?

• Advertising or notifying the public that the bank is in compliance with the BSA requirements

• Testing of internal controls

• Providing annual training for all employees as well as the Board of Directors

• Designating an individual to be responsible for overseeing the BSA program

The right to secrecy of bank deposits

• Is a constitutional right which may, however, be regulated by statute.

• Being part of municipal law, does not apply to deposits in branches of foreign banks in the

  Philippines.

• If violated will render the information obtained thereby inadmissible as evidence in any proceeding against the depositor.

• Cannot be invoked in the absence of an express statutory provision.

The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit records of an individual without court order except

• In an investigation for violation of Anti-Graft and Corrupt Practices

• In an investigation by the Ombudsman

• In an impeachment proceeding

• In an examination to determine gross estate of a decedent

The bank realizes the risks associated with exposure with sharing information. The BSA Officer will handle all requests and Signature Bank has opted NOT to share information with other financial institutions at this time.

• True

• False

Which scenario best describes a multiple transaction requiring a CTR under the BSA?

• A new customer deposits $7,500 cash in a Money Market account and $500 cash into a checking account.

• A well established customer makes three separate cash deposits on the same day at three different locations. A $4,570 deposit into a savings account, $4,020 into a Money Market account and $1,120 into a regular checking account.

• A customer deposits a $5,000 check, a $4,000 check and $7,000 cash into the same account.

• A business owner deposits $5,000 cash in the night depository and comes in later that same day to deposit $6,202 in cash to a different account.