LAW ON OTHER BUSINESS TRANSACTIONS CALCULTION OF LIABILITY
• Per depositor, per capacity rule.
I. PDIC LAW In determining the amount due to any depositor,
there shall be added together all deposits in the
INSURED DEPOSIT bank maintained in the same right and capacity
• The term’ ‘insured deposit’ means the amount for his benefits either in his own name of others
due to any bona fide depositor for legitimate
deposits in an insured bank net of any obligation RULE
of the depositor to the insured bank as of the 1. A joint account regardless of whether the
date of closure, but not to exceed Five hundred conjunction and or and/or is used, shall be
thousand pesos (P500,000.00). insured separately from any individually-owned
deposit account
Whenever an insured bank shall have been 2. If the account is held by two or more natural
closed by the Monetary Board, payment of the insured persons or two or morejuridical persons
deposits on such closed bank shall be made by the GENERAL RULE: The maximum insured
PDIC as soon as possible either: deposit shall be divided into as many equal
1. by cash shares as there individual juridical persons
2. by making available to each depositor a EXCEPTION: Unless a different sharing is
transferred deposit in another insured bank in an stipulated in the document of deposit
amount equal to insured deposit of such 3. If the account is held by a juridical person or
depositor entity jointly with one or more natural persons
The maximum insured deposit shall be presumed
NOTE: Transfer Deposit means deposit in an to belong entirely to suvh juridical person or
insured bank made available to a depositor by entity
thePDIC as payment of insured deposit of such
depositor in a closedbank and assumed by NOTE: The aggregate of theinterest of each co
another insured bank owner over several joint accounts whether owned by
the same or different combinations of individuals,
DEPOSIT ACCOUNT NOT ENTITLED TO juridical persons or entities, shall likewise be subject to
PAYMENT the maximum insured deposit of P500,000.00
• The Corporation shall not pay deposit insurance
for the following accounts or transactions, II. SECRECY OF BANK DEPOSITS AND
whether denominated, documented, recorded orUNCLAIMED BALANCES LAW
booked as deposit by the bank:
PROHIBITED ACTS
(1) Investment products such as bonds and 1. person, government official, bureau or office
securities, trust accounts, and other similar may examine, inquire into or look into such
instruments; deposit
(2) Deposit accounts or transactions which are 2. official or employee of a banking institution to
unfunded, or that are fictitious or fraudulent; disclose to any person other than those
(3) Deposit accounts or transactions constituting, mentioned in Section two hereof any
and/or emanating from, unsafe and unsound information concerning said deposits
banking practice/s, as determined by the
Corporation, in consultation with the BSP, afterThe following are the exceptions to the bank secrecy
due notice and hearing, and publication of a law:
cease and desist order issued by the Corporation
against such deposit accounts or transactions; 1. Written permission or consent in writing by
and the depositor;
(4) Deposits that are determined to be the 2. In cases of impeachment;
proceeds of an unlawful activity
3. Upon order of the court in cases of bribery or They can exercise powers of an investment
dereliction of duty of public officials; house and invest in non-allied enterprises. They
4. Upon order of the court in cases where the havethehighest capitalization requirement.
money deposited or invested is the subject matter of the 2. Commercial Banks - These are ordinary or
litigation; regularfrom commercial banks, as distinguished
5. Upon a subpoena issued by the Ombudsman from a universal banks. They have a lower
concerning an investigation it is conducting, capitalization requirement than a UB and cannot
provided that there must already be a case pending exercise the powers of an investment house and
in court, the account be clearly identified, the invest innon allied enterprise.
inspection be limited to the subject matter of the 3. Thrift Banks - these are:
pending case; and the bank personnel and the a) savings and mortgage banks
depositor must be notified to be present during the b) stock savings and loan associations
inspection; c) private development banks
6. The BIR can inquire into bank deposits in an
application for compromise of tax liability or 4. IslamicBanks - subject to the basic principles
determination of a decedent’s gross estate; and rulings of Islamic Shari'a (Al Amanah
7. The Anti-Money Laundering Council Islamic Investment Bank of the Philippines)
(“AMLC”) can examine bank accounts pursuant to 5. Rural Banks - Mandated to make needed credit
a court order, where there is probable cause that the availabale and readily accesible in the rural areas
deposits are related to an unlawful activity or money on reasonable terms and which are primarily
laundering offense; governed by the Rural Banks Act of 1992
8. The AMLC can examine bank accounts, 6. Other Classification of Banks
WITHOUT a court order, where there is probable 1. Philippine Veterans Bank
cause that the deposits are related to certain crimes 2. Land Bank of the Philippines
such as kidnapping for ransom, violation of the 3. Development Bank of the Philippines
Dangerous Drugs Act, hijacking, destructive
arson, murder and violations of RA 6235 (acts SINGLE BORROWERS'S LIMIT (SBL)
inimical to civil aviation); General rule: The total loans, credit
9. The Bangko Sentral can examine bankaccommodations and guarantees that may be extended
accounts in the course of its periodic or specialby a bank to any person, partnership, associations, or
examination regarding compliance with Anti-Money corporation or other entity shall at no time exceed 25%
Laundering Law. of net worth of such bank.
UNCLAIMED BALANCES Exceptions:
• "Unclaimed balances", within the meaning of 1. The monetary Board otherwise prescribes for
this Act, shall include credits or deposits of reasons of national interest
money, bullion, security or other evidence of 2. Wholesale lending activities of government
indebtedness of any kind, and interest thereon banks to participating institutions for relending
with banks, buildings and loan associations, and to end-user borrowers: separate limit of 35% net
trust corporations, as hereinafter defined, in worth.
favor of any person known to be dead or who Increase of limit
has not made further deposits or withdrawals The Monetary Board may increase the limit prescribed
during the preceding ten years or more by an additional 10% of the net worth, when:
1. The additional liabilities of of any borrower are
adequately secured by trust receipts, shipping
III. GENERAL BANKING LAW documents, warehouse receiptsor other similar
documents transferring or securring title.
CLASSIFICATION OF BANKS 2. Covering readily marketable, non-perishable
goods; and
1. Universal Banks - (expanded commercial banks) 3. Which must be fully covered by insurance
2. Any person knowing that any monetary
RESTRICTIONS ON INSIDER LENDING: instrument or property involves the proceeds of
BANK EXPOSURE TO DIRECTORS, OFFICERS, any unlawful activity, performs or fails to
STOCKHOLDERS AND THEIR RELATED perform any act as a result of which he facilitates
INTERESTS (DOSRI) the offense of money laundering
3. Any person knowing that any monetary
General rule: No director or officer of any bank: instrument or property is required under this Act
1. Shall, directly or indirectly, for himself or as the to be disclosed and filed with the Anti-Money
representative or agent of others, borrow from Laundering council fails to do so.
such bank, nor
2. Shall he become a guarantor, endorser or surety COVERED TRANSACTIONS
for loans from such bank to others, or in any • transactions in cash or other equivalent monetary
manner be obligor or incur any contractual instrument involving a total amount in excess of
liability to the bank five hundred thousand pesos (p500,000.00)
Exeptions: within one (1) banking day.
1. Valid insider lending
2. Loans, credit accomodations and guarantees COVERED INSTITUTIONS
extended by aa cooperative bank to its 1. Banks, non-banks, quasi-banks, trust entities,
cooperative shareholders and all other institutions and their subsidiaries
and affiliates supervised or regulated by the
Requirements for valid insider lending: Bangko Sentral ng Pilipinas
1. In regular course of business 2. Insurance companies and all other institutions
2. Upon terms not less favorable to the bank than supervised or regulated by the Insurance
those offered to others; Commission
3. There is written approval of the majority of all 3. i) securities dealers, brokers,
the directors of the bank,excluding the director salesmen,investment houses and other similar
concerned entities managing securities or rendering
4. The required approval shall be entered upon the services as investment agent, advisor, or
record of the bank and a copy of such entry be consultant
transmitted forthwithto the appropriate ii) mutual funds, close and investment
supervising and examining department of BSP; companies, common trust funds, pre-need
5. Limited to an amount equivalent to the DOSRI companies and other similar entities
borrowers's unencumbered deposits and book iii) foreign exchange corporations, maoney
value of his paid-in-capital contribution in the changer, money payment, remittance, and
bank transfer companies and other similar entities ,
and
IV. ANTI-MONEY LAUNDERING ACT iv) other entities administering or otherwise
dealing in currency, commoditiesor financial
Money Laundering deravatives based thereon, valuable objects, cash
• a crime whereby the proceeds of an unlawful substitutes and other similar monetary
activity are transacted, thereby making them instruments or property supervised or regulated
appear to have originated from legitimate by SEC
sources
SUSPICIOUS TRANSACTIONS
WHEN IS MONEY LAUNDERING IS • transactions with covered institutions, regardless
COMMITTED of the amounts involved, where any of the
1. Any person knowing that any monetary following circumstances exist
instrument or propert represents, involves, or 1. there is no underlying legal or trade obligation,
relates to the proceeds of any unlawful activity, purpose or economic justification;
transacts or attempts to transacts said monetary 2. the client is not properly identified;
instrument or property 3. the amount involved is not commensurate with
the business or financial capacity of the client;
4. taking into account all known circumstances,it VI. INTELLECTUAL PROPERTY LAW
may be perceived that the client's transaction is TRADEMAR PATENT COPYRIGH
structured in order to avoid being the subject of K T
reporting requirements under the Act definition any visible any technical is an
5. any circumstances relating to the transaction sign capable solution of incorporeal
which observed to deviate from the profile of the of any problem right granted
client and/or the client's past transctions with the distinguishin in any field by statute to
covered institution; g goods of human the author or
6. the transaction is in any way related to an activity creator of
unlawful activity or offense under this Act that is ex. LOGO which is nwe, original
about to be, is being or has been committed requires an literay and
step and artistic works
REPORTING OF COVERED AND SUSPICIOUS industrially whereby he is
applicable invested for a
TRANSATIONS
limited
• covered institutions shall report to the AMLC all period of
covered transactions and suspicious transations time with the
within five (5) working days from occurrence right carry
thereof, unless the supervising authority out, authorize
prescribes a longer period not exceeding ten (10) and prevent
working days the
NOTE: Should a transaction be determined to be both reproduction,
covered and suspicious transaction, the covered distribution,
institution shall be required to report the same as transformatio
suspicious transaction n, rental,
V. THE NEW CENTRAL BANK LAW public
performnce
and other
NATURE OF THE BSP forms of
1. A central monetary authority communicati
2. An independent and accountable body on of his
3. A government-owned corporation but enjoys work to the
fiscal and administrative autonomy public
The BSP shall have a capitalization of 50B to be fully object goods invention orig literary
subscribed by the Government & art works
PRIMARY OBJECTIVES term 10 years 20 yrs from author's life
aplication plus 50 years
1. To maintain price stability conductive to a
balanced and sustainable growth of the economy how acquired reg &use Intellectual from creation
2. To promote and maintain monetary stability and Property
the convertability of the peso Office
OTHER RESPONSIBILITIES
1. To provide policy directions in the areas of
money, banking, and credit PAWNSHOP REGULATION ACT PD114
2. To supervise operations of banks
Pawner < > Pawnee
The maximum amount of coins to be consideredas Pawn : property
legal tender is: • Minimum Capitalization : P100,000.00
1. P1000.00 for denominations of 1-peso, 5-peso, • Citizenship : All Filipinos (Sole Proprietor)
10-peso coin 70% (Partnership & Corporation)
2. P100.00 for denominations of 1-cent, 5-cent, • Amount of Loan : not less than 30% of value
10-cent, 25-cent • Redemption : 90 days from maturity date (w/
notice)
• Public Auction
◦ Place of pawn broker
◦ Auctioneeris registered
◦ notice: 2 daily news papers
