Beruflich Dokumente
Kultur Dokumente
What specific points will be asked from this topic? Who shall be liable in case the check is issued by a corporation?
The following points will be asked: Where the check is drawn by a corporation, company or entity, the person
• Checks without sufficient funds or persons who actually signed the check in behalf of such drawer (i.e. the
corporation, company or entity) shall be liable. This means that the
• Evidence of knowledge of insufficient funds
officers signing the check for the corporation will be the ones liable.
• Duty of drawee
• Credit construed
What is the punishment?
The punishment shall be either or both of the following:
What is the relevant law on this topic?
• Imprisonment of not less than 30 days but not more than 1 year
Batas Pambansa Blg. 22 is known as the “Anti-Bouncing Check Law.”
• Fine of not less than but not more than double the amount of the
check, but shall not exceed P200,000
What is a bounced check?
A bounced check is a worthless check. Given that no person shall be imprisoned for non-payment of debt, is
Batas Pambansa Blg. 22 constitutional?
What does the law say on checks without sufficient funds? Yes, it is constitutional. What is punished by this law is the act of making
A check without sufficient fund is a check: and issuing of a worthless check or a check that is dishonored upon its
presentation for payment, and NOT the non-payment of the obligation.
REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS SPECIAL LAWS Q & A NOTES
What if the receiver determines that the bank or quasi-bank can no What is the State’s policy regarding this law?
longer be rehabilitated? It is the policy of the State to protect and preserve the integrity and
If the receiver determines that the institution cannot be rehabilitated or confidentiality of bank accounts and to ensure that the Philippines shall
permitted to resume business, the Monetary Board shall notify in writing not be used as a money laundering site for the proceeds of any unlawful
the Board of Directors of its findings and direct the receiver to proceed activity.
with the liquidation of the institution.
What is money laundering?
What happens during liquidation of a bank or quasi-bank? Money laundering is a crime whereby the proceeds of an unlawful activity
In liquidation, the claims of the bank’s creditors are determined and paid, are transacted; thereby making them appear to have originated from
as the bank can no longer be rehabilitated. legitimate sources.
What specific points will be asked from this topic? What is a covered transaction?
The following are of primary concern: A covered transaction is a single, series, or combination of transactions of
• Covered transactions more than P4,000,000 or an equivalent amount in foreign currency based
on the prevailing exchange rate within 5 consecutive banking days. It
• Suspicious transactions
likewise refers to a single, series or combination or pattern of unusually
• Reportorial requirement large and complex transactions of more than P4,000,000 especially cash
deposits and investments having no credible purpose or origin, underlying
What is the relevant law on this topic? trade obligation or contract.
REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS SPECIAL LAWS Q & A NOTES
Are there changes to the definition of covered transactions? Who are covered persons?
Yes. Covered persons, natural or juridical, refer to:
Republic Act No. 9194 amends the definition of a covered transaction as • banks, non-banks, quasi-banks, trust entities, foreign exchange
follows: dealers, pawnshops, money changers, remittance and transfer
A covered transaction is a transaction in cash or other equivalent companies and other similar entities and all other persons and
monetary instrument involving a total amount of more than P500,000 their subsidiaries and affiliates supervised or regulated by the
within 1 banking day. Bangko Sentral ng Pilipinas
This is now the new definition of covered transaction. • insurance companies, pre-need companies and all other persons
supervised or regulated by the Insurance Commission
• (i) securities dealers, brokers, salesmen, investment houses and
other similar persons managing securities or rendering services as
investment agent, advisor, or consultant, (ii) mutual funds, close-
What are suspicious transactions? end investment companies, common trust funds, and other similar
RA No. 9194 further amends RA No. 9160 to define what a suspicious persons, and (iii) other entities administering or otherwise dealing
transaction is. in currency, commodities or financial derivatives based thereon,
Suspicious transactions are transactions with covered institutions, valuable objects, cash substitutes and other similar monetary
regardless of the amounts involved, where any of the following instruments or property supervised or regulated by the Securities
circumstances exist: and Exchange Commission
• there is no underlying legal or trade obligation, purpose or • jewelry dealers in precious metals, who, as a business, trade in
economic justification the client is not properly precious metals, for transactions of more than P1,000,000
identified • jewelry dealers in precious stones, who, as a business, trade in
• the amount involved is not commensurate with the business or precious stones, for transactions of more than P1,000,000
financial capacity of the client • company service providers which, as a business, provide any of
• taking into account all known circumstances, it may be perceived the following services to third parties: o acting as a
that the client’s transaction is structured in order to avoid being formation agent of juridical persons
the subject of reporting requirements under the Act o acting as (or arranging for another person to act as) a
• any circumstances relating to the transaction which is observed to director or corporate secretary of a company, a partner of
deviate from the profile of the client and/or the client’s past a partnership, or a similar position in relation to other
transactions with the covered institution juridical persons
• the transaction is in a way related to an unlawful activity or o providing a registered office, business address or
offense under this Act that is about to be, is being or has been accommodation, correspondence or administrative
committed address for a company, a partnership or any other legal
• any transactions that is similar or analogous to any of the person or arrangement
foregoing o acting as (or arranging for another person to act as) a
nominee shareholder for another person persons
Who shall report suspicious transactions? who provide any of the following services: o
managing of client money, securities or other
Suspicious transactions shall be reported by covered persons.
REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS SPECIAL LAWS Q & A NOTES
assets o management of bank, savings or
securities accounts
o organization of contributions for the creation, operation or
management of companies
o Creation, operation or management of juridical persons or
arrangements, and buying and selling business entities.
What is the relevant law on this topic? Are deposits in Philippine banks with branches outside the Philippines
Republic Act No. 3591 established the Philippine Deposit Insurance insured by the PDIC?
Corporation, and defined its powers and duties. Subject to the approval of the Board of Directors, any insured bank with
branch outside the Philippines may elect to include for insurance its
deposit obligations payable at such branch.
What is the main function of the PDIC?
PDIC is created to insure the deposits of all banks which are entitled to the
benefits of insurance. Are deposits in foreign currency insured?
Yes, foreign currency deposits are insured.
What are the specific functions of the PDIC? This is pursuant to Republic Act No. 6426 (An act instituting a foreign
currency deposit system in the Philippines, and for other purposes), and
The PDIC serve the following functions: Central Bank Circular No. 1389.
• Deposit insurer
Depositors may receive payment in the same currency in which the
• Co-regulator of banks insured deposit is denominated.
• Receiver and liquidator of closed banks
Which accounts or deposits will not have deposit insurance?
What is an insured deposit? Republic Act No. 9576, amending Republic Act No. 3591, enumerates
The term insured deposit means the amount due to any bona fide that the following accounts or transactions on which the PDIC will not
depositor for legitimate deposits in an insured bank net of any obligation pay deposit insurance:
of the depositor to the insured bank as of date of closure, but not to exceed • Investment products such as bonds, securities and trust accounts
P500,000. • Deposit accounts which are unfunded, fictitious or fraudulent
• Deposit products constituting or emanating from unsafe and
How shall joint accounts be insured? unsound banking practices
A joint account shall be insured separately from any individually-owned • Deposits that are determined to be proceeds of an unlawful
deposit account. activity as defined under the Anti-Money Laundering Law
What types of deposits are insured by the PDIC? What is the maximum liability of the PDIC for insured deposits?
Deposits in the following banks are insured by the PDIC: Effective June 1, 2009, the maximum deposit insurance coverage is
• Commercial banks P500,000 per depositor.
REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS SPECIAL LAWS Q & A NOTES
• have no obligations with the closed bank, or have not acted as co-
What if the depositor has more than one account in one bank? makers of these obligations, or are not spouses of the borrowers
All deposit accounts by a depositor in a closed bank maintained in the • have complete mailing address found in the bank records or have
same right and capacity shall be added together. updated their addresses through the Mailing Address Update Form
Deposit insurance coverage is not determined on a per-account basis. The (MAUF) of PDIC before the start of the onsite claims settlement
type of account (whether checking, savings, time or other form of deposit) operation
has no bearing on the amount of insurance coverage. • have not maintained the account under the name of business
entities
What if the depositor has more than one
account but in different banks? Deposits in What happens to uninsured deposit in excess of P500,000?
different banking institutions are insured The claim for the uninsured portion of the deposit is a claim against the
separately. assets of the closed bank.
What if the depositor has more than one account but in different
branches of the same bank?
If a bank has one or more branches, the main office and all branch offices
are considered as one bank. Thus, if you have deposits at the main office
and at one or more branch offices of the same bank, the deposits are added
together when determining deposit insurance coverage, the total of which
shall not exceed P500,000.
What are the essential characteristics of cooperatives? Can a single-purpose cooperative become a multi-purpose
The following shall characterize a cooperative: cooperative?
• Autonomy and due registration Yes.
• Voluntary membership A single-purpose cooperative may transform into a multipurpose or may
• Equitable capital contributions of members create subsidiaries but only after at least 2 years of operations.
• Patronizing by members of the products and services of the
cooperative Share in the risks and benefits What is the extent of the liability of a cooperative?
A duly registered cooperative shall have limited liability.
For secondary or tertiary cooperatives, each member shall have 1 basic What is the status of dealings of directors and officers with the
vote and as many incentive votes as provided for in the bylaws but not to cooperative?
exceed 5 votes. A contract entered into by the cooperative with 1 or more of its directors,
officers, and committee members is voidable, at the option of the
What is the composition of the BOD of cooperatives? cooperative, unless all the following conditions are present:
Like regular corporations, the BOD of cooperatives shall be composed of • That the presence of such director in the board meeting wherein
not less than 5 but not more than 15 members. contract was approved was not necessary to constitute a quorum
for such meeting
• That the vote of such director was not necessary for the approval
Who elects the members of the BOD?
of the contract
The members of the BOD are elected by the General Assembly.
• That the contract is fair and reasonable under the circumstances
• That in the case of an officer or committee member, the contract
What is the term of office of the members of the BOD? with the officer or committee member has been previously
BOD members shall be elected for a term of 2 years and shall hold office authorized by the General Assembly or by the BOD
until their successors are duly elected and qualified, or until duly removed
for cause.
On responsibilities,
What are the powers and functions of the BOD? rights and privileges of
The direction and management of the affairs of the cooperative shall be cooperatives
vested in the BOD. What cooperative
Also, the BOD shall be responsible for the strategic planning, direction- books shall be kept
setting and policy-formulation activities of the cooperative. open for inspection?
Every cooperative shall have the following documents ready and
What is the prohibition for BOD members on voting? accessible to its members and representatives of the CDA for inspection
Directors cannot attend or vote by proxy at board meetings. during reasonable office hours at its official address:
• A copy of the Cooperative Code and all other laws pertaining to
Who shall elect the officers of the cooperative? cooperatives A copy of the regulations of the CDA
The BOD shall elect from among themselves the chairperson and vice- • A copy of the articles of cooperation and bylaws of the
chairperson, and elect or appoint other officers of the cooperative from cooperative
outside of the board in accordance with their bylaws. • A register of members
• The books of the minutes of the meetings of the General
Assembly, BOD and committee Share books, where
applicable
• Financial statement
• Preferential rights in the management of public markets and/or • The privilege of being represented by the provincial or city fiscal
lease of public market facilities, stalls or spaces for cooperatives or the Office of the Solicitor General, free of charge, except when
and their federations, such as farm and fishery producers and the adverse party is the Republic of the Philippines
suppliers, market vendors and such other cooperatives, which • Preferential right in the management of the canteen and other
have for their primary purpose the production and/or the services related to the operation of the educational institution
where they are employed for Cooperatives organized by faculty
marketing of products from agriculture, fisheries and small members and employees of educational institutions
entrepreneurial industries and federations thereof • The appropriate housing agencies and government financial
• Cooperatives engaged in credit services and/or federations shall be institutions shall create a special window for financing housing
entitled to loans credit lines, rediscounting of their loan notes, and projects undertaken by cooperatives, with interest rates and terms
other eligible papers with the Development Bank of the equal to, or better than those given for socialized housing projects.
Philippines, the Land Bank of the Philippines and other financial This financing shall be in the form of blanket loans or long-term
institutions except the Bangko Sentral ng Pilipinas wholesale loans to qualified cooperatives, without need for
individual processing
• A public transport service cooperative may be entitled to
financing support for the acquisition and/or maintenance of land
and sea transport equipment, facilities and parts through the
program of the government financial institutions. It shall have the
preferential right to the management and operation of public
terminals and ports whether land or sea transport where the
cooperative operates and on securing a franchise for active or
potential routes for the public transport
• Cooperatives transacting business with the Government of the
Philippines or any of its political subdivisions or any of its
agencies or instrumentalities, including government-owned and
controlled corporations shall be exempt from prequalification
bidding requirements