OTHER SPECIAL LAWS Rehabilitation Receiver of Banks

Banks closed by MB shall NO LONGER BE

REHABILITATED. PDIC shall control, manage and
Philippine Deposit Insurance Corporation
administer the affairs of the closed bank which includes
power to:
Primary Function:
a. Collect loans and other claims of the closed bank
1. To act as deposit insurer b. Purpose, modify, compromise or restructure the
2. Co-regulator of banks terms and conditions of such loan or claims as
3. Receiver and liquidator of the closed bank may be deemed advantageous to the creditors and
claimants of the closed bank.
As Regulator: the PDIC is empowered to examine and
investigate banks. These are 2 different processes.
Anti-Money Laundering Act
a. Examination – an evaluation of the current status
of the bank and determines its compliance with
Money Laundering – is the illegal process of making
the set of standards regarding solvency and
large amounts of money generated by a criminal activity,
liquidity. Such process involves intrusion into
such as drug trafficking or terrorist funding, appear to
bank’s records.
have come from a legitimate source. The money from the
b. Investigation – zeroes in on specific acts and
criminal activity is considered dirty, and the process
omissions uncovered via examination, or which
"launders" it to make it look clean.
are cited in a complaint. Although it also involves
detailed evaluation, an investigation centers on
 The crime involves those who aids, abets, assist in
specific acts of omissions and thus requires less
or counsels the commission of the money
invasive assessment.
laundering offense.
c. An examination of the bank requires CONSENT of
the MB, whereas the investigation does not require  Also includes failure to report to the AMLC by
consent from MB. any covered person knowing that a covered or
suspicious transaction is required under the
AMLA.
  In cases of casinos, a single casino transaction
Covered institution: involving amount in excess of 5million or its
equivalent in other currency.
1. banks, non-banks, quasi-banks, trust entities, and
all other institutions and their subsidiaries and Suspicious Transactions
affiliates supervised or regulated by the Bangko Transactions with covered institutions, regardless of the
Sentral ng Pilipinas (BSP) amount involve, where any of the circumstances exist:
2. insurance companies and all other institutions
supervised or regulated by the Insurance 1. There is no underlying legal or trade obligation,
Commission; and purpose or justification
3. (i) securities dealers, brokers, salesmen, 2. The client is not properly identified
investment houses and other similar entities 3. The amount involved is not commensurate with
managing securities or rendering services as the business or financial capacity of the client.
investment agent, advisor, or consultant, (ii) 4. Taking into account all known circumstances, it
mutual funds, closed-end investment companies, may be perceived that the client’s transaction is
common trust funds, pre-need companies and structure in order to avoid being the subject of
other similar entities, (iii) foreign exchange reporting requirement under the AMLA.
corporations, money changers, money payment, 5. Any circumstance which is observed to deviate
remittance, and transfer companies and other from the profile of the client and/or client’s past
similar entities, and (iv) other entities transactions with covered institutions.
administering or otherwise dealing in currency, 6. The transaction is in any way related to an
commodities or financial derivatives based unlawful activity or offense under the AMLA that
thereon, valuable objects, cash substitutes and is about to be, is being or has been committed.
other similar monetary instruments or property 7. Any similar transactions.
supervised or regulated by Securities and
Exchange Commission. Unlawful activity - refers to any act or omission or series
or combination thereof involving or having relation to
the following:
Covered Transaction: transactions in cash or other (1) Kidnapping for ransom under Article 267 of Act No.
equivalent monetary instrument involving a total 3815, otherwise known as the Revised Penal Code, as
amount in excess of 500K within one banking day. amended; 
(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic (Madami pa yan, almost 33 yung cited sa book ni
Act No. 6425, as amended, otherwise known as the Aquino. I just included enough in case mag paenumerate
Dangerous Drugs Act of 1972; ng ilan sa Bar)
(3) Section 3 paragraphs B, C, E, G, H and I of Republic
Act No. 3019, as amended; otherwise known as the Anti- Obligation of covered institution
Graft and Corrupt Practices Act; 1. Customer identification – covered institutions
(4) Plunder under Republic Act No. 7080, as amended; shall establish and record the true identity of its
(5) Robbery and extortion under Articles 294, 295, 296, clients based on official documents.
299, 300, 301 and 302 of the Revised Penal Code, as 2. Record Keeping – all records of all transactions of
amended; covered institutions shall be maintained and safely
(6) Jueteng and Masiao punished as illegal gambling stored for 5 years from the date of the transaction.
under Presidential Decree No. 1602; 3. Reported of Covered and Suspicious Transaction
(7) Piracy on the high seas under the Revised Penal Code, – covered institutions shall report to the AMLC all
as amended and Presidential Decree No. 532; covered or suspicious transactions within 5
(8) Qualified theft under Article 310 of the Revised Penal working days from occurrence thereof, unless
Code, as amended; AMLC prescribes a longer period not exceeding 15
(9) Swindling under Article 315 of the Revised Penal days.
Code, as amended;
(10) Smuggling under Republic Act Nos. 455 and 1937; Freezing of Monetary Instrument or Property
(11) Violations under Republic Act No. 8792, otherwise The Ca may issue a Freeze Order under the ff conditions:
known as the Electronic Commerce Act of 2000; 1. There must be a verified ex parte motion by the
(12) Hijacking and other violations under Republic Act AMLC
No. 6235; destructive arson and murder, as defined 2. CA must determine that probable cause exists
under the Revised Penal Code, as amended, including 3. The FO shall be effective immediately for a period
those perpetrated by terrorists against non-combatant of 20 days
persons and similar targets; 4. The CA shall conduct a summary hearing, with
(13) Fraudulent practices and other violations under notice to the parties , to determine w/n to modify
Republic Act No. 8799, otherwise known as the Securities or lift the FO, or to extend its effectivity.
Regulation Code of 2000; 5. The FO shall be for a period not exceeding 6
(14) Felonies or offenses of a similar nature that are months.
punishable under the penal laws of other countries.  CA should act on the petition to freeze within 24
hours from filing of the petition thereof.
  If no case is file against the owner of the frozen  As to Related Accounts – court order ex
account within period determined by the CA, not parte should be obtained first before the
exceeding 6 months, the freeze shall be deemed same may be inquired into.
ipso facto lifted.  The CA must act on the application within
 The person whose account has been frozen may 24 hours from filing.
file a motion to lift the FO and the court must b. No Court Order
resolve this motion before the expiration of the  In cases involving:
FO. 1. Kidnapping for ransom
 No court can issue TRO or writ of injunction 2. CDDA sections 4,5,7,8,9,10,12,13,14,15
against FO, XPN THE SUPREME COURT. 3. Hijacking and other violations under
 The FO is without prejudice to an asset RA 6235; Destructive arson and
preservation order that the RTC having Murder, including those perpetrated by
jurisdiction over the appropriate money terrorist against non-combatant
laundering case, may issue on the same account. persons.
 The FO or asset preservation issued shall be 4. Felonies that are similar to those
limited only to the amount of cash or monetary mentioned in Sec. 3(I) (1) and (2) and
instrument that the court may have found (12) which are punishable under penal
probable cause to be considered as proceeds of a laws of the other countries..
predicate offense. 5. Terrorism and conspiracy to commit
terrorism
Authority of AMLC to Inquire into and examine Bank  Authority of ALMC to inquire into main
Deposit accounts and related accounts shall
This can either be upon order of the court or even comply with the requirement of Article III
without court order in certain exceptional cases. sec. 2 and 3 of the 1987 Constitutions.
a. Court Order Required
 Upon ex parte application of the AMLC
 When it is established that there is probable TRUTH IN LENDING ACT
cause that the deposits or investments,
including related accounts involved, are Disclosure Requirement
related to an unlawful activity or money
laundering offense.
The law assures full disclosure by requiring the lender to
give the borrower all the details regarding the
transaction. The ff information must be stated in writing:
1. The cash price or delivered price of the property
or service to be acquired
2. The amounts, if any, to be credited as down
payment and/or trade in
3. The difference between the amounts in (1) and (2)
4. The charges which are paid or to be paid by such
person in connection with the transaction but
which are not incident to the extension of credit.
5. The total amount to be financed
6. The finance charge expressed in terms of pesos
and centavos.
7. The percentage that the finance bears to the total
amount to be financed expressed in simple annual
rate on the outstanding unpaid balance