ARTS-PRTC CPA Review

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ATTY. MICHAEL B. BONGALONTA CPA,MICB,MBA,CTT,DBA, MRIS,MRITAX

ANTI - MONEY LAUNDERING ACT

1. Which law is commonly known as the Anti-Money 8. What is the threshold amount for covered
Laundering Act? transactions under the AMLA?

a. Republic Act No. 10365 a. P50,000

b. Republic Act No. 9160 b. P100,000
c. Republic Act No. 9184 c. P500,000
d. Republic Act No. 10963 d. P1,000,000

9. What is a suspicious transaction report (STR)?

2. Which government agency is responsible for
implementing and enforcing the AMLA? a. A report filed by a covered person when there is a
reasonable belief that a transaction may be related to
a. National Bureau of Investigation (NBI) money laundering or terrorism financing
b. Bureau of Internal Revenue (BIR)
c. Anti-Money Laundering Council (AMLC) b. A report given by the AMLC to a covered person
d. Department of Justice (DOJ) informing them of a suspicious transaction

3. Which of the following is not a predicate offense c. A report filed by a customer when they suspect a
under the AMLA? covered person of engaging in money laundering or
terrorism financing
a. Terrorism financing
b. Cybercrime d. A report filed by the Philippine National Police (PNP)
c. Fraud when they discover a suspicious transaction
d. Child pornography

10. How many years should covered persons keep

4. What is the maximum penalty for money laundering records of their transactions under the AMLA?
under the AMLA?
a. 1 year
a. Imprisonment for not more than 10 years and a fine b. 3 years
of not more than P10 million c. 5 years
b. Imprisonment for not more than 20 years and a fine d. 10 years
of not more than P20 million

c. Imprisonment for not more than 30 years and a fine 11. Which international body is responsible for setting
of not more than P30 million AML/CFT standards?

d. Imprisonment for life and a fine of not more than a. International Monetary Fund (IMF)
P50 million b. World Bank (WB)
c. Financial Action Task Force (FATF)
d. United Nations (UN)
5. Which of the following is not a covered person under
the AMLA?
12. What is a money service business (MSB)?
a. Banks and other financial institutions
b. Insurance companies a. A business that provides financial services to a
c. Real estate developers and brokers group of people with common interests and concerns
d. Non-profit organizations
b. A business that provides services in exchange for
virtual currency
6. Which government agency is responsible for issuing
c. A business that engages in the transmission of
AMLA rules and regulations?
money or monetary value
a. Bangko Sentral ng Pilipinas (BSP)
d. A business that deals in precious metals or stones
b. Securities and Exchange Commission (SEC)
c. Department of Finance (DOF)
d. Anti-Money Laundering Council (AMLC)
13. Which of the following is not a penalty for non-
compliance with the AMLA?
7. Which of the following is not one of the three stages
a. Imprisonment
of money laundering?
b. Fines and penalties
a. Placement c. Revocation of business license
b. Layering d. Community service
c. Integration
d. Evasion
14. Which of the following is not a power of the AMLC? b. To offer customers additional services and products

a. To investigate covered transactions that may involve c. To track the movement of currency and other
money laundering or terrorism financing monetary instruments

b. To issue freeze orders on suspicious accounts or d. To monitor suspicious activities of customers

transactions

c. To prosecute individuals or entities for violations of 20. Which of the following is not an example of a risk-
the AMLA based approach to AML/CFT?
d. To impose penalties on covered persons for non- a. Conducting enhanced due diligence on high-risk
compliance with the AMLA customers

b. Filing STRs for all transactions above a certain

threshold amount
15. What is a blacklist order?
c. Implementing appropriate policies, procedures, and
a. An order issued by the AMLC prohibiting a covered
controls based on the level of risk
person from conducting business with a particular
individual or entity suspected of engaging in money d. Conducting regular risk assessments
laundering or terrorism financing

b. An order issued by a foreign country prohibiting a 21. What is the purpose of an AMLA compliance
covered person from conducting business with certain program?
individuals or entities
a. To ensure that covered persons comply with the
c. An order issued by the BSP prohibiting a covered AMLA and related rules and regulations
person from conducting business with a particular bank
b. To investigate suspicious transactions that may
d. An order issued by the SEC prohibiting a covered involve money laundering or terrorism financing
person from conducting business with a particular
corporation c. To prosecute individuals or entities for violations of
the AMLA

d. To provide training to covered persons on how to

16. Which of the following is considered an aggravated identify and report suspicious activities
offense under the AMLA?

a. Failure to comply with the AMLA record-keeping

requirements 22. What is an AMLA reportorial requirement?
b. Failure to file an STR
a. A report that covered persons must submit to the
c. Intentionally providing false information in an STR
AMLC containing information about their covered
d. Aiding and abetting in money laundering
transactions and customers

b. A report that the BSP must submit to the AMLC

17. Which government agency has the authority to file summarizing the compliance activities of covered
criminal cases for violations of the AMLA? persons
a. Department of Justice (DOJ) c. A report that the DOJ must submit to the AMLC
b. Bureau of Internal Revenue (BIR) summarizing the criminal cases filed for violations of
c. Philippine National Police (PNP) the AMLA
d. Anti-Money Laundering Council (AMLC)
d. A report that the PNP must submit to the AMLC
summarizing the suspicious transactions investigated
18. What is the role of the BSP in implementing the
AMLA?

a. To supervise and regulate covered persons to 23. What is a cash transaction report (CTR)?
ensure compliance with the AMLA and related rules a. A report filed by a covered person for all
and regulations transactions involving cash exceeding a certain
b. To investigate suspicious transactions that may threshold amount
involve money laundering or terrorism financing b. A report filed by the BSP summarizing the cash
c. To enforce the penalties imposed by the AMLC on transactions of covered persons for statistical purposes
covered persons for non-compliance with the AMLA c. A report filed by the PNP summarizing the cash
d. To prosecute individuals or entities for violations of transactions of individuals and entities for criminal
the AMLA investigation purposes

d. A report filed by the customer for all transactions

involving cash exceeding a certain threshold amount
19. What is the purpose of customer due diligence
(CDD)?

a. To identify and verify the identity of customers and

assess the risks associated with their transactions and
activities
24. What is the purpose of a freeze order? 30. What is the role of the Bureau of Customs (BOC) in
the implementation of the AMLA?
a. To prevent the withdrawal, transfer, or disposal of
funds or other assets that are suspected to be related a. To monitor and enforce compliance of importers,
to money laundering or terrorism financing exporters, and other persons engaged in trade and
commerce
b. To investigate suspicious activities of a covered
person b. To investigate suspicious transactions involving the
smuggling of goods or the movement of contraband
c. To seize and confiscate the profits and proceeds of
money laundering and terrorism financing activities c. To identify and report suspicious activities of
travelers at the airport or seaport
d. To close down a business that has engaged in
money laundering or terrorism financing activities d. To participate in international efforts to combat
money laundering and terrorism financing

25. What is the maximum period for a freeze order

under the AMLA? 31. Which of the following is not a main objective of
the AMLA?
a. 5 days
b. 15 days a. To protect the integrity and stability of the Philippine
c. 30 days financial system
d. 60 days
b. To prevent the use of the financial system for
money laundering and terrorism financing
26. What is the purpose of a designated non-financial c. To comply with international AML/CFT standards and
business or profession (DNFBP)? protocols
a. To provide financial services to customers for a fee d. To promote the growth and development of the
b. To engage in non-financial activities that are Philippine economy
vulnerable to money laundering or terrorism financing,
such as real estate trading or casino operations
32. What is the role of the Department of Finance
c. To conduct charitable or non-profit activities (DOF) in the implementation of the AMLA?
d. To act as intermediaries in financial transactions a. To issue rules and regulations related to the
implementation of the AMLA

27. What is covered by the suspicious transaction b. To investigate suspicious transactions that may
report (STR) confidentiality rule? involve money laundering or terrorism financing

a. The identity of the person who filed the STR c. To supervise and regulate covered persons to ensure
b. The contents of the suspicious transaction or activity compliance with the AMLA
c. The existence and status of any investigation or d. To prosecute individuals or entities for violations of
enforcement action relating to the STR the AMLA
d. All of the above

28. What is the difference between an STR and a 33. What is a reportable transaction under the AMLA?
covered transaction report (CTR)?
a. A transaction that meets the threshold amount and
a. An STR pertains to transactions that are suspected involves the purchase or sale of a real estate property
to be related to money laundering or terrorism
b. A transaction that involves the movement of
financing, while a CTR pertains to transactions
currency or monetary instruments that are suspected
involving a certain amount of cash
to be related to money laundering or terrorism
b. An STR is filed by a covered person, while a CTR is financing
filed by a customer
c. A transaction that involves a certain amount of cash
c. An STR is an optional requirement, while a CTR is a and is processed through a covered person
mandatory requirement
d. A transaction that is conducted by a Philippine
d. An STR and a CTR are the same thing resident with a non-resident and involves the transfer
of a certain amount of funds

29. Which government agency has the main

responsibility for enforcing the AMLA among non-bank 34. What is the purpose of an adverse media check?
financial institutions?
a. To identify negative news or information about
a. Insurance Commission (IC) customers that may indicate a higher risk for money
b. SEC laundering or terrorism financing
c. Cooperative Development Authority (CDA)
b. To identify positive news or information about
d. Department of Trade and Industry (DTI)
customers that may indicate a low risk for money
laundering or terrorism financing
c. To evaluate the financial health and viability of 39. Which of the following is not a requirement for an
customers effective AMLA compliance program?

d. To evaluate the reputation of financial institutions a. A written policy statement that outlines the covered
and their compliance with the AMLA person's commitment to AML/CFT compliance

b. Designation of a compliance officer who is

responsible for overseeing the implementation and
35. What is a money laundering offense under the enforcement of the compliance program
AMLA?
c. Conducting background checks on all customers
a. The act of concealing or disguising the true nature,
source, location, disposition, movement, or ownership d. Regular training and education of employees on
of property that is derived from any unlawful activity AML/CFT matters

b. The act of financing terrorism or providing material

support to terrorist organizations
40. What is a limitation on account rule?
c. The act of engaging in fraudulent activities that
result in financial losses to individuals or entities a. An order issued by the AMLC to limit the
transactions that may be conducted on a suspicious
d. The act of engaging in cybercrime or other illegal account
activities involving the use of technology
b. An order issued by the BSP to limit the transactions
that may be conducted by a covered person

36. What is an AMLA compliance officer? c. An order issued by the DOJ to limit the transactions
that may be conducted by an individual or entity
a. An employee of a covered person who is responsible suspected of engaging in money laundering or
for overseeing the implementation and enforcement of terrorism financing
the AMLA compliance program
d. An order issued by the customer to limit the
b. An employee of the AMLC who is responsible for transactions that may be conducted on their account
investigating suspicious activities and enforcing the
provisions of the AMLA

c. An independent auditor who is responsible for 41. What is the purpose of an independent audit of a
conducting periodic reviews and assessments of the covered person's AMLA compliance program?
AMLA compliance program of a covered person
a. To assess the effectiveness and completeness of the
d. An external consultant who is hired by the AMLC to program and make recommendations for improvement
provide expertise and guidance on AML/CFT matters
b. To conduct a criminal investigation of the covered
person's transactions and activities

37. What is a politically exposed person (PEP)? c. To carry out a financial audit of the covered person's
operations
a. A public official, their family members, and their
close associates who are at higher risk for money d. To evaluate the adequacy of the covered person's
laundering and terrorism financing customer due diligence and record-keeping processes

b. A person who holds a high-ranking position in a

company or organization
42. Which of the following is not a factor that is
c. A person who is involved in politics or political considered in determining the level of risk associated
activities with a particular customer or transaction?

d. A person who is affiliated with a terrorist a. Nationality or country of origin

organization or engaged in terrorist activities
b. Type of business or industry

c. Volume and frequency of transactions

38. What is a sanctions list?
d. Customer's level of education and professional
a. A list of individuals and entities that are suspected background
to be involved in money laundering or terrorism
financing

b. A list of individuals and entities that are prohibited 43. What is a no-freeze order?
from doing business with certain countries or entities a. An order issued by the AMLC to release or unfreeze
due to international sanctions assets that were previously subject to a freeze order
c. A list of individuals and entities that are covered by b. An order issued by a court to prevent the AMLC
the AMLA from issuing a freeze order on a suspicious account or
d. A list of individuals and entities that are exempt transaction
from the AMLA reporting requirements