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RFBT SPECIAL TOPICS
Insurable deposits and maximum liability
•Amount due to any bona fide depositor for
legitimate deposits in an insured bank net
of any obligation of the depositor to the
insured bank as of date of closure, but not
to exceed ₱500,000.00.
Insurable deposits and maximum liability
The following are not covered:
• Deposit products constituting or
emanating from unsafe and unsound
banking practices;
• Deposits that are determined to be
proceeds of an unlawful activity as defined
under the Anti-Money Laundering Law.
PDIC LAW
Insurable deposits and maximum liability
The following are not covered:
• Investment products such as bonds,
securities and trust accounts;
• Deposit accounts which are unfunded,
fictitious or fraudulent;
Insurable deposits and maximum liability
• The claim for the uninsured portion of
the deposit is a claim against the assets
of the closed bank.
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THE NEW CENTRAL BANK ACT
Conservatorship
• The appointment by the Monetary
Board of a conservator after it finds that
a bank or a quasi-bank is in a state of
continuing inability or unwillingness to
maintain a condition of liquidity
adequate to protect the interest of
depositors and creditors;
Receivership
The Monetary Board may designate the PDIC
as receiver of a bank and any person of
recognized competence in banking or
finance as receiver of a quasi-bank when it
finds that the institution:
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Legal tender power over coins and notes
•All notes and coins issued by the Bangko
Sentral shall be fully guaranteed by the
Government of the Republic of the
Philippines and shall be legal tender in the
Philippines for all debts, both public and
private.
Conservatorship
• The conservatorship shall not exceed
one year;
Receivership
• Is unable to pay its liabilities as they
become due in the ordinary course of
business when the inability to pay is
caused by extraordinary demands
caused by financial panic in the banking
community;
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Receivership
• Has insufficient realizable assets to
meet its liabilities;
• Cannot continue in business without
involving probable losses to its
depositors or creditors; or
Receivership
• Designation of a conservator is not a
precondition to the designation of a
receiver.
Coverage of Bank Secrecy
•All deposits of whatever nature with
banks or banking institutions in the
Philippines including investments in bonds
issued by the Government of the
Philippines, its political subdivisions and
its instrumentalities, are hereby
considered as of an absolutely
confidential.
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Receivership
• Has willfully violated a cease and
desist order under Section 37 that has
become final, involving acts or
transactions amounting to fraud or a
dissipation of the assets of the
institution.
SECRECY OF BANK DEPOSITS AND
UNCLAIMED BALANCES LAW
Exceptions
• upon written permission of the depositor;
• in cases of impeachment;
• upon order of a competent court in cases of
bribery or dereliction of duty of public
officials;
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Exceptions
• in cases where the money deposited or
invested is the subject matter of the
litigation.
Unclaimed balances (PD 679)
• Shall include credits or deposits of money,
bullion, security or other evidence of
indebtedness of any kind, and interest
thereon with banks, buildings and loan
associations, and trust corporations, as
hereinafter defined, in favor of any person
known to be dead or who has not made
further deposits or withdrawals during the
preceding ten years or more.
GENERAL BANKING LAW
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Punishable Act
• Unauthorized disclosure by an official or
employee of a banking institution.
Unclaimed balances (PD 679)
• Such unclaimed balances, together with
the increase and proceeds thereof, shall
be deposited with the Treasurer of the
Philippines to the credit of the
Government of the Republic of the
Philippines to be used as the Congress
may direct.
Different kinds of loans
EMERGENCY LOAN
• is a credit facility that is intended to assist a
bank experiencing serious liquidity
problems arising from causes not
attributable to, or beyond the control of, the
bank management.
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Different kinds of loans
MICROFINANCE LOAN
• This represents small loans granted to the
basic sectors such as farmer-peasant, artisanal
fisherfolk, workers in the formal and informal
sector, migrant workers, indigenous peoples
and cultural communities, women,
differentlyabled persons, senior citizens,
victims of calamities and disasters, youth and
students, children, and urban poor.
ANTI-MONEY LAUNDERING LAW
Suspicious transactions
A transaction, regardless of amount, where
any of the following circumstance exists:
• there is no underlying legal or trade
obligation, purpose or economic
justification;
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Different kinds of loans
CONSUMER LOAN
• is defined to include housing loans, loans
for purchase of car, household
appliance(s), furniture and fixtures, loans
for payment of educational and hospital
bills, salary loans and loans for personal
consumption, including credit card loans.
Covered transactions
• A transaction in cash or other
equivalent monetary instrument
involving a total amount in excess of five
hundred thousand pesos (₱500,000.00)
within one (1) banking day.
Suspicious transactions
• the client is not properly identified;
• the amount involved is not commensurate
with the business or financial capacity of the
client;
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Suspicious transactions
• taking into account all known
circumstances, it may be perceived that the
client’s transaction is structured in order to
avoid being the subject of reporting
requirements under the act;
Suspicious transactions
• the transaction is in any way related to an
unlawful activity or any money laundering
activity or offense under the AMLA, as
amended, is being or has been committed;
Reportorial requirements
• Covered institutions shall report to the
AMLC all covered transactions and
suspicious transactions within five (5)
working days from occurrence thereof,
unless the Supervising Authority prescribes
a longer period not exceeding ten (10)
working days.
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Suspicious transactions
• any circumstance relating to the transaction
which is observed to deviate from the
profile of the client and/or the client’s past
transactions with the covered institution;
Suspicious transactions
• any transaction that is similar, analogous or
identical to any of the foregoing.
Reportorial requirements
•Should a transaction be determined to
be both a covered transaction and a
suspicious transaction, the covered
institution shall be required to report
the same as a suspicious transaction.