Exceptions ......................................................... 389 GarnishmentofDeposits ............................................. 392 Confidentiality of Foreign Currency Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 PenaltyforViolation................................................. 394
CHAPTER 5: UNCLAIMED BALANCES LAW (PRESIDENTIAL DECREE NO. 679)
398
RequirementtoReport............................................... 399 Procedure for Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 ReactivationofAccount.............................................. 400
REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS
CHAPTER 6: TRUTH IN LENDING ACT (REPUBLIC ACT NO. 3765)
403
UNIT VII ANTI-MONEY LAUNDERING ACT (REPUBLIC ACT NO. 9160, AS AMENDED)
CHAPTER 2: THE NEW CENTRAL BANK ACT (REPUBLIC ACT NO. 7653)
349
Primary Objective and Other Responsibilities of the BSP . . . . . . . . . . . . . . . . . . . 349 Monetary Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 WhenBanksAreinDistress........................................... 350 Conservatorship .................................................... 351 Closure ............................................................ 352 Receivership ....................................................... 354 Liquidation......................................................... 357 Procedure in Liquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 Legal Tender Power .................................................. 359 RateofForeignExchange............................................. 360 Purchases and Sales of Foreign Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Acquisition of Inconvertible Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 ReserveRequirements............................................... 361
408
xi FreezeOrder....................................................... 421 AuthoritytoInquireintoBankDeposits................................. 422 InquiryofBankDepositswithCourtOrder............................... 422 Inquiry of Bank Deposits without a Court Order . . . . . . . . . . . . . . . . . . . . . . . . . . 423 Stages of Money Laundering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 CoveredInstitutionsandTheirObligations............................... 410 Suspicious Transactions and Suspicious Circumstances ..................... 413 HowMoneyLaunderingIsCommitted.................................. 415 Reporting of Covered and Suspicious Transactions . . . . . . . . . . . . . . . . . . . . . . . . 416 SafeHarborProvision................................................ 416 Anti-Money Laundering Council; Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 UnlawfulActivity(PredicateCrime)..................................... 419
CHAPTER 3: PHILIPPINE DEPOSIT INSURANCE CORPORATION LAW (REPUBLIC ACT NO. 3591, AS AMENDED)
UNIT VIII DATA PRIVACY ACT (REPUBLIC ACT NO. 10173)
366
Sanctions against Unsafe and Unsound Banking Practices . . . . . . . . . . . . . . . . . . 373 LiquidationunderthePDICCharter..................................... 374 Authorities of a Receiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 Effects of Placement of a Bank under Liquidation . . . . . . . . . . . . . . . . . . . . . . . . . 377
426
ScopeofDataPrivacyAct............................................. 428 ApplicationoftheLaw ............................................... 431 KindsofPersonalData............................................... 433 PersonalInformationController(PIC)................................... 434 Personal Information Processor (PIP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435 GeneralDataPrivacyPrinciples........................................ 435 RightsofDataSubjects............................................... 436 RighttoBeInformed................................................. 437 Criteria for Lawful Processing of Personal Information . . . . . . . . . . . . . . . . . . . . . 438 Right to Object . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 RighttoAccessuponDemand......................................... 441 Right to Rectify . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 RighttoErasure .................................................... 442 RighttoDataPortability.............................................. 442 Right to Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 RighttoFileaComplaint ............................................. 443 TransmissibilityofDataSubjectRights.................................. 444 LimitationsonRightsofDataSubject................................... 444 PrincipleofAccountability............................................ 444
CHAPTER 4: LAW ON SECRECY OF BANK DEPOSITS (REPUBLIC ACT NO. 1405, AS AMENDED)
382
Prohibited Acts ..................................................... 382 Deposits Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383 Exceptions ......................................................... 389 GarnishmentofDeposits ............................................. 392 Confidentiality of Foreign Currency Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 PenaltyforViolation................................................. 394
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CHAPTER 5: UNCLAIMED BALANCES LAW (PRESIDENTIAL DECREE NO. 679)
398
RequirementtoReport............................................... 399 Procedure for Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 ReactivationofAccount.............................................. 400
CHAPTER 6: TRUTH IN LENDING ACT (REPUBLIC ACT NO. 3765)
403
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UNIT VII ANTI-MONEY LAUNDERING ACT (REPUBLIC ACT NO. 9160, AS AMENDED)
408
StagesofMoneyLaundering.......................................... 409 CoveredInstitutionsandTheirObligations............................... 410 Suspicious Transactions and Suspicious Circumstances ..................... 413 How Money Laundering Is Committed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Reporting of Covered and Suspicious Transactions . . . . . . . . . . . . . . . . . . . . . . . . 416 SafeHarborProvision................................................ 416 Anti-Money Laundering Council; Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 UnlawfulActivity(PredicateCrime)..................................... 419
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