REG 3

MIDTERM EXAM
9. Acts of money laundering committed by public
AMLA officers and private persons in conspiracy with
1. Suspicious transactions refer to transactions such public officer shall be within the jurisdiction
with correct institutions, regardless of the of:
amount involved, where any of the following Ans: Sandigang Bayan
circumstances exist.
10. It is an extraordinary and interim relief issued to
Ans: No underlying legal or trade obligation, prevent the dissipation, removal, or disposal of
purpose or economic justification properties that are suspected to be the proceeds
2. Jewelry dealer is a covered institution if it deals of, or related to, unlawful activities as defined in
in precious metals, who as a business or trade RA 9160.
in excess of Ans: Freeze Order
Ans: ₱ 1,000,000 11. The power to freeze accounts is vested unto:
3. A covered person is obligated to keep records Ans:Court of Appeals
for how many years?
12. What are the requisites for issuance of freeze
Ans: 5 years order?
4. A covered person is obligated to report covered Ans: Application ex parte by AMLC and
and/or suspicious transactions to AMLC within determination of probable cause by CA.
how many days from occurrence?
13. The court should act on the petition to freeze
Ans: 5 WORKING days within how many hours from filing thereof?
5. The AMLC can prescribe a different period for Ans: 24 hours
reporting covered and/or suspicious transactions
to AMLC as long as it does not exceed: 14. A freeze order may be extended for a period not
exceeding:
Ans: 15 WORKING days
Ans: 6 months
6. Which of the professionals are not required to
report coerced and/or suspicious transactions if 15. Who serves as Chairman of the AMLC?
the relevant information was obtained in
circumstances where they are subject to Ans: BSP Governor
professional secrecy or legal professional 16. AMLC may conduct an examination of bunk
privilege? accounts without a court order in cases involving
Ans: Lawyers and accountants Ans: Kidnapping for ransom
7. Should a transaction be determined to be both a 17. The following are considered as an unlawful
covered transaction and a suspicious activities under the Anti-Money Laundering Act
transaction, the covered institution shall be except:
required to report the same as a
Ans: Theft
Ans: Suspicious transaction
18. At this stage of money laundering the money
8. All cases on money laundering shall be with the re-enters mainstream recovery in
jurisdiction of: legitimate-looking form, appearing to have come
Ans: Regional Trial Court from legitimate transactions.
 REG 3
MIDTERM EXAM
Ans: Integration the person who owns the deposit account was
exposed with criminal charge for kidnapping for
19. Covered transactions for real estate brokers ransom is not liable administratively, criminally,
and/or developers involve a single cash or civilly.
transactions the amount in excess of:
Ans: Both statements are true.
Ans: ₱ 7.5M
24. Which of the following is not a covered person
20. Suspicious transaction must be reported to the and therefore is not required to report covered
AMLC within: transactions or suspicious transactions to
Ans: next WORKING day AMLC?

Note!! Ans: Convenience stores, grocery stores, or

supermarkets.
covered persons to promptly file suspicious
transaction reports within the next working PDIC
day from occurrence thereof, which for Kaye Ann pa chat na lang ako if tapos ka na
purposes of the Rule, shall be the date of sa PDIC para i insert ko yung part ko here.
establishment of suspicion or determination of Thank you!
the suspicious nature of the transaction, (as
amended by Sec. 9 of 2020 IRR amending .
Sec. 2.2 of 2018 IRR, which originally provided:
5 working days from occurrence as well,
"Occurrence" meaning the time the covered
entity has determined that the transaction is
suspicious, which should not exceed 10 days 51. Following are the exceptional cases when the
from the date of the transaction). BIR commissioner expects bank deposit except:
Ans: to determine the taxable income of
21. Tax evasion is now considered an unlawful politicians.
activity under the AMLC, if the basic tax
assessment is in excess of: 52. Which type of bank deposit of an impeachable
officer may be examined by court without consent
Ans: ₱ 25M of the impeachable officer? Ans: Philippine
22. Which of the following is not a suspicious peso bank deposit.
transaction? 53. S1 - article 1405 is declared to be the policy of
Ans: Jose, the paymaster of a construction the government to give encouragement to the
company, regularly deposits ₱300k in his people to deposit their money and banking
bank account that will be used to pay the institutions and to encourage private hoarding so
salaries of the workers. that the same may be properly utilized by banks
in authorized loans to assess the economic
23. S1: Covered institutions when reporting covered development of the country.
transactions to AMLC are not deemed to have S2- any violation of this code will be subject of
violated the Bank Secrecy Law; however they ender upon conviction to an imprisonment of not
cannot communicate the continents thereof, more than six years or a fine of not more than
otherwise they are criminally liable. 20,000 or both in the discretion of the court.
Ans: both statements are false.
S2: A bank officer after having made a covered
transaction report in the regular course of his 54. Following are authorized disclosures in the bank
work in bank, reported the same to AMLC and secrecy law except:
 REG 3
MIDTERM EXAM
Ans: when there is probable cause that the from liability by the insured after receiving
deposit or investment are related to an payment.
unlawful activity for money laundering.
62. One of the following is not an element of the
55. Which of the following inquiries will be incontestable clause in life insurance:
considered a violation of PH peso deposit Ans: it is applicable to all kinds of life
secrecy law? Ans: inquiry of bank deposits by insurance policies
DOJ Secretary for the purpose of persecution
of the member of the opposing political party. 63. Which of the following statements relative to
marine insurance policies is true?
56. What is the penalty provided by law for violation Ans: is loss or not lost provision in marine
of RA 1405 also known as Philippine deposit insurance policy means that the issue
secrecy law? Ans: imprisonment of not more expressly binds itself in the event of loss of
than one year or fine of not more than 2,000 the vessel even if the vessel should already
or both. be loss at the time the contract was entered
into.
57. Both of the insured and ensure have reciprocal
obligations equal value of each other 64. Which of the following damages and expenses
Ans: Synallagmatic constitutes the general average?
Ans: Jettisoning cargo in order to save the
58. An insurance contract is a contract of adhesion vessel from sinking.
which means that in resolving ambiguities in the
provision of the insurance contract: Ans: to be 65. The contract of insurance is one of the perfect
considered liberally in favor of the insured good faith, not the insured alone, but equally so
and strictly against the issuer who drafted the for the insurer: Ans: Ubernimae fides Contract
insurance policy
66. Actions arising from insurance contracts
59. The insurer is not liable under fire insurance prescribe in _ yrs. Ans: 10 YRS
when
Ans: The "LPG" tank in an adjacent building 67. Five-peso coins are considered to be legal
that exploded caused fire to the insured tender up to (BSP civ no. 1162)
house explosion being an accepted risk in the Ans: 2k
policy. Notes: (check for the updated legal tender)

60. Who among the following parties is considered a 68. A, B, & C solidarily owe W and Y solidary
public enemy and therefore may not be insured? creditor 24thousand, where the share of the
Ans: none of the foregoing list (in the choices debtors is 2:3:5 while creditors is 1:2. the terms of
abu sayyaf, north korea communist, milf the contract provides:
members) 1. A will pay if Y past the october 2019 cpa board
NOTE: considered public enemy is yung mga exam
kalaban ng bansa example Philippines vs
China. Bawal yung inside the country like 2. B will pay on february 14 2020
Luzon vs Mindanao
3. C will pay on september 10 2019
61. Under pd number 1460, as amended, otherwise
known as insurance code, which of the following On September 10 2019, W can collect from:
statements in the relation to insurance contract is Ans: B = P12k note: 24k x 5/10 --> kahit sino
false? pwede sakanila magbayad since solidary pero
Ans: danger does not lose his right against supposed to be para kay C yung 12k since
the wrongdoer even if the latter is released yun yung share niya (5/10).
 REG 3
MIDTERM EXAM
69. The following correct? explained in writing stating the name of the
Ans: a condition is considered fulfilled if the person making the denial and the ground upon
debtor voluntarily prevents its fulfillment. which such denial is based.
Ans: Both statement are false
70. Following are example of obligation with a period
except: 80.The anti-red tape authority shall have the following
Ans: if Ambo reaches the age of 25 which is 2 powers and functions except:
years from today.
Notes: PERIOD - certain siya na mangyayari. Ans: conduct regulatory management training
program to capacity and NGs and LGUs used
71. Which of the following contracts without defect? to comply with unsound of requirements
Ans: a contract where a party gave his management practices
consent because the other party threatened to
sue him for an unpaid debt. RCC

72. Which of the following contracts is not void ab 81. In case members of the board of directors of a
initio? Ans: that which is undertaken in fraud corporation go to takorong and there are vacancies,
of creditors. who will fill up such vacancies?
Ans: Removal, Expiration of term, #of directors
73. Which of the following contracts cannot be stock = STOCKHOLDERS Resignation= BOARD
ratified?
Ans: those whose cause or object did not 82. Abc corporation issued redeemable shares
exist at the time of the transaction. under the terms of the issuance, the shares were
buried at the end of 10 yrs. from the date of
74. Juan obliged himself to deliver one of his 5 cars issuance at PV plus premium of 10%. choose the
2 Pedro it was not specified which car. In this correct statement relating to the redeemable
case, shares.
Ans: The contract is void Ans: abc corp may redeem the shares at the
Note: Kasi hindi naka stated yung object, end of 10 years without need for unrestricted
remember pag kulang yung elements which is retained earnings provided that after
COC meaning VOID. redemption these are sufficient assets to cover
its debt.
75. If A is a residential house and lot to D, can B
foreclose the real estate mortgage? 83. The duty to make disclosure where others there
Ans: yes, B can foreclose the real estate would be great and unfair inequality of bargaining
mortgage, it is binding upon D as the position by the use of inside position as regards
mortgage is embedded in a public instrument relation of directors to stakeholders.
Answer: doctrine of corporate opportunity
EODB
84. Upon winding up the corporate affairs any asset
79. S1: all application or requirements submitted contributing to any creditor or stockholders who is
should be active upon by the assigned officer or unknown and cannot be found shall be escheated
employee within the prescribed processing time and forfeited in favor of the:
stated in the citizens charter which shall not be Ans: Old Corpo: city/municipality where such
longer than 7 working days in the case of simple property is located RCC: national government
transaction and 14 working days in the case of
complex transaction from the date the 85. Directors or trustees who willfully and knowingly
requirements Andor complete application or vote for a sent to patently unlawful acts of the
requirements was received. corporation or who are guilty of gross negligence or
S2: any denial application or requirements for bad faith in directing the affairs of the corporation or
access to government service shall be not fully acquire any personal or pecuniary interest in
 REG 3
MIDTERM EXAM
conflict as their duty as such directors or trustees operator of the commission and its members,
shall be liable _____ for all damages resulting there bodies, offices, personnel, and all its administrative
from suffered by the corporation, its stockholders or business.
members and other person. Ans: SOLIDARILY Ans: S2 - TRUE.

86. Arcovia corp has a principal office in pacific star 93. The following are exempt section under the
building, in makati city. as a rule, where should the SRC except:
venue of the stockholders meeting be? Ans: derivative like option and warrants.
Ans: pacific star building only Note: other correct choices or not exceptions.
✓ certificate issued by the receiver for by a
87. There are nine directors in MNO corporations, trustee in bankruptcy duly approved by the
two of them were validly removed as a director. proper adjudicatory body.
Who has the power to fill such a vacancy? ✓ any security issued by the bank except
Ans: stockholders only its own share of stock
88. S1 - A Corporation is an artificial being created ✓any security issued or guaranteed by the
by law, invested by law of one coming into existing government of the Philippines or by any
with the personality separate and distinct from political subdivision for agency.
person composing it, and from any other legal entity PSHIP
to which it may be related
S2 - A corporation is invested by law with a 94. If a partner assigns his interest in the partnership
personality separate and distinct from the person to his personal creditor or 28 third person for value,
composing it and from that any other entity to which the assignee acquires the right to
it may be related Ans: receive the partner assignor to share of
Ans: only S2 is true the profits.

89. One of the following is not a feature of 95. A, B, C agreed to for Y partnership. It was
authorized CS Ans: it may include RE already agreed that A would contribute 20k, B 15k
& C 5k. It was also agreed that in the event the
90. Under the RCC the term dead claim refers to venture proved to be a financial loss all losses
Ans: any unpaid claim arising from unpaid above the amount of capital contributed would be
subscription. assumed by A. There were no other express
91. He is an employee therefore whom, directly agreements under circumstances which of the
exercises control of supervisory authority but does following is correct?
not include salesman, an agent or a person whose Ans: partnership is valid notwithstanding failure
functions are solely clerical or ministerial to put the agreement in a public instrument.
Ans: Assoc person of a broker/dealer 96. S & G established partnership by contributing
Note: Can be found at definition of SEC Code 200,000 each. F, a classmate allowed his name to
92. S1 - the salary of the chairperson and the be included in the firm name of the partnership. The
commissioner should be fixed by the president of partnership was insolvent and after exhausting all
the Philippines based on the objective classification the remaining assets, there remained liability to
system at the some comparable to the members of third persons amounting to 30,000. the creditor can
the non-monetary board and commensurate compel:
importance and responsibilities attached to the Ans: S, G, & F to pay 10k each.
position. 97. Absent and a contrary provision in the
S2 - the chairperson shall execute and administer agreement, under which of the following
policies, decisions, orders and resolutions approved circumstances will a limited partnership be
by the commission and shall have the general dissolved?
executive direction and supervision of the work and ANS: a general partner attires and old
 REG 3
MIDTERM EXAM
remaining general partners do not consent to
contribute.

98. What is the number of cooperatives or founders

of a primary cooperative?
Ans: 15 or more natural person

99. When does a cooperative form and organize

under cooperative code acquired juridical
personality?
Ans: from the date of issuance by the CDA or
certificate of registration under its official seal.

100. What are the requirements both for amendment

of provision of a cooperative of a cooperative? Ans:
at least two third of all members with voting
rights