University of San Carlos

School of Business and Economics

Department of Accountancy

IRC REVIEW (RFBT) Atty. J.M. Denila, CPA

Anti-Money Laundering Act March 4, 2022 (Fri-PM)

1. What is the amount of covered transaction in so far as jewelry dealers are concerned for
purposes of reporting to Anti-Money Laundering Council?
A. A transaction exceeding P500,000
B. A transaction exceeding P1,000,000
C. A transaction exceeding P5,000,000
D. A transaction exceeding P100,000

2. Which of the following companies is exempted by Anti Money Laundering Law from
reporting reportable and suspicious transactions to Anti-Money Laundering Council?
A. Casino
B. Remittance companies
C. Auditing firm rendering assurance engagement
D. Holding companies

3. As to the character of the offense, “Money Laundering” is

A. Civil
B. Criminal
C. Political
D. Natural

4. What is the threshold figure for a “covered transaction”?

A. at least P500,000
B. more than P500,000
C. at least P4,000,000
D. more than P4,000,000

5. The “more than P500,000” threshold applies to “suspicious transactions”.

A. True
B. False

6. Suspicious transactions are transactions with covered institutions, regardless of the amounts
involved, where any of the following circumstances exist (choose the exception):
A. There is no underlying legal or trade obligation, purpose or economic justification
B. The client is not properly identified
C. The amount involved is commensurate with the business or financial capacity of the client
D. The transactions is in a way related to an unlawful activity or offense under the Act that is
about to be, is being or has been committed

7. Suspicious transactions shall be reported by covered persons. Which of the following is least
likely considered as a covered person?
A. Bank or banking institution
B. Insurance company
C. Jewelry dealer in precious metal
D. Lawyer acting as independent legal counsel

8. To which specific body shall covered persons report the occurrence of suspicious
transactions?
A. COA – Commission on Audit
B. BSP – Bangko Sentral Ng Pilipinas
C. AMLC – Anti-Money Laundering Council

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D. PDIC – Philippine Deposit Insurance Commission

9. Within how many days shall covered persons report to the AMLC the occurrence of
suspicious transactions?
A. 1 working day
B. 3 working days
C. 5 working days
D. 7 working days

10. It refers to a crime committed by any person who knowing that any monetary instrument
or property represents involves or relates to the proceeds of any unlawful activity, transacts,
converts, transfers, disposes of, moves, acquires, possesses or uses said money instruments or
proceeds of any unlawful activity.
A. Estafa
B. Forgery
C. Money Laundering
D. Bribery

11. It refers to a type of transaction that shall be reported by a covered person to the Anti-
Money Laundering Council because the transaction breaches the quantitative threshold for
reporting purposes.
A. Covered transaction
B. Suspicious transaction
C. Reportable transaction
D. Exempted transaction

12. In case of jewelry dealers, dealers of precious metals or dealers of precious stones, what is
the quantitative threshold for any transaction in cash or other equivalent to be considered
reportable transaction to Anti-Money Laundering Council?
A. A transaction with amount exceeding P1,000,000
B. A transaction with amount exceeding P100,000
C. A transaction with amount exceeding P500,000
D. A transaction with amount exceeding P5,000,000

13. It refers to a type of transaction that shall still be reported by a covered person to the Anti-
Money Laundering Council even if the transaction does not breach the quantitative threshold
for reporting purposes by reason of the unusual nature of the transaction.
A. Covered transaction
B. Suspicious transaction
C. Reportable transaction
D. Exempted transaction

14. Which of the following is not a suspicious transaction that shall be reported to Anti-Money
Laundering Council?
A. Transaction that may be perceived that the client’s transaction is structured in order to
avoid being the subject of reporting requirements under AMLA.
B. Transaction is any way related to an unlawful activity or any money laundering activity or
offense that is about to be committed, is being or has been committed.
C. Transaction that deviates from the client’s transactions with the covered person.
D. Transaction entered into in the ordinary course of business of the client.

15. As a general rule, which court has original jurisdiction to try money laundering cases
committed by private individuals?
A. Municipal trial court
B. Court of Tax Appeals
C. Regional Trial Court
D. Sandiganbayan

16. Who among the following is not a part of Anti-Money Laundering Council?
A. BSP Governor as chairperson of AMLC
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B. Insurance Commissioner as member of AMLC
C. SEC Chairperson as member of AMLC
D. BIR Commisioner as member of AMLC

17. Which of the following is not a minimum customer identification to be required by a

covered person from its client or customer?
A. Name of customer, date and place of birth and present and permanent address
B. Nationality of customer
C. Nature of work and name of employer
D. Name of all relatives of customer

18. Which court has the jurisdiction to issue a freeze order on bank accounts upon verified ex
parte petition by the AMLC and after determination that probable cause exists that any
monetary instrument or property is in any way related to an unlawful activity?
A. Court of Appeals
B. Municipal Trial Court
C. Regional Trial Court
D. Court of Tax Appeal

19. Which of the following is not a predicate crime of Money Laundering Offense?
A. Swindling
B. Adultery
C. Fencing
D. Illegal recruitment

20. What is the minimum retention period of all records of customer identification and
transaction documents their customers by a covered person under Anti-Money Laundering
Law?
A. At least 1 year from the date of transaction or from date of closure of the account
B. At least 3 years from the date of transaction or from date of closure of the account
C. At least 5 years from the date of transaction or from date of closure of the account
D. At least 10 years from the date of transaction or from date of closure of the account

21. What quantum of evidence must be present to AMLC before it may file with the Regional
Trial Court through Office of Solicitor General a verified petition for civil forfeiture of any
monetary instrument or property is in any way related to an unlawful activity or a money
laundering offense?
A. Probable cause
B. Preponderance of evidence
C. Proof beyond reasonable doubt
D. Clear and convincing evidence

22. As an exception to the rule, which court has original jurisdiction to try money laundering
cases committed by public officers with salary of at least 27 and private persons im conspiracy
with such public officers?
A. Municipal trial court
B. Court of Tax of Appeals
C. Regional Trial Court
D. Sandiganbayan

23. Which of the following statements about the preventive measures provided by Anti-Money
Laundering Law is correct?
A. Covered persons shall establish and record the true identity of their clients based on official
documents, as defined under Rule 3 of RIRR of AMLA.
B. Covered persons shall conduct face-to-face contact at the commencement of the
relationship, or as reasonably practicable so as not to interrupt the normal conduct of business.
C. Both A and B
D. Neither A nor B

24. Which of the following is not a predicate crime of Money Laundering Offense?
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A. Voyeurism
B. Extortion
C. Smuggling
D. Homicide

25. Which of the following is not a predicate crime of Money Laundering Offense?
A. Violations of Intellectual Property Code
B. Fraudulent practices and other viations of the Securities Regulation Code
C. Forgeries and couhterdfdeighting
D. Rebellion

26. How shall the AMLC make decision in the discharge of its function?
A. By majority vote of the three
B. By unanimous vote of the three
C, By 1/3 vote of the three
D. Any of the above

27. Which of the following is necessary or condition precedent before the commencement or
resolution of petition for civil forfeiture of any monetary instrument or property is in any way
related to an unlawful activity or a money laundering offense?
A. Prior criminal charge of unlawful activity
B. Prior conviction of unlawful activity
C. Prior criminal charge of money laundering offense
D. Prior conviction of money laundering offense
E. None of the above

28. When there is conviction for money laundering, to whom shall the monetary instrument or
property found to be proceeds of an unlawful activity go to?
A. It shall be awarded by the regional trial court to the convicted person.
B. It shall be awarded by the regional trial court to the innocent contracting party.
C. It shall be forfeited by the regional trial court in favor of the Government of the Republic of
the Philippines.
D. It shall be given to nonstock nonprofit charitable institutions.

29. Which of the following laws does not pertain to Anti-Money Laundering Law?
a. RA 11521
b. RA 10927
c. RA 10168
d. RA 9160

30. Which of the following is the Supervising Authority of holding companies?

a. Bangko Sentral ng Pilipinas
b. Insurance Commission
c. Securities and Exchange Commission
d. None of the above

- Nothing Follows -

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