Synthesis

Midterm Examination
First Semester, Q1-School Year 2020-2021

Name: _____________________________ Date: _____________________

Year and Course: ____________________ Instructor: _________________

MULTIPLE CHOICE
Direction: Choose the letter of the correct answer.
_______1. “Covered persons”, natural or juridical, refer to:
a. Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, money changers, remittance and
transfer companies and other similar entities and all other persons and their subsidiaries and affiliates supervised or
regulated by the Bangko Sentral ng Pilipinas (BSP);
b. Insurance companies, pre-need companies and all other persons supervised or regulated by the Insurance Commission (IC);
c. (i) Securities dealers, brokers, salesmen, investment houses and other similar persons managing securities or rendering
services as investment agent, advisor, or consultant, (ii) mutual funds, close-end investment companies, common trust funds,
and other similar persons, and (iii) other entities administering or otherwise dealing in currency, commodities or financial
derivatives based thereon, valuable objects, cash substitutes and other similar monetary instruments or property supervised
or regulated by the Securities and Exchange Commission (SEC);
d. All of the above

_______2. Unlawful activity refers to any act or omission or series or combination thereof involving or having direct relation to the following:
a. Kidnapping for ransom under the revised Penal Code
b. The Comprehensive Dangerous Drugs Act of 1972
c. The Anti-Graft and Corrupt Practices Act
d. All of the above

_______3. Shall mean gold, silver, platinum, palladium, rhodium, ruthenium, iridium and osmium. These include alloys of precious metals, solders
and plating chemicals such as rhodium and palladium plating solutions and potassium gold cyanide and potassium gold cyanide and silver cyanide in
salt solution.
a. Precious metals c. Precious gems
b. Precious stones d. None of the choices

_______4. Shall mean diamond, ruby, emerald, sapphire, opal, amethyst, beryl, topaz, and garnet that are used in jewelry making, including those
formerly classified as semi-precious stones.
a. Precious metals c. Precious gems
b. Precious stones d. None of the choices

_______5. Is committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any
unlawful activity.
a. Money gambling c. Money transacting
b. Money laundering d. Money washing

_______6. Money laundering is committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to
the proceeds of any unlawful activity:
a. Transacts said monetary instrument or property
b. Converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or property
c. Conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said
monetary instrument or property
d. All of the above

_______7. I. Covered institutions shall establish and record the true identity of its clients based on official documents.
II. All records of all transactions of covered institutions shall be maintained and safely stored for five (5) years from the date of
transactions.
a. Only I is true c. Both are true
b. Only II is true d. Both are false

_______8. No administrative, criminal or civil proceedings, shall lie against any person for having made a covered transaction report of a suspicious
transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any criminal prosecution under
this Act or any other Philippine law.
a. Safe harbor provisions c. Safe provisions
b. Save harbor provisions d. None of the choices

_______9. Suspicious transactions refer to transactions with covered institutions, regardless of the amount involved, where any of the following
circumstances exist:
a. No underlying legal or trade obligation, purpose or economic justification
b. Client is properly identified
c. Amount involved commensurate with client’s business or financial capacity
d. Based on all known circumstances, it may be perceived that client’s transaction is not structured in order to avoid being
subject of reporting requirements
_______10. Jewelry dealer is a covered institution if it deals in precious metals, who as a business or trade in excess of:
a. P10,000,000 c. P1,000,000
b. P5,000,000 d. P500,000

_______11. A covered person is obligated to keep records for how many years?
a. 5 c. 3
b. 4 d. 2

_______12. A covered person is obligated to report covered and/or suspicious transactions to AMLC within how many days from occurrence?
a. 5 working days c. 7 working days
b. 5 calendar days d. 7 calendar days

_______13. The ALMC can prescribe a different period for reporting covered/or suspicious transactions to AMLC as long as it does not exceed:
a. 10 working days c. 15 working days
b. 10 calendar days d. 15 calendar days

_______14. Which professionals are not required to report covered and/or suspicious transactions if the relevant information was obtained in
circumstances where they are subject to professional secrecy or legal professional privilege?
a. Lawyers and accountants c. Accountants only
b. Lawyers only d. All professionals are required

_______15. 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:
a. Covered transaction c. Both a suspicious and covered transaction
b. Suspicious transaction d. At the election of the covered institution

_______16. All cases in money laundering shall be within the jurisdiction of:
a. Regional Trial Courts c. Sandiganbayan
b. Court of Appeals d. Court of Tax Appeals

_______17. It is an extraordinary and interim relief issued to prevent the dissipation, removal, or disposal of properties that are suspected to be the
proceeds of, or related to, unlawful activities as defined in RA9160:
a. Status quo ante order c. Writ of injunction
b. Temporary restraining order d. Freeze order

_______18. The power to freeze accounts is vested unto:

a. AMLC c. Court of Tax Appeals
b. Court of Appeals d. Supreme Court

_______19. What are the requisites for issuance of freeze order?

a. Application ex parte by AMLC only
b. Determination of probable cause by CA only
c. Application ex parte by AMLC and determination of probable cause by CA
d. Application ex parte by AMLC and determination of probable cause by AMLC

_______20. The court should act on the petition to freeze within how many hours from filing thereof?
a. 24 c. 48
b. 36 d. 72

_______21. Administrative expenses shall refer to those reasonable and necessary expenses:
a. Incurred or arising from the filing of a petition under the provisions of this Act
b. Arising from, or in connected with, the conduct of the proceedings under R.A. 10142, including those incurred for the
rehabilitation or liquidation of the debtor
c. Incurred in the ordinary course of business of the debtor after the commencement date
d. All of the above

_______22. Shall refer to a corporation that directly or indirectly, through one or more intermediaries, is controlled by, or is under the common
control of another corporation.
a. Administrative expenses c. Claim
b. Affiliate d. Commencement date

_______23. Shall refer to all demands of whatever nature or character against the debtor or its property, whether for money or otherwise, liquidated
or unliquidated, fixed or contingent, matured or unmatured, disputed or undisputed.
a. Administrative expenses c. Claim
b. Affiliate d. Commencement date

_______24. Shall refer to the date on which the court issues the Commencement Order, which shall be retroactive to the date of filing of the petition
for voluntary or involuntary proceedings.
a. Affiliate c. Commencement order
b. Date of liquidation d. Commencement date

_______25. Shall refer to a natural or juridical person which has a claim against the debtor that arose on or before the commencement date.
a. Creditor c. Days
b. Debtor d. Encumbered property

_______26. Shall refer to the date on which the court issues the Liquidation Order.
a. Affiliate c. Commencement order
b. Date of liquidation d. Commencement date
_______27. A sole proprietorship duly registered with the Department of Trade and Industry (DTI), a partnership duly registered with the Securities
and Exchange Commission (SEC), a corporation duly organized and existing under Philippine laws, or an individual debtor who has become
insolvent.
a. Creditor c. Days
b. Debtor d. Encumbered property

_______28. Shall refer to real or personal property of the debtor upon which a lien attaches.
a. Encumbered property c. General unsecured creditor
b. Group of debtors d. Individual debtor

_______29. Shall refer to a creditor whose claim or a portion thereof is neither secured, preferred nor subordinated.
a. Encumbered property c. General unsecured creditor
b. Group of debtors d. Individual debtor

_______30. Group of debtors shall refer to and can cover only:

a. Corporations that are financially related to one another as parent corporations, subsidiaries or affiliates
b. Partnerships that are owned more than fifty percent (50%) by the same person
c. Single proprietorships that are owned by the same person
d. All of the above

______31. It refers to any information whether recorded in a material form or not, from which the identity of an individual is apparent or can be
reasonably and directly ascertained by the entity holding the information, or when put together with other information would directly and certainly
identify an individual.
a. Data subject c. Privileged information
b. Personal information d. Sensitive personal information

_______32. It refers to any and all forms of data which under the Rules of Court and other pertinent laws constitute privileged communication.
a. Data subject c. Privileged information
b. Personal information d. Sensitive personal information

_______33. First Statement: DPA applies to the processing of all types of personal information and to any natural and juridical person involve in
personal information processing including those personal information controllers and processors who, although not found or established in the
Philippines, use equipment that are located in the Philippines, or those who maintain an office, branch or agency in the Philippines, except when
DPA is not applicable, subject to the requirements of extraterritorial application.

Second Statement: The Data Privacy Act is applicable to information about any individual who is or was an officer or employee of a government
institution that relates to the position or functions of the individual.
a. Only the first statement is true c. Both of the statements are true
b. Only the second statement is true d. None of the statements is true

_______34. Which information is/are not covered by the Data Privacy Act?
a. About an individual who is or was performing service under contract for a government institution that relates to the service
performed
b. Relating to any discretionary benefit of a financial nature such as the granting of a license or permit given by the
government to an individual
c. Processed for journalistic, artistic, literary or research purposes
d. All of the above

_______35. Which information is/are not covered by the Data Privacy Act?
a. Necessary in order to carry out functions of public authority
b. Necessary for banks and other financial institutions under the jurisdiction of the independent, central monetary authority or
Bangko Sentral ng Pilipinas to comply with RA 9510 and RA 9160, as amended
c. Originally collected from residents of foreign jurisdictions in accordance with the laws of those foreign jurisdictions,
including any applicable data privacy laws, which is being processed in the Philippines
d. All of the above

_______36. First Statement: The Data Privacy Act did not amend or repeal the provisions of RA 53, which affords the publishers, editors or duly
accredited reporters of any newspaper, magazine or periodical of general circulation protection from being compelled to reveal the source of any
news report or information appearing in said publication which was related in any confidence to such publisher, editor, or reporter.

Second Statement: The Data Privacy Act applies to an act done or practice engaged within the Philippines by an entity only and does not apply to
those done and engaged outside of the Philippines.
a. Only the first statement is true c. Both of the statements are true
b. Only the second statement is true d. None of the statements is true

_______37. Which of the following is/are the functions of the National Privacy Commission?
a. Ensure compliance of personal information controllers with the DPA
b. Issue cease and desist orders, impose a temporary or permanent ban on the processing of personal information, upon
finding that the processing will be detrimental to national security and public interest
c. Compel or petition any entity, government agency or instrumentality to abide by its orders or take action on a matter
affecting data privacy
d. All of the above

_______38. First Statement: The National Privacy Commission, shall ensure at all times the confidentiality of any personal information that comes to
its knowledge and possession.

Second Statement: The National Privacy Commission is attached to the Department of Information and Communications Technology (DICT).

a. Only the first statement is true c. Both of the statements are true
b. Only the second statement is true d. None of the statements is true

________39. Who heads the National Privacy Commission?

a. Privacy Chairman c. Privacy President
b. Privacy Commissioner d. Privacy Head
________40. What are the two responsibilities of the Deputy Privacy Commissioners?
a. Data Processing Systems and Policies and Planning
b. Data Collection Systems and Policies and Planning
c. Data Processing Systems and Finance
d. Data Privacy Systems and Policies and Performance
_______41. The Electronic Commerce Act applies to any kind of data message and electronic document used in the context of _____ activities to
include _____ dealings, transactions, arrangements, agreements, contracts, and exchanges and storage of information.
a. Commercial and non-commercial; domestic and international
b. Only commercial; domestic and international
c. Only commercial; only domestic
d. Commercial and non-commercial; only domestic

_______42. It refers to information generated, sent, received, or stored by optical or similar means.
a. Electronic key c. Electronic signature
b. Electronic data message d. Electronic document

_______43. It refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or
logically associated with the electronic data message or electronic document.
a. Electronic key c. Electronic signature
b. Electronic data message d. Electronic document

_______44. It refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or
however represented, by which a right is established or an obligation extinguished, or by which a fact may be prove and affirmed, which is receive,
recorded, transmitted, stored, processed, retrieved or produced electronically.
a. Electronic key c. Electronic signature
b. Electronic data message d. Electronic document

______45. It refers to a secret code which secures and defends sensitive information that cross over public channels into a form decipherable only
with a matching electronic key.
a. Electronic key c. Electronic signature
b. Electronic data message d. Electronic document

______46. These are shares, participation or interests in a corporation or in a commercial enterprise or profit-making venture and evidenced by a
certificate, contract, instruments, whether written or electronic in character.
a. Shares c. Securities
b. Bonds d. Interest

______47. Securities includes:

a. Shares of stocks, bonds, debentures, notes evidences of indebtedness, asset-backed securities
b. Investment contracts, certificates of interest or participation in a profit-sharing agreement, certifies of deposit for a future
subscription
c. Fractional undivided interests in oil, gas or other mineral rights
d. All of the above

______48. This is the original, maker, obligor, or creator of the security.

a. Dealer c. Issuer
b. Broker d. Associated person of a broker or dealer

______49. This is a person engaged in the business of buying and selling securities for the account of others.
a. Dealer c. Issuer
b. Broker d. Associated person of a broker or dealer

______50. Means many persons who buys sells securities for his/her own account in the ordinary course of business.
a. Dealer c. Issuer
b. Broker d. Associated person of a broker or dealer