RFBT Special Topics
RFBT Special Topics
RFBT Special Topics
Special Topics
MATALUBOS, REYDEN MEIR.
BS ACCOUNTANCY 4
1. Anti-Money Laundering Law
(AMLA) – R.A. 9160
Declaration of Policy
It is hereby declared the policy of the state to protect and
preserve the integrity and confidentiality of bank accounts and
to ensure that the Philippines shall not be used as a money
laundering site for the proceeds of any unlawful activity.
Definition
Money Laundering – is committed by any person who knowingly
that any monetary instrument or property represents, involves, or
relates to the proceeds of any unlawful activity.
I. Covered Transactions
A transaction in cash or other equivalent monetary
instrument exceeding Five Hundred Thousand pesos (Php
500,000.00).
A transaction exceeding One Miliion pesos (Php
1,000,000.00) in cases of jewelry dealers in precious meatals
and dealers in precious stones.
II. Suspicious Transactions
1.) No underlying legal or trade obligation or economic
justification
2.) The client is not properly identified
3.) The amount involved is not commensurate with
business financial capacity
4.) the transaction is structured to avoid being the
subject of reporting requirements in AMLA.
5.) Transactions which is observed to deviate from the
profile of the client
6.) Any transactions that is similar , analogous or identical
to any of the foregoing.
III. Covered persons required to report AMLC
1. ) Banks , Pawnshops, Money Changers, Remittance
Centers, and all other entity regulated by BSP.
2.) Insurance Companies, Holdings, Insurance Brokers
and other entity regulated by Insurance Commissions.
3.)Securities Dealers , brokers, salesmen, investment
houses, and other entity regulated by SEC.
IV. Persons excluded to report
transactions to AMLC
1. Lawyers, if acting as independent legal professionals
in relation to its client.
2. Certified Public Accountants, if acting as independent
legal professionals in relation to its client.
V. Transaction Reporting
Covered persons shall report to the AMLC all covered
transactions and suspicious transactions within five (5)
working days , unless the AMLC prescribes any period
not exceeding fifteen (15) working days from
occurrence (date discovery not date of transaction)
VI. Freeze Order
The Court of Appeals may issue a freeze order which shall be
effective immediately and shall not exceed six (6) months .
Notwithstanding with R.A. 1405, AMLC may inquire or
examine any particular deposit or account upon order of
Court of Appels based on exparte application.
VII. Can AMLC may inquire into bank account without court
order ?
Predicate crimes may authorize AMLC to inquire bank accounts
even without Court order from Court of Appeals such as the ff.:
1. Kidnapping for Ransom
2. R.A. 9165
3. Hijacking, destructive arson, murder
4. Felonies
5. Terrorism, Financing and conspiracy to commit terrorism.
QUIZ
1. Which of the following is a covered person, therefore required to
report to AMLC reportable or suspicious transactions.
A. Stock Brokers
B. Lawyers acting as independent legal counsel
C. CPA, acting as independent external auditor
D. None of the Above
ANSWER: A. Stock Brokers
2. Quasi banks , insurance agents , dealers of securities and brokers
are not required to report to AMLC any suspicious transactions since
they are covered persons to report.
FALSE. They are required.
3. Regional Trial Court shall have the jurisdiction of money
laundering cases committed by public officers.
False. Sandiganbayan have jurisdiction in this case.
2. Financial Rehabilitation and
Insolvency Act (FRIA) – R.A. 10142
Definition of Insolvency
Insolvency shall refer to (1) the financial condition of the debtor
that is generally unable to pay its liabilities as they fall due in the
ordinary course of business or (2) financial condition of a debtor
when he has liabilities greater than his assets.
I. Suspension of Payments
An individual debtor who has sufficient property to cover all his
debts but foresees the impossibility of meeting them may file a
petition that he should be declared in the State of Suspension of
Payments by the court of the city or province attaching his
1. Schedule of Debts and Liabilities 2. Inventory of Assets
3. Proposed agreement with Creditors
I.A. Effect of Suspension of payments
1.) Creditors will be called for meeting and be directed to
present written evidence of their claims.
2.) Publication, within 7 days from issuance of order, in a
newspaper in general circulation once a week for two
consecutive week,.
3.) Forbidding the individual debtor from disposing of his
property and making any payment outside of the necessary
expenses.
4.) The creditor cannot sue to collect claims from debtor
except for the secured creditors (secured property are not
subject to suspension order.
5.) The order shall lapse when three (3) months have passed,
no proposed agreement have been accepted or such is
denied.
I.B. Approval and Rejection of Suspension Order
1. The presence of creditors holding at least three-fifths (3/5) of
the liabilities shall constitute a quorum for approval of order.
2. Double Majority Rule: To approve the proposal of insolvent
debtor the vote of a.) at least 2/3 of the creditors are required
and b.) the claims represented by said majority constitute at
least 3/5 of the total liabilities of the debtor.
3. The proposed agreement is deemed rejected when the
quorum for meeting was not met or if it was met, double
majorities for the approval of proposed agreement have not
been met achieved.
4.) If approved, the court shall order that the agreement shall
be carried and creditors shall be bound by its terms.
5.) If rejected , all rights which the creditors had before the order
shall revert to them and the creditor may be made subject to
the insolvency proceedings established by this act.
II. Voluntary Liquidation by Insolvent
Individual Debtor
Voluntary Liquidation is initiated by the debtor itself. An
individual debtor whose properties are not sufficient to
cover his liabilities and owing debts exceeding Five
Hundred Thousand pesos (Php 500,000.00) , may apply
to be discharged from his debts by filling a petition with
the court of the province he resided by attaching
a.) schedule of his debts and liabilities and
b.) inventory of his assets.
If the court finds the petition sufficient in form and
substance, it shall issue the Liquidation Order within five
(5) working days.
III. Involuntary Liquidation by Insolvent Debtor
This application is initiated by any creditor or group of
creditors with a claim , or with claims aggregating at least Five
Hundred thousand pesos (Php 500,000.00) may file a verified
petition for liquidation with court of the province or city in
which the individual debtor resides.
iii.1. Acts of Insolvency which must be alleged by the creditors
in the petition
1. The creditor is about to depart or being absent with intent to defraud his creditors
2. That he conceals himself to avoid the service of legal process or is removing any of
his property to avoid being attached on legal process.
3. That he has suffered his property for purpose of hindering or delaying the liquidation.
4. That he has transferred by gift, sale, assignment grant or transfer to his estate his
properties in contemplation of insolvency.
5. That being a tradesman, he has generally defaulted in the payment of his
obligations for a period of (30) days.
iii.2. Effects of Involuntary Liquidation
Upon filling such creditor’s petition, the court shall issue a
Show Cause order requiring the individual debtor to
show cause, at a time any place fixed by the court, why
he should not be adjudged an insolvent.
Upon showing of good cause, the court may issue Order
forbidding the individual debtors from making any
payments of any debts and transferring his property. This
order shall not impair the rights of a secured creditor to
enforce his lien.
If after trial , the issues are found in favor of creditors , the
court shall issue the Liquidation Order.
IV. Corporate Rehabilitation
Definition of Terms
Rehabilitation shall refer to the restoration of the debtor to a
condition of successful operation and solvency, if it was shown
that its continuance of operation is economically feasible and its
creditors can recover by way of the present payments projected
in the plan, more if the debtor continues as a going concern
than if it is immediately liquidated.
Rehabilitation Plan shall refer to any plan by which the financial
well-being and viability of an insolvent debtor can be restored
using various means such as Debt forgiveness, debt restructuring,
reorganization, dacion en pago and sale of business or setting
up a new business or other similar arrangements as may be
approved by the court or creditors.
IV.1. Court-Supervised Rehabilitation
1. Voluntary Court-Supervised Rehabilitation
Must approved by the owner or by majority of the partners or
majority of BOD , authorized by stockholder rep. 2/3 outstanding
capital stock.
GROUNDS
1. The debtor is generally unable to pay its or his liabilities as they
fall due in ordinary course of business
2. The debtor has liabilities that are greater than his assets
2. Involuntary Court supervised Rehabilitation
Any group of creditors with a claim of aggregate of at least One
Million Pesos (Php 1,000,000.00) or at least 25% of the subscribed
capital or partners contribution , may initiate involuntary
proceedings against the debtor by filing petition for
rehabilitation.
IV.2. Court Action on Petition for
Rehabilitation
If the court finds the petition for rehabilitation to be
sufficient in form and substance , it shall issue a
Commencement Order within 5 working days from filling
of petition. The rehabilitation proceeding shall
commence upon the issuance of the Commencement
Order.
The rehabilitation proceedings of an insolvent debtor
shall commence upon issuance by the rehabilitation
court of Commencement order which shall include
among other a Stay order or suspension order.
IV.3. Effects of Issuance by Rehabilitation
court of stay or suspension order
It shall suspend all actions or proceedings for the
enforcement of claims against the debtor.
It shall suspend all actions to enforce any judgement ,
attachment or other provisional remedies against the
debotor.
It shall prohibit the debtor from alienating his property.
It shall prohibit the debtor from making any payment ,
except for the right of a secured creditor which would
not be impair by this act.
Approval of the Rehabilitation Plan
The plan shall be deemed rejected unless approved by all
classes of creditors whose right are adversely modified or
affected by the plan.
The plan is said to be deemed approved by class of creditors
if members of said class holding more than fifty (50%) of the
total claims of said class vote for its favor.
TRUE OR FALSE
A bank has its buying and selling foreign exchange transactions. Under
the General Banking Law , the bank is required to exercise extra-
ordinary diligence.