Professional Documents
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Bank Secrecy Law and Truth in Lending Act
Bank Secrecy Law and Truth in Lending Act
Bank Secrecy Law and Truth in Lending Act
8. The AMLC can examine bank accounts, WITHOUT a court order, where there is
probable cause that the deposits are related to certain crimes such as kidnapping
for ransom, violation of the Dangerous Drugs Act, hijacking, destructive arson,
murder and violations of RA 6235 (acts inimical to civil aviation);
Exceptions
9. In cases of terrorism under the Human Security Act of 2007 or Republic
Act No. 9372 (Court Order)
10. The Bangko Sentral can examine bank accounts in the course of its
periodic or special examination regarding compliance with Anti-Money
Laundering Law, and to investigate unsafe and unsound banking practices..
11. Prosecution for violation of the anti-graft and corrupt practices act.
12. Under the Unclaimed Balances law, the bank may disclose to the National
Treasurer information concerning dormant deposits for the purpose of
initiating escheat proceedings.
Prohibition
It shall be unlawful for any official or employee of a banking
institution to disclose to any person other than those mentioned in
Section two hereof any information concerning said deposits.
Penalty
Any violation of this law will subject offender upon conviction, to an
imprisonment of not more than five years or a fine of not more than
twenty thousand pesos or both, in the discretion of the court.
How about foreign currency deposits?
For foreign currency deposits, Republic Act No. 6426 (The Foreign Currency
Deposit Act) similarly declares that these deposits are of an absolutely confidential
nature and cannot be examined, inquired or looked into by any person,
government official, bureau or office whether judicial or administrative or
legislative or any other entity whether public or private.
There is only one instance for disclosure under said law and, that is, upon the
written permission of the depositor. RA 6426 also exempts foreign currency
deposits from attachment, garnishment, or any other order or process of any
court, legislative body, government agency or any administrative body whatsoever.
TRUTH IN LENDING ACT
REPUBLIC ACT No. 3765
AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN
CONNECTION WITH EXTENSIONS OF CREDIT
Declaration of Policy
e. Any option, demand, lien, pledge, or other claim against, or for delivery of,
property or money;
f. Any purchase, or other acquisition of, or any credit upon security of any
obligation or claim arising out of any of the foregoing; and
(1) Credit transactions which do not involve the payment of any finance
charge by the debtor; and
Trade-in represents the value of an asset agreed upon by the bank and
debtor, given at the time of the transaction in partial payment for the
property or service purchased.
Finance charge includes interest, fees, service charges, discounts, and such
other charges incident to the extension of credit.
Simple annual rate is the uniform percentage which represents the ratio
between the finance charge and the amount to be financed under the
assumption that the loan is payable in one (1) year with single payment upon
maturity and there are no upfront deductions to principal.
Information to be disclosed prior to the
consummation of the transaction
As a general rule, loan terms shall be disclosed to all types of borrower
(3) the difference between the amounts set forth under clauses (1) and
(2);
Information to be disclosed prior to the
consummation of the transaction
(4) the charges, individually itemized, which are paid or to be paid by such
person in connection with the transaction but which are not incident to the
extension of credit;
(6) the finance charge expressed in terms of pesos and centavos; and
(7) the percentage that the finance bears to the total amount to be financed
expressed as a simple annual rate on the outstanding unpaid balance of the
obligation.
Right to demand disclosure statement