Question 1

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

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

Answer: B. Money laundering is a crime whereby the proceeds of an unlawful activity are transacted,
thereby making them appear to have originated from legitimate sources.

Question 2
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

Answer: B. A covered transaction is a transaction in cash or other equivalent monetary instrument

involving a total amount of more than P500,000 within 1 banking day. (Note: the more than P4,000,000
threshold was before the amendments made under RA No. 9194).

Question 3
True/False. The “more than P500,000” threshold applies to “suspicious transactions”.

Answer: False. Suspicious transactions are transactions with covered institutions, regardless of the
amounts involved, where any of the circumstances enumerated in the law exist.

Question 4
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

Answer: C. The phrase should read as: “not commensurate”.

Question 5
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

Answer: D. Covered persons shall not include lawyers and accountants acting as independent legal
professionals in relation to information concerning their clients or where disclosure of information would
compromise client confidences or the attorney-client relationship.

Question 6
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
D. PDIC – Philippine Deposit Insurance Commission

Answer: C. Covered persons shall report to the AMLC all covered transactions and suspicious
transactions.

Question 7
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