Practice question
A bank officer knowingly helps break an above-limit account into unrelated nominees' accounts, lacking beneficial ownership, within the statutory window to multiply insurance. She argues the anti-splitting prohibition addresses depositors alone. What is the best response?
- The Charter expressly addresses participation by bank directors, officers, employees and agents in deposit splitting.
- Correct; bank personnel may organize splitting without consequence.
- Correct; a bank signature necessarily creates beneficial ownership.
- Only the printing company can be responsible.
- The prohibition applies only to foreign banks.
Legal references
- RA 10846, deposit splitting prohibition and definition: https://lawphil.net/statutes/repacts/ra2016/ra_10846_2016.html
- Linsangan v. PDIC, G.R. No. 228807, February 11, 2019, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/23/64987
- RA 11840, Section 4 amending PDIC Charter Section 5(k): https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/95626
Answer this question in flashcards to review your response and continue practicing.