Practice question
A conventional bank receives appropriate authority for a designated Islamic banking unit. Management proposes commingling that unit’s transactions with conventional business because both occur in one legal entity. Which is correct?
- One entity automatically eliminates all segregation duties
- Only cash transactions must ever be identified
- Section 3 requires a system segregating the unit’s transactions from conventional banking business.
- The unit automatically becomes a nonbank partnership
- The bank may ignore the authorization’s legal framework
Legal references
- RA 11439 (2019), Sections 2-4, expanded Islamic banking framework: https://lawphil.net/statutes/repacts/ra2019/ra_11439_2019.html
Answer this question in flashcards to review your response and continue practicing.