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Question XVIII

2018 Bar · Mercantile Law · 2 sub-questions

XVIII. Through various acts of graft and bribery, Mayor Ycasiano accumulated a large amount of wealth which he converted into U.S. dollars and deposited in a Foreign Currency Deposit Unit (FCDU) account with the Yuen Bank (YB). On a tip given by the secretary of the mayor, the Anti-Money Laundering Council (AMLC) sent an order to YB to confirm the amount of U.S. dollars that Mayor Ycasiano had in his FCDU account. YB claims that, under the Foreign Currency Deposit Act (R.A. No. 6426, as amended), a written permission from the depositor is the only instance allowed for the examination of FCDU accounts. YB alleges that AMLC on its own cannot order a banking institution to reveal matters relating to bank accounts.
(a)(a) Is the legal position of YB, in requiring written permission from the depositor, correct? (2.5%)
(b)(b) Does AMLC have the power to order a banking institution to reveal matters relating to bank accounts? (2.5%) -NOTHING FOLLOWS- The Lawphil Project - Arellano Law Foundation

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