2013 (Mercantile Law) Bar Exam Questions: Essay Question 3

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III.

From his first term in 2007, Congressman Abner has been endorsing his. pork barrel allocations to Twin Rivers in exchange for a commission of 40% of the face value of the allocation. Twin Rivers is a non-governmental organization whose supporting papers, after audit, were found by the Commission on Audit to be fictitious. Other than to prepare and submit falsified papers to support the encashment of the pork barrel checks, Twin Rivers does not appear to have done anything on the endorsed projects and Congressman Abner likewise does not appear to have bothered to monitor the progress of the projects he endorsed. The congressman converted most of the commissions he generated into US dollars, and deposited these in a foreign currency account with Banco de Plata (BDP).

Based on amply-supported tips given by a congressman from another political party, the Anti-Money Laundering Council sent BDP an order: (1) to confirm Cong. Abner’s deposits with the bank and to provide details of these deposits; and (2) to hold all withdrawals and other transactions involving the congressman’s bank accounts.

As counsel for BDP, would you advise the bank to comply with the order? (8%)

5 comments

  1. No as to both question, first only the court can order the confirmation not the AMLC, and that the acccount is FCDU hence only the owner can authorized the same. Second only the Court of Appeals can issue a freeze order.

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