Amending Republic Act No. 1405 (Bank Secrecy Act)

Sciate TWENTIETH CONGRESS OF THE ) Office of the Sarcetarp REPUBLIC OF THE PHILIPPINES 25 SEP -9 P3:59 ) First Regular Session RECEIVED BY: SENATE Senate Bill No. 1364 Introduced by Senator Erwin T. Tulfo AN ACT AMENDING REPUBLIC ACT NO. 1405, OTHERWISE KNOWN AS THE BANK SECRECY ACT EXPLANATORY NOTE In Republic vs. Eugenia!. , the Supreme Court emphasized that "any exception to the rule of absolute confidentiality must be specifically legislated. Section 2 of Republic Act No. 1405 or the Bank Secrecy Act itself prescribes exceptions whereby these bank accounts may be examined by "any person, government official, bureau or office"; namely when: (1) upon written permission of the depositor; (2) in cases of impeachment; (3) the examination of bank accounts is upon order of a competent court in cases of bribery or dereliction of duty of public officials; and (4) the money deposited or invested is the subject matter of the litigation." Republic Act No. 1405 was enacted in September 1955 primarily to encourage banking confidence and protect depositors. However, in reality it has often been abused as a shield by corrupt public officials. ' Republic vs. Eugenia, G.R. No. 174629 (14 Feb 2009)

This measure proposes to amend the law by authorizing a competent court or investigating body to examine the bank deposits of public officials. For these reasons, the passage of this measure is earnestly sought.

Senate TWENTIETH CONGRESS OF THE Office of the Birdlaty REPUBLIC OF THE PHILIPPINES First Regular Session 25 SEP -9 P3:59 RECEIVED BY: SENATE Senate Bill No. 1364 Introduced by Senator Erwin T. Tulfo AN ACT AMENDING REPUBLIC ACT NO. 1405, OTHERWISE KNOWN AS THE BANK SECRECY ACT Be it enacted by the Senate and House of the Philippines in Congress assembled:

SECTION 1. Section 2 of Republic Act No. 1405, otherwise

known as the "Secrecy of Bank Deposits Law" is hereby amended to read as follows: "Section 2. All deposits of whatever nature with banks or banking institutions in the Philippines including investments in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities, are hereby considered as of an absolutely confidential nature and may not be examined, inquired, or looked into by any person, government official, bureau or office, except: A. [* Upon written permission of the depositor [- oF]; B. [*In the cases of impeachment [, or]; C. [*]Upon order of a competent court OR INVESTIGATING BODY, [in cases of bribery er dereliction of duty of public officials, or in]

WHEN THE DEPOSITOR IS A PUBLIC OFFICIAL; OR D. tIn cases where the money deposited or invested is the subject matter of the litigation."

SEC. 2. Separability Clause. - Should any provision or part of

7 this Act be declared unconstitutional or invalid, the other provisions and parts hereof, insofar as they are separable from the invalid ones, shall remain in full force and effect.

SEC. 3. Repealing Clause. - All laws, decrees, orders,

12 proclamations, rules and regulations, or parts thereof, which are inconsistent with this Act are hereby repealed, amended, or modified accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,