Ofter of and TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL 10 P4:12 SENATE S. No. 397 RECEIVED 6, Introduced by Senator Panfilo M. Lacson AN ACT FURTHER STRENGTHENING THE FOREIGN CURRENCY DEPOSIT LAW, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6426 OTHERWISE KNOWN AS THE "FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES," AS AMENDED EXPLANATORY NOTE Republic Act No. 6426, enacted in 1972, guarantees the confidentiality of foreign currency deposits, with the sole exception of cases where the depositor provides written consent. This stance persists despite the global shift towards greater financial transparency. This provision renders the Philippines unique in maintaining one of the most restrictive bank secrecy policies worldwide, thereby impeding the government's efforts to investigate and prosecute tax evasion and money laundering. The proposed bill seeks to amend the law by establishing a clear and narrowly defined exception: public officials and employees shall not be entitled to the confidentiality of foreign currency deposits. This amendment aligns the statute with as constitutional mandates on transparency and accountability, as well with international standards for financial oversight and integrity. In view of the foregoing, the early passage of this measure is earnestly requested PANEL M. LACSON Senator
TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL 10 P4.12 First Regular Session SENATE RECENTLU D S. No. 397 Introduced by Senator Panfilo M. Lacson AN ACT FURTHER STRENGTHENING THE FOREIGN CURRENCY DEPOSIT LAW, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6426 OTHERWISE KNOWN AS THE "FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES," AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. - Section 8 of Republic Act No. 6426, as amended, is hereby
2 amended to read as follows: "Section 8. Secrecy of foreign currency deposits. - All foreign currency deposits authorized under this Act, as amended by PD No. 1035, as well as foreign currency deposits authorized under PD No. 1034, are hereby declared as and considered of an absolutely confidential nature and, except upon the written permission of the depositor, OR WHEN THE DEPOSITOR IS AN ELECTIVE OR APPOINTIVE OFFICIAL OR EMPLOYEE OF THE REPUBLIC OF THE PHILIPPINES INCLUDING THE OFFICERS AND MEMBERS OF THE ARMED FORCES OF THE PHILIPPINES (AFP), THE PHILIPPINE NATIONAL POLICE (PNP), AND ALL MEMBERS OF THE UNIFORMED SERVICES, AND OFFICERS AND EMPLOYEES OF GOVERNMENT OWNED AND CONTROLLED CORPORATIONS AND THEIR SUBSIDIARIES, in no instance shall foreign currency deposits be examined, inquired or looked into by any person, government official, bureau or office whether judicial or administrative or legislative, or any other entity
whether public or private; Provided, however, That said foreign currency deposits shall be exempt from attachment, garnishment, or any other order or process of any court, legislative body, government agency or any administrative body whatsoever."
Sec. 2. Separability Clause. — If any part of the provision of this Act is hereby
declared unconstitutional or invalid, other provisions hereof which are not affected 7 thereby shall continue to be in full force and effect.
Sec. 3. Repealing Clause. — All laws, executive orders, decrees, rules, and
9 regulations, or any part thereof inconsistent with the provisions of this Act are deemed repealed 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) national newspapers of general circulation. Approved,