VI.

SECRECY OF
BANK DEPOSITS
Group 2 (Boado, Hernandez, Nilo, Viola)
21/6/2016

Purpose of Bank Secrecy (RA 1405)

Encourage people to deposit
in banking institutions (sec. 2 of
RA 1405)

Discourage private hoarding of

cash (sec. 2 of RA 1405)

Why?
Right to privacy (financial privacy)
Limited government
Bank run and default

Absolutely Confidential Nature

Sec. 2: may not be examined, inquired
or looked into by any person, government
official, bureau or office
Sec. 3: unlawful for any official or
employee of any banking institution

Absolutely Confidential Nature

Is it
absolutely
confidential?

1. Written permission of the depositor

2. Impeachment cases

3. Order of a competent court in cases

of bribery and dereliction of duty

4. Subject matter of litigation is the

money invested or deposited

Secrecy of
Bank Deposits

Secrecy of Bank
Deposits Act (RA
1405)
Foreign Currency
Deposit Act (RA
6426)

Foreign Currency Deposits (RA 6426)

Covers Philippine banks
Also includes FCDs in offshore banking units

(PD 1034)
Tax exemptions
Including interest and all other income or earnings of

such deposits
Whether the depositor is a resident or non-resident

RA 6426 was intended to encourage depositors

from foreign lenders and investors.

Absolute Confidentiality

Is it
absolutely
confidential?

1. Written permission of the

depositor

2. Impeachment cases

3. Order of a competent court in cases

of bribery and dereliction of duty

4. Subject matter of litigation is the

money invested or deposited

Who are barred from examining or

looking into FCDs?

Who

Any person
Government official,
bureau or office
Or any other public or private
entity
Any official or employee of a
banking institution

Further exemptions of FCDs

Attachment

Garnishment
Any other order or process of court,
legislative body, government agency or
administrative body whatsoever

Secrecy of Bank
Deposits Act (RA
1405)

Secrecy of
Bank Deposits

Foreign Currency
Deposit Act (RA
6426)

Islamic Banks (RA

6848)

Who are barred from examining or

looking into deposits in Islamic banks?

Who

Any person
Government official,
bureau or office
Any official or employee of the Islamic Bank or
person designated by the Board

Absolute Confidentiality

Is it
absolutely
confidential?

1. Inspection by banks auditor

2. Written permission of depositor

3. Subject matter of litigation is

the money invested or deposited