R.A. 1405 - BANK SECRECY LAW

Deposits

Money or funds placed with a bank that can be withdrawn on the depositor's order or demand.

Investments in Government Bonds

Investment in bonds issued by the Government of the Philippines, its political subdivisions, and instrumentalities.

Creditor-Debtor Relationship

The relationship created between the depositor (creditor) and the bank (debtor) when deposits are placed in a bank.

Government Bonds

Debt securities that are unconditional obligations of the State, backed by its full taxing power.

Prohibition on Disclosure

The General Banking Law prohibits bank directors, officers, employees, or agents from disclosing information about funds or properties belonging to private individuals, corporations, or other entities in the custody of the bank.

Criminal Liability

Persons who examine, inquire, or look into a bank deposit or government bond investment without authorization, or disclose information about bank deposits without permission, can be held criminally liable.

Exceptions to Confidentiality

There are limited instances when bank deposits and investments in government bonds can be examined, inquired, or looked into, as provided by Republic Act No. 1405 and other laws.

Written Permission or Consent

Bank deposits and government bond investments can be examined with the written permission or consent of the depositor, given knowingly and voluntarily.

Impeachment Cases

Bank deposits can be examined in cases of impeachment of high-ranking government officials for certain offenses.

Litigation Involving Deposited Money

Bank deposits can be examined when the money deposited is the subject matter of a litigation.

Other Laws

Various other laws authorize the examination of bank deposits and investments in specific instances, such as tax matters, anti-money laundering, and anti-terrorism cases.

Penalties for Violation

Violation of Republic Act No. 1405 can result in imprisonment, a fine, or both.

Foreign Currency Deposits

All foreign currency deposits in the Philippines are absolutely confidential and cannot be examined, inquired, or looked into by any person or entity.

Exemption from Attachment or Garnishment

Foreign currency deposits are exempt from attachment, garnishment, or any other court or administrative order.

Prohibition on Examination

Unauthorized examination, inquiry, or looking into foreign currency deposits is prohibited by law.

Liability for Violation

Persons who examine or disclose information about foreign currency deposits without written permission, or attach or subject them to court or administrative orders, can be held liable under the law.

Willful violation

A person who intentionally breaks the provisions of Republic Act No. 6425 or regulations issued by the Monetary Board.

Confidentiality exceptions

Limited circumstances under which foreign currency deposits can be examined or inquired into, as stated in Republic Act No. 6426 and other laws.

Written permission exception

Foreign currency deposits can be examined or inquired into if the depositor provides written permission, according to the Foreign Currency Deposit Act.

Waiver of secrecy of deposits

Directors, officers, stockholders, and related interests who obtain a loan or financial accommodation from their bank must sign a written waiver of secrecy of deposits under The New Central Bank Act.

Inquiring into bank deposit accounts

The Commissioner of Internal Revenue can investigate bank deposit accounts for compromise of tax liability, determination of a decedent's gross estate, or requests from foreign tax authorities under The National Internal Revenue Code and The Exchange of Information on Tax Matters Act of 2009.

Anti-Money Laundering Council's authority

The council can examine bank deposits or investments with court order or without court order if there is probable cause that they are related to unlawful activities or money laundering offenses.

Bangko Sentral's authority

The Bangko Sentral can inquire into or examine bank deposits and investments during periodic or special examinations to ensure compliance with The Anti-Money Laundering Act, and conduct annual testing to determine the existence and identity of owners of numbered accounts.

Inquiring into bank deposits due to unsafe banking practices

The Philippine Deposit Insurance Commission and the Bangko Sentral can investigate bank deposits when unsafe or unsound banking practices are found.

Examination of government deposits

The Commission on Audit has the authority to examine and audit government deposits related to revenue, receipts, expenditures, and properties owned or held in trust by the government or its subdivisions, agencies, instrumentalities, and government-owned and controlled corporations.

Subpoenas by the Presidential Commission on Good Government

The commission can issue subpoenas to recover ill-gotten wealth accumulated by former President Ferdinand E. Marcos and his associates.

Garnishment of foreign currency deposit account

A non-resident alien's foreign currency deposit account can be garnished if found guilty of raping a minor, based on equity.

Account of a co-payee considered as a depositor

In specific circumstances, a co-payee of a check who files a suit for the recovery of a sum of money can be considered a depositor.

Penalties for violating Republic Act No

Imprisonment for one to five years, a fine of five thousand to twenty-five thousand pesos, or both.

Sanctions against banks and bank directors/officers

Revocation of the bank's authority to accept new foreign currency deposits and administrative sanctions under Section 37 of the New Central Bank Act may be imposed for violating Republic Act No. 6426 and related regulations.