Secrecy of Bank Deposits Act (RA 1405) - Key Concepts

These flashcards cover key vocabulary and concepts related to the Secrecy of Bank Deposits Act, providing definitions and essential information for exam preparation.

Secrecy of Bank Deposits Act (RA 1405)

A law enacted to protect the confidentiality of bank deposits and encourage people to deposit money in banks.

Purpose of RA 1405

To encourage the public to invest in banking institutions and discourage private hoarding.

Confidential nature of deposits

All deposits with banks in the Philippines are considered confidential and cannot be examined without permission.

Prohibited Acts under RA 1405

Unlawful for bank officials to disclose any deposit information to unauthorized persons.

Bank Secrecy

The principle that a depositor's financial information is kept confidential.

Exception to Bank Secrecy

Written permission from the depositor or a court order allows for disclosures.

BSP

Bangko Sentral ng Pilipinas, which can examine bank deposits during special examinations.

Foreign Currency Deposit Act (RA 6426)

Legislation pertaining to the confidentiality of foreign currency deposits.

Investment in Government Bonds

Includes treasury bills and notes that are considered secure investments.

Trust Accounts

Accounts where funds are managed by a trustee but still require bank secrecy protection.

Written Waiver

A formal consent required for depositors allowing access to their bank information.

DOSRI Accounts

Accounts held by bank directors, officers, stockholders, and related interests that need waivers for confidential access.

Ombudsman's Authority

Can issue subpoenas to examine bank accounts if a case is pending.

Garnishment

A legal procedure for creditors to claim a debtor’s bank deposit to satisfy a debt.

Anti-Money Laundering Act (AMLA)

Legislation allowing inquiries into deposits suspected to be related to unlawful activities.

Asset Seizure

Officials can seize bank deposits when investigating corruption or misconduct.

Subpoena Duces Tecum

A court order for a bank to produce records and documents for legal proceedings.

Numbered Accounts

Accounts that hide the owner's identity, which require compliance checks under AMLA.

Voluntary Disclosure

When a depositor willingly shares information about their deposits without coercion.

Public Interest

The rationale that justifies disclosure of public officials' bank information to combat corruption.

Financial Privacy

Right to keep financial information confidential from unauthorized access.

Suspicious Transactions

Activities that trigger mandatory reporting to the AMLC by banks.

Escheat Proceedings

Legal process for the government to acquire dormant accounts after a specified period.

Lawsuits and Deposits

Court orders may override bank secrecy protections in cases of litigation.

Penalty for Violation

Imprisonment or fines may be imposed for unauthorized disclosure of bank deposits.

BIR

Bureau of Internal Revenue, which may inquire about bank accounts for tax assessments.

Exchange of Information on Tax Matters

An act that allows foreign tax authorities to request taxpayer deposit information under certain conditions.

Compliance Testing

Annual tests conducted by banks to verify the integrity of their account holders.

Government Securities

Bonds and treasury instruments issued by the government to raise funds.

Judicial Inquiries

Court-sanctioned investigations into a person’s bank deposits.

Lebanon and Philippines

Countries known for having strict bank secrecy laws.

Financial Inclusion

Encouraging the public to deposit money in banks to facilitate economic growth.

Exceptions to Confidentiality

Conditions under which bank secrecy can be breached legally.

Bank Audits

Examinations conducted to ensure banks adhere to financial regulations.

Confidential Information Protection

Measures to safeguard depositor information from public disclosure.

Depositor Rights

The legal rights afforded to account holders regarding their bank information.

Legal Framework of Bank Secrecy

Legislation defining the boundaries of financial privacy and disclosure norms.

Writ of Garnishment

A court-issued directive allowing creditors to access a debtor's bank funds.

Penalties for Breaching Bank Secrecy

Consequences faced by banks or officials for unauthorized disclosures.

Public vs. Private Disclosures

Distinction between information shared in public settings versus confidential disclosures.

Judicial Oversight

The power of courts to regulate and oversee inquiries into private banking information.

Impact of TRAIN on Bank Secrecy

Recent tax reforms influencing the disclosure and examination processes of bank deposits.

Legality of Offshore Accounts

Philippine bank secrecy laws do not extend to foreign bank accounts.