SECRECY OF BANK DEPOSITS For peso deposits, Republic Act No.

1405 (Bank Deposits Secrecy Law) declares all deposits of whatever nature with banks in the Philippines, including investments in government bonds, as of an absolutely confidential nature and prohibits the examination or inquiry into such deposits or investments by any person, government official, bureau or office, as well as the disclosure by any official or employee of a bank of any information concerning said deposits. Exceptions(BAR): 1.in an examination made in the course of a special or general examination of a bank that is specifically authorized by the Monetary board after being satisfied that there is reasonable ground to believe that a bank fraud or serious irregularity has been or is being committed and that it is necessary to look into the deposit to establish such fraud or irregularity. 2.in an examination made by an independent auditor hired by the bank to conduct its regular audit provided that the examination is for audit purposes only and the results thereof shall be for the exclusive use of the bank. 3.upon written permission of the depositor(DOSRI) The General Bank Act provides that in case of loan, the borrower should be required to waive the bank secrecy deposit. If the borrower borrows more than 5% of the banks capital, the bank is allowed to waive the secrecy bank deposit. The Manual of Regulations of the Central Bank requires that for before a loan is secured by an assignment of certificate of time deposit, the borrower should be required to waive Secrecy of Bank Deposit. 4.in cases of impeachment Investment Management Accounts are not covered, that is why Clarissa Ocampo was able to disclose ERAPs IMA at Equitable Bank. (this case falls under provision of Sec. 55.1 of the General Banking Act of 2000) In the General Banking Act, there is a catch-all provision that: Sec. 55.1 No director, officer, employee or agent of any bank shall--(b) Without order of a court of competent jurisdiction disclose to any unauthorized person any information relative to the funds or property in the

custody of the bank belonging to private individuals, corporations or any other entity: Provided that with respect to bank deposits, the provisions of existing laws shall prevail. 2006 notes:this provision may relate to transactions like Investment Management Accounts (Eraps in the Impeachment case. The one Clarissa O. disclosed). IMA are not covered by the Bank Secrecy Law.

5.upon order of a competent court in cases of bribery or dereliction of duty of public officials 6.in cases where the money deposited or invested is the subject matter of the litigation. 7.in cases of unexplained wealth under jurisdiction of Ombudsman) Sec 8 of RA 3019 (under

Now the SC has repeated ruled that the anti-graft law has created another exception to this. Because under the Anti-graft law in determining if the public official has amassed ill-gotten wealth, the bank accounts and those of his family, his spouse, children and friends may be taken into consideration. Because of this provision, the Court said that Congress intended to create another exception to the Secrecy of Bank Deposit, because how can you determine if the official amassed ill-gotten wealth unless you can get access to their bank deposit. (violation of the Anti-graft law) With the passage of R.A. 3019, the Anti-Graft and Corrupt Practices Act, an additional exception was created under 8 of R.A. 1405 which provides that a public official, who has been found to have acquired during his incumbency an amount of property and/or money manifestly out of proportion to his salary and to his other lawful income may be dismissed or removed. Bank deposits shall be taken into consideration in the enforcement of this section, notwithstanding any provision of law to the contrary. While RA 1405 does not include anti-graft cases, as among one of instances where deposits in a bank may be disclosed, yet the Anti-graft directs that bank deposits shall be taken into consideration in enforcement of the law, notwithstanding any provision of the law to contrary. Hence, the Anti-Graft law provides an additional exception. the law the the

In a prosecution for unexplained wealth, the Sandiganbayan may order the production of bank deposit records, not only of the wife and children of the

accused, but also those of his friends and cronies. (Banco Filipino v. Purisima 161 SCRA 576) The Ombudsman law gives the Ombudsman the power to examine bank records in connection with any investigation he is conducting. He can subpoena bank records for violation of Anti-graft Law. The court can only subpoena records of bank if there is a pending case, and that is the subject matter of the case, and examine the accounts---According to 4blue 95 this is inconsistent with the cases of PNB & Banco Filipino. Under Revenue Code, The Commissioner of Internal Revenue may inquire a bank account of decedent to determine his correct amount of the estate. Also, when a taxpayer compromises his tax liability, there is a waiver of the secrecy of bank deposits.

8.in inquiry into bank deposits , trust or investment funds of banking transactions when there is reasonable ground to believe that they have been used in support or in furtherance of Coup d etat under RA 6832 2005 notes: Only savings, checking and the trust fund are covered by the Law on Secrecy of Bank deposits as they are included in the explicit provision stating that ALL deposits of whatever nature with banks or banking institutions in the Philippines 2005 notes:Money market placement is not covered since it is not deposited in the bank. 2005 notes:It may be noted that R.A. 1405 covers not only bank deposits but also investments in government bonds. (BAR) M wdraw w/o authority funds of the partnership in the amounts of P500T and U$ 50T for services he claims he rendered for the benefit of the partnership. He deposited the P500T in his personal peso current account with Prosperity Bank and the U$ 50T in his personal foreign currency savings account with Eastern Bank. The partnership instituted an action in court against M ,Prosperity and Eastern Bank to compel M to return the subject funds to the partnership and pending litigation to order both banks to disallow any withdrawal from his

accounts.Can court compel Prosperity Bank and Eastern Bank to disclose the bank deposits of M? HELD: Yes, as far as the peso account is concerned, Sec 2 of RA 1405 allows the disclosure of bank deposits in case where the money deposited is the subject matter of the litigation. No, with respect to the foreign currency account ,under the Foreign Currency Law, the exemption to the prohibition against disclosure of information concerning bank deposits is the written consent of the depositor. (DAPAT GANYAN MAGSAGOT KUNG DALAWA ANG ANSWER) For foreign currency deposits, Republic Act No. 6426 (The Foreign Currency Deposit Act) similarly declares that these deposits are of an absolutely confidential nature and cannot 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. There is only one instance for disclosure under said law and, that is, upon the written permission of the depositor. RA 6426 also exempts foreign currency deposits from attachment, garnishment, or any other order or process of any court, legislative body, government agency or any administrative body whatsoever.For investments in trust accounts or in deposit substitutes, if these are in the form of investments in government bonds or deposits, the protection under RA 1405 and RA 6426 extends thereto accordingly. If these are in other forms of investments, the disclosure of information related thereto is covered by Section 55 of the General Banking Law of 2000 (Republic Act No. 8791) which prohibits, unless there is an order of a court of competent jurisdiction, the disclosure by any director, official, employee or agent of any bank any information relative to the funds or properties in the custody of the bank belonging to private individuals, corporations or any other entity. 2006 notes: If the person or entity is not a party to the case being tried by the court , then, he has the right to oppose the examination of his deposit. 9. Unclaimed Balances If an account has been dormant for 10 years, that dormant account is supposed to be escheated in favor of the government. The bank is supposed to report that share is an inactive account. The Secretary of Justice gave an opinion because of the power given to PCGG, they may use any means to accomplish its purpose, and can require the production of bank records in connection with its investigation.

4blue 95 notes: Inquiry into illegally acquired property extends to cases where such property is concealed by being held by or recorded in the name of other persons. To restrict such inquiry only to property held by or in the name of the govt official (defendant)who illegally acquire property,would tantamount that it would be an easy means of people in government who illegally acquired property an easy means of evading prosecution. FOREIGN CURRENCY DEPOSIT LAW (RA 6426) Sec 8 of R.A. 6426, as amended by P.D. 1246, provides that 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. The secrecy of foreign currency deposits is given even more protection by R.A. 6426, the Foreign Currency Deposit Act of the Philippines. In order to attract greater foreign investments and currency deposits in the country, all such deposits are considered of an absolutely confidential nature and, except upon written permission of the depositor, in no instance shall such deposits be examined, inquired or looked into by any person, government official, bureau or office whether judicial, administrative or legislative or any other entity whether public or private. All foreign currency deposits are absolutely confidential. In the case of RA 1405, the Supreme Court held that bank accounts could be garnished, not covering bank deposit. Foreign Currency, therefore, are exempt from attachment, garnishment, or any other order or process of any count, legislative body, government agency. Exception if the depositor has given a written authorization (same exception applicable to the RA 1405). NOTE: UNDER RA 1405 as distinguished with RA 6426 --A writ of garnishment on bank deposit of a defendant is not an inquiry into his deposit as contemplated by RA 1405. It merely requires the bank cashier to inform the court whether said debtor has a deposit in said bank only for the purpose of garnishment to be issued by it. So that the bank will hold the same intact and not allow any withdrawal until further orders.

10. without court order if Anti-Money Laundering council determines that particular deposit is related to unlawful activities. 2006 notes: such unlawful act pertains only to TERRORISM, KIDNAPPING and DRUGS which do not need court order.

11.with upon court order, if the Anti-money laundering council determined.

12.examination made by Bangko Sentral in compliance with the Anti-money laundering Act (with regard depositors who deposited P500,000 or more)