A measure has been filed to loosen the Philippines’ Bank Secrecy Law, allowing regulators and courts to examine suspicious bank deposits to better trace corruption and financial crimes.
Senate Bill No. 1047, authored by Senator Jinggoy Estrada, seeks to introduce limited and clearly defined exceptions to Republic Act No. 1405, or the Secrecy of Bank Deposits Law, which currently shields bank accounts from scrutiny.
According to Estrada, the measure is intended to prevent bank secrecy from being used to hide illicit wealth while retaining safeguards against abuse.
Under Senate Bill No. 1047, the BSP may examine bank deposits upon a finding of reasonable grounds that fraud, serious irregularities, bribery, money laundering, or other unlawful activities have been or are being committed, subject to authorization by its Monetary Board and strictly for official supervisory and investigative purposes.
In the explanatory note of the bill, he said the Bank Secrecy Law has become “a tool for abuse, particularly in shielding ill-gotten wealth, facilitating tax evasion, and obstructing efforts to combat money laundering and other financial crimes.”
“Kung may malinaw na dahilan ang BSP para maghinala na may katiwalian o iligal na gawain, dapat may kakayahan itong silipin ang mga account ayon sa batas,” Estrada said in a separate statement.
The bill includes safeguards to prevent abuse, including a ban on examining bank deposits during election periods if this would prejudice any candidate, continued protection of funds deposited before the law’s effectivity, and limits on the disclosure and use of information obtained, which may only be used under strict conditions such as criminal prosecution.
“These safeguards ensure that the law will not be weaponized for political harassment, while preventing bank secrecy from being used as a shield for corruption,” Estrada furthered.
The proposed amendments would cover both peso and foreign currency deposits, which the senator said strikes a balance between protecting individual privacy and strengthening the state’s capacity to detect and prosecute financial misconduct.
SB 1047 is expected to be referred to the appropriate committee for deliberation.
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