Secrecy of Bank Deposit Act ( Rep.

Act 1405) - is the statutory enforcement of the Govts policy to discourage hoarding and to encourage people to deposit their money in banking institutions, so that the same may properly be utilized by banking institutions in authorized loans to assist in the economic development of the country. PURPOSES 1. To encourage people to deposit in banking institutions; and 2. To discourage private hoarding so that banks may lend such funds and assist in the economic development of the country. Coverage: ALL DEPOSITS of whatever nature with banks or banking institutions in the Philippines, including investments in BONDS issued by the Government of the Philippines, its political subdivisions and its instrumentalities. - MONEY-market placement is NOT covered by RA 1405 because it is not deposited in the bank GNL RULE - The deposits covered by law are considered as of an absolutely confidential nature and may not be examined, inquired or looked into by any person, governmental bureau, or office. EXCEPT: a.) Upon the debtors written permission; b.) In cases of impeachment; c.) Upon a competent courts order in cases of bribery of, or dereliction of duty by, public officials; d.) In cases where money deposited or invested is the subject matter of litigation. PROHIBITED ACTS 1. Examination and inquiry or looking into all deposits, of whatever nature, with the banks in the Philippines including investments in bonds issued by the Government. 2. Any disclosure by any official or employee of any banking institution to any unauthorized person of any information concerning the said deposits. Other Statutory Provision Cross-referring to the Secrecy of Bank Deposits a.) Under the Foreign Currency Deposit Act, the secrecy of deposits under this act shall be governed in accordance with the provisions of the Secrecy of Bank Deposit b.) Under the General Banking Law of 2000, in line with the Secrecy of Bank Deposit Act, no bank shall employ casual or non regular personnel or too lengthy probationary personnel in the conduct of its business involving bank deposits. ADDITIONAL GROUNDS FOR EXAMINING BANK ACCOUNTS

ut

1. Anti-Graft and Corrupt Practices Act- Upon the order of a competent court or tribunal in cases involving unexplained wealth under the Anti-Graft and Corrupt Practices Act. 2. NIRC- Upon inquiry by the Commissioner of Internal Revenue into bank deposits of: i. A decedent to determine his gross estate; and ii. Any taxpayer who has filed an application for compromise of his tax liability under Sec.204 (A) (2) by reason of financial incapacity to pay his tax liability. He must file a written waiver of his privilege under RA 1405 or other general or special laws and such waiver shall constitute the authority of the Commissioner to inquire into the bank deposits of the taxpayer. 3. AMLA- Inquiry or examination by the Anti-Money Laundering Council (AMLC) upon order of any competent court in cases of violation of the AMLA, if there is probable cause that the deposits or investments are related to an unlawful activity or a money laundering offense, EXCEPT that no court order shall be required in the following unlawful activities: a. Kidnapping for ransom under A.267 RPC; b. Violations of the Comprehensive Dangerous Drugs Act of 2002 c. Hijacking and other violations under RA 6235 d. Destructive arson and murder under RPC. Including those non-perpetrated by terrorists against non-combatant persons and similar targets. 4. Disclosure to the Treasurer of the Phils. Of dormant deposits for at least 10 years under the Unclaimed Balances Act.

ut