R.

A 1405

LAW ON SECRECY OF
BANK DEPOSITS

LAW ON SECRECY OF BANK

DEPOSITS
All deposits of whatever nature in banks or
banking institutions in the Philippines and
investments in government bonds are
absolutely confidential in nature
The General Banking Law prohibits Bank
Directors,
Officers, Employees or Agents from disclosing to
Any unauthorized person, without the order of
the
Competent court, any information relative to

PROHIBITED ACTS AND PERSONS

1. The EXAMINATION
LIABLE AND INQUIRY OR LOOKING into all deposits of
whatever nature with banks or banking institutions in the
Philippines (including investments in bonds issued by the
Governments or its political subdivisions and instrumentalities) by
1. any person or
2. any government official or
3. any bureau or
4. any office

2. The DISCLOSURE by
1. any OFFICIAL of any banking institution or
2. any EMPLOYEE of any banking institution
to ANY UNAUTHORIZED PERSON of any information concerning the
said deposit.
3. Any person who commits a violation of any of the provisions of
the law

EXCEPTIONS UNDER R.A.1405

1. upon written permission of the depositor

2. in cases of impeachment

3. upon order of a competent court in cases of

i. bribery of public officials or

ii. dereliction of duty of public officials

4. in cases where the money deposited or invested is the

subject
matter of the litigation

EXCEPTIONS UNDER OTHER LAWS

1. upon order of the court in cases of unexplained wealth
under Sec. 8 of the Anti Graft and Corrupt Practices Act
2. upon order of the Commissioner of Internal Revenue in
respect of the bank deposits of a decedent for the
purpose of determining such decedents gross estate
3. upon the order of the Commissioner of Internal
Revenue in respect of the bank deposits of a taxpayer
who has filed an application for compromise of his tax
liability under Sec. 204 (A) (2) of the NIRC by reason of
financial incapacity to pay his tax liability
4. upon order of the Ombudsman
5. upon order of any competent court in cases of violation
of the

R.A no. 3936 amended by P.D no. 679 on April 2, 1975

Unclaimed Balances Law

Elements of unclaimed balances:

1. Include credits or deposits of:
a) Money
b) Bullion
c) Security, or
d) Other evidence of indebtedness
And interest thereon
2. The credit or deposit must be with the bank, building or loan
association, or trust corporation
3. The credit or deposit is in favor of a person:
a) Known to be dead, or
b) Who has not made further deposits or withdrawals during the
preceding ten years or more

Within the month of January of every odd year, all banks, building
and loan associations, and trust corporations shall forward to the
Treasurer of the Philippines a sworn statement of all the credits
and deposits that falls under the meaning
unclaimed balance showing:
a) The names and last known place of residence or post office
addresses of the persons in whose favor such unclaimed
balances stand;
b) The amount and the date of the outstanding unclaimed
balance and
whether the same is in money or in security, and if the latter,
the nature of the same;
c) The date when the person in whose favor the unclaimed
balance stands
died, if known, or the date when he made his last deposit or
withdrawal;
and

informs
Solicitor
General

Treasurer
of the
Philippines

President/
Cashier /
Managing
Officer

City of
Manila

In case
there is
none

commence
s

Delivery of a copy of
the
complaint and
summons

Locality of the
bank, building
and loan
association or
trust corporation

Action

Publication of a copy of
such summons in a
newspaper of general
circulation, either in
English, Filipino, or local
dialect

Failure to file sworn statement

If the president, cashier, or managing officer
neglects or
refuses to file the sworn statement required by
this Act,
such bank building and loan association, or trust
corporation shall pay the sum of 500 pesos a
month or fraction thereof during which such
default shall continue