TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENA 
S. No.
25 JUL-2 P5:20
Introduced by Senator Panfilo M. Lacson
AN ACT
FURTHER STRENGTHENING THE SECRECY OF BANK DEPOSITS LAW, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 1405 OTHERWISE 
KNOWN AS THE ''SECRECY OF BANK DEPOSITS LAW," AS AMENDED
EXPLANATORY NOTE
The 1987 Constitution provides in Article XI Section 1 that; "Public office is a 
public trust. Public officers and employees must at all times be accountable to the 
people, serve them with utmost responsibility, integrity, loyalty and efficiency, act with 
patriotism and justice, and lead modest lives."
As public office is a public trust, it must not be used for self-aggrandizement or 
for acquiring wealth by the person holding it. A public officer is a steward who must 
perform his/her powers and duties for the benefit of the people and not for the 
enhancement of his/her own interest.
Seven decades ago, in 1955, Republic Act No. 1405, otherwise known as the 
"Secrecy of Bank Deposits Law", was enacted into law. Its primary objective is to 
encourage people to deposit their money in banking institutions, thereby discouraging 
private holding to facilitate money circulation through authorized loans, and to assist 
in the economic development of the country.
Under this law, all deposits are strictly confidential and may not be inquired or 
looked into except on the following grounds: upon permission of the depositor; in


cases of impeachment; upon order of a competent court in cases of bribery or 
dereliction of duty; and in cases where the money deposited or invested is the subject 
matter of litigation. The avowed purpose of the law is meritorious in preserving the 
confidentiality of bank transactions.
Over time, this provision of the law that prohibits the disclosure of or inquiry to 
bank deposits has been exploited. It has been used as a shield by unscrupulous public 
officials to evade investigation, thus obstructing efforts to uncover and address 
corruption in government service.
Thus, this bill seeks to exclude government officials and employees, whether 
elected or appointed, from the coverage of the Bank Secrecy Law to equip government 
authorities with the necessary tools to effectively investigate and prosecute those who 
misuse public office for personal gain.
In view thereof, the early passage of this bill is earnestly recommended.
PAN
l/n
riACSON
ator


TWENTIETH CONGRESS OF THE 
REPUBUC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE 
S. No.
25 JUL-2 P5:20
Rrc-'/ ..
Introduced by Senator Panfilo M. Lacson
AN ACT
FURTHER STRENGTHENING THE SECRECY OF BANK DEPOSITS LAW, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 1405 OTHERWISE 
KNOWN AS THE "SECRECY OF BANK DEPOSITS LAW," AS AMENDED
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. — Section 2 of Republic Act No. 1405 is hereby amended to read as
2 
follows:
3 
"Section 2. — All deposits of whatever nature with banks or banking institutions
4 
in the Philippines including investments in bonds issued by the Government of
5 
the Philippines, its political subdivisions and its instrumentalities, are hereby
6 
considered as of an absolutely confidential nature and may not be examined,
7 
inquired or looked into by any person, government official, bureau or office,
8 
except upon written permission of the depositor, or in cases of impeachment,
9 
or upon order of a competent court in cases of bribery or dereliction of duty of
10 
public officials, or in cases where the money deposited or invested is the subject
11 
matter of the litigationCv] , OR WHEN THE DEPOSITOR IS AN ELECTIVE
12 
OR APPOINTIVE OFFICIAL OR EMPLOYEE OF THE REPUBLIC OF THE
13 
PHILIPPINES INCLUDING THE OFFICERS AND MEMBERS OF THE
14 
ARMED FORCES OF THE PHILIPPINES (AFP), THE PHILIPPINE
15 
NATIONAL POLICE (PNP), AND ALL MEMBERS OF THE UNIFORMED
16 
SERVICES, AND OFFICERS AND EMPLOYEES OF GOVERNMENT
17 
OWNED AND CONTROLLED CORPORATIONS AND THEIR
18 
SUBSIDIARIES.


1 
XXX."
2 
Sec. 2. Separability Clause. — If any part of the provision of this Act is hereby
3 
declared unconstitutional or invalid, other provisions hereof which are not affected
4 
thereby shall continue to be in full force and effect.
5 
Sec. 3. Repealing Clause. — All laws, executive orders, decrees, rules, and
6 
regulations, or any part thereof inconsistent with the provisions of this Act are deemed
7 
repealed or modified accordingly.
8 
Sec. 4. Effectivity. — This Act shall take effect fifteen (15) days after its
9 
publication in the Official Gazette or in at least two (2) national newspapers of general
10 
circulation.
11 
Approved,