FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
3 rliii? -3 pCi :go 
Introduced by Senator Richard J. Gordon, Chairman and members of the 
Committee on Accountability of Public Officers and Investigations 
EXPLANATORY NOTE 
Corruption is the use of public office for private gain or the betrayal of public 
trust for private gain. RA 3019 dso known as Anti-Graft and Cormpt Practices 
Act has enumerated an extensive list of corrupt practices of public officers. 
The Philippines has gravety suffered because of corruption. 
In fact, the 
Corruption Index/Surveys have shown how dismal the rating of the country is. 
In the 2008 Corruption Perceptions Index of Transparency International, the 
Philippines ranked 141 among 180'countries surveyed from the least corrupt 
to the most corrupt. The Philippines shares the rank with Iran, Yemen and 
Cameroon. Countries like Nicaragua, Pakistan and Liberia have slightly higher 
rank than the Philippines and countries like Timor-Leste, Kazakhstan, 
BangIadesh, Kenya, Syria and Russia rank slightly lower than the Philippines. 
There have been many attempts by government agencies to curb graft and 
corruption both by legal means and by naming and shaming these public 
officers who have taken part in. this deplorable act. In the course of seeking 
accountability, FL4 1405 or the Secrecy of Bank Deposits Act has often been a 
stumbling block in finding in the prosecution of offenders. In fact, in the 
recent case of Republic us. Eugenio, G.R. No. 174629, 14 February 2008, the 
right to privacy is;very much upheld by the courts. The case provides: 
It cannof be successfully argued the proceedings 
relating to the bank inquiry order under Section I I of 
the AMLA is a "litigation" encompassed in one of 
exceptions to the Bank Secrecy Act which is when 
"the money deposited or invested is the subject 
matter of litigation." 
The orientation of the bank 
inquiry order is simply to serve as a provisional relief or 
remedy. As earlier stated, the application for such 
does not entail a full-blown Mal. 
Nevertheless. just because the AMLA establishes 
additional exceptions to the Bank Secrecy Act it does 
not mean that the later law has dispensed with the 
general ixiinciple established in the older law thut 


'1 [a] il deposits of whatever nature with banks of 
banking institutions in the Philippines xxx are hereby 
considered as of a n  absolufely confidential nature." 
It is this ruling in Republic us. Eugenio that the Anti-Money Laundering Council 
continues to invoke in the Senate investigations during the 14" Congress on 
the inquiry regarding the Fertilizer' Fund Scam when asked about the once 
frozen accounts of former Undersecretary Jocelyn I. Bolante. 
Thus, there is a need to lower the threshold level of the secrecy of bank 
deposits when the individuals involved are public officers and employees. 
Since public officers and employees have chosen their profession and they are 
bound by the Constitution to be accountable to the people, serve them with 
utmost responsibility, integrity, loyalty and efficiency, act with patriotism and 
justice, and lead modest lives, it is but proper that they can waive their right to 
privacy once there is probable cause exists that they have violated the Anti- 
Graft and Corrupt Practices Act or they have been involved in Money 
Laundering. 1 
This bill then seeks to amend Section 2 of RA 1405 or the Bank Secrecy Law 
wherein public officers and employees and former public officers and 
employees when the, acts allegedly committed occurred during their term in 
public office who have been charged before the Courts with any violation of 
Republic Act 3019 .also known as the Anti-Graft and Corrupt Practices Act or 
whose accounts' have been frozen under Republic Act 9160 as amended by 
Republic Act 9194 also known as the Anti-Money Laundering Act, are deemed 
to have given their pennission.to inquiry, examination or inspection to all their 
accounts that are the subject matter of the litigation. 
J. GORDON 
Chairman 
/ 
'Article XI, Section 1.1987 Constitution. 


FOURTEENTH CONGRESS OF THE REPUBLIC) 
9 MAR -3 
P i :  :no 
OF THE PHILIPPINES 
I 
Second Regular Session 
) 
S.B. sENAY1 
No. 
~ 
16 
Introduced by Senator Richard J. Gordon, Chairman and members of the 
Committee on Accountability of Public Officers and Investigations 
AN ACT 
AMENDING SECTION 2 OF R.4 1405 
ALSO KNOWN AS AN ACT PROHIBITING DISCLOSURE OF 
OR INQUIRY INTO, DEPOSITS WITH ANY BANKING INSTITUTION 
AND PROVIDING PENALTY THEREFOR 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 2 of RA 1405, also known as An Act Prohibiting 
Disclosure of or Inquiry Into, Deposits with any Banking Institution and 
Providing Penalty Therefor: 
Section 2.2- 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 
polilical 
subdivisions 
and ' 
its 
instrumentalities, are hereby considered as of an absolutely 
confidential nature and may not be examined, inquired or 
looked into by any person, government official, bureau or 
office, except upon written permission of the. depositor, or in 
cases of impeachment, or in cases when the public officer 
Proposed Amendments in bold and italicized letters 


or employee have been charged before the Courts with 
any violation of Section 3 (b) and (c) of Republic Act 
3019 also known as the Anti-Gmfl and Corrupt 
Practices Act or when accounts have been frozen or 
prosecuted under Republic Act 9160 (1s amended by 
Republic Act 9194 ako known as the Anti-Money 
Luundering Act, and Republic Act 6426 also known as 
the Foreign Currency Deposit Act 6426 or upon order of a 
competent court in cases of bribery or derellction of duty of 
public officials, or in cases where the money deposited or 
invested is the subject matter of the litigation. 
SECTION 2. 
Repealing Clause. - Any law, presidential decree or 
issuance, executive order, letter of instruction, administrative order, 
administrative memorandum, rule or regulation contrary to or inconsistent 
with the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
SECTION 3. Effeedivity Clause. - This Act shall take effect fifteen (15) 
days after its publication in at least two (2) newspapers of general circulation 
Approved,