TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
(.'vflitT Ot
)
SENATE
S. No. 1047
25 AUG-6 P2 :20
Hl'CLl'. - j 11^
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
AMENDING REPUBLIC ACT NO. 1405, OTHERWISE KNOWN AS THE 
SECRECY OF BANK DEPOSITS LAW
EXPLANATORY NOTE
The Bank Secrecy Law of the Philippines has long been a crucial piece of 
legislation that ensures the privacy of individuals and entities in their financial dealings. 
However, this law has also 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. With growing concerns regarding transparency and 
accountability, it has become evident that the current provisions of the law need to 
be revisited to strike a balance between safeguarding privacy and promoting the 
greater public interest, especially in ensuring financial integrity and justice.
This proposed measure seeks to amend the Bank Secrecy Law by introducing 
provisions that will allow for greater transparency in financial transactions, particularly 
in relation to illicit activities. By modifying the law, this bill aims to empower 
government agencies and financial institutions to better combat corruption, money 
laundering, and the financing of terrorism, while still protecting the fundamental rights 
of Filipino citizens. The bill proposes specific amendments that will allow for exceptions 
to the secrecy of bank accounts in cases of suspected illegal activity, subject to proper


judicial process, thereby enhancing the country's ability to pursue cases of financial 
malfeasance effectively.
This measure is particularly timely as the global financial landscape continues 
to evolve, and as international standards on transparency and anti-money laundering 
grow ever more rigorous. By aligning the Philippines with these global norms, this bill 
will strengthen the country's financial integrity, fostering a more transparent and 
accountable financial system.
The amendment to the Bank Secrecy Law strives to create a transparent and 
fair environment that supports not just the arts, but all sectors of Philippine society, 
including business and governance. By ensuring that financial misconduct is more 
easily detected and prosecuted, the bill reinforces the idea that financial accountability 
is essential for fostering a fair economy, one that is capable of supporting industries 
like film, arts, and culture.
In conclusion, the amendments to the Bank Secrecy Law are critical to 
advancing the nation's efforts to combat corruption and financial crimes. This measure 
is essential in creating a transparent financial ecosystem that supports equitable 
growth and prosperity for all Filipinos, while upholding their rights and ensuring that 
the country meets international standards of financial accountability.
A similar version of this bill was filed by Senator Grace Poe during the 19th 
Congress.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
NGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
oi
)
SENATE
S. No. 1047
25 AUG-6 P2:20
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
AMENDING REPUBLIC ACT NO. 1405, OTHERWISE KNOWN AS THE 
SECRECY OF BANK DEPOSITS LAW
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Section 2 of Republic Act No. 1405, otherwise known as "The Secrecy
2 
of Bank Deposits Law" is hereby amended to read, as follows:
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"Section 2. All deposits, [of whatever nature with
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banks or banking institution in the Philippines including
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tfwcstments in bonds issued by the Government of the
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Philippines, its political subdivisions and its instrumentalities,]
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are hereby considered as of an absolutely confidential nature
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and may not be examined, inquired or looked into by any
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person, government official, bureau or office, except upon
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written permission of the depositor, or in cases of
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impeachment, or upon order of a competent court in cases of
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bribery or dereliction of duty of public officials, or in cases
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where the money deposited [or- invested] is the subject
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matter of the litigation, OR IN CASES WHERE THE
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INQUIRY OR EXAMINATION IS MADE BY THE BANGKO
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SENTRAL NG PILIPINAS (BSP) IN THE EXERCISE OF


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ITS SUPERVISORY POWERS: PROVIDED, THAT UPON 
DETERMINATION BY THE MONETARY BOARD, THERE 
IS REASONABLE GROUND TO BELIEVE THAT A FRAUD, 
SERIOUS IRREGULARITY OR UNLAWFUL ACTIVITY 
HAS BEEN OR IS BEING COMMITTED AND THAT IT IS 
NECESSARY TO LOOK INTO THE DEPOSIT TO 
ESTABLISH SUCH FRAUD, IRREGULARITY OR 
UNLAWFUL ACTIVITY. THE AUTHORITY OF THE BSP 
TO INQUIRE AND EXAMINE DEPOSITS SHALL ALSO 
APPLY IN THE COURSE OF ITS INVESTIGATION OF 
CLOSED BANKS. AS USED IN THIS ACT, DEPOSITS 
SHALL REFER TO MONEY OR ITS EQUIVALENT 
RECEIVED BY A BANK IN THE USUAL COURSE OF ITS 
BUSINESS, AND FOR WHICH IT HAS GIVEN OR IS 
OBLIGED TO GIVE CREDIT TO A COMMERCIAL, 
CHECKING, SWINGS, TIME OR THRIFT ACCOUNT, 
EVIDENCED BY A PASSBOOK, CERTIFICATE OF 
DEPOSIT, OR OTHER EVIDENCE OF DEPOSIT, ISSUED 
IN ACCORDANCE WITH BSP RULES AND OTHER 
APPLICABLE LAWS, AS WELL AS SUCH OTHER 
OBLIGATION OF A BANK THAT FORMS PART OF ITS 
DEPOSIT LIABILITIES PURSUANT TO BSP RULES AND 
REGULATIONS.
"THE RESULTS OF SUCH INQUIRY OR 
EXAMINATION SHALL BE FOR THE EXCLUSIVE USE OF 
THE BSP AND SHALL NOT BE MADE AVAILABLE TO ANY 
PERSON OR ENTITY, WHETHER PUBLIC OR PRIVATE, 
EXCEPT UNDER SUCH CONDITIONS AS MAY BE 
PRESCRIBED BY THE MONETARY BOARD OF BSP FOR 
THE PROSECUTION OF AN OFFENSE OR CRIME: 
PROVIDED, THAT NO DEPOSIT SHALL BE EXAMINED, 
INQUIRED OR LOOKED INTO BY THE BANGKO


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SENTRAL NG PILIPINAS DURING AN ELECTION 
PERIOD TO THE PREJUDICE OF A CANDIDATE FOR AN 
ELECTORAL OFFICE: PROVIDED, FURTHER, THAT THE 
AUTHORITY OF BANGKO SENTRAL NG PILIPINAS TO 
INQUIRE, EXAMINE OR LOOK INTO DEPOSITS IN THE 
EXERCISE OF ITS SUPERVISORY POWERS SHALL NOT 
APPLY TO FUNDS DEPOSITED AND PLACED IN A 
DEPOSIT ACCOUNT PRIOR TO THE EFFECTIVITY OF 
THIS ACT.
"THE FOREGOING EXEMPTIONS SHALL APPLY 
TO FOREIGN CURRENCY DEPOSITS IN BANKS 
OPERATING IN THE PHILIPPINES INCLUDING OFF­
SHORE BRANCHES OF DOMESTIC BANKS."
Sec. 2. Section 3 of Republic Act No. 1405, is hereby amended to read as
follows:
"Section 3. NO BANK OR FINANCIAL 
INSTITUTION, OR ANY OF ITS DIRECTORS, OFFICERS 
OR EMPLOYEES, SHALL BE SUBJECT TO ANY ACTION, 
CLAIM OR DEMAND IN CONNECTION WITH, AND 
SHALL BE HELD FREE AND HARMLESS FROM 
LIABILITY FOR, ANY ACT DONE IN COMPLIANCE 
WITH AN ORDER FOR INQUIRY OR EXAMINATION OF 
DEPOSITS FROM THE BSP.
"HOWEVER, [i]it shall be unlawful for any official, 
employee, of a banking institution OR THE BSP, to disclose 
to any person other than those mentioned AND UNDER 
SUCH CONDITIONS PROVIDED in Section 2 hereof, 
information concerning said deposits. IT SHALL ALSO BE 
UNLAWFUL FOR ANY PERSON TO USE THIS ACT FOR 
POLITICAL PERSECUTION OR HARASSMENT OR AS AN 
INSTRUMENTTO HAMPER COMPETITION IN TRADE 
AND COMMERCE."


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Sec. 3. Repealing Clause. - The following are hereby repealed subject to the
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provisions of this Act:
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a) Sections 2,3, 4 and 6 of Republic Act No. 1405, as amended, also known as
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the "Secrecy of Bank Deposits Act";
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b) Sections 8 and 12-A of Republic Act No. 6426, as amended, also known as
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the "Foreign Currency Deposit Act of the Philippines", with respect to foreign
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currency deposits;
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c) Section 6 Republic Act No. 8367, also known as the "Revised Non-Stock
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Savings and Loan Association act of 1997" with respect to all deposits of
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whatever nature with a Non-Stock Savings and Loan Associations as
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provided under Republic Act No. 8367;
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d) Section 33 of Republic Act No. 6848, also known as the "Charter of the Al­
ls 
Amanah Islamic Investment Bank of the Philippines", with respect to
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banking transactions relating to all deposits of whatever nature as provided
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under Republic Act No. 6848;
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e) Section 26(a)(2) of Republic Act No. 7353, also known as the Rural Banks
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Act of 1992, as amended; and
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f) Section 21(a)(2) of Republic Act No. 7906, also known as the Thrift Banks
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Act of 1995.
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All other Acts or parts of Acts, Special Charters, Executive Order, Rules and
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Regulations, which are inconsistent with the provisions of this Act, are hereby
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repealed.
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Sec. 4. Separability Clause. - If any provision or section of this Act is held to
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be unconstitutional or invalid, the other provisions or sections hereof, which are not
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affected thereby shall continue to be in full force and effect.
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Sec. 5. Effectivity. - This Act shall take effect fifteen 
(15) days following its
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publication in the Official Gazette or in a newspaper 
of general circulation in the
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Philippines
Approved,