HOUSE OF REPRESENTATIVE
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL nodo54 54

Introduced by REP. ROMAN T. ROMULO
Lone District, Pasig City

AN ACT
TO AMEND SECTION 2 OF REPUBLIC ACT NO. 1405 OTHERWISE
KNOWN AS THE “SECRECY OF BANK DEPOSITS LAW,”
EXEMPTING GOVERNMENT OFFICIALS AND EMPOYEES FROM.
THE PROHIBITION AGAINST DISCLOSURE OF OR INQUIRY INTO
DEPOSITS WITH ANY BANKING INSTITUTION AND FOR OTHER
PURPOSES

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 powers and duties for the benefit of the people and not for the
enhancement of his own interest.

In 1955, Republic Act No 1405 otherwise known as the “Secrecy of
Bank Deposits Law” was enacted for the purpose of encouraging people to
deposit their money in banking institutions, and to discourage private holding
so that the same may be properly utilized by banks in authorized loans 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. Unfortunately, this provision of the law
prohibiting the disclosure of or inquiry to bank deposits had been exploited
time and again to hamper and stall investigations of government officials and
employees suspected of enriching themselves while in public office.

Thus, this bill seeks to exclude government officials and employees,
whether elected or appointed, from the coverage of the Bank Secrecy Law so
that law enforcement authorities will be equipped with the tools needed to go
after crooks in government.

In view thereof, the early passage of this bill is earnestly recommended,

ROMAN T. ROMULO


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HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No3554

Introduced by REP. ROMAN T. ROMULO
Lone District, Pasig City

AN ACT
TO AMEND SECTION 2 OF REPUBLIC ACT NO. 1405 OTHERWISE
KNOWN AS THE “SECRECY OF BANK DEPOSITS LAW,”
EXEMPTING GOVERNMENT OFFICIALS AND EMPOYEES FROM
THE PROHIBITION AGAINST DISCLOSURE OF OR INQUIRY INTO
DEPOSITS WITH ANY BANKING INSTITUTION AND FOR OTHER
PURPOSES

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled.

SECTION 1. Section 2 of Republic Act No. 1405, otherwise known as
the “Secrecy of Bank Deposits Law”, is hereby amended to read as follows:

Section 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 political 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 upon order of a competent court in cases of bribery

or dereliction of duty of public officials, or in cases where the money deposited


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or invested is the subject matter of the litigation, OR WHEN THE
DEPOSITOR IS AN ELECTIVE OR APPOINTIVE OFFICIAL OR
EMPLOYEE OF THE REPUBLIC OF THE PHILIPPINES INCLUDING
THE OFFICERS AND MEMBERS OF THE ARMED FORCES OF THE
PHILIPPINES (AFP), THE PHILIPPINE NATIONAL POLICE (PNP), AND
ALL MEMBERS OF THE UNIFORMED SERVICES, AND OFFICERS
AND EMPLOYEES OF GOVERNMENT-OWNED AND CONTROLLED

CORPORATIONS AND ‘THEIR SUBSIDIARIES.

SECTION 2. Separability Clause. - If any part of the provision of this
‘Act is hereby declared unconstitutional or invalid, other provisions hereof

which are not affected thereby shall continue to be in full force and effect.

SECTION 3. Repealing Clause. - All laws, executive orders, decrees,
rules and regulations, or any part thereof inconsistent with the provision of this

‘Act are deemed repealed or modified accordingly.

SECTION 4. Effectivity. - This Act shall take effect immediately upon
approval.
Approved,