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HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS.
Second Regular Session

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HOUSE BILL NO. 5858

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Republic Act 6426 otherwise known as the “Foreign Currency Deposit
Act of the Philippines” has an opaque blanket of secrecy on bank deposits,
which prohibits disclosure of or on inquiry into, deposits of clients with any
banking institution and providing penalty thereof except upon written
permission of the depositor or if the foreign currency account is covered by
the Anti-Money Laundering Act of 2001.

With the most recent developments and issues raised on the secrecy
of foreign currency deposits with financial and banking institutions, there is
an urgent need to amend the law on Foreign Currency Deposits. This law is
being used as an excuse and as a refuge to hide alleged illegally acquired
wealth of public officials and employees.

This bill seeks to amend Republic act No. 6426, entitled “An Act
Instituting a Foreign Currency Deposit System in the Philippines and For
Other Purposes” otherwise known as the Foreign Currency Deposit Act, in
order to promote and enhance transparency and accountability in the
government. Thus, the proposed measure shall cover all public officials,
including those in the 1987 Philippine Constitution as impeachable officers
who may have engaged in corrupt and other criminal activities.

In the same vein, this bill intends to discourage private individuals who
may intend to hide their unlawful activities by converting their illegal income
into foreign currency deposits.

In view of the foregoing premises, immediate passage of this bill is
earnestly sought.

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JOSEPH VICTOR G. EJERCITO



HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
Second Regular Session

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House BrLLNo.__9 098

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

AN ACT AMENDING REPUBLIC ACT NO. 6426, OTHERWISE KNOWN
AS “FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES”, AND
FOR OTHER PURPOSES

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

SECTION 1. Section 8 of Republic Act No. 6426, otherwise known as
Foreign Currency Deposit Act of the Philippines, is hereby amended to read
as follows:

“Section 8. Secrecy of foreign currency deposits. — All foreign
currency deposits authorized under this Act, as amended by
PD No. 1035, as well as foreign currency deposits authorized
under PD No. 1034 AND REPUBLIC ACT NO. 6426, are hereby
declared as and considered of an absolutely confidential in
nature and, except upon the written permission of the depositor
AND/OR UPON ORDER OF AN IMPEACHMENT COURT OR
ANY COMPETENT COURT ON CASES INVOLVING PUBLIC
OFFICIALS CHARGED WITH THE VIOLATION OF RA 3019
OTHERWISE KNOWN AS THE ANTI-GRAFT AND CORRUPT
PRACTICES ACT, UPON MOTION, AND AFTER PARTIES
THERETO ARE GIVEN PROPER NOTICE AND HEARING.
PROVIDED FURTHER, THAT PROBABLE CAUSE BE
ESTABLISHED THAT THE FOREIGN CURRENCY DEPOSIT
INVOLVED IS DIRECTLY RELATED TO THE CAUSE OF
ACTION IN THE COMPLAINT, OTHERWISE, in no instance
shall foreign currency be examined, inquired or looked into by
any person, government official, bureau or office whether
judicial or administrative or legislative, or any other entity
whether public or private; Provided, however, That said foreign
currency deposits shall be exempt from attachment, levy or
garnishment, or any other order or process of any court,
legislative body, government agency or any administrative
body whatsoever. (As amended by PD No. 1035, and further
amended by PD No. 1246, prom. Nov. 21, 1977.)”

THE FOREGOING SHALL CONTINUE TO BE SUBJECT TO
FURTHER EXCEPTIONS PROVIDED FOR UNDER RA 9160,
OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING
ACT OF 2001.”


SECTION 2. Repealing Clause. All laws or regulations inconsistent with
the provisions of this Act are hereby amended or repealed accordingly.

SECTION 3. This Act shall take effect after the fifteen (15) days
following its publication in at least two (2) newspapers of general circulation.

Approved,