Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Batasan Hills, Quezon City

DATE:
Visi
ey:

SEVENTEENTH CONGRESS Seas IAG
First Regular Session BILLS AND iAc9 at obs
2095

HOUSE BILL No,

Introduced by ACT Teachers Party-List
Rep. ANTONIO L, TINIO and Rep. FRANCE L. CASTRO

EXPLANATORY NOTE

In 1977, Presidential Decree 1246 conferred an “absolute cloak of
confidentiality” over foreign currency deposits and exempted them from
“attachment, garnishment, or any other order or process of any court, legislative
body, government agency or any administrative body” to “better encourage the
inflow of foreign currency deposits” into Philippine banks that could channel these
funds into loans and investments, and thereby contribute to the country's economic
development.

Subsequent developments have rendered obsolete these special protections
provided by law to foreign currency deposits. While there may have been a relative
scarcity of foreign currency in the domestic banking and financial system in the
1970s, this is clearly no longer the case today. Remittances by Overseas Filipino
Workers, totaling over US$ 18.3 billion in the first 11 months of 2011, on top of
traditional sources of foreign currency, ensure that the country's foreign exchange
reserves are at an all-time high.

Furthermore, recent events have shown how the absolute and unqualified
secrecy of foreign currency deposits, and their exemption from government orders
or processes, may be exploited to cloak financial transactions by individuals and
entities involved in illegal activities. For instance, government officials, including
those conferred with immunity from suit during their incumbency and removable
only through impeachment, may make use of foreign currency deposits to amass ill-

ENTATIVES
RECEIVED
27 JUL 2016



This bill proposes amendments to Republic Act 6426, or the Foreign Currency
Deposit Act of the Philippines, that, while maintaining the secrecy and confidentiality
of foreign currency deposits, allows their examination in certain exceptional cases,
such as impeachment, or upon the order of a competent court. In addition, it
proposes that their exemption from governmental orders or processes be removed.
If this bill is enacted into law, foreign currency deposits will, in these respects, enjoy
the same level of protection as deposits in the national currency.

For these reasons, approval of this bill is sought.

RE

Rep. ANTONIO L. TINIO
ACT Teachers Party-List ACT Teacher} Party-list



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 2095

Introduced by ACT Teachers Party-List

Rep. ANTONIO L. TINIO and Rep. FRANCE L. CASTRO

AN ACT
AMENDING SECTION 8 OF REPUBLIC ACT 6426, OTHERWISE KNOWN AS THE
“FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES”

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

SECTION 1. Section 8 of Republic Act 6426 or the Foreign Currency Deposit Act of the
Philippines, as amended by Presidential Decree No. 1035, and further amended by
Presidential Decree No. 1246, is hereby amended 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, are hereby declared as and
considered of an absolutely confidential nature [and, except upon the written
permission of the depositor, in no instance shall foreign currency deposits 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;]. IN NO INSTANCE SHALL FOREIGN CURRENCY
DEPOSITS 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 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 OR INVESTED IS THE SUBJECT
MATTER OF THE LITIGATION. [Provided, however, That said foreign currency
deposits shall be exempt from attachment, garnishment, or any other order or
process of any court, legislative body, government agency or any
administrative body whatsoever.]

SECTION 2. All laws, decrees, resolutions, orders, or ordinances or parts thereof
inconsistent with this Act are hereby repealed, amended or modified accordingly.

SECTION 3. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or one (1) newspaper of general circulation.

Approved,