SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez ‘
‘Representative Maximo B. Rodriguez, Jr. Iuney ©

House Bill No. 3693

EXPLANATORY NOTE

Batas Pambansa Big. 22 otherwise known as “An Act Penalizing the Making or
Drawing and Issuance of a Check Without Sufficient Funds or Credit,” was passed to curb
the issuance of bouncing checks. However, despite the passage of the said law, bouncing
checks continue to proliferate in the market, What is worse, bouncing checks were likewise
used by persons engaged in pyramid scams as payments for the recruited investors either
as a retum of their investments or commissions for recruiting other investors. Our people
have been defrauded by different pyramid scams which involved billions of pesos such as
the Multitel of Rose Baladjay in 2002, the SMFund, Francswiss and PIPC in 2007, the Royal
Manchester Five in 2008 and the most recent, the Legacy Group of Companies

The victims of the pyramid scams had difficulty in filing cases for bouncing checks
because they did not know who the signatories of the checks were. The drawee banks, on
the other hand, would not divulge the signatories because of the bank secrecy law. This bill
seeks to address this problem by allowing the drawee banks to divulge the signatories to the
bouncing checks even if the cases are not yet filed in court

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



‘SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
_ Representative Maximo B. Rodriguez, Jr.

House Bill No, 8893

AN ACT

AMENDING REPUBLIC ACT NO. 1405, AS AMENDED, ALSO KNOWN AS THE BANK
SECRECY LAW BY REMOVING FROM ITS COVERAGE DEPOSITORS WHO ISSUE
BOUNCING CHECKS

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

assembled:

Section 1. Declaration of Policy. - It is the declared policy of the state protect its people
and economy from the proliferation or worthless or bouncing checks

Section 2.

Amendment- Section 2 of Republic Act No.1405, as amended, an Act

Prohibiting Disclosure of or on Inquiry Into, Deposits with any Banking Institution and

Providing Penalty Therefore, is hereby further amended to read as follows:

“Sec. 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 info by any person,
government official, bureau or office, except when the examination is made
in the course of a special or general examination of a bank and is
specifically authorized by the Monetary Board after being satisfied that
there is reasonable ground fo believe that a bank fraud or serious
irregularity has been or is being committed and that It is necessary to look
into the deposit to establish such fraud or irregularity, or when the
examination is made by an independent auditor hired by the bank to
Conduct its regular audit provided that the examination is for audit purposes
only and the results thereof shall be for the exclusive use of the bank, or
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 CASE OF A BOUNCING CHECK WHERE THE
DRAWEE BANK SHALL DIVULGE THE SIGNATORY OR SIGNATORIES
THERETO UPON WRITTEN REQUEST OF THE PAYEE EVEN IF THE
CASE IS NOT YET FILED IN COURT, or in cases where the money
deposited or invested is the subject matter of the litigation. (As amended by
PD No.1792, January 16, 1981).”

Section 3. Repealing Clause. - All laws, orders, issuances, rules and regulations or parts
thereof inconsistent with this Act are hereby repealed or modified accordingly.

Section 4.

Effectivity. - This Act shall take effect fifteen (15) days after its complete

publication in at least two (2) newspapers of general circulation.

Approved,