Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
First Regular Session 
HOUSE BILL NO.  ____ 
_____________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
_____________________________________________________________________ 
AN ACT 
MANDATING GOVERNMENT OFFICIALS AND EMPLOYEES TO EXECUTE AND 
SUBMIT A WRITTEN PERMISSION TO EXAMINE, INQUIRE OR LOOK INTO ALL 
THEIR DEPOSITS AND INVESTMENTS THEREBY WAIVING THE BANK SECRECY 
LAW AS PROVIDED FOR UNDER REPUBLIC ACT NUMBERS 1405 AND 6426 
EXPLANATORY NOTE 
Republic Act (RA) No. 1405 or the Bank Secrecy Law was enacted in 1955 to encourage 
people to deposit their money in banking institutions and to discourage private hoarding. It was a policy 
meant to benefit economic development.  
Adhering to the same policy of secrecy of bank deposits, it became more stringent in 1974 
when RA No. 6426 was passed but this time for foreign currency deposits. 
The exceptions from the secrecy of bank deposits are quite limited and exclusive. Currently, 
RA 1405 admits of four (4) exceptions while RA 6426 only one (1), which essentially treats foreign 
currency deposits with absolute confidentiality. 
The policy intent is quite tenable given that the above laws on bank deposits have passed the 
test of time and remained unchanged. However, such intent has its own unintended consequences – 
this is when banks are used as institutions to hide illegal wealth, fund illegal activities, launder money, 
evade taxes and commit other financial crimes under the mantle of a statutorily mandated secrecy. It 
is for this reason that all countries now, except the Philippines, have lifted the secrecy of bank deposits. 
Given the policy direction toward the lifting of the secrecy of bank deposits to address the 
commission of financial crimes, it is submitted that the government should spearhead the move by 
mandating its officials and employees to waive the secrecy of bank deposits as provided by law. 
Moreover, in doing so, the government could effectively mitigate, if not resolve, the problem of graft 
and corruption in government.  
Verily, any person who has nothing to hide in secret would only welcome this proposal in the 
name of transparency and accountability. 
Respectfully submitted. 
BERNADETTE “DETTE” G. ESCUDERO 
July 26, 2022 
6:22 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
First Regular Session 
HOUSE BILL NO.  ____ 
_____________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
_____________________________________________________________________ 
AN ACT 
MANDATING GOVERNMENT OFFICIALS AND EMPLOYEES TO EXECUTE AND 
SUBMIT A WRITTEN PERMISSION TO EXAMINE, INQUIRE OR LOOK INTO ALL 
THEIR DEPOSITS AND INVESTMENTS THEREBY WAIVING THE BANK SECRECY 
LAW AS PROVIDED FOR UNDER REPUBLIC ACT NUMBERS 1405 AND 6426 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Declaration of Policy. — It is hereby declared the policy of the State for all public 
officials and employees to be open and transparent in all their financial transactions and dealings. 
Sec. 2. Submission of Written Permission or Waiver. — All public officials and employees as 
defined under paragraph (b) in relation to paragraph (a), Section 3 of Republic Act No. 6713, except 
those who serve in an honorary capacity, shall submit to the Office of the Ombudsman a written 
permission or waiver in favor of the Ombudsman to examine, inquire and look into all their deposits, 
including foreign currency deposits, in banks and other financial institutions, both in and outside the 
Philippines, including investment bonds issued by the government of the Philippines, its political 
subdivisions and instrumentalities.  
The aforestated written permission or waiver shall be submitted within thirty (30) days from 
the date of their assumption of office; Provided, however, That public officials and employees who are 
already exercising the functions of their respective offices upon the effectivity of this Act shall submit 
the same not later than thirty (30) days from the effectivity of the Rules and Regulations implementing 
this Act.  
Sec. 3. Failure or Refusal to Submit Written Permission or Waiver. — Any public official or 
employee who fails or refuses to submit such written permission or waiver as mandated by this Act 
shall not be allowed to enter upon, or continue exercising the functions of, his or her office.  
Sec. 4. Limitation on Use. — Only the Office of the Ombudsman shall obtain or use the written 
permission or waiver, or any other information or data obtained by virtue thereof; Provided, however, 
That the same shall be used exclusively for investigating a duly verified complaint or for prosecuting 
a case before the courts; Provided, further, That the written permission or waiver shall not be used 
for any other purpose.  
Sec. 5. Implementing Rules and Regulations. — The Office of the Ombudsman shall have the 
primary responsibility to implement this Act; Provided, however, That it shall enlist the advice of the 
Department of Justice and the Bangko Sentral ng Pilipinas in the drafting of the written permission or 
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waiver as provided in this Act.  
 
Sec. 6. Separability Clause. - If any part or provision of this Act shall be held unconstitutional 
or invalid, other provisions hereof which are not affected hereby shall continue to be in full force and 
effect. 
 
Sec. 7. Repealing Clause - All laws, presidential, executive orders, rules, and regulations or 
parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
 
Sec. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or at least two (2) newspapers of general circulation. 
 
Approved,