NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
SENATE
56
RECEIVED
BILLS MnDEX
Introduced by Senator FRANCIS 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.
FRANCIS G. ESCUDERQ


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. 56
TIME;
BILLS &( INDEX
Introduced by Senator FRANCIS 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:
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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.


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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. Impiementing Ruies andReguiations. — 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 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,