FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
SENATE 
S.B. No.- 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORYNOTE 
Republic Act No. 1405 was enacted for the purpose of giving life to the 
governmental policy of encouraging people to deposit their money in banking 
institutions and to discourage private hoarding so that the same may be properly 
utilized by banks in authorized loans to assist in the economic development of 
the country'. But contrary to the law's intention, the same has been consistently 
invoked and effectively used as a shield against inquiries in cases not included in 
the exceptions in Section 2 thereof. In fact, the same has been raised by the Anti- 
Money Laundering Council in the Senate investigations during the 1 4'h Congress 
regarding the "Fertilizer Fund Scam" involving the accounts of former 
Undersecretary Jocelyn Bolante. 
Conversely, the 1987 Constitution provides: 
"Section 1. Public office is a public trust. Public officers and 
employees must, at all times, be accountable to the people, serve them 
with utmost responsibility, integrity, loyalty, and efficiency; act with 
patriotism and justice, and lead modest lives." 
That a "public office is a public trust" was succinctly embodied in the 
aforementioned Constitutional provision, underlining the necessity for a return to 
the old concepts and values of public office. No less than Justice lsagani Cruz, 
distinguished jurist and poet, was of the view that the framers of the Constitution 
probably believed, at the risk of involving themselves in a cliche, that there was a 
necessity to perpetuate this reminder of the nature of the mandate reposed in all 
public officers by the sovereign people2. 
Since the reason behind R.A. No. 1405, as embodied therein, is for the 
economic benefit of the public, the fact that the same law is being utilized as a 
roadblock in inquiries and investigations against those who are suspected of 
being involved, or having been involved, in activities that work to the economic 
prejudice of the public is contrary to its rafio legis. Instead of being a tool to 
facilitate the economic development of the country, the same is being used as 
protective veil against investigations involving public funds that should rightfully 
be accounted for and should redound to the public's benefit, or those exacted 
from illegal sources. As a result of which, the law's functions are being subverted, 
resulting to economic damage, albeit indirectly, to the country and it's citizens for 
whom such gain is intended. 
Republic Act 1405, Sec. 1 
Cruz, Philippine Political Law (2002) 
I 


While this law provides rights to private individuals that should and must 
remain protected, what is more paramount is the right of the public to the 
economic benefits that should justly be derived from their taxes, thus the principle 
that private rights must yield to the public’s general welfare. 
But the issue is not the determination whether the law, as it stands now, is 
boon or bane. On the contrary, attention must be on the principle that the law 
should neither be dormant nor stagnant. Rather, the law must be dynamic and 
adaptable to the changing times and evolution of society to give life to its 
legislative intent and fulfil the purpose for which the same has been enacted. It is 
for this reason that this bill seeks to amend R.A. 1405 to give life to the reason 
behind this law as a tool to facilitate economic activity and growth for the country 
and to curb the practice of invoking the same in investigations involving public 
officials accused of misusing public funds or those coming from illegal sources. 
Ipmediate passage of this bill is therefore earnestly sought. 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT AMENDING SECTION 2 OF R.A. 1405 ALSO KNOWN AS AN ACT 
PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY 
BANKING INSTITUTION AND PROVIDING PENALTY THEREFOR 
Be if enacted by the Senate and House of Represenfafives of the 
Philippines in Congress assembled: 
SECTION I. Section 2 of Republic Act 1405, otherwise known as An Act 
Prohibiting Disclosure of or Inquiry Into, Deposits with any Banking Institution and 
Providing Penalty Therefor, is hereby amended to read as follows: 
Section 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 into 
by any person, government official, bureau or office, except upon 
written permission of the depositor, or in cases of impeachment, OR IN 
CASES WHEN THE PUBLIC OFFICER OR EMPLOYEE HAVE BEEN 
CHARGED BEFORE THE COURTS WITH ANY VIOLATION OF 
SECTION 3 (b) AND (c) OF REPUBLIC ACT 3019 ALSO KNOWN 
ACCOUNTS HAVE BEEN FROZEN OR PROSECUTED UNDER 
REPUBLIC ACT 9160, AS AMENDED BY REPUBLIC ACT 9194, 
AND REPUBLIC ACT 6426, OTHERWISE KNOWN AS THE 
FOREIGN CURRENCY DEPOSIT ACT, 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. 
AS THE ANTI-GRAFT AND CORRUPT PRACTICES ACT OR WHEN 
OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING ACT, 
SEC. 2. Repealing Clause. -All laws, decrees, executive orders, letters of 
instructions, rules and regulations or parts thereof which are inconsistent with this 
Act are hereby repealed, amended or modified accordingly. 
SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation. 
Approved,