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Republic of the Philippines

HOUSE OF REPRESENTATIVES, a
Quezon City DATE August 24, 2022 a
3:46 pm *
phere vga
First Regular Session <, st

HOUSE BILL NO. 4060

Introduced by. REP. ARJO ATAYDE

AN ACT
TO AMEND SECTION 2 OF REPUBLIC ACT NO. 1405 OTHERWISE KNOWN AS.
THE “SECRECY OF BANK DEPOSITS LAW,” EXEMPTING GOVERNMENT
OFFICIALS AND EMPLOYEES FROM THE PROHIBITION AGAINST
DISCLOSURE OF OR INQUIRY INTO DEPOSITS WITH ANY BANKING
INSTITUTION AND FOR OTHER PURPOSES

The 1987 Constitution provides in Article XI Section 1 that: “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.” As public office is a public trust, it must
not be used for self-aggrandizement or for acquiring wealth by the person holding it.
A public officer is a steward who must perform his powers and duties for the benefit of
the people and not for the enhancement of his own interest

In 1955, Republic Act No 1405 otherwise known as the “Secrecy of Bank
Deposits Law’ was enacted for the purpose of encouraging people to deposit their
money in banking institutions and to discourage private holding so that the same may
be properly utilized by banks in authorized loans to assist in the economic
development of the country.

Under this law, all deposits are strictly confidential and may not be inquired or
looked into except on the following grounds: upon permission of the depositor; in cases
of impeachment; upon order of a competent court in cases of bribery or dereliction of
duty; and in cases where the money deposited or invested is the subject matter of
litigation.

RECEIVED

ry


‘The avowed purpose of the law is meritorious in preserving the confidentiality
of bank transactions. Unfortunately, this provision of the law Prohibiting the disclosure
Of or inquiry to bank deposits had been exploited time and again to hamper and stall
investigations of government officials and employees suspected of enriching
themselves while in public office.

Thus, this bill seeks to exclude all government officials and employees,
regardless of the nature of their office, from the coverage of the Bank Secrecy Law so
that law enforcement authorities will be equipped with the tools needed to investigate
and go after crooks in government.

In view thereof, the early Passage of this bill is earnestly recommended.

REP. ARJO ATAYDE


Oarwena

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

19" CONGRESS
First Regular Session

HOUSE BILL No._4060

Introduced by. REP. ARJO ATAYDE

TO AMEND SECTION 2 OF REPUBLIC ACT
THE “SECRECY OF BANK DEPOSITS LAW,” EXEMPTING GOVERNMENT
OFFICIALS AND EMPLOYEES FROM THE PROHIBITION AGAINST
DISCLOSURE OF OR INQUIRY INTO DEPOSITS WITH ANY BANKING

Be it enacted by the Senate and House
Congress assembled:

AN ACT

INSTITUTION AND FOR OTHER PURPOSES

SECTION 1. Section 2 of Republic Act No. 1405, otherwise known as the
“Secrecy of Bank Deposits Law’, 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 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, OR WHEN THE DEPOSITOR HOLDS

NO. 1405 OTHERWISE KNOWN AS

of Representatives of the Philippines in


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ANY PUBLIC OFFICE IN THE GOVERNMENT OF THE
PHILIPPINES, WHETHER AT THE NATIONAL OR LOCAL
LEVEL, BY VIRTUE OF AN APPOINTMENT, ELECTION OR
CONTRACT, IN ANY STATE-OWNED OR CONTROLLED
CORPORATION OR ENTERPRISE, PERMANENT OR
TERMPORARY, WHETHER IN THE CAREER OR NON-
CAREER SERVICE, INCLUDING THOSE IN THE MILITARY
SERVICE, WHETHER CIVILIAN OR UNIFORMED
PERSONNEL, AND THOSE IN THE POLICE FORCE,
WHETHER OR NOT THEY RECEIVE COMPENSATION AND.
REGARDLESS OF THE AMOUNT: PROVIDED, THAT THE
EXEMPTIONS ABOVE-MENTIONED SHALL INCLUDE
FOREIGN CURRENCY DEPOSITS IN THE PHILIPPINE
BANKS OPERATING IN THE PHILIPPINES, FOREIGN AND
OFF-SHORE BANKS OPERATING IN THE PHILIPPINES, AND
SUCH OTHER KIND OF DEPOSIT SUBSTITUTES.

SEC. 2. Separability Clause. - Should any part of this Act be declared
unconstitutional, the rest of the provisions of this Act not affected shall continue to be
in effect and subsisting

SEC. 3. Repealing Clause. - The provisions of other laws, decrees, executive
orders, rules and regulations inconsistent with this Act are hereby repealed, amended
or modified accordingly

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.

Approved