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RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
Kirst Negulan Session pero
HOUSE BILL NO.

Introduced by Rep. Reynaldo V. Umali

EXPLANATORY NOTE

In light of the current developments and issues raised on the secrecy
of foreign currency deposits with financial institutions, there is an
apparent need to amend the law on Foreign Currency Deposits which
was enacted almost four decades ago. Recently, the said law is being
used as an excuse and as a refuge to hide alleged illegally acquired
wealth of public officials and employees. This measure seeks to amend
Republic Act No. 6426, entitled "An Act Instituting a Foreign Currency
Deposit System in the Philippines, and For other Purposes’ otherwise
known as the Foreign Currency Deposit Act, in order to promote and
enhance transparency and accountability in the government. Thus,
the proposed measure shall cover all public Officials, including those
identified in the 1987 Constitution as impeachable officers who may
have engaged in corrupt and other criminal activities.

Likewise, this measure intends to discourage private individuals who
may intend to hide their unlawful activities by converting their illegal
income into foreign currency deposits.

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

Republic of the Philippines


HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bi no. S094

Introduced by Honorable REYNALDO V. UMALI

AN ACT AMENDING REPUBLIC ACT NO. 6426, OTHERWISE
KNOWN AS "FOREIGN CURRENCY DEPOSIT ACT OF THE
PHILIPPINES", AND FOR OTHER PURPOSES.

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

SECTION 1. - Section 8 of Republic Act No. 6426, otherwise known as
the Foreign Currency Deposit Act of the Philippines, is hereby
amended to read as follows:

"Section 8. Secrecy of foreign currency deposits. - All foreign currency
deposits authorized under this Act, as amended by PD No. 1035, as
well as foreign currency deposits authorized under PD No. 1034 AND
REPUBLIC ACT NO. 6426, are hereby declared as and considered of
an absolutely confidential nature and, except upon the written
permission of the depositor AND/OR UPON ORDER OF AN
IMPEACHMENT COURT OR ANY COMPETENT COURT ON CASES
INVOLVING PUBLIC OFFICIALS CHARGED WITH THE VIOLATION
OF REPUBLIC ACT NO. 3019 OTHERWISE KNOWN AS THE ANTI-
GRAFT AND CORRUPT PRACTICES ACT, UPON MOTION, AND
AFTER PARTIES THERETO ARE GIVEN PROPER NOTICE AND
HEARING. PROVIDED FURTHER THAT PROBABLE CAUSE BE
ESTABLISHED THAT THE FOREIGN CURRENCY DEPOSIT
INVOLVED IS DIRECTLY RELATED TO THE CAUSE OF ACTION IN
THE COMPLAINT, OTHERWISE, in no instance shall foreign
currency deposits be examined, inquired or looked into by any person,
government official, bureau or office whether judicial or administrative
or legislative, or any other entity whether public or private; Provided,
however, That said foreign currency deposits shall be exempt from
attachment, garnishment, or any other order or process of any court,
legislative body, government agency or any administrative body
whatsoever. (As amended by PO No. 1035, and further amended by PO
No, 1246, prom. Nov.21, 1977.) THE FOREGOING SHALL CONTINUE
TO BE SUBJECT TO FURTHER EXCEPTIONS PROVIDED FOR
UNDER REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE
ANTI-MONEY LAUNDERING ACT OF 2001."


SEC. 2. Repealing Clause - All laws or regulations inconsistent with
the provisions of this Act are hereby amended or repealed accordingly.

SEC. 3. This Act shall take effect after the fifteen (15) days following
its publication in at least two (2) newspaper of general circulation.

Approved,