TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
r.j
.IUL--9 P2 50
S. No.
SENATE
286
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
ALLOWING DISCLOSURE OF DEPOSITS, REPEALING FOR THE PURPOSE THE 
PERTINENT LAWS ON SECRECY OF DEPOSITS
EXPLANATORY NOTE
The "era of bank secrecy is over,"1 a declaration made by the Group of 20 or 
G202 Leaders as early as 2009 and reinforced by the 2014 OECD3 standard for 
automatic exchange of financial information. Despite this, the Philippines remains the 
sole country with highly restrictive bank secrecy laws, severely impeding its fight 
against tax and money laundering.4
This antiquated framework denies the State's crucial tools for fiscal integrity 
and international financial standing. The Department of Finance (DOF) highlights that 
these laws contribute to hundreds of billions of pesos in uncollected taxes and duties 
annually,5 significantly compromising funding for essential public services. 
Furthermore, this policy undermines the country's effort to enhance transparency.
1 Global Forum on Transparency and Exchange of Information for Tax Purposes, "Transparency and Exchange of Information for
Tax 
Purposes-Multilateral 
Co-operation 
Changing 
the 
World." 
Available 
at
https://www.oecd.org/content/dam/oecd/en/networks/global-forum-tax-transparency/global-forum-10-years-report.pdf
2 The Group of Twenty (G20) is the premier forum for international economic cooperation. It plays an important role in shaping 
and strengthening global architecture and governance on all major international economic issues.
3 Organisation for Economic Co-operation and Development. Accessed on July 7, 2025.
4 Bangko Sentral ng Pilipinas. "The Laws on Secrecy of Bank Deposits: A Legal Primer." Published in 2024. Available at 
httDs://www.bsD.aov.ph/Media and Research/Primers%20Faas/Primer on Bank Secrecv.pdf. Accessed on July 6, 2025.
5 Manila Bulletin, "DOF estimates P668-B tax losses due to bank secrecy', Published on 03 May 2017, Available at 
https://business.rn b.com .ph/2017/05/03/dof-estimates-p668-b-tax-losses-due-tobank-secrecy/. Accessed on July 6, 2025.


deter illicit financial flows, and improve its global financial reputation, including its 
standing with the Financial Action Task Force (FATF).
The International Monetary Fund (IMF) has noted that these secrecy laws 
undermine financial stability, integrity, and banking sector development, urging 
prompt legislative amendments to grant the Bangko Sentral direct and full access to 
depositor information for effective supervision. Amending said laws is crucial in 
fostering a more robust and transparent financial system, attracting legitimate 
investments, and ensuring equitable tax collection.
The immediate passage of this bill is earnestly sought to align the Philippines 
with global transparency standards, safeguard national revenue, uphold international 
financial commitments, and enhance the rule of law.
FRANCIS(^^ PANGILINAN
Senator


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
JIJ!. --9
SENATE 
S. No.
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
ALLOWING DISCLOSURE OF DEPOSITS, REPEALING FOR THE PURPOSE THE 
PERTINENT LAWS ON SECRECY OF DEPOSITS
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Deposits Disclosure Act."
2 
Sec. 2. Declaration of Policy.- It is hereby declared the policy of the State to
3 
effectively combat domestic and global tax evasion, money laundering and other
4 
financial crimes, and corruption; to promote harmonious and supportive international
5 
relations; and to comply with international standards on transparency.
6 
It is likewise the policy of the State to protect the fundamental human right of
7 
privacy of communication, while ensuring free flow of information to promote
8 
innovation and growth.
9 
Sec. 3. Non-Confidentiality of Deposits.- All deposits of whatever nature of
10 
currency denomination with banks and non-banking financial institutions in the
11 
Philippines are hereby no longer considered as absolutely confidential in nature and
12 
can now be examined, inquired, or looked into under the following legitimate
13 
purposes, subject to, if applicable. Section 4 of this Act:
14 
a) Upon written permission or waiver of the depositor;
15 
b) In the course of investigation or inquiry by the Office of the Ombudsman, or
16 
pursuant to or in relation to its Constitutional and/or statutory mandate;
17 
c) Upon written permission or waiver of the depositor;


1 
d) In the course of investigation or inquiry by the Office of the Ombudsman, or
2 
pursuant to or in relation to its Constitutional and/or statutory mandate;
3 
e) Upon order of a competent court in relation to a case pending before it;
4 
f) Investigations by the Senate, the House of Representatives ("HoR"), or any of
5 
its Committees, in the course of, or pursuant to, the exercise of its
6 
Constitutional and/or statutory mandate;
7 
g) Investigations necessary in the exercise of its mandates by any government
8 
agency or financial regulator, including, but not limited to, the Anti-Money
9 
Laundering Council ("AMLC"), Bureau of Internal Revenue ("BIR"), the
10 
financial regulators such as the Bangko Sentral ng Pilipinas ("BSP"), Securities
11 
and Exchange Commission ("SEC"), Philippine Deposit Insurance Corporation
12 
("PDIC"), and Insurance Commission ("IC");
13 
h) Inquiry by independent auditors or a qualified agent engaged by the bank to
14 
provide independent audit or technical services subject to a strict
15 
confidentiality agreement; and
16 
i) Inquiry on the account/s of a deceased depositor by his/her immediate family
17 
members or compulsory heirs. Further, any examination or inquiry and any
18 
results thereof shall be for the exclusive use of the requesting body and shall
19 
not be made available to any persona or entity, whether public or private,
20 
except upon prescription by the persons enumerated under Section 4 of this
21 
Act, as the case may be. Furthermore, no court shall issue a temporary
22 
restraining order or writ or injunction against any act to examine, inquire, or
23 
look into bank deposits except upon order issued by the Court of Appeals or
24 
the Supreme Court.
25 
Sec. 4. Authority to Issue Order. - In cases where the deposit shall be examined,
26 
inquired, or looked into, the authority to issue the Order requiring such examination
27 
or inquiry shall be limited to the following persons;
28 
a) In the case of Section 3 (B) of this Act, the Ombudsman;
29 
b) In the case of Section 3 (C) of this Act, the Regional Trial Courts, the Court of
30 
Tax Appeals, the Court of Appeals, or the Supreme Court;
31 
c) In the case of Section 3 (D) of this Act, the Senate President of the Speaker
32 
of the HoR, as the case may be; and
2


1 
d) In the case of Section 3 (E) of this Act, the head of the government agency
2 
or financial regulator concerned, provided that if the government agency or
3 
financial regulator has a governing board or council, consent of the latter shall
4 
also be required,
5 
Sec, 5, Clearing House, Authentication of Order. - The BSP shall act as the
6 
clearing house of any order issued pursuant to Section 4 hereof. It shall ensure that
7 
the Order is authentic and for a legitimate purpose and is not violative of RA No, 10173
8 
of the Data Privacy Act of 2012,
9 
Sec, 6, Mandatory Disclosure. - Pursuant to the provisions of this Act, the bank
10 
or non-bank financial institution concerned, their officers, and employees are
11 
mandated to disclose and report the requested deposit account information; the bank
12 
or financial institution concerned, their officers, and employees shall not refuse to
13 
allow such examination or to provide the desired information,
14 
Sec, 7. Right to Privacy. - Inquiry, examination, disclosure or use of deposits
15 
shall always be for a legitimate purpose pursuant to Section 3 and in relation to
16 
Sections 4 and 5 of this Act and shall not be used in any manner to harass, threaten,
17 
or violate the right to privacy of any person,
18 
Sec. 8. Penalty Clause. - Any abuse on the initiation, conduct, or use of any
19 
inquiry or examination of accounts or the refusal to disclose or report deposits as
20 
required pursuant to the provisions of this Act without justifiable reason shall, upon
21 
conviction and without prejudice to other liabilities provided by law, suffer the penalty
22 
of imprisonment of at least three (3) years or a fine of at least two hundred thousand
23 
pesos or both, upon the discretion of the court. In the case of government officials or
24 
employees, the penalty of perpetual absolute disqualification to hold public office shall
25 
be likewise imposed.
26 
Sec. 9. Implementing Rules and Regulations. - Within sixty (60) days from the
17 
effectivity of this Act, the BSP shall, in consultation with the Department of Justice
28 
and other concerned financial regulators, promulgate the necessary implementing
29 
rules and regulations for the effective and efficient enforcement of this Act. Provided,
30 
That the implementing rules and regulations shall take effect fifteen (15) days
31 
following its publication in two (2) newspapers of general circulation.


1 
Sec. 10. Separability Cause. - If any of the provisions of this Act is declared
2 
invalid, the other provisions not affected thereby shall remain in full force and effect.
3 
Sec. 11. Repeaiing Cause. - The following provisions of the law insofar as they
4 
relate to deposits are hereby repealed:
5 
a) Republic Act No. 1405, as amended, also known as the Secrecy of Bank
6 
Deposits Act;
7 
b) Sections 8 and 12-A of Republic Act No. 6426, as amended, also known as
8 
the Foreign Currency Deposit Act of the Philippines, with respect to foreign
9 
currency deposits;
10 
c) Section 6 of Republic Act No. 8367, also known as the Revised Non-Stock
11 
Savings and Loan Association Act of 1997, with respect to all deposits of
12 
whatever nature with a Non-Stock Savings and Loan Association as provided
13 
under Republic Act No. 8367;
14 
d) Section 33 of Republic Act No. 6848, also known as the Charter of the Al
15 
Amanah Islamic Investment Bank of the Philippines, with respect to banking
16 
transactions relating to all deposits of whatever nature as provided under
17 
Republic Act No. 6848;
18 
e) Section 55(b) of Republic Act No. 8791, also known as the General Banking
19 
Law of 2000;
20 
f) Section 26(a)(2) of Republic Act No. 7353, also known as the Rural Banks Act
21 
of 1992;
22 
g) Section 21(a)(2) of Republic Act No. 7906, also known as the Thrift Banks Act
23 
of 1995;
24 
h) Section 22 of Executive Order No. 81, also known as the 1986 Revised Charter
25 
of the Development Bank of the Philippines with respect to banking
26 
transactions relating to all deposits of whatever nature; and
27 
i) Section 11 of Republic Act No. 9160, as amended, also known as the Anti-
28 
Money Laundering Act of 2001, as amended, in so far as it requires an order
29 
of any competent court before the AMLC can inquire into bank deposits,
30 
including related accounts, with any banking institution or non-bank financial
31 
institution.


1 
All laws, presidential decrees, executive orders, rules and regulations, and other
2 
issuances, or any parts thereof, inconsistent with this Act, are hereby repealed,
3 
modified, or amended accordingly.
4 
Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its
5 
publication in the Official Gazette or in at least two (2) newspapers of general
6 
circulation.
Approved,