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FIFTEENTH CONGRESS OF THE REPUBLIC) 
(~fflrr of tlj{' $l'trrfMij 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'11 
MAR 31 
p 4 :54 
SENATE 
Senate Bill No. 2767 
/{fXEIVEO BY:fT'~:"" 
Introduced by SENATOR LACSON 
EXPLANATORY NOTE 
The 1987 Constitution provides in Article XI Section I 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. The public officer is a steward who must perform his powers 
and duties for the 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 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. The avowed purpose of the law is very commendable 
but unfortunately the provision of the law prohibiting disclosure of or inquiry to 
bank deposits have been used to hamper and stall investigations of government 
officials and employees suspected of enriching themselves while in office. 
Thus, this bill seeks to exempt government officials and employees, 
whether elected or appointed, from the coverage of the Bank Secrecy Law in order 
that law enforcement authorities will be equipped with the tools needed to go after 
crooks in government. 
In view thereof, the early passage of this bill is earnestly recommended, 
PAN~/J.LACSON 
nator 
, 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 2767 
) 
) 
) 
Introduced by SENATOR LACSON 
AN ACT 
'11 
11~R 31 
P4 :54 
TO AMEND SECTION 2 OF REPUBLIC ACT NO. 1405 OTHERWISE 
KNOWN AS THE "SECRECY OF BANK DEPOSITS LAW," EXEMPTING 
GOVERNMENT OFFICIALS AND EMPOYEES FROM THE 
PROHIBITION AGAINST DISCLOSURE OF OR INQUIRY INTO 
DEPOSITS WITH ANY BANKING INSTITUTION AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled. 
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 IS AN 
ELECTIVE OR APPOINTIVE OFFICIAL OF THE REPUBLIC OF THE 
PHILIPPINES INCLUDING BUT NOT LIMITED TO THE PRESIDENT, 
VICE PRESIDENT, MEMBERS OF CONGRESS, MEMBERS OF THE 
JUDICIARY, 
THE 
OMBUDSMAN 
AND 
HIS 
DEPUTIES, 
THE 
CHAIRMEN AND MEMBERS OF THE CABINET INCLUDING THE 
UNDERSECRETARIES, ASSISTANT SECRETARIES AND BUREAU 
DIRECTORS 
OF 
THE 
DIFFERENT 
DEPARTMENTS, 
THE 
COMMISSIONERS, DEPUTY COMMISSIONERS, EXAMINERS AND/OR 
APPRAISERS IN THE BUREAU OF CUSTOMS AND THE BUREAU OF 
INTERNAL REVENUE, THE OFFICERS AND MEMBERS OF THE 
ARMED FORCES OF THE PHILIPPINES (AFP) AND THE PHILIPPINE 
NATIONAL POLICE (PNP) AND ALL GOVERNMENT EMPLOYEES. 
SECTION 2. Separability Clause. - If any part of the provision of this Act 
is hereby declared unconstitutional or invalid, other provisions hereof which are 
not affected thereby shall continue to be in full force and effect. 


, 
SECTION 3. Repealing Clause. - All law, executive orders, decrees, rules 
and regulations, or any part thereof inconsistent with the provision of this Act are 
deemed repealed or modified accordingly. 
SECTION 4. Effectivity. - This Act shall take effect immediately upon 
approval. 
Approved,