EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
374
*19 JULll P2--40
S. No.
Introduced bv SENATOR LEILA M. DE LIMA
AN ACT
AMENDING REPUBLIC ACT NO. 1405, ALSO ICNOVVN AS 
THE BANK SECRECY LAW, AS AMENDED, BY REMOVING FROM 
ITS COVERAGE, GOVERNMENT OFFICIALS AND EMPLOVT.ES,
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The 1987 Constitution emphasizes in Article XI, Section l that “[p]ublic office is 
a public trust”. No person who serves in government should be allowed to breach or 
abuse an official mandate. He or she should always be accountable to the people at all 
times.
No mechanism for accountability and transparency is effective if government 
officials and employees are able to hide their ill-gotten wealth and anomalous funds 
by invoking the absolute confidentiality to bank deposits, as provided in Republic Act 
No. 1405, also known as the Bank Secrecy Law.
By removing the bank confidentiality privilege of those in government, this bill 
will promote transparency in governance, and shall bring to the level of domestic 
implementation our commitment under the United Nations Convention Against 
Corruption to strengthen legislative measures in preventing and combating 
corruption.
Early approval of this bill is earnestly sought.
LEILA M. DE LIMA


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
c . . '  
\ 
:
SENATE
S. No. 
3 7 4
*19 JULll P2--40
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
AMENDING REPUBLIC ACT NO. 1405, ALSO KNOWN AS 
THE BANK SECRECY LAW, AS AMENDED, BY REMOVING FROM 
ITS COVERAGE, GOVERNMENT OIIICIALS AND EMPLOYEES, 
AND FOR OTFIER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Section 2 of Republic Act No. 1405 (R. A. No. 1405) as amended, is
2 
hereby further amended to read as follows:
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“Section 2. All deposits of whatever nature with
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banks or banking institutions in the Philippines
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including investments in bonds issued by the
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Government of the Philippines, its political subdivisions
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and its instrumentalities, are hereby considered as of an
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absolutely confidential nature and may not be
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examined, inquired or looked into by any person,
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government official, bureau or office, except upon
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written permission of the depositor, or in cases of
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impeachment, or upon order of a competent court in
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cases of bribery or dereliction of duty of public officials,
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or in cases where the money deposited or invested is the
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subject 
matter 
of the 
litigation; 
PROVIDED,
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iio w e \ t :r , t h a t  
b a n k  a c c o u n t s a n d
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DEPOSITS OF GOVERNMENT OFFICIALS AND
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EMPLOYEES, 
APPOINTIVE 
OR 
ELECTIVE


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REGARDLESS 
OF 
RAJNK, 
INCLUDING 
MEMBERS OF THE MILITARY, DO NOT ENJOY 
THE PRIVILEGE OF CONFIDENTIALITY. THIS 
INCLUDES FOREIGN CURRENCY DEPOSITS.
5 
Sec. 2. R.A. No. 1405, as amended, is hereby further amended by inserting a
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new provision to be known as Section 2- A thereof, which reads:
“SEC. 2-A. INQUIRY INTO BANK DEPOSITS OF 
GOVERNMENT OFFICIALS AND EMPLOYEES -  
WITHOUT NEED OF COURT ORDER OR 
INFORMATION 
FILED, 
INVESTIGATIVE 
BODIES OR OFFICIALS WITH APPROPRIATE 
AUTHORITY OR MANDATE, IN PROCESSES 
ALLOWED UNDER PHILIPPINE LAWS, ARE 
AUTHORIZED 
TO 
INQUIRE 
INTO 
BANK 
DEPOSITS OF GOVERNMENT OFFICIALS AND 
EMPLOYEES WHERE THERE IS GROUND 
THAT ENGENDERS REASONABLE BELIEF 
THAT THE FUNDS INVOLVED ARE PART OR 
PROCEEDS IN THE COMMISSION 
OF A 
CRIMINAL OFFENSE.”
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Sec. 3. R.A. No. 1405, as amended, is hereby further amended by inserting a
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new provision to be knowTi as Section 3-A thereof, which reads:
“SEC. 3-A. p e n a l t y . - ANY EMPLOYEE OR 
OFFICER OF THE BANK, WHO IMPEDES, 
OBSTRUCTS, OR OTHERWISE REFUSES TO 
PROVIDE THE REQUIRED INFORMATION 
UNDER SECTION 2 HEREOF, SHALL SUFFER 
THE PENALTY OF IMPRISONMENT OF NOT 
MORE THAN FIVE (5) YEARS OR A FINE NOT 
MORE THAN ONE HUNDRED THOUSAND 
PESOS (P ioo,000.00) OR BOTH, UPON THE 
DISCRETION OF THE COURT.
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Sec. 4. All remaining sections of R.A. No. 1405, as amended, are hereby
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renumbered accordingly.
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Sec 5. Separability Clause. - If, for any reason, a provision is declared invalid,
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other provisions not affected thereby shall remain in full force and effect.
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Sec. 6. Repealing Clause. - All laws, decrees, executive orders, rules and
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regulations contrary to or inconsistent with the provisions of this Act are hereby
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repealed or modified accordingly.
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Sec. 7. Effectivity. - This Act shall take effect fifteen (15) day after its publication
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in the Official Gazette or in a newspaper of general circulation.
Approved,