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

Twentieth Congress
First Regular Session

HOUSE BILLNO. 4235

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
RELAXING BANK SECRECY LAWS FOR ELECTED AND APPOINTED
GOVERNMENT OFFICIALS, AMENDING FOR THE PURPOSE REPUBLIC ACT
NO. 1405, OTHERWISE KNOWN AS THE “SECRECY OF BANK DEPOSITS
LAW,” AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The Philippines is one of the very few countries in the world where bank secrecy laws
remain among the strictest. Republic Act No. 1405, enacted in 1955, continues to provide near-
absolute confidentiality over bank deposits. While this policy was originally intended to
encourage savings and build confidence in the banking system, it has also had the unintended
offect of shielding illicit wealth and hampering efforts to detect corruption.

In particular, the exemption for public officials is narrow and inadequate. Investigations
into graft, plunder, and other forms of corruption are often stymied because investigators are
unable to verify whether public officers’ bank accounts match their declared Statements of
Assets, Liabilities, and Net Worth (SALNs). The inability of the State to promptly access
financial information of those entrusted with public funds undermines transparency and
accountability.

‘The Philippines has also faced repeated scrutiny from the Financial Action Task Force
(FATF), which monitors countries’ compliance with intemational anti-money laundering
standards. Bank secrecy provisions that shield public officials from legitimate inquiries expose
the country to risks of being grey-listed, which in turn could harm the economy and investor
confidence.

‘This measure seeks to amend Republic Act No. 1405 by carving out a specific and
limited exception for elected and appointed officials, including members of the Armed Forces
of the Philippines and the Philippine National Police. Under the proposed amendment, bank
deposits and investments of such officials may be examined upon lawful order of the


Ombudsman, the Anti-Money Laundering Council, or the Sandiganbayan, when necessary for
corruption investigations or lifestyle checks.

The bill also mandates the disclosure of all bank accounts, both domestic and foreign,
in the officials’ SALNs, with authority for the AMLC to verify such declarations. These reforms
balance the constitutional right to privacy with the constitutional principle that public office is
a public trust.

By passing this measure, Congress will strengthen the fight against corruption, align
the Philippines with global financial standards, and restore public faith in government
institutions.

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

RIMN SALCEDA


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

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. 423 5

Introduced by Representative RAYMOND ADRIAN SALCEDA.

AN ACT
RELAXING BANK SECRECY LAWS FOR ELECTED AND APPOINTED
GOVERNMENT OFFICIALS, AMENDING FOR THE PURPOSE REPUBLIC ACT
NO. 1405, OTHERWISE KNOWN AS THE “SECRECY OF BANK DEPOSITS
LAW,” AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. This Act shall be known as the “Government Officials Bank
‘Transparency Act.”

SEC. 2. Declaration of Policy. It is the policy of the State to uphold transparency,
integrity, and accountability in public service by ensuring that elected and appointed officials
entrusted with public funds are subject to higher standards of financial disclosure and scrutiny,
consistent with the constitutional mandate that public office is a public trust.

SEC. 3. Amendment to Republic Act No. 1405. Section 2 of Republic Act No. 1405, as
amended, is hereby further amended to read as follows:

“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, office or agency, whether judicial,
administrative or legislative, or any other entity, EXCEPT in the following instances:

(a) Upon written permission of the depositor;
(b) In cases of impeachment;

(©) Upon order of a competent court in cases of bribery, plunder, graft and
corruption, or similar cases involving public officials;


(@) In cases where the money deposited or invested is the subject matter of
litigation; and

(e) IN THE CASE OF ELECTED AND APPOINTED OFFICIALS OF
THE GOVERNMENT, INCLUDING MEMBERS OF THE ARMED FORCES
OF THE PHILIPPINES AND THE PHILIPPINE NATIONAL POLICE,
DEPOSITS AND INVESTMENTS MAY BE EXAMINED UPON LAWFUL
ORDER OF THE OMBUDSMAN, THE ANTI-MONEY LAUNDERING
COUNCIL (AMLC), OR THE SANDIGANBAYAN, IN THE EXERCISE OF
THEIR OFFICIAL FUNCTIONS RELATED TO CORRUPTION
INVESTIGATIONS OR LIFESTYLE CHECKS.”

SEC. 4, Mandatory Disclosure of Bank Accounts. All elected and appointed officials
shall disclose in their Statements of Assets, Liabilities and Net Worth (SALNS) the existence
of their bank deposits and investments, both domestic and foreign, including joint accounts.
The AMLC shall be authorized to verify such disclosures.

SEC. 5. Penalties, Any government official who willfully conceals, misdeclares, or fails
to disclose bank deposits and investments as required under this Act shall be subject to
dismissal from service, perpetual disqualification from public office, and criminal liability
under existing anti-graft and anti-money laundering laws.

SEC. 6. Implementing Rules and Regulations, Within sixty (60) days from the
effectivity of this Act, the Bangko Sentral ng Pilipinas (BSP), the AMLC, and the Office of the
Ombudsman shall promulgate the implementing rules and regulations necessary to carry out
the provisions of this Act.

SEC. 7. Separability Clause. If any provision of this Act is declared unconstitutional,
the other provisions not affected thereby shall remain in full force and effect.

SEC. 8. Repealing Clause. All laws, decrees, executive orders, rules, or regulations
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 9. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,