BANK SECRECY LAW Deposits Covered:

I. General Rule
RA 1405 1. All deposits of whatever nature with banks found in the Philippines.
“An act prohibiting disclosure of or inquiry into, deposits with any banking 2. Investment in bonds issued by the Philippine government, its
institution and providing penalty therefor.” branches, and institutions.
II. Trust Fund
Purpose: 3. The money deposited under the trust agreement is intended not
1. Encourage deposit in baking institutions. merely to remain with the bank but to be invested by it elsewhere.
2. Discourage private hoarding so that banks may lend such funds III. Foreign Currency Deposit
and assist in the economic development of the country. 4. Governed by a different law which is the Foreign Currency Deposit
Prohibited acts in RA 1405: Act (RA 6426).
1. Examination/inquiry/looking into all deposits of whatever nature
with banks/banking institutions in the Philippines by any person, Exemptions:
government official/office. Section 2 of RA 1405 provides that the bank deposits and government
2. Disclosure by any official/employee of any banking institution to bond investments may be examined, inquired and looked into in the
any unauthorized person of any information concerning said following instances:
deposit.
Acts not covered by the prohibition: 1. Upon written permission/consent by the depositor.
1. Non-bank official/ employee. - For consent to be valid, it should be made knowingly, voluntarily
2. Disclosure by a bank official/employee of information about bank and with sufficient awareness of the relevant circumstances and
deposit in favor of a co-employee in the course of the likely consequences.
performance of his duties covered by the prohibition.
2. In cases of impeachment (President, VP, Members of the SC,
(Section 2) Members of the Constitutional Commission, Ombudsman) for
All deposits of whatever nature with banks in the Philippines including culpable violation of the constitution, treason, bribery, graft and
investments in bonds issued by the Government of the Philippines, corruption, other high crimes or betrayal of trust.
its political subdivisions and its instrumentalities, are hereby 3. Upon order of a competent court in cases of: bribery, dereliction of
considered as of an absolutely confidential nature and may not be public officials
examined, inquired or looked into by any person, government official, 4. In cases where the money deposited or invested is the subject
bureau or office, except upon written permission of the depositor, or in matter of the litigation. The money deposited should be the very
cases of impeachment, or upon order of a competent court in cases of thing in dispute.
bribery or dereliction of duty of public officials, or in cases where the
money deposited or invested is the subject matter of the litigation.
Bank deposits and investments may be examined, inquired, or looked into D. The Commissioner of Internal Revenue (BIR) is authorized to inquire
as provided for under other laws in the following circumstances: into bank deposit accounts in relation to:
- An application for compromise of tax liability or a determination of a
A. The Ombudsman has the power to issue subpoena and subpoena decedent’s gross estate.
duces tecum, take testimony in any investigation or inquiry, as well as - A request for tax information of specific taxpayers made by a
examine and access bank accounts and records. foreign tax authority pursuant to a tax treaty.

A subpoena is a legal order requiring someone to appear in court or

provide evidence for a case. E. The Anti-Money Laundering Council may be authorized to examine
and inquire into bank deposits/investments with banks/nonbank financial
Subpoena duces tecum means “a subpoena for the production of institutions
evidence” which requires the witness to produce documents, records, or - With court order, when there is probable cause that the
other tangible objects for examination at a trial or hearing. Duces tecum in deposits/investments are related to an unlawful activity/money
Latin means, “you shall bring with you.” laundering offense.
- Without need of court order, when probable cause exists that a
The power of the Ombudsman to subpoena deposit information of a particular deposit/investment with any banking institution is related
government official may be exercised when the following conditions concur: to certain predicate crimes, such as kidnapping for ransom,
1. There must be a case pending before a court of competent violation of the Comprehensive Dangerous Drugs Act,
jurisdiction hijacking and other violations under RA 62351, destructive
2. Account must be clearly identified arson, and murder.
3. The inspection must be limited to the subject matter of the pending
case F. The Banko Sentral is authorized… in the course of a periodic or
4. The bank personnel and account holder must be notified to be special examination to ensure compliance with the AMLA, and conduct
present during the inspection annual testing which is limited to the determination of the existence and
true identity of the owners of numbered accounts.
B. Bank deposits of a public official, his spouse and unmarried children
may be taken into consideration in the enforcement of section 8 of the G. The Philippine Deposit Insurance Commission and Banko Sentral
Anti-Graft and Corrupt Practices Act. may inquire into bank deposits when there is a finding of
unsafe/unsound banking practices.
C. Directors, officers, stockholders and related interests who contract a
loan or any form of financial accommodation with their bank or related bank H. The Court of Appeals may issue an order authorizing law enforcement
are required to execute a written waiver of secrecy of deposits pursuant to officers to examine and gather information on the deposits, placements,
The New Central Bank Act. trust accounts, assets and records in a bank in connection with an
anti–terrorism case.
I. The Commision on Audit is authorized to examine and audit b. Foreign Deposits
government deposits pertaining to the revenue and receipts of, and General Rule: Foreign currency deposits shall be exempt from attachment,
expenditures or uses of funds and properties, owned or held in trust by, or garnishment, or any other order or process of any court, legislative body,
pertaining to the Government or any of its subdivisions, agencies or government agency or any administrative body. (RA 6426)
instrumentalities, including GOCCs with original charters.
Exception: The application of section 8 RA 6426 depends on the extent of
Garnishment of Bank Deposits including Foreign Deposits its justice.
a. Bank Deposits - The garnishment of foreign currency deposit should be allowed to
- The garnishment of bank deposits does not violate the law. prevent injustice and for equitable grounds, otherwise it would
The prohibition against examination does not preclude its negate Article 10 of the New Civil Code which provides that “in case
being garnished for satisfaction of judgement. The of doubt in the interpretation or application of laws, it is presumed
disclosure is purely incidental to the execution process and that the lawmaking body intended right and justice to prevail.”
it was not the intention of the legislature to place bank
deposits beyond the reach of judgement creditor.

EXPLANATION!
Garnishment is a legal process where a creditor can collect
payment directly from a debtor’s assets, such as bank
accounts or wages, to satisfy a judgment (a court order
requiring the debtor to pay the creditor)

While the law protects the confidentiality of your account,

this does not mean your bank deposits are untouchable.
The law against examining bank accounts is about keeping
account details private in normal situations. However, when
a court orders garnishment, the process isn’t about
publicizing your account details—it’s about ensuring justice
by letting the creditor collect what is rightfully owed.

The disclosure of your account details to the creditor or the

court is "incidental" (nag happen lang kay part of the
process), and it’s allowed because the purpose is to enforce
a legal judgment. The legislature never intended for the
Bank Secrecy Law to completely shield a debtor’s bank
account from being used to pay legitimate debts.