Under Philippine law, the secrecy of bank deposits is enshrined in two primary statutes:

Republic Act No. 1405 (also known as the "Bank Secrecy Law"), which covers all deposits in Philippine banks, and
Republic Act No. 6426 (known as the "Foreign Currency Deposit Act of the Philippines"), which provides a specific framework for foreign currency deposits.

Both statutes aim to protect the confidentiality of bank deposits, with particular restrictions and limitations on when and how these deposits may be disclosed, examined, or garnished.

Here’s a detailed breakdown regarding Garnishment of Deposits, including Foreign Deposits under these laws:

1. General Rule on Secrecy of Deposits (R.A. 1405 and R.A. 6426)

R.A. No. 1405 declares all deposits of whatever nature in banks in the Philippines, including investments in bonds issued by the government, as absolutely confidential. They cannot be examined, inquired into, or disclosed without the depositor's written permission.
R.A. No. 6426 extends this confidentiality to foreign currency deposits, providing additional protections. This law ensures that foreign currency deposits in banks, including those by non-residents, are strictly confidential and may not be subjected to examination, inquiry, or garnishment except in highly specific circumstances.

2. Garnishment of Deposits

Definition and Purpose of Garnishment

Garnishment is a legal process by which a creditor seeks to satisfy a judgment debt by claiming funds held by a third party, such as a bank, on behalf of the debtor. It essentially allows a creditor to "attach" or seize funds from a bank account to pay off debts that the depositor (debtor) owes.

Garnishment Under R.A. No. 1405 (Local Currency Deposits)

General Prohibition:
- R.A. No. 1405 prohibits the garnishment of bank deposits unless expressly permitted by law. This means that, as a rule, creditors cannot garnish funds in a debtor’s bank account, as this would require the disclosure of the deposit’s existence and value, thereby breaching bank secrecy.
Exceptions to Secrecy and Garnishment:
- The Bank Secrecy Law allows for very few exceptions. Deposits may be examined, and therefore subject to garnishment, only in these cases:
  - Written Consent of the Depositor: If the depositor provides written consent, the secrecy of the account is waived, and garnishment can proceed.
  - Impeachment Cases: Accounts can be opened or garnished in cases involving impeachment.
  - Cases Filed by the Bureau of Internal Revenue (BIR): Garnishment can occur if it is necessary to determine the tax liabilities of the account holder.
  - Judicial Order in Specific Cases: Courts can order garnishment in cases involving unexplained wealth or violations of the Anti-Money Laundering Act (AMLA).
  - Inquiries related to Anti-Money Laundering: Under the Anti-Money Laundering Act (AMLA), if an account is linked to money laundering, courts may allow garnishment.
Importance of Judicial Oversight:
- In cases where garnishment is permitted, judicial oversight is critical. A court order is typically required to confirm the legitimacy of the garnishment request and to ensure it falls under the allowed exceptions.

Garnishment Under R.A. No. 6426 (Foreign Currency Deposits)

Higher Protection Standard for Foreign Currency Deposits:
- R.A. No. 6426 offers more stringent confidentiality protections compared to local currency deposits. Foreign currency deposits may not be garnished or subjected to court orders except in exceptional cases, even more restrictive than those for local currency accounts.
Strict Exception:
- The sole instance where foreign currency deposits may be disclosed or garnished is with the express written consent of the depositor. Unlike R.A. 1405, which allows for other narrow exceptions, R.A. 6426 is absolute in that consent from the depositor is mandatory.
- Even tax-related cases under the Bureau of Internal Revenue (BIR) do not have a statutory exception for garnishing foreign currency deposits, making R.A. 6426 particularly strict.
Implications of Non-Waiver of Consent:
- In cases where a debtor refuses to provide written consent, foreign currency deposits remain fully protected from garnishment or inquiry. Courts in the Philippines have historically upheld this strict standard, often preventing creditors from accessing foreign currency deposits of debtors even with judgments or court orders.

3. Interaction with Other Laws and Judicial Interpretations

Anti-Money Laundering Act (AMLA) and Bank Secrecy

The Anti-Money Laundering Act adds another layer of complexity. Although it does not override R.A. 6426, it provides mechanisms for examining suspicious accounts under judicial scrutiny. In the context of garnishment:
- Local currency accounts (R.A. 1405) may be garnished under AMLA if they are found to be part of a money-laundering scheme, following a judicial order.
- However, foreign currency accounts (R.A. 6426) remain shielded from AMLA unless the depositor consents.

Civil and Criminal Cases

Civil Cases: Courts have generally upheld the protection of deposits from garnishment in ordinary civil cases unless they fall under R.A. 1405’s exceptions. For foreign currency deposits, only the depositor’s consent will suffice.
Criminal Cases: If a bank deposit is suspected to be related to a criminal offense (e.g., fraud, graft, or money laundering), authorities may seek court approval to lift the secrecy provisions. For local currency accounts, this may be possible under R.A. 1405. However, foreign currency accounts require the depositor’s consent under R.A. 6426, except under AMLA proceedings with substantial judicial justification.

4. Significant Case Law

Philippine jurisprudence has consistently interpreted these laws strictly:

Salvacion v. Central Bank (1997): The Supreme Court allowed the garnishment of a foreign currency deposit only in an extraordinary case involving a moral obligation and justice for the victim, showing that extreme situations might allow exceptions. However, this was a highly fact-specific decision and did not set a broad precedent.
Ejercito v. Sandiganbayan (2001): Here, the Court reinforced the strict limitations on accessing foreign currency deposits under R.A. 6426, underscoring that only the depositor’s written consent would suffice for garnishment, even in government-related forfeiture cases.

5. Conclusion

The law on the secrecy of bank deposits, particularly concerning garnishment, is one of the strictest in the Philippines:

Local Currency Deposits (R.A. 1405): These may be garnished but only under limited, legally-defined exceptions.
Foreign Currency Deposits (R.A. 6426): These enjoy even stricter protection and are virtually immune to garnishment without the depositor's written consent.

These laws, aimed at promoting the banking industry’s stability and the depositors’ trust, impose formidable barriers to garnishment, balancing privacy with limited instances where disclosure is in the public interest or necessary for justice.