Under Philippine law, the Secrecy of Bank Deposits is primarily governed by two statutes: Republic Act No. 1405 (The Law on Secrecy of Bank Deposits) and Republic Act No. 6426 (The Foreign Currency Deposit Act). These laws aim to preserve the confidentiality of bank deposits by protecting them from unauthorized disclosure, thereby fostering a robust banking system that encourages individuals and corporations to deposit their money in Philippine banks. Let’s discuss these laws, focusing on the prohibited acts related to the secrecy of bank deposits.

Republic Act No. 1405 (The Law on Secrecy of Bank Deposits)

Enacted in 1955, R.A. No. 1405 mandates the confidentiality of all bank deposits in the Philippines, with limited exceptions. It applies to all types of bank accounts, whether held by individuals or entities, and aims to protect depositors from undue scrutiny and investigation.

Key Provisions of R.A. No. 1405:

Confidentiality Mandate: The law prohibits the disclosure of information regarding bank deposits except under specific circumstances.
Covered Deposits: R.A. No. 1405 applies to all forms of Philippine currency deposits in banks and other financial institutions in the Philippines.
Exceptions to Confidentiality:
- Written Consent of the Depositor: Disclosure is allowed if the depositor gives explicit, written consent.
- In Cases of Impeachment: Bank deposits may be examined when it is necessary for impeachment proceedings.
- Court Order in Specific Cases: Courts may order the examination of bank accounts in cases of bribery, dereliction of duty, and other cases where the integrity of public office is in question.
- For Tax Purposes: The Bureau of Internal Revenue (BIR) may access deposits in cases where the depositor is involved in tax evasion cases, based on court approval.
- For Recovery of Ill-Gotten Wealth: The Philippine Commission on Good Government (PCGG) may also access deposits if they relate to the recovery of ill-gotten wealth, such as deposits of former government officials or their associates that are suspected to be derived from public funds or graft and corruption.
Penalties for Unauthorized Disclosure: R.A. No. 1405 provides penalties for unauthorized disclosure or acts that infringe upon the confidentiality of bank deposits. This includes criminal liability for bank officers or employees who reveal deposit information without proper authority or legal basis.
Prohibited Acts under R.A. No. 1405:
- Any unauthorized examination, inquiry, or disclosure of information related to deposits is strictly prohibited.
- Bank officers, employees, and any individuals involved in the handling of deposit information are barred from disclosing deposit details unless an exception is explicitly met.

Republic Act No. 6426 (The Foreign Currency Deposit Act)

R.A. No. 6426 was enacted in 1974 to protect the confidentiality of foreign currency deposits in Philippine banks. This law was meant to attract foreign investments by ensuring the security and privacy of foreign currency deposits held by both residents and non-residents of the Philippines.

Key Provisions of R.A. No. 6426:

Confidentiality of Foreign Currency Deposits: All foreign currency deposits in banks within the Philippines are strictly confidential.
Broad Application: The confidentiality provisions apply to both resident and non-resident depositors, regardless of nationality, making it attractive for foreign depositors.
Exceptions to Confidentiality:
- Written Consent of the Depositor: Similar to R.A. No. 1405, the law allows disclosure of foreign currency deposits when the depositor provides written consent.
- Exception for Criminal Cases: Recent amendments have expanded the cases in which foreign currency deposits may be examined. Courts may now permit examination if the deposits are related to criminal cases involving issues such as money laundering, terrorism financing, and other specified offenses.
Prohibited Acts under R.A. No. 6426:
- Unauthorized examination or disclosure of information on foreign currency deposits is strictly prohibited.
- Bank officers, employees, or any persons with access to foreign currency deposit information are forbidden from disclosing deposit details without meeting the legal exceptions.

Prohibited Acts Common to Both Laws

Both R.A. No. 1405 and R.A. No. 6426 aim to ensure that bank deposits, whether in Philippine pesos or foreign currency, are kept confidential unless a legitimate legal exception applies. The following acts are prohibited under both laws:

Unauthorized Access and Disclosure: Bank officers, employees, or any individuals with access to deposit information cannot, without authorization, disclose or permit the examination of bank deposits, either in Philippine pesos or foreign currency. This applies to personal, corporate, and government-related deposits.
Breach of Confidentiality Without Legal Basis: Any breach of confidentiality not covered by the recognized exceptions (such as for tax cases, court orders, etc.) is prohibited. Unauthorized disclosure, even if motivated by personal curiosity or in response to inquiries by unauthorized individuals or entities, is illegal.
Penalties for Violators:
- Violators of these laws may face criminal, civil, or administrative penalties. Criminal penalties can include imprisonment and fines.
- Bank officers or employees who engage in unauthorized disclosure may also face disciplinary actions from regulatory agencies like the Bangko Sentral ng Pilipinas (BSP), in addition to penalties prescribed under Philippine law.

Impact and Enforcement of Secrecy Laws in Philippine Banking

The strict regulations imposed by R.A. No. 1405 and R.A. No. 6426 underscore the Philippine government’s commitment to protecting the privacy of depositors. However, these laws are balanced by provisions that allow lawful examination and disclosure under circumstances involving public interest or the state’s duty to enforce justice, such as criminal investigations or tax collection.

In practice:

Banks must ensure that internal controls are robust and that employees are well-trained on the limitations surrounding disclosure.
Violations are taken seriously, and depositors can file complaints if they believe their rights under these laws have been violated.
The Anti-Money Laundering Council (AMLC) and the BSP play crucial roles in overseeing compliance and investigating breaches when confidentiality laws are suspected to have been violated.

Conclusion: Philippine banking laws on the secrecy of bank deposits protect depositors’ information but recognize limited exceptions for public interest, integrity in public service, and national security. Unauthorized access or disclosure of deposit information is a punishable offense under Philippine law, underscoring the importance of confidentiality and trust in the Philippine banking system.