Lawmakers Advocate Bank Secrecy Law Reforms for Transparency
MANILA, Philippines — Lawmakers are pushing for bank secrecy law reforms to modernize the decades-old legislation and enhance transparency. Leyte 1st District Representative Ferdinand Martin Romualdez has introduced House Bill No. 7, which seeks amendments to Republic Act No. 1405, aiming to allow the Bangko Sentral ng Pilipinas (BSP) to examine bank deposits under specific conditions.
Romualdez explained in a recent statement that the proposed changes would broaden the exceptions to the confidentiality of bank deposits, incorporating the BSP’s supervisory authority. This move is intended to strengthen regulatory oversight while preserving depositors’ privacy rights.
Expanding BSP’s Supervisory Powers
The bill’s new Section 2 would state: “All deposits are hereby considered absolutely confidential and may not be examined or inquired into by any person or government agency, except when the Bangko Sentral ng Pilipinas conducts examinations in the exercise of its supervisory powers on deposits of individuals linked to entities under BSP’s regulatory supervision.”
However, the BSP’s access to bank deposits is limited only to instances when the Monetary Board finds reasonable grounds to suspect fraud, serious irregularities, or unlawful activities involving relevant individuals such as stockholders, directors, trustees, or officers.
Additionally, the BSP may investigate deposits during the examination of closed banks. To prevent misuse, findings from such BSP inquiries will remain confidential and shared only with authorized agencies like the Securities and Exchange Commission, Philippine Deposit Insurance Corporation, Anti-Money Laundering Council, Department of Justice, or courts involved in related proceedings.
Strengthening Accountability and Fighting Corruption
Romualdez emphasized that these bank secrecy law reforms send a powerful message that the Philippines will no longer serve as a sanctuary for illicit funds. “We want to send a clear message: the Philippines should no longer be a safe haven for dirty money. If we want honest governance and a stronger financial system, we must update our laws and give our regulators the tools they need to protect the people’s money,” he said.
He also pointed out that the current law sometimes shields illegal practices such as money laundering, tax evasion, and corruption, which the proposed amendments aim to address.
Alongside Romualdez, Tingog party-list Representatives Andrew Julian Romualdez and Jude Acidre co-filed the bill. They assured that the legislation focuses on accountability rather than government overreach, balancing transparency with the protection of ordinary citizens’ privacy.
“This is about accountability, not overreach. We are making sure that while we strengthen transparency, we also protect the privacy of ordinary citizens,” Romualdez stressed. “In a time when Filipinos are demanding more honest leadership and cleaner governance, this bill is a concrete step forward. We cannot fight corruption with blindfolds on.”
Complementary Measures in the Senate
Meanwhile, Senator Francis Escudero has also filed a similar bill mandating public officials to waive their bank secrecy rights. This aims to foster public trust by preventing the concealment of ill-gotten wealth among civil servants.
Palace officials have expressed support for this measure, indicating that President Ferdinand R. Marcos Jr. backs efforts to enhance transparency and accountability among government officials.
For more news and updates on bank secrecy law reforms, visit Filipinokami.com.
