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    Secrecy Notes

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    LeisleiRago
    The document discusses the relevant Philippine law on bank secrecy. The Bank Deposit Secrecy Law protects the confidentiality of bank deposits and investments to encourage banking and discourage hoarding. Exceptions allow disclosure with depositor permission, for impeachment/court cases, or for independent audits as long as results are for bank use only. Violations face imprisonment up to 5 years and/or fines up to 20,000 pesos.

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    Secrecy Notes

    Uploaded by

    LeisleiRago
    76 views2 pages
    The document discusses the relevant Philippine law on bank secrecy. The Bank Deposit Secrecy Law protects the confidentiality of bank deposits and investments to encourage banking and discourage hoarding. Exceptions allow disclosure with depositor permission, for impeachment/court cases, or for independent audits as long as results are for bank use only. Violations face imprisonment up to 5 years and/or fines up to 20,000 pesos.

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    Law Secrecy

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    The document discusses the relevant Philippine law on bank secrecy. The Bank Deposit Secrecy Law protects the confidentiality of bank deposits and investments to encourage banking and discourage hoarding. Exceptions allow disclosure with depositor permission, for impeachment/court cases, or for independent audits as long as results are for bank use only. Violations face imprisonment up to 5 years and/or fines up to 20,000 pesos.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    76 views2 pages

    Secrecy Notes

    Uploaded by

    LeisleiRago
    The document discusses the relevant Philippine law on bank secrecy. The Bank Deposit Secrecy Law protects the confidentiality of bank deposits and investments to encourage banking and discourage hoarding. Exceptions allow disclosure with depositor permission, for impeachment/court cases, or for independent audits as long as results are for bank use only. Violations face imprisonment up to 5 years and/or fines up to 20,000 pesos.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    What is the relevant law on this topic?

    Republic Act No. 1405 is entitled “An Act Prohibiting Disclosure Of Or Inquiry Into, Deposits With Any
    Banking Institution And Providing Penalty Therefor”.

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    What are the purposes of the Bank Secrecy Deposit Act?

    The Bank Deposit Secrecy Law was created for the following purposes:

     To encourage people to deposit their money in banking institutions


     To discourage private hoarding of money so that the same may be utilized by banks in authorized loans

    What is covered by the law on bank secrecy?

    The law states that 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 considered absolutely confidential.

    Does the law on secrecy also apply to foreign currency deposits?

    Yes.

    Republic Act No. 6426, known as the “Foreign Currency Deposit Act of the Philippines”, Sec. 8 states that
    all foreign currency deposits are also considered of an absolutely confidential nature.

    Are there exceptions to the confidentiality rule on deposits?

    Yes.

    In the following cases, the deposits may be examined, inquired or looked into by any person, government
    official, bureau or office:

     With written permission of the depositor


     In cases of impeachment
     Upon order of a competent court in cases of bribery or dereliction of duty of public officials
     In cases where the money deposited or invested is the subject matter of litigation
     During special or general examination of a bank, as authorized by the Monetary Board to investigate bank
    fraud or a serious irregularity

    On the part of the auditor on the audit of bank’s financial statements, does it mean that the auditor
    can no longer inquire into or examine bank deposits because of the law on secrecy?

    Not necessarily.

    Presidential Decree No. 1792, amending Republic Act No. 1405 states that, during a regular audit of a
    bank by an independent auditor, the auditor may inquire, examine or look into deposits, provided that the
    following conditions are satisfied:

     The examination is for audit purposes only


     The results of the examination shall be for the exclusive use of the bank

    What are the sanctions for violations of the Bank Secrecy Law?

    Any violation of this law will subject offender upon conviction, to either or both of the following (upon the
    discretion of the court):

     Imprisonment of not more than 5 years


     Fine of not more than P20,000

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