1) Bank deposits are considered absolutely confidential by law to discourage hoarding and encourage depositing money in banks.
2) Exceptions allow examination of deposits under specific circumstances like a bank audit, court order, or investigation into crimes like money laundering or graft.
3) Regulators can also access dormant deposits after 10 years or deposits related to loans from bank directors and officers.
1) Bank deposits are considered absolutely confidential by law to discourage hoarding and encourage depositing money in banks.
2) Exceptions allow examination of deposits under specific circumstances like a bank audit, court order, or investigation into crimes like money laundering or graft.
3) Regulators can also access dormant deposits after 10 years or deposits related to loans from bank directors and officers.
1) Bank deposits are considered absolutely confidential by law to discourage hoarding and encourage depositing money in banks.
2) Exceptions allow examination of deposits under specific circumstances like a bank audit, court order, or investigation into crimes like money laundering or graft.
3) Regulators can also access dormant deposits after 10 years or deposits related to loans from bank directors and officers.
1) Bank deposits are considered absolutely confidential by law to discourage hoarding and encourage depositing money in banks.
2) Exceptions allow examination of deposits under specific circumstances like a bank audit, court order, or investigation into crimes like money laundering or graft.
3) Regulators can also access dormant deposits after 10 years or deposits related to loans from bank directors and officers.
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BLAW 102 – LAW ON NEGOTIABLE INSTRUMENTS
POINTERS FOR FINAL EXAMINATION
RA 1405 – LAW ON SECRECY OF BANK DEPOSITS
TWO (2) ALLIED PURPOSES/RATIONALE:
1. To discourage private hoarding; and 2. Encourage people to deposit money in banks to be utilized in authorized loans. Section 2 institutionalized the basic policy of the State by characterizing as “Absolutely confidential” in general all deposits of whatever nature with banks and other financial institutions in the country. Prohibited Acts: o The law declares that all banks 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 hereby considered as of an absolutely confidential nature and may not be examined, inquired or looked into by any person, government official, bureau or office: o Exceptions to the prohibited acts: 1. In an examination made in the course of a special or general examination of a bank that is specifically authorized by the Monetary Board after being satisfied that there is reasonable ground to believe that a bank fraud or serious irregularity has been or is being committed and that it is necessary to look into the deposit to establish such fraud or irregularity; 2. In an examination made by an independent auditor hired by the bank to conduct its regular audit provided that the examination is for audit purposes only and the results thereof shall be for the exclusive use of the bank; 3. Upon written permission of the depositor; 4. In cases of impeachment; 5. Upon order of a competent court in cases of bribery or dereliction of duty of public officials; 6. In cases where the money deposited or invested is the subject matter of the litigation; 7. In cases of unexplained wealth under RA 3019 or the Anti-Graft and Corrupt Practices Act; 8. In inquiry into bank deposits, trusts or investment funds, or banking transactions when there is reasonable ground to believe that they have been used in support or in furtherance of the December 1989 coup d’etat, under RA 6832; 9. When inquiry is conducted under the authority of the CIR into the bank accounts of following: a) a decedent in order to determine his gross estate; b) any taxpayer who has filed an application for compromise of his tax liability on the ground of financial incapacity, which application is accompanied by a waiver of his privilege under RA 1405; 10. In the following cases under the Anti-Money Laundering Act of 2001: a) When a banking and other covered institutions are required to report to the Anti-Money Laundering Council (AMLC) any single, series or combination of transactions involving a total amount in excess of P4 Million (or an equivalent in foreign currency) within 5 working days from occurrence thereof unless the Supervising Authority concerned prescribes a longer period not to exceed 10 working days; b) When AMLC inquires into or examines any particular deposit or investment upon order of any competent court, when it has been established that there is probable cause that deposits or investments involved are in any way related to money laundering offense, except that no court order is required in the following cases: (1) kidnapping for ransom; (2) unlawful activities under the Comprehensive Dangerous Drugs Act of 2002; (3) hijacking and other violations under RA 6235; and (4) destructive arson and murder including those perpetrated by terrorists against non-combatants and similar targets. 11. Under RA 7653 or the New Central Bank Act of 1993, when the examination is conducted pursuant to the required waiver of the secrecy of bank deposits made by any director, Officer or Stockholder who together with his related interest, contracts a loan or any other form of financial accommodation; and 12. Disclosure of certain information about bank deposits which have been dormant for at least ten years, to the Treasurer of the Philippines in a sworn statement, a copy of which is posted in the bank premises.
Satcorp International Group and Sino American Trading Corp. v. China National Silk Import & Export Corporation, and Hugh H. Mo, Esq., 101 F.3d 3, 2d Cir. (1996)