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LAW 006
Regulatory Framework and Legal Issues in Business
AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY BANKING INSTITUTION AND PROVIDING PENALTY THEREFOR. The law prohibits any person, from disclosing to any person any information, relative to the funds or properties belonging to the depositors in the custody of the bank. Simply put, no one can just go to your bank and ask for your bank balance. The following are the exceptions to the bank secrecy law: 1. Written permission or consent in writing by the depositor; 2. In cases of impeachment; 3. Upon order of the court in cases of bribery or dereliction of duty of public officials; 4. Upon order of the court in cases where the money deposited or invested is the subject matter of the litigation; 5. Upon a subpoena issued by the Ombudsman concerning an investigation it is conducting, provided that there must already be a case pending in court, the account be clearly identified, the inspection be limited to the subject matter of the pending case; and the bank personnel and the depositor must be notified to be present during the inspection; 6. The BIR can inquire into bank deposits in an application for compromise of tax liability or determination of a decedent’s gross estate; 7. The Anti-Money Laundering Council (“AMLC”) can examine bank accounts pursuant to a court order, where there is probable cause that the deposits are related to an unlawful activity or money laundering offense; 8. The AMLC can examine bank accounts, WITHOUT a court order, where there is probable cause that the deposits are related to certain crimes such as kidnapping for ransom, violation of the Dangerous Drugs Act, hijacking, destructive arson, murder and violations of RA 6235 (acts inimical to civil aviation); 9. The Bangko Sentral can examine bank accounts in the course of its periodic or special examination regarding compliance with Anti-Money Laundering Law.
