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    Secrecy OF BANK DEPOSIT

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    MERRY CHRIS CERBITO
    This document summarizes Philippine law on bank secrecy (RA 1405) and foreign currency deposits (RA 6426). RA 1405 prohibits examining, inquiring about, or disclosing any information about bank deposits without the depositor's permission, except in specific cases like impeachment or court orders. It aims to encourage deposits and lending. RA 6426 extends similar secrecy and privileges to foreign currency deposits, allowing absolute confidentiality except with permission. It exempts such deposits from taxes, court orders, and sets rules around interest rates and numbered accounts.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Secrecy OF BANK DEPOSIT

    Uploaded by

    MERRY CHRIS CERBITO
    26 views2 pages
    This document summarizes Philippine law on bank secrecy (RA 1405) and foreign currency deposits (RA 6426). RA 1405 prohibits examining, inquiring about, or disclosing any information about bank deposits without the depositor's permission, except in specific cases like impeachment or court orders. It aims to encourage deposits and lending. RA 6426 extends similar secrecy and privileges to foreign currency deposits, allowing absolute confidentiality except with permission. It exempts such deposits from taxes, court orders, and sets rules around interest rates and numbered accounts.

    Original Description:

    This is the law about secrecy of bank deposit which encourages depositors to trust the bank.

    Copyright

    © © All Rights Reserved

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    This document summarizes Philippine law on bank secrecy (RA 1405) and foreign currency deposits (RA 6426). RA 1405 prohibits examining, inquiring about, or disclosing any information about bank deposits without the depositor's permission, except in specific cases like impeachment or court orders. It aims to encourage deposits and lending. RA 6426 extends similar secrecy and privileges to foreign currency deposits, allowing absolute confidentiality except with permission. It exempts such deposits from taxes, court orders, and sets rules around interest rates and numbered accounts.

    Copyright:

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

    Secrecy OF BANK DEPOSIT

    Uploaded by

    MERRY CHRIS CERBITO
    This document summarizes Philippine law on bank secrecy (RA 1405) and foreign currency deposits (RA 6426). RA 1405 prohibits examining, inquiring about, or disclosing any information about bank deposits without the depositor's permission, except in specific cases like impeachment or court orders. It aims to encourage deposits and lending. RA 6426 extends similar secrecy and privileges to foreign currency deposits, allowing absolute confidentiality except with permission. It exempts such deposits from taxes, court orders, and sets rules around interest rates and numbered accounts.

    Copyright:

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

    LAW ON SECRECY OF BANK DEPOSITS (RA 1405)

    A. Purpose

    1. To encourage people to deposit their money in banks.

    2. To discourage private hoarding so that the banks may lend out the money and assist in
    the economic development of the country.

    B. Prohibited Acts

    1. The EXAMINATION AND INQUIRY OR LOOKING into:


    a. all deposits of whatever nature
    b. with banks or banking institutions in the Philippines (including investments in
    bonds issued by the Governments or its political subdivisions and
    instrumentalities) by
    i. any person;
    ii. any government official;
    iii. any bureau; or
    iv. any office.

    2. The DISCLOSURE by:


    a. any OFFICIAL of any banking institution or
    b. any EMPLOYEE of any banking institution

    to ANY UNAUTHORIZED PERSON of any information concerning the said deposit.

    C. Exceptions

    1. Upon WRITTEN PERMISSION OF THE DEPOSITOR;


    2. In cases of IMPEACHMENT OF GOVERNMENT OFFICIALS;
    3. Upon ORDER OF A COMPETENT COURT in cases of:
    a. BRIBERY of public officials
    b. DERELICTION of duty of public officials
    4. In cases where the money deposited or invested is the subject matter of the litigation.

    D. The law in relation to Foreign Currency Deposit Act

    The Foreign Currency Deposit Act (RA 6426) allows any person to deposit and banks to
    accept for deposit ANY foreign currency ACCEPTABLE AS PART OF OUR INTERNATIONAL
    RESERVE. Unlike ordinary bank deposits, foreign currency deposits enjoy the following unique
    privileges

    1. Absolute confidentiality
    EXCEPT UPON WRITTEN PERMISSION OF THE DEPOSITOR, aforeign currency
    deposit cannot be examined, inquired, or looked into by any person or office, whether
    public or private, or judicial,administrative or legislative

    2. Numbered Accounts
    Authorized banks may adopt a numbered account system for recording and servicing the
    said deposits

    3. Rate of interest

    Authorized banks are free to pay any rate of interest

    4. Taxes

    The interest received by an individual residents, domestic and resident foreign corporations
    from such deposits are subjected to 7.5% final income tax. There is NO final income tax on the
    interest received by non-resident individuals and non-resident foreign corporations

    5. Court order or process

    EXEMPT from attachment, garnishment or any other order or process of any court,
    legislative or administrative body, or government agency whatsoever.

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