LAWS ON

OTHER
BUSINESS
TRANSACTIONS
Philippine Deposit Insurance Corporation (PDIC) Law
PDIC LAW
 PDIC is a government instrumentality created in 1963 by virtue of Republic Act 3591 to
insure the deposits of all banks. 
 PDIC exists to protect depositors by providing deposit insurance coverage for the depositing
public and help promote financial stability.
 Amended by R.A. No. 10846, June 11, 2016.
 References:
 http://www.pdic.gov.ph/ra-3591
 http://www.pdic.gov.ph/files/Deposit%20InsuranceBrochure_Final.pdf
 http://www.pdic.gov.ph/di_howtofileclaims
PDIC LAW – SALIENT POINTS
 Origin and purpose
 Composition of board members
 Insurable deposits
 Maximum liability
 Requirements upon claiming
LAWS ON
OTHER
BUSINESS
TRANSACTIONS
BANK SECRECY AND UNCLAIMED DEPOSITS LAW
BANK SECRECY LAW – R.A.
1405
 AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY
BANKING INSTITUTION AND PROVIDING PENALTY THEREFOR.
 Section 1. It is hereby declared to be the policy of the Government to give encouragement to the people
to deposit their money in banking institutions and to discourage private hoarding so that the same may
be properly utilized by banks in authorized loans to assist in the economic development of the country.
 Section 2. 1 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 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, except upon
written permission of the depositor, or in cases of impeachment, or upon order of a competent court in
cases of bribery or dereliction of duty of public officials, or in cases where the money deposited or
invested is the subject matter of the litigation.
 Section 3. It shall be unlawful for any official or employee of a banking institution to disclose to any
person other than those mentioned in Section two hereof any information concerning said deposits.
BANK SECRECY LAW – R.A.
1405
 Section 5. Any violation of this law will subject offender upon conviction, to an imprisonment
of not more than five years or a fine of not more than twenty thousand pesos or both, in the
discretion of the court.
 Section 2 and Section 3 were both amended by PD No. 1792 issued January 16, 1981, PD
1792 was expressly repealed by Sec 135 of R.A. No. 7653, approved June 14, 1993. 
BANK SECRECY LAW – R.A.
1405
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.
R.A. 6426 - FOREIGN
CURRENCY DEPOSIT ACT OF
THE PHILIPPINES
 Section 8. Secrecy of foreign currency deposits. – All foreign currency deposits authorized
under this Act, as amended by PD No. 1035, as well as foreign currency deposits authorized
under PD No. 1034, are hereby declared as and considered of an absolutely confidential nature
and, except upon the written permission of the depositor, in no instance shall foreign currency
deposits be examined, inquired or looked into by any person, government official, bureau or
office whether judicial or administrative or legislative, or any other entity whether public or
private; Provided, however, That said foreign currency deposits shall be exempt from
attachment, garnishment, or any other order or process of any court, legislative body,
government agency or any administrative body whatsoever. (As amended by PD No. 1035,
and further amended by PD No. 1246, prom. Nov. 21, 1977.)
BANK SECRECY LAW –
SALIENT POINTS
 Origin and purpose
 Exceptions to the secrecy of bank deposits
 Fines and penalties for violations
 Difference of treatment for foreign currency deposits
LAWS ON
OTHER
BUSINESS
TRANSACTIONS
Unclaimed balances law
UNCLAIMED BALANCES LAW
– P.D. 679
 WHEREAS, Act No. 3936 requires the publication of a sworn statement of unclaimed
balances in banks once a week of three consecutive weeks in at least two newspapers of
general circulation in the locality where the banks are situated, if there be any, and if there is
none, in the City of Manila, one in English and one in Spanish, the cost of which shall be paid
by the Bureau of Treasury, which shall be reimbursed out of the escheated funds;
 WHEREAS, the law also provides for the publication of summons and a notice upon the
commencement of the prescribed judicial proceedings for the escheat of unclaimed balances;
 WHEREAS, past experience has shown that the cost of publication required by law, the
increase of which has been substantial the past few years, is more than the aggregate amount
of the unclaimed balances to be escheated, the average amount of which is small;
 WHEREAS, there is a felt need to simplify the procedure for the escheat of unclaimed
balances for the purpose of reducing the expense.
UNCLAIMED BALANCES LAW
– P.D. 679
 Section 1. Sections 1, 2, 3, 4, and 5 of Act No. 3936 are hereby amended to read as follows:
 "Sec. 1. "Unclaimed balances", within the meaning of this Act, shall include credits or deposits
of money, bullion, security or other evidence of indebtedness of any kind, and interest thereon
with banks, buildings and loan associations, and trust corporations, as hereinafter defined, in
favor of any person known to be dead or who has not made further deposits or withdrawals
during the preceding ten years or more. Such unclaimed balances, together with the increase
and proceeds thereof, shall be deposited with the Treasurer of the Philippines to the credit of
the Government of the Republic of the Philippines to be used as the National Assembly may
direct.
UNCLAIMED BALANCES LAW
– P.D. 679
"Sec. 2. Immediately after the taking effect of this Act and within the month of January of every odd year, all banks, building and
loan associations, and trust corporations shall forward to the Treasurer of the Philippines a statement, under oath, of their
respective managing officers, of all credits and deposits held by them in favor of persons known to be dead, or who have not made
further deposits or withdrawals during the preceding ten years or more, arranged in alphabetical order according to the names of
creditors and depositors, and showing:

"(a) The names and last known place of residence or post office addresses of the persons in whose favor such unclaimed balances
stand;

"(b) The amount and the date of the outstanding unclaimed balance and whether the same is in money or in security, and if the
latter, the nature of the same;

"(c) The date when the person in whose favor the unclaimed balance stands died, if known, or the date when he made his last
deposit or withdrawal; and

"(d) The interest due on such unclaimed balance, if any, and the amount thereof.
UNCLAIMED BALANCES LAW
– P.D. 679
 "Sec. 4. If the president, cashier or managing officer of the bank, building and loan
association, or trust corporation neglects or refuses to make and file the sworn statement
required by this action, such bank, building and loan association, or trust corporation shall pay
to the Government the sum of five hundred pesos a month for each month or fraction thereof
during which such default shall continue.
 "Sec. 5. Any bank, building and loan association or trust corporation which shall make any
deposit with the Treasurer of the Philippines in conformity with the provisions of this Act shall
not thereafter be liable to any person for the same and any action which may be brought by
any person against in any bank, building and loan association, or trust corporation for
unclaimed balances so deposited with the Treasurer of the Philippines shall be defended by the
Solicitor General without cost to such bank, building and loan association or trust
corporation."
UNCLAIMED BALANCES
LAW– SALIENT POINTS
 Origin and purpose
 Reason for amendment
 Definition of unclaimed balances