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    Garnishment

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    Ana leah Orbeta-mamburam
    This document discusses the confidentiality and exemptions from garnishment of foreign currency deposits (FCD) in the Philippines under Republic Act 6426. It notes that FCDs are considered absolutely confidential by law except with written depositor permission or under certain exceptions. These exceptions include AMLC inquiries related to unlawful activity or compliance with anti-money laundering laws. Additionally, FCDs are exempt from all court or administrative processes like garnishment, though there are some exemptions to this exemption like civil forfeiture suits. Violations of the confidentiality provisions carry criminal penalties of imprisonment or fines.

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    Garnishment

    Uploaded by

    Ana leah Orbeta-mamburam
    244 views14 pages
    This document discusses the confidentiality and exemptions from garnishment of foreign currency deposits (FCD) in the Philippines under Republic Act 6426. It notes that FCDs are considered absolutely confidential by law except with written depositor permission or under certain exceptions. These exceptions include AMLC inquiries related to unlawful activity or compliance with anti-money laundering laws. Additionally, FCDs are exempt from all court or administrative processes like garnishment, though there are some exemptions to this exemption like civil forfeiture suits. Violations of the confidentiality provisions carry criminal penalties of imprisonment or fines.

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    This document discusses the confidentiality and exemptions from garnishment of foreign currency deposits (FCD) in the Philippines under Republic Act 6426. It notes that FCDs are considered absolutely confidential by law except with written depositor permission or under certain exceptions. These exceptions include AMLC inquiries related to unlawful activity or compliance with anti-money laundering laws. Additionally, FCDs are exempt from all court or administrative processes like garnishment, though there are some exemptions to this exemption like civil forfeiture suits. Violations of the confidentiality provisions carry criminal penalties of imprisonment or fines.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    244 views14 pages

    Garnishment

    Uploaded by

    Ana leah Orbeta-mamburam
    This document discusses the confidentiality and exemptions from garnishment of foreign currency deposits (FCD) in the Philippines under Republic Act 6426. It notes that FCDs are considered absolutely confidential by law except with written depositor permission or under certain exceptions. These exceptions include AMLC inquiries related to unlawful activity or compliance with anti-money laundering laws. Additionally, FCDs are exempt from all court or administrative processes like garnishment, though there are some exemptions to this exemption like civil forfeiture suits. Violations of the confidentiality provisions carry criminal penalties of imprisonment or fines.

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    © All Rights Reserved
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    You are on page 1of 14

    GARNISHMENT

    • - No violation of secrecy of the Bank Deposit


    When a bank account was garnished , no real inquiry is made in the account and the
    disclosure of the deposit made by the bank is purely incidental to the execution process.
    (China Bank vs Ortega)

    - The prohibition against examination of an inquiry into a bank deposit under R.A 1405
    does not preclude its being garnished to insure satisfaction of a judgement
    CONFIDENTIALITY OF FOREIGN
    CURRENCY DEPOSIT (RA 6426)
    PURPOSE:

    • To encourage deposits from foreign lender or investors.


    • A special law design for currency deposits in the Phillippines.
    CONFIDENTIALITY OF FOREIGN CURRENCY
    DEPOSIT (RA 6426)

    • SCOPE:
    General Rule:
    All foreign currency deposit are of an ABSOLUTE CONFEDENTIAL
    NATURE except upon written permission of the depositor , in no instance
    shall foreign currency deposit be examined , inquired or looked into any
    person, government official , bureau of office whether judicial or
    administrative or legislative or any other entity whether public or private.(sec.
    8 of R.A. 6426)
    EXCEPTIONS TO CONFIDENTIALITY OF FCD:

    • 1. Written permission of the depositor


    • 2. Authority of the AMLC to inquire into any deposit or investment with any
    banking institution upon the order of CA based on ex parte application upon
    probable cause that such deposit/investment is relate to UNLAWFUL
    ACTIVITY pursuant to sec 11 of the Anti-Money Laundering Act.
    • a. reporting of covered or suspicious transactions pursuant to s9 (c) of the
    AMLA
    EXCEPTIONS TO CONFIDENTIALITY OF FCD:

    b. BSP may, in the course of periodical or special examination, check the


    compliance of a covered institution with the requirements of the AMLA and its
    implementing rules and regulation. (sec 11 AMLA)
    3. PDIC /BSP may inquire into bank deposit if there is finding of unsound or
    unsafe banking practice. (sec 8 para 8 of PDIC Charter)
    4.Authority of AMLC to inquire into or examine bank deposits and investment
    pursuant to the Anti-Terror law
    EXCEPTIONS TO CONFIDENTIALITY OF FCD:

    • 5. Authority of the commissioner of Internal Revenue to inquire into the bank


    deposit of a decedent for estate tax or in case if tax compromise
    EXEMPTION FROM PROCESS OF FOREIGN
    CURRENCY DEPOSITS

    • Foreign currency deposit shall be EXEMPTED from all attachment,


    garnishment , or any other order or process of any court , legislative body ,
    government agency or any administrative body whatsoever.
    • The process-exemption should be distinguished from the confidentiality
    clause.
    • In other words , FCD are exempt from court or administrative process
    SITUATION:

    • LJ lent P500,000 to Yen, a Chinese national residing and working in the


    Philippines. When the loan fell due, Yen didn’t pay. LJ found out that Yen has
    a peso account deposit with CIMB and a foreign currency deposit with
    Northeneast Bank. Despite demands, Yen refuses to pay. LG now went to
    court and files a case against Yen for collection of money and won. In order
    to satisfy the claim against Yen, LJ applied for a writ of garnishment with the
    court for the bank deposit of Yen. Will the court issue the writ?
    ANSWER:

    • Yes for the peso deposit account but no for foreign currency deposits because
    they are exempted from garnishment.
    EXEMPTION TO THE EXEMPTION

    • Pro hac vice case


    In the case of Salvacion v Central bank
    EXEMPTION TO THE EXEMPTION

    • Civil forfeiture Suit brought by the AMLC though OSG


    • Freeze order pursuant to AMLA and Anti-Terror Law
    PENALTIES FOR VIOLATION:

    • Sec 5 of R.A 1405 provides that any violation of this law will subject the
    offender upon conviction, to an imprisonment of not more than five years or
    a fine of not more than P20,000.00 or both.

    • violation of R.A 6426 shall be subject to imprisonment of not less than one
    year nor more than five years, or by a fine of not less than P5,000.00 nor
    more than P25,000.00 or both

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