Commercial and Taxation Laws › Banking Law › Secrecy of Bank Deposits (RA 1405; RA 6426, as amended by PD 1035, 1246, and 1453)

1. Purpose

PURPOSE

R.A. No. 14051 (Bank Secrecy Law) covers deposits in Peso while R.A. No. 64262 (Foreign Currency Deposits Act) covers deposits in foreign currency. Its purpose is as follows:

  • 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 the economic development of the country. (RA 1405, Sec. 1)3

State Policy

It is hereby declared the policy of the state to protect and preserve the integrity and confidentiality of bank accounts. (AMLA, Sec. 2)4

Construction of confidentiality

If there are doubts in upholding the absolutely confidential nature of bank deposits against affirming the authority to inquire into such accounts, such doubt must be resolved in favor of confidentiality. (Republic v. Eugenio, G.R. No. 174629, 14 February 2008)5

Authorities

  • AMLA, Sec. 2
  • RA 1405
  • RA 1405, Sec. 1
  • RA 6426
  • Republic v. Eugenio, G.R. No. 174629, 14 February 2008