After Corona trial, House moves to amend foreign currency deposits law

The House committee on banks and financial intermediaries on Tuesday started discussions on possible amendments to the law on foreign currency deposits because of issues raised during the impeachment trial of Chief Justice Renato Corona.

 

The panel sought to harmonize seven House bills seeking the full disclosure of foreign currency deposits of government officials in their statements of assets, liabilities and net worth (SALNs).

 

ACT Teachers party-list Rep. Antonio Tinio, author of one of the bills under discussion, admitted that amendments to Republic Act (RA) 6426 or the Foreign Currency Deposit Act can “possibly rock the foundation of the banking system,” but said that public interest should be prioritized.

 

“This is to address the public’s clamor for more accountability and transparency in government after the trial of Chief Justice Corona,” Tinio said during the committee hearing.

 

Corona was convicted by the Senate impeachment court last week for failure to disclose sums of money, including $2.4 million in bank deposits, in his SALN.

 

Surigao del Sur Rep. Philip Pichay agreed that RA 6426 should be amended to prevent government officials from interpreting the law on foreign currency deposits the same way the deposed chief magistrate did.

 

“The law should say that foreign currency deposits should be reported in the SALN and amount should be converted into peso. That’s the one I would like to insert as amendment to the law,” he said.

 

AMLC, BSP agree

 

Officials of the Anti-Money Laundering Council (AMLC) and the Bangko Sentral ng Pilipinas (BSP) invited as resource persons during the hearing agreed that it is time to amend RA 6426.

 

Vicente Aquino, AMLC executive director, said the same exceptions to bank secrecy under Republic Act (RA) 1405, or the act prohibiting the disclosure or inquiry into any bank deposits, should be clearly stated in RA 6426.

 

“It is the position of the council that the exceptions to bank confidentiality as amended by RA 1405 shall be the same exceptions to confidentiality under RA 6426,” Aquino said during the hearing.

 

Under RA 1405, peso bank deposits can be looked into “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.”

 

During Corona’s impeachment trial, AMLC records were used by Ombudsman Conchita Carpio-Morales as basis for her testimony on Corona’s bank deposits.

 

BSP Deputy General Counsel Elmore Capule, for his part, also agreed that the two laws on bank deposits must be “aligned” and that RA 6426 must be updated to respond to the country’s current financial situation.

 

“We do not object to these amendments. The scenarios during the 1970s when RA 6426 was passed no longer exist. Our reserves are already in a very high level. There is basis in aligning our laws,” he said during the hearing.

 

Caution

 

Camarines Sur Rep. Luis Villafuerte, committee vice-chairperson, however warned his colleagues of possible negative effects of amending RA 6426.

 

The lawmaker said the House panel should balance public interest and the needs of the private sector, especially the banking industry.

 

“We must address the evils that are deemed to arise with respect to government officials and employees, but we better be careful that there will be no flight of foreign currencies in the country,” he said.

 

At the end of the hearing, Leyte Rep. Sergio Apostol, committee chairperson, ruled that the seven bills be reconciled by a technical working group.

 

He added that discussions on possible amendments to RA 6426 will resume next month. - VVP, GMA News