Senate bill seeks to amend Bank Secrecy Law to boost fight vs. fraud

Senator Jinggoy Estrada has filed a measure seeking to amend the Bank Secrecy Law, allowing the Bangko Sentral ng Pilipinas (BSP) to examine bank deposits if there is reasonable ground to believe that fraud, serious irregularity, or unlawful activity was committed.

In the explanatory note of Senate Bill 1047, Estrada said Republic Act 1405, or the Secrecy of Bank Deposits Law, has become "a tool for abuse, particularly in shielding ill-gotten wealth, facilitating tax evasion, and obstructing efforts to combat money laundering and other financial crimes." 

He said amending the law would pave the way for better transparency in financial transactions and help combat corruption. 

Under SB 1047, the BSP is allowed to hold an inquiry or examination of all deposits in the exercise of its supervisory powers, provided that upon determination by the Monetary Board, there is reasonable ground to believe that fraud or other unlawful activities has been or is being committed, and that it is necessary to look into the deposit to establish such illegal actions. 

The authority of the BSP to examine deposits shall also apply in the course of its investigation of closed banks. 

The proposed measure also provides that no bank deposits shall be looked into by the BSP during an election period to the prejudice of a candidate for an electoral office. 

Funds deposited before the law takes effect shall also remain protected, and the results of any inquiry shall be for the exclusive use of the BSP, unless for the prosecution of an offense or crime. 

"These safeguards ensure that the law will not be weaponized for political harassment, while preventing bank secrecy from being used as a shield for corruption," Estrada said in a statement.

"Hindi dapat sinasangkalan ang bank secrecy para gumawa ng kalokohan. Kung may malinaw na dahilan ang BSP para maghinala na may katiwalian o iligal na gawain, dapat may kakayahan itong silipin ang mga account ayon sa batas," Estrada added.

(Bank secrecy should not be used to do mischief. If the BSP has clear reason to suspect corruption or illegal activity, it should be allowed to look into the accounts in accordance with the law.)

— VDV, GMA Integrated News