Secrecy in Bank Deposits (RA 1405)
Are Foreign Currency Deposits Governed by the Secrecy in Bank Deposits (R.A.
1405)? - ✔✔No. Foreign currency deposits are governed by the Foreign Currency
Deposits Act (RA 6426).
Are Foreign Currency Deposits Subject to Garnishment? - ✔✔GR: NO. 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 (Sec 8. R.A. 6426).
XPN: Subject to garnishment to prevent injustice and for equitable grounds, i.e.
American tourist found guilty of repeatedly raping a 12 year old child (Salvacion vs.
Central Bank of the Philippines)
Are Trust Funds Covered by the Term "Deposit?" - ✔✔YES. The money deposited
under the trust agreement is intended not merely to remain with the bank but to be
invested by it elsewhere.
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To hold that this type of account is not protected by R.A. 1405 would encourage private
hoarding of funds that could otherwise be invested by banks in other ventures, contrary
to the policy behind the law. (Ejercito v. Sandiganbayan)
Note: Despite such pronouncement that trust funds are considered deposits, trust
funds remain not covered by PDIC.
Does Garnishment of a Bank Deposit Violate the Law on Secrecy of Bank Deposits? -
✔✔No. Bank accounts may be garnished by the creditors of the depositor. There is no
violation of the Law on Secrecy of Bank Deposits if the accounts are garnished.
The amount of deposit is actually not disclosed and the intent of the legislature does
not cover garnishment (PCIB v. CA, G.R. No. 84526, Jan. 28, 1991).
Exceptions to the Rule on Secrecy of Bank Deposits - ✔✔1. Upon written consent of
the depositor or investor;
, 2. Impeachment cases;
3. Upon order of competent court in cases of bribery or dereliction of duty of public
officials or where the money deposited or invested is the subject of litigation;
4. Upon order of competent court in cases involving unexplained wealth under the
Anti‐Graft and Corrupt Practices Act, RA 3019 (Bangko Filipino vs. Purisima)
Exceptions to the Rule on Secrecy of Bank Deposits (cont.) - ✔✔11. Upon order of the
Court of Appeals, examination by law enforcement officers in terrorism cases under the
Human Security Act (Secs. 27 and 28, RA 8372);
12. Inquiry into illegally acquired amounts under the Plunder Law (RA 7080);
13. In camera inspection by the Ombudsman under the Ombudsman Act (Sec. [15][8],
RA 6770);
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Exceptions to the Rule on Secrecy of Bank Deposits (cont.) - ✔✔14. Report of banks
to AMLC of covered and suspicious transactions;
15. Without court order: In cases filed by the Ombudsman and upon the latter's
authority to examine and have access to bank accounts and records (Marquez v.
Desierto, GR 138569, Sept. 11, 2003);
16. Where there is a waiver in case of DOSRI loans.
Exceptions to the Rule on Secrecy of Bank Deposits (cont.) - ✔✔5. Upon inquiry by
the CIR into the bank accounts of the following: a) deceased depositor determine his
net estate; b) any taxpayer who has filed an application for compromise of his tax
liability by reason of financial incapacity plus waiver of his privilege (Sec. 6[f][1],NIRC);
6. Upon court order when there is probable cause that the deposits or investments
involved are in any way related to any unlawful activities or a money laundering offense
under the AMLA;
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