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To encourage people to deposit in banking institutions; and
To discourage private hoarding so that banks may lend such funds and assist in
the economic development of the country.
Section 2 of RA 14! states that all deposits of "hatever nature "ith banks or
banking institutions in the #hilippines$ including investments in bonds issued by
the %overnment of the #hilippines$ its political subdivisions and instrumentalities.
Prohibited acts:
&'amination and in(uiry or looking into all deposits$ of "hatever nature$ "ith the
banks in the #hilippines including investments in bonds issued by the
Any disclosure by any official or employee of any banking institution to any
unauthori)ed person of any information concerning said deposits.
Genera Rue:
The deposits covered by la" are considered as of an absolutely confidential nature
and may not be e'amined$ in(uired or looked into by any person$ governmental
bureau$ or office.
E!ceptions under RA "#$%:
*pon "ritten permission of the depositor;
+n cases of impeachment;
*pon order of a competent court in cases of bribery or dereliction of duty of
public officials;
*pon the order of a competent court in cases "here the money deposited or
invested is the sub,ect matter of the litigation
E!ceptions &ro' other La(s:
Anti-%raft and .orrupt #ractices Act
o *pon the order of a competent court involving une'plained "ealth
o Ejercito vs Sandiganbayan, G. R. No. 157295-95, November 3, 2!
o The commissioner may in(uire into the bank deposits of0
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A decedent to determine his gross estate
Any ta'payer "ho has filed an application for compromise of his ta' liability
o *pon order of a competent court in violation of the act$ if there is probable
cause that the deposits or investments are related to an unla"ful activity or
a money laundering offense
*nclaimed 3alances Act
o 4isclosure to the treasurer of the #hilippines of dormant deposits for at
least 1 years
)ther La(s reating to Secrec* o& Ban+ ,eposits :
5oreign .urrency 4eposit Act
o &'tends confidentiality to foreign currency deposits$ but the 5.4A
contains only one ground authori)ing e'amination; upon 6R+TT&/
.7/S&/T of the depositor
o "ase# $ntengan vs. "%, G. R. No. 12&99!, 'ebr(ary 15, 22
Another e'ception under A12A
3ank accounts may be garnished by the creditors of the depositor. There is no
violation of the 2a" on Secrecy of 3ank 4eposits if the accounts are garnished. +t
"as not the intention of the legislature to place bank deposits beyond the reach of
e'ecution to satisfy a final ,udgment.
+ts purpose is merely to secure information as to the name of the depositor and
"hether or not the defendant had a deposit in said bank$ only for purposes of
garnishment. Any disclosure is purely incidental to the e'ecution process
The amount of the deposit is actually not disclosed and the intent of the legislature
does not cover garnishment
E)ce*tion0 5oreign deposits cannot be garnished
Penat* &or -ioation o& RA "#$%:
+mprisonment of not more than ! years or a fine not more than #2$ or
both$ in the discretion of the court.
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