LAW ON SECRECY OF BANK DEPOSITS

1. What is the purpose of the law?

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 in the economic development of the
country.

2. What acts are prohibited by the law?

a. Any person or government official who, or any government bureau or office

that, examines, inquires or looks into a bank deposit or government bond
investment in any of the instances not allowed in Sec 2;

b. Any official or employee of a banking institution who makes a disclosure

concerning bank deposits to another in any instance not allowed by law;

c. Any person who commits a violation of any of the provisions of the law;

3. Under what situations could the examination of, or disclosure of information

about, deposits be allowed?

a. Upon written permission or consent in writing by the depositor.

b. In cases of impeachment of the president, vice president, members of the SC,

members of the constitutional commission and the ombudsman for culpable
violation of the Constitution, treason, bribery, graft and corruption, other high
crimes or betrayal of public trust.

c. Upon order of a competent court in cases of bribery or dereliction of duty of

public officials

d. In cases where money deposited or invested is the subject matter of the

litigation. The money deposit should be the very thing in dispute.
4. Will the garnishment of a bank deposit violate the law?
No, the prohibition against examination does not preclude its being garnished for satisfaction of
judgment. The disclosure is purely incidental to the execution process and it was not the intention of
the legislature to place bank deposits beyond the reach of judgment creditor. (PCIB v. CA, G.R. No.
84526, Jan. 28, 1991)

5. Would the examination of the bank deposits of another person in connection

with an inquiry into illegally acquired property of the defendant in an anti-graft
case violate the law?

No. Bank deposits and investments of a public official, his spouse and unmarried
children may be taken into consideration in the enforcement of Sec 8 of the RA
3019 or The Anti-Graft and Corrupt Practices Act.

FOREIGN CURRENCY DEPOSIT ACT

1. What are the unique features of the act?

The Foreign currency deposits are also exempt from attachment, garnishment, or
any other order or process of any court, legislative body, government agency or
any administrative body whatsoever. (Sec. 8, RA 6426)

PHILIPPINE DEPOSIT INSURANCE CORPORATION ACT

1. What is the purpose of the law?

It is to strengthen the mandatory deposit insurance coverage system to generate,

preserve, maintain faith and confidence in the countrys banking system, and
protect it from illegal schemes and machinations.

2. Whose deposit liabilities are required to be insured with the PDIC?

Section 8 states that the deposit liabilities of any bank which is engaged in the
business of receiving deposits, or which thereafter may engage in the business of
receiving deposits, shall be insured with the Corporation. (As amended by RA No.
6037, Aug 4, 1969; RA No. 10846, June 11, 2016)