\

LEGRES
Research Proposal

Research Topic: Republic Act 1405 or the Bank Secrecy law should be eased to prevent
corruption, smuggling, and undervaluation

The Bank Secrecy Law is an act prohibiting the disclosure of or inquiry into deposits with
any banking institution. The law intends to not only encourage the people to deposit their money
in banking institutions but also discourage private hoarding in order to prevent misusage of the
same and boost economic growth of the country. However, there has been an alarming debate
which showed a correlation between the severity of the law and the acquisition of ill-gotten wealth.
The Philippine Bank Secrecy Law is branded as ‘’among the strictest in the world” which in turn
“hampers” transparent governance and anti-corruption mechanisms according to Former US
ambassadors to the Philippine Francis Ricciardone and Kristie Kenney who reportedly described
the law as such. This is because according to Section 2 of the said law, all deposits of whatever
nature are considered as of an absolutely confidential nature and may not be examined. Even if
the law has the right ambition or objective, it only stimulates money laundering, smuggling, and
undervaluation of imports. Hence, the proposed amendment of easing the law.

With the Bureau of Internal Revenue having the power to track and examine the wealth of
each individual when the need arises, corruption could be controlled and monitored. When the
objectives of the said bill are met, stagnancy of the country’s economic growth could be improved
as well. The author aims to demonstrate such through this comprehensive research paper which
aims not only to delve into what the law is all about but also to show why there is a need for such
amendment of the law.
References:

http://www.gmanetwork.com/news/money/content/559611/phl-s-bank-secrecy-law-among-the-
toughest-in-the-world/story/

http://news.abs-cbn.com/news/06/05/18/govt-urged-to-back-law-on-disclosing-bank-deposits-of-
public-officials

https://www.manilatimes.net/imf-urges-changes-bank-secrecy-law/363092/

http://www.pna.gov.ph/articles/1028509