COMMERCIAL LAW

Banking Law

The Law on Bank Deposit Secrecy stipulates that all deposits with banks or banking
institutions, whatever of their type, are completely secret and may not be viewed, asked
about, or investigated by any individual, government official, agency, or office. In some
cases, however, the law allows for exceptions. Which of the following is not likely to be an
exception:

1. In cases of impeachment.
2. In cases involving bribery
3. In cases involving BIR inquiry.
4. In cases of anti-graft and corrupt practices.
5. In cases where the money involved is the subject of litigation.

Briefly explain your answer or option.

ANSWER:
The Commissioner of Internal Revenue can investigate a decedent's deposits under Section
6(F) of the National Internal Revenue Code in order to determine the decedent's gross estate.
A BIR investigation into bank deposits is not possible in any other circumstance. As a result,
exception 3 may not always apply.

According to the Supreme Court in the cases of Philippine National Bank v. Gancayco, 15
SCRA 91 (1965) and Banco Filipino Savings and Mortgage Bank v. Purisima, 161 SCRA
576, an investigation into bank deposits is only possible in prosecutions for unexplained
wealth under the Anti-Graft and Corrupt Practices Act (1988). All other instances of
anti-corruption and corrupt activities, on the other hand, will not necessitate a bank deposit
investigation. As a result, exception 4 may not always apply. It, like every other exception,
must be rigorously construed.

Exceptions 1, 2 and 5 are, on the other hand, specifically stated in the Law on Bank
Depositors' Secrecy. Depositors have access to them at all times.