Secrecy of Bank Deposits (RA 1405)

Approved: September 9, 1955

Purpose:

o encouragement people to deposit their money in banking institutions, discourage private hoarding
o so that the same may be properly utilized by banks in authorized loans to assist in the
development of the country

Prohibited acts
For the following to disclose any information concerning said bank deposits:

1. for any official or employee of a bank to disclose to any person

2. for an independent auditor hired by a bank to conduct its regular audit to disclose to any
person other than a bank director, official or employee authorized by the bank

Covered deposits
All deposits of whatever nature

are considered as of an absolutely confidential nature and may not be examined, inquired or looked
into by any person

Except:

1) upon written permission of the depositor

2) in cases of impeachment
3) upon order of a competent court in cases of bribery or dereliction of duty of public officials
4) in cases where the money deposited or invested is the subject matter of the litigation.

Penalties:

Peso deposit Foreign currency deposit

Imprisonment Up to 5 years 1 to 5 years
Fine Up to 20,000 5,000 to 25,000