AN ACT PROHIBITING DISCLOSURE OF OR

INQUIRY INTO, DEPOSITS WITH ANY

BANKING INSTITUTION AND PROVIDING
PENALTY THEREFOR
 RATIONALE
(SECTION 1, RA 1405)

1.ENCOURAGE PEOPLE TO DEPOSIT THEIR

MONEY IN BANKS

2.DISCOURAGE PRIVATE HOARDING

3. ENABLE BANKS TO PROPERLY UTILIZE

DEPOSITS IN LOANS TO ASSIST IN THE
ECONOMIC DEVELOPMENT OF THE COUNTRY
 TRANSACTIONS COVERED BY
CONFIDENTIALITY
(SECTION 2, RA 1405)

1.DEPOSITS- MONEY OR FUNDS PLACED IN A

BANK THAT CAN BE WITHDRAWN ON
DEPOSITOR’S ORDER OR DEMAND

2.INVESTMENTS IN GOVERNMENT BONDS-DEBT

SECURITIES WHICH ARE UNCONDITIONAL
OBLIGATIONS OF THE STATE AND BACKED BY ITS
FULL TAXING POWER.
 EXAMPLES OF DEPOSITS:

A. SAVINGS DEPOSIT

B. CURRENT DEPOSIT

C. TIME DEPOSIT
 JOSEPH VICTOR G. EJERCITO VS.
SANDIGANBAYAN AND PEOPLE OF
THE PHILIPPINES
509 SCRA 190. NOVEMBER 30, 2006

THE TRUST ACCOUNT OF JV EJERCITO WITH

THE EXPORT AND INDUSTRY BANK IS
CONSIDERED A DEPOSIT UNDER RA 1405.
 EXAMPLES OF GOVERNMENT BONDS

A.TREASURY BILLS

B.TREASURY NOTES

C.RETAIL TREASURY BONDS

D.DOLLAR-LINKED PESO NOTES

 TRANSACTIONS NOT COVERED BY
CONFIDENTIALITY

1. LETTERS OF CREDIT
2. TRUST RECEIPTS
3. BANK DRAFTS
4. PROMISSORY NOTES (NOTE: ALL OF THESE DO
NOT INVOLVE DEPOSITS OF MONEY)
5. BONDS NOT ISSUED BY THE GOVERNMENT OF
THE PHILIPPINES
EXCEPTIONS TO CONFIDENTIALITY UNDER
RA 1405

1. UPON WRITTEN PERMISSION OF THE

DEPOSITOR

2. IN CASES OF IMPEACHMENT
EXCEPTIONS TO CONFIDENTIALITY UNDER RA 1405

3. UPON ORDER OF 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
LITIGATION
 EXCEPTIONS UNDER OTHER LAWS

1. VIOLATION OF ANTI-GRAFT AND CORRUPT

PRACTICES ACT

2. INVESTIGATION BY THE OMBUDSMAN OF BANK

ACCOUNTS AND RECORDS

3. DETERMINATION BY THE BIR COMMISSIONER OF

A DECEDENT’S GROSS ESTATE
EXCEPTIONS UNDER OTHER LAWS

4. INQUIRY BY THE AMLC INTO INVESTMENTS AND

DEPOSITS RELATED TO UNLAWFUL ACTIVITIES AND
MONEY LAUNDERING OFFENSES

5. CONDUCT OF ANNUAL TESTING BY THE BSP TO

PREVENT MONEY LAUNDERING

6. INVESTIGATION BY THE AMLC OF DEPOSITS AND

INVESTMENTS RELATED TO FINANCING OR ACTS
OF TERRORISM
EXCEPTIONS UNDER OTHER LAWS

7. EXAMINATION BY THE ANTI-TERRORISM

COUNCIL OF BANK ACCOUNTS

8. INQUIRY BY THE PDIC AND THE BSP IN CASES

OF UNSAFE OR UNSOUND BANKING PRACTICES

9. AUDIT OF GOVERNMENT DEPOSITS BY THE

COA
EXCEPTIONS UNDER OTHER LAWS

10. INVESTIGATION BY THE PCGG TO RECOVER

ILL-GOTTEN WEALTH

11. REVIEW OF RECORDS BY A REHABILITATION

RECEIVER
 PROHIBITED DISCLOSURES BY BANK OFFICIALS
OR EMPLOYEES
(SECTION 3 OF RA 1405)

-DISCLOSURE BY ANY OFFICIAL/EMPLOYEE

OF A BANK TO ANY PERSON ANY INFORMATION
CONCERNING BANK DEPOSITS

1.DISCLOSURE TO INDEPENDENT AUDITORS

2.TRACING OF BANK DEPOSITS

 AUTHORIZED DISCLOSURES

1.DISCLOSURE TO THE TREASURER OF THE

PHILIPPINES IN CASES INVOLVING UNCLAIMED
BALANCES

2.DISTRAINT AND GARNISHMENT IN COLLECTION

OF DELINQUENT TAXES

3.GARNISHMENT OF DEPOSITS IN SATISFACTION

OF JUDGMENT
AUTHORIZED DISCLOSURES

4. DISCLOSURE OF INFORMATION ON BANK

ACCOUNTS IN A CLOSED BANK

5. DISCLOSURES TO DIRECTORS
 Thank you

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