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    Secrecy of Bank Deposits

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    Diana Boado
    The document discusses Philippine laws regarding the secrecy of bank deposits, including RA 1405, RA 6426, and RA 6848. RA 1405 encourages banking by guaranteeing privacy of deposits and limiting government examination. RA 6426 extends these protections to foreign currency deposits to attract foreign investment, exempting interest and earnings from taxes. RA 6848 similarly protects deposits in Islamic banks from examination without permission or if related to ongoing litigation. Exceptions to secrecy include audits, cases of impeachment or court-ordered cases of wrongdoing, and litigation directly involving the deposited funds. The laws aim to encourage banking and investment through guarantees of financial privacy and confidentiality.

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    © All Rights Reserved
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    Secrecy of Bank Deposits

    Uploaded by

    Diana Boado
    136 views18 pages
    The document discusses Philippine laws regarding the secrecy of bank deposits, including RA 1405, RA 6426, and RA 6848. RA 1405 encourages banking by guaranteeing privacy of deposits and limiting government examination. RA 6426 extends these protections to foreign currency deposits to attract foreign investment, exempting interest and earnings from taxes. RA 6848 similarly protects deposits in Islamic banks from examination without permission or if related to ongoing litigation. Exceptions to secrecy include audits, cases of impeachment or court-ordered cases of wrongdoing, and litigation directly involving the deposited funds. The laws aim to encourage banking and investment through guarantees of financial privacy and confidentiality.

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    The document discusses Philippine laws regarding the secrecy of bank deposits, including RA 1405, RA 6426, and RA 6848. RA 1405 encourages banking by guaranteeing privacy of deposits and limiting government examination. RA 6426 extends these protections to foreign currency deposits to attract foreign investment, exempting interest and earnings from taxes. RA 6848 similarly protects deposits in Islamic banks from examination without permission or if related to ongoing litigation. Exceptions to secrecy include audits, cases of impeachment or court-ordered cases of wrongdoing, and litigation directly involving the deposited funds. The laws aim to encourage banking and investment through guarantees of financial privacy and confidentiality.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    136 views18 pages

    Secrecy of Bank Deposits

    Uploaded by

    Diana Boado
    The document discusses Philippine laws regarding the secrecy of bank deposits, including RA 1405, RA 6426, and RA 6848. RA 1405 encourages banking by guaranteeing privacy of deposits and limiting government examination. RA 6426 extends these protections to foreign currency deposits to attract foreign investment, exempting interest and earnings from taxes. RA 6848 similarly protects deposits in Islamic banks from examination without permission or if related to ongoing litigation. Exceptions to secrecy include audits, cases of impeachment or court-ordered cases of wrongdoing, and litigation directly involving the deposited funds. The laws aim to encourage banking and investment through guarantees of financial privacy and confidentiality.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18

    VI.

    SECRECY OF
    BANK DEPOSITS
    Group 2 (Boado, Hernandez, Nilo, Viola)
    21/6/2016

    Purpose of Bank Secrecy (RA 1405)


    Encourage people to deposit
    in banking institutions (sec. 2 of
    RA 1405)

    Discourage private hoarding of


    cash (sec. 2 of RA 1405)

    Why?
    Right to privacy (financial privacy)
    Limited government
    Bank run and default

    Absolutely Confidential Nature


    Sec. 2: may not be examined, inquired
    or looked into by any person, government
    official, bureau or office
    Sec. 3: unlawful for any official or
    employee of any banking institution

    Absolutely Confidential Nature

    Is it
    absolutely
    confidential?

    1. Written permission of the depositor

    2. Impeachment cases

    3. Order of a competent court in cases


    of bribery and dereliction of duty

    4. Subject matter of litigation is the


    money invested or deposited

    Secrecy of
    Bank Deposits

    Secrecy of Bank
    Deposits Act (RA
    1405)
    Foreign Currency
    Deposit Act (RA
    6426)

    Foreign Currency Deposits (RA 6426)


    Covers Philippine banks
    Also includes FCDs in offshore banking units

    (PD 1034)
    Tax exemptions
    Including interest and all other income or earnings of

    such deposits
    Whether the depositor is a resident or non-resident

    RA 6426 was intended to encourage depositors


    from foreign lenders and investors.

    Absolute Confidentiality

    Is it
    absolutely
    confidential?

    1. Written permission of the


    depositor

    2. Impeachment cases

    3. Order of a competent court in cases


    of bribery and dereliction of duty

    4. Subject matter of litigation is the


    money invested or deposited

    Who are barred from examining or


    looking into FCDs?

    Who

    Any person
    Government official,
    bureau or office
    Or any other public or private
    entity
    Any official or employee of a
    banking institution

    Further exemptions of FCDs


    Attachment

    Garnishment
    Any other order or process of court,
    legislative body, government agency or
    administrative body whatsoever

    Secrecy of Bank
    Deposits Act (RA
    1405)

    Secrecy of
    Bank Deposits

    Foreign Currency
    Deposit Act (RA
    6426)

    Islamic Banks (RA


    6848)

    Who are barred from examining or


    looking into deposits in Islamic banks?

    Who

    Any person
    Government official,
    bureau or office
    Any official or employee of the Islamic Bank or
    person designated by the Board

    Absolute Confidentiality

    Is it
    absolutely
    confidential?

    1. Inspection by banks auditor

    2. Written permission of depositor

    3. Subject matter of litigation is


    the money invested or deposited

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