Secrecy of Bank deposit

• Secrecy of Bank Deposit Act


  Republic Act No. 1405, enacted on 9 September 1955, to prohibit disclosure of or inquiry into, deposits with any banking institution and providing penalty therefor
• Declaration of Policy


  To give encouragement to the people to deposit their money in banking institutions and to discourage private hoarding so that the same may be properly utilized by banks in authorized loans to assist in the economic development of the country
• Exceptions to the confidentiality of bank deposits

  • Upon depositor's written permission
  • In cases of impeachment
  • Upon a competent court's order in cases of bribery or dereliction of duty by public officials
  • In cases where money deposited or invested is the subject matter of litigation
  • In cases of Anti-Graft and Corrupt practices act
  • When monetary board orders revelation when there is danger of bank fraud
  • When independent auditors audit banks
  • When the Commissioner of Internal Revenue inquire into the bank deposit accounts of a decedent to determine his gross estate or any taxpayer who has filed an application for compromise of his tax liability by reason of financial incapacity to pay his tax liability, which application shall include a written waiver of his privilege under the Secrecy of Bank Deposit Act or under other general or special laws
  • AMLAC: Reporting on Account and Examination of Accounts
• Other than the above exceptions, the law declares it unlawful for any official or employee of a banking institution to disclose to any person any information concerning deposits
• Consequence of violating the Secrecy of Bank Deposit Act

  Imprisonment of not more than five years or a fine of not more than twenty thousand pesos or both, in the discretion of the court