SEC backs bank secrecy reform

The Securities and Exchange Commission (SEC) is supporting proposals to amend existing bank secrecy laws as part of the government’s continuing fight against corruption.

- By JAMES A. LOYOLA

“As a corporate and capital market regulator, the SEC welcomes the proposed easing of our bank secrecy laws as a necessary measure to uphold trust and confidence in the Philippine capital market and overall economy,” SEC Chairperson Francis Lim said.

He noted that, “Corruption is a major concern for local and foreign investors alike. It does not only create crippling uncertainties; it translates to real, unnecessary, additional costs of doing business in the country.”

Several bills are currently pending before the House of Representatives for the lifting of the bank secrecy law, primarily to promote transparency and tackle corruption in the government.

Generally, the amendments seek to empower the Bangko Sentral ng Pilipinas (BSP) to inquire into and examine deposits when there is reasonable ground to believe that fraud, serious irregularity, or unlawful activity has been committed by stockholders, owners, directors, trustees, officers, or employees of supervised institutions.