House approves bill amending bank secrecy law on second reading

THE HOUSE of Representatives on Monday approved on second reading a bill amending the Philippines' decades-old bank secrecy law, allowing the Bangko Sentral ng Pilipinas (BSP) to look into the accounts of bank officers and employees involved in illegal financial activities.

- -Kenneth Christiane L. Basilio

In a voice vote, congressmen approved House Bill No. 6707 that would "lift the barriers in the effective investigation and prosecution of corrupt or illegal financial actions of stockholders, owners, directors, trustees, officers or employees of entities supervised and regulated by the BSP."

The bill also seeks to curb tax evasion, money laundering, and other financial crimes, and address the unintended consequences of bank secrecy. It also aims to align Philippine laws with international standards on transparency in financial transactions.

Under the bill, the BSP is allowed to look into bank deposits of the stockholder, owner, director, trustee, officer or employee of a BSP-regulated entity, as well as any of the conspirators of the person involved but only if the Monetary Board determines there is "reasonable ground" that fraud, serious irregularity or unlawful activity is being committed.

"The authority of the BSP to inquire and examine deposits shall also apply in the course of its investigation of closed banks," the bill stated.