You are on page 1of 14

Exceptions To Secrecy

of Deposits

A. Exceptions under the Bank


Secrecy Law
(WILO)
upon Written permission of the depositor, or
in cases of Impeachment, or
in cases where the money deposited or invested is the
subject matter of the Litigation, or
upon Order of a competent court in cases of bribery or
dereliction of duty of public officials

B. Garnishment
Section 9 (c), Rule 39 Rules of Court
The garnishee shall make a written report to the court
within five (5) days from the service of the notice of
garnishment stating whether or not the judgement
obligor has sufficient funds or credits to satisfy the
amount of the judgment. If not, the report shall state how
much funds or credits the garnishee holds for the
judgment obligor

The prohibition against examination of or inquiry into a bank


deposit does not preclude its being garnished to INSURE
SATISFACTION OF A JUDGMENT.
no real inquiry in such a case, and if the existence of the
deposit is disclosed, the disclosure is purely incidental to the
execution process.

C. Foreign Currency Deposits


Exemption from attachment, garnishment, or any other
order or process of any process of any court, legislative
body, government agancy of any administrative body
whatsoever, is NOT APPLICABLE to a FOREIGN
TRANSIENT, otherwise injustice would result especially
to a citizen aggrieved by a foreign guest.
It cannot be used as a device for wrong doing, acquitting
the guilty at the expense of the innocent

Salvacion vs Central Bank and China Bank


278 SCRA 27 (1997)

D. Graft and Corruption


Anti Graft Law
- Directs in mandatory terms that bank deposits
shall be taken into consideration in its enforcement,
notwithstanding any provision of law to the contrary.
*Cases of unexplained wealth are similar to cases of bribery and dereliction
of duty and no reason why these two classes of cases cannot be excepted from
the rule making bank deposits confidential

E. Anti-Money Laundering Act


Anti-Money Laundering Council (AMLC)
Probable cause that the deposits or investments are related
to an unlawful activity; or
A money laudering offense

No court order required on the following unlawful


activities:
1. Kidnapping for ransom
2. Violations of the Comprehensive Dangerous Drugs Act
3. Hijacking and other violations under RA 6235
4. Destructive arson and murder including those perpetrated by terrorists against non-combant
persons and similar targets

F. Periodic or Special Examination


BSP examination made in the course of a periodic or
special examination, in accordance with the rules of
examination of the BSP
Authorized by the Monetray Board bank fraud or
serious irregularity has been or is being committed and
that it is necessary to look into the deposit to establish
such fraud or iregularity
Independent Auditor hired by the bank to
conduct ist regular audit provided that examination
results shall be for the exclusive use of the bank

G. In Camera Inspection by the


Ombudsman
Section 15 (8) of RA 6770 (The Ombudsman Act of
1989)
Requisites: (PINoI)
1. Pending case before a court of competent jurisdiction
2. The account must be clearly Identified
3. Notifying the bank personnel and the account holder to
be present during inspection
4. Inspection may cover only the account identified in the
pending case

H. Preliminary Attachment
Section 10, Rule 57 of the 1997 Rules of Court
Examination of paty whose property is attached and
persons indebted to him or controlling his property;
delivery of property to sheriff.
Not incompatible with the law on secrecy of bank deposits
- in cases where the money deposited or invested is subject matter of the
litigation

I. Disclosure of Dormant Accounts


Section 2 of Act No. 3936
(An Act Requiring Banks, Trust Companies, Savings and
Mortgage Banks, Mutual Building and Loan Associations,
and Banking Institutions of Every Kind to Transfer
Unclaimed Balances Held by Them to the Insular
Treasury, and For other Purposes)
all banks shall forward to the Insular Treasurer a statement, under oath of
their respective managing officers, of all cresits and deposits heled by them in
favor of persons known to be dead, or who have not made further deposits or
withdrawals during the preceeding ten years or more,

J. Commissioner of Internal Revenue


Section 6 (F) of the 1997 National Internal
Revenue Code
The Commissioner is authorized to inquire into bank
deposites of:
a. a decedent to determine his gross estate; and
b. any taxpayer who has filed an application for
compromise of
his liability by reason of financial
incapacity to pay his tax liability.
* written waiver of his privilege under RA 1405 or under other general
or special laws

K. Waiver by DOSRI
Section 26 of the New Central Bank Act:
Any Director, officer or stockholder who, together with
his related interest, contracts a loan or any form of
financial accomodation from: (1) his bank; or (2) from a
bank shall be required by the lending bank to waive the
secrecy of his deposits of whatever nature in all banks in
the Philippines.

You might also like