BSP-backed bill easing bank secrecy gets Palace endorsement
MANILA, Philippines—A central bank-backed bill that will ease one of the most restrictive deposit secrecy laws in the world has received the backing of President Rodrigo Duterte who has included it on his list of priority legislative measures.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said the Bank Deposits Secrecy bill has been endorsed by Duterte to the incoming 18th Congress for immediate action, according to the Presidential Legislative Liaison Office.
The BSP said it hopes that the Bank Deposits Secrecy Bill will equip its examiners with tools necessary to prove the commission of fraud, serious irregularity or unlawful activity if reasonable basis exists.
The central bank said this will also allow it to fulfill its mandate and conduct more holistic examinations of banks so that risk areas will be considered in assessing their financial condition, risk management and corporate governance systems.
“We are glad that the President has identified the Bank Deposits Secrecy Bill as a legislative priority,” BSP Governor Benjamin Diokno said. “In view of this, the BSP will further step up its efforts to coordinate with Congress and other stakeholders for the immediate passage of the measure.”
One key provision of the proposed law is that the results of the inquiry or examination by the BSP shall not be arbitrarily shared or disclosed but proposed to be for the exclusive use of the regulator.
Nevertheless, the BSP may share the results of its examination with the courts and other regulators only if it is necessary to prevent or prosecute an offense or crime.
“This enhances the BSP’s capacity to fulfill its mandate of promoting the safety and soundness of the banking system,” Diokno said. “It also enables compliance with international standards on transparency that will also bolster the public and the global community’s trust in the domestic banking system.”
The Office of the President informed the BSP that it has referred the Bank Deposits Secrecy bill to the Legislative-Executive Development Advisory Council for prioritization and inclusion in the Common Legislative Agenda for the Executive and Legislative.
This was in response to separate communications sent by the BSP requesting that the bill be included on the list of priority bills and be certified as urgent by the President.
In the House of Representatives, the BSP is in constant communication with the Committee on Banks and Financial Intermediaries for the interpellation of the bill. The BSP has also touched base with senators for sponsorship and briefings on the bill.
The BSP was furnished a copy of the joint statement by 22 private organizations in May 2021, expressing their full support to the enactment of the Bank Deposits Secrecy bill.
This was followed by a letter to the President by Philippine and foreign business groups calling for the passage of the bill to support economic recovery and higher growth.
