Garnishment of Deposits, including Foreign Deposits | Secrecy of Bank Deposits (R.A. No.1405 and R.A. No.6426, as amended) | BANKING

Under Philippine law, the secrecy of bank deposits is enshrined in two primary statutes:

1. Republic Act No. 1405 (also known as the "Bank Secrecy Law"), which covers all deposits in Philippine banks, and
2. Republic Act No. 6426 (known as the "Foreign Currency Deposit Act of the Philippines"), which provides a specific framework for foreign currency deposits.

Both statutes aim to protect the confidentiality of bank deposits, with particular restrictions and limitations on when and how these deposits may be disclosed, examined, or garnished.

Here’s a detailed breakdown regarding Garnishment of Deposits, including Foreign Deposits under these laws:

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1. General Rule on Secrecy of Deposits (R.A. 1405 and R.A. 6426)

• R.A. No. 1405 declares all deposits of whatever nature in banks in the Philippines, including investments in bonds issued by the government, as absolutely confidential. They cannot be examined, inquired into, or disclosed without the depositor's written permission.

• R.A. No. 6426 extends this confidentiality to foreign currency deposits, providing additional protections. This law ensures that foreign currency deposits in banks, including those by non-residents, are strictly confidential and may not be subjected to examination, inquiry, or garnishment except in highly specific circumstances.

2. Garnishment of Deposits

Definition and Purpose of Garnishment

Garnishment is a legal process by which a creditor seeks to satisfy a judgment debt by claiming funds held by a third party, such as a bank, on behalf of the debtor. It essentially allows a creditor to "attach" or seize funds from a bank account to pay off debts that the depositor (debtor) owes.

Garnishment Under R.A. No. 1405 (Local Currency Deposits)

1. General Prohibition:

   • R.A. No. 1405 prohibits the garnishment of bank deposits unless expressly permitted by law. This means that, as a rule, creditors cannot garnish funds in a debtor’s bank account, as this would require the disclosure of the deposit’s existence and value, thereby breaching bank secrecy.

2. Exceptions to Secrecy and Garnishment:

   • The Bank Secrecy Law allows for very few exceptions. Deposits may be examined, and therefore subject to garnishment, only in these cases:
     • Written Consent of the Depositor: If the depositor provides written consent, the secrecy of the account is waived, and garnishment can proceed.
     • Impeachment Cases: Accounts can be opened or garnished in cases involving impeachment.
     • Cases Filed by the Bureau of Internal Revenue (BIR): Garnishment can occur if it is necessary to determine the tax liabilities of the account holder.
     • Judicial Order in Specific Cases: Courts can order garnishment in cases involving unexplained wealth or violations of the Anti-Money Laundering Act (AMLA).
     • Inquiries related to Anti-Money Laundering: Under the Anti-Money Laundering Act (AMLA), if an account is linked to money laundering, courts may allow garnishment.

3. Importance of Judicial Oversight:

   • In cases where garnishment is permitted, judicial oversight is critical. A court order is typically required to confirm the legitimacy of the garnishment request and to ensure it falls under the allowed exceptions.

Garnishment Under R.A. No. 6426 (Foreign Currency Deposits)

1. Higher Protection Standard for Foreign Currency Deposits:

   • R.A. No. 6426 offers more stringent confidentiality protections compared to local currency deposits. Foreign currency deposits may not be garnished or subjected to court orders except in exceptional cases, even more restrictive than those for local currency accounts.

2. Strict Exception:

   • The sole instance where foreign currency deposits may be disclosed or garnished is with the express written consent of the depositor. Unlike R.A. 1405, which allows for other narrow exceptions, R.A. 6426 is absolute in that consent from the depositor is mandatory.
   • Even tax-related cases under the Bureau of Internal Revenue (BIR) do not have a statutory exception for garnishing foreign currency deposits, making R.A. 6426 particularly strict.

3. Implications of Non-Waiver of Consent:

   • In cases where a debtor refuses to provide written consent, foreign currency deposits remain fully protected from garnishment or inquiry. Courts in the Philippines have historically upheld this strict standard, often preventing creditors from accessing foreign currency deposits of debtors even with judgments or court orders.

3. Interaction with Other Laws and Judicial Interpretations

Anti-Money Laundering Act (AMLA) and Bank Secrecy

• The Anti-Money Laundering Act adds another layer of complexity. Although it does not override R.A. 6426, it provides mechanisms for examining suspicious accounts under judicial scrutiny. In the context of garnishment:
  • Local currency accounts (R.A. 1405) may be garnished under AMLA if they are found to be part of a money-laundering scheme, following a judicial order.
  • However, foreign currency accounts (R.A. 6426) remain shielded from AMLA unless the depositor consents.

Civil and Criminal Cases

• Civil Cases: Courts have generally upheld the protection of deposits from garnishment in ordinary civil cases unless they fall under R.A. 1405’s exceptions. For foreign currency deposits, only the depositor’s consent will suffice.

• Criminal Cases: If a bank deposit is suspected to be related to a criminal offense (e.g., fraud, graft, or money laundering), authorities may seek court approval to lift the secrecy provisions. For local currency accounts, this may be possible under R.A. 1405. However, foreign currency accounts require the depositor’s consent under R.A. 6426, except under AMLA proceedings with substantial judicial justification.

4. Significant Case Law

Philippine jurisprudence has consistently interpreted these laws strictly:

• Salvacion v. Central Bank (1997): The Supreme Court allowed the garnishment of a foreign currency deposit only in an extraordinary case involving a moral obligation and justice for the victim, showing that extreme situations might allow exceptions. However, this was a highly fact-specific decision and did not set a broad precedent.

• Ejercito v. Sandiganbayan (2001): Here, the Court reinforced the strict limitations on accessing foreign currency deposits under R.A. 6426, underscoring that only the depositor’s written consent would suffice for garnishment, even in government-related forfeiture cases.

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5. Conclusion

The law on the secrecy of bank deposits, particularly concerning garnishment, is one of the strictest in the Philippines:

• Local Currency Deposits (R.A. 1405): These may be garnished but only under limited, legally-defined exceptions.

• Foreign Currency Deposits (R.A. 6426): These enjoy even stricter protection and are virtually immune to garnishment without the depositor's written consent.

These laws, aimed at promoting the banking industry’s stability and the depositors’ trust, impose formidable barriers to garnishment, balancing privacy with limited instances where disclosure is in the public interest or necessary for justice.

Exceptions from Coverage | Secrecy of Bank Deposits (R.A. No.1405 and R.A. No.6426, as amended) | BANKING

SECRECY OF BANK DEPOSITS UNDER PHILIPPINE LAW AND ITS EXCEPTIONS

In the Philippines, the Secrecy of Bank Deposits is governed primarily by two major statutes: Republic Act No. 1405 (RA 1405), or the "Law on the Secrecy of Bank Deposits," and Republic Act No. 6426 (RA 6426), or the "Foreign Currency Deposit Act of the Philippines." These laws protect the confidentiality of bank deposits, with RA 1405 covering peso deposits and RA 6426 covering foreign currency deposits. However, these statutes also provide specific exceptions to their coverage, under which disclosure of bank deposit information may be legally permitted.

1. Republic Act No. 1405 (Law on the Secrecy of Bank Deposits)

RA 1405 declares that all deposits of whatever nature with banks or banking institutions in the Philippines, including investments in government bonds, are considered absolutely confidential and may not be examined, inquired, or looked into by any person, government official, bureau, or office, except as provided by law. The purpose is to encourage individuals to deposit their money in banks by ensuring that such deposits are protected from inquiry, inspection, or exposure.

Exceptions under RA 1405

RA 1405 provides for specific instances where disclosure of bank deposits is permitted, despite the law's confidentiality provisions. These exceptions are:

1. Written Consent of the Depositor:

   • Disclosure of bank deposit information is permitted when there is explicit written permission from the depositor, authorizing such disclosure. The consent must be clear, voluntary, and specific to be valid.

2. In Cases of Impeachment:

   • Disclosure is allowed if required in an impeachment proceeding. This was notably invoked during the impeachment trials of government officials, where bank records were relevant to proving allegations of corruption or undeclared wealth.

3. Upon Order of a Competent Court in Cases of Bribery or Dereliction of Duty of Public Officials:

   • Disclosure of bank deposits can be ordered by a competent court in cases involving bribery or dereliction of duty by public officials. This is relevant in criminal cases where a public official is suspected of corruption or abuse of public office, and bank records are critical in investigating the crime.

4. In Cases Where the Money Deposited is the Subject of Litigation:

   • Bank secrecy does not apply when the deposited funds themselves are directly involved in litigation. For example, in civil cases where ownership of a specific bank deposit is disputed, the court may order the examination of the deposit to resolve the case.

5. Compliance with Anti-Money Laundering Laws (Indirect Exception):

   • RA 1405 does not explicitly include the Anti-Money Laundering Act (AMLA) as an exception; however, later jurisprudence and amendments to AMLA have expanded reporting requirements for suspicious transactions, including freezing accounts suspected to be linked to money laundering or terrorism financing, with prior approval from the court. Compliance with AMLA is now recognized as an implicit exception to RA 1405's secrecy provisions.

2. Republic Act No. 6426 (Foreign Currency Deposit Act of the Philippines)

RA 6426 provides for absolute confidentiality of foreign currency deposits in Philippine banks. The law is designed to encourage foreign currency deposits by offering strict confidentiality to depositors, especially foreigners who might otherwise refrain from bringing currency into the country. The law initially aimed to increase foreign exchange reserves by incentivizing foreign investments in the local banking system.

Exceptions under RA 6426

RA 6426’s confidentiality provisions differ from RA 1405’s in that they are considered stricter. However, there are still recognized exceptions under this law, primarily:

1. Written Consent of the Depositor:

   • Like in RA 1405, RA 6426 allows disclosure if the depositor provides express written consent.

2. Examination in Cases of Anti-Money Laundering (Indirect Exception):

   • Although not explicitly stated in RA 6426, the Anti-Money Laundering Act (AMLA) and related laws indirectly affect foreign currency deposits by requiring banks to report suspicious activities that could indicate money laundering. Under AMLA, the Anti-Money Laundering Council (AMLC) may inquire into and examine deposits if there is probable cause related to offenses specified in the AMLA. However, the examination requires prior court approval to be valid under RA 6426.

3. Anti-Money Laundering Act (AMLA) as an Overarching Statute Affecting Both RA 1405 and RA 6426

The Anti-Money Laundering Act of 2001 (RA 9160), as amended, introduced additional grounds for the disclosure of bank deposits to combat money laundering and terrorism financing. AMLA applies to both peso and foreign currency deposits.

Exceptions under AMLA Affecting Bank Secrecy

Under AMLA, bank deposit confidentiality is lifted in certain situations:

1. Suspicious Transaction Reports (STRs):

   • Banks are required to report suspicious transactions to the AMLC without notifying the depositor, even if this might disclose details of bank deposits that would otherwise be confidential.

2. Examination of Bank Deposits upon Court Order:

   • If the AMLC establishes probable cause that deposits are related to money laundering or other predicate crimes, it can petition the Court of Appeals for authorization to examine specific accounts. The Court of Appeals’ approval effectively lifts the bank secrecy protection for the targeted account(s).

3. Freezing of Accounts Related to Terrorism Financing or Money Laundering:

   • The AMLC may issue a freeze order on accounts that it reasonably believes are related to money laundering or terrorism financing, even before securing a court order. The initial freeze is effective for 20 days, and the AMLC must obtain a court order to extend this period.

Other Statutes with Implications on Bank Secrecy

Certain other laws interact with bank secrecy laws, adding further exceptions under particular circumstances:

1. The Tax Code (National Internal Revenue Code of the Philippines):

   • The Tax Reform for Acceleration and Inclusion Act (TRAIN) amended the Tax Code, giving the Bureau of Internal Revenue (BIR) the authority to access bank deposits in cases involving tax fraud. Under the Tax Code, the BIR Commissioner may inquire into bank accounts if it is in connection with tax fraud cases, but only upon issuance of a court order.

2. The Sandiganbayan Act (RA 8249):

   • In cases before the Sandiganbayan (the special court for cases involving graft and corruption), access to bank records may be granted if relevant to cases under its jurisdiction, especially when prosecuting public officials for offenses under anti-corruption laws.

3. The Perjury Law:

   • Deposits may be examined in cases of perjury, particularly when a public official is being investigated for submitting a false Statement of Assets, Liabilities, and Net Worth (SALN) under oath. This can result in a waiver of bank secrecy protections.

Summary of Exceptions to Bank Secrecy Laws in the Philippines

1. RA 1405 (Law on the Secrecy of Bank Deposits): Written consent, impeachment proceedings, court order in bribery cases or dereliction of duty, litigation involving the deposit.
2. RA 6426 (Foreign Currency Deposit Act): Written consent, AMLA cases with probable cause and court order.
3. AMLA (Anti-Money Laundering Act): STRs, court-approved examination for money laundering, freeze orders.
4. Tax Code: Court-authorized access in tax fraud cases.
5. Other Relevant Laws: Exceptions in Sandiganbayan proceedings, SALN-related perjury cases, and related court orders.

In conclusion, while RA 1405 and RA 6426 establish a high standard of confidentiality, the increasing emphasis on anti-corruption, anti-fraud, and anti-money laundering initiatives in the Philippines has led to a progressive expansion of these exceptions. This ensures a balance between protecting individual depositors' rights and upholding public interest in combating financial crimes.

Prohibited Acts | Secrecy of Bank Deposits (R.A. No. 1405 and R.A. No. 6426, as amended) | BANKING

Under Philippine law, the Secrecy of Bank Deposits is primarily governed by two statutes: Republic Act No. 1405 (The Law on Secrecy of Bank Deposits) and Republic Act No. 6426 (The Foreign Currency Deposit Act). These laws aim to preserve the confidentiality of bank deposits by protecting them from unauthorized disclosure, thereby fostering a robust banking system that encourages individuals and corporations to deposit their money in Philippine banks. Let’s discuss these laws, focusing on the prohibited acts related to the secrecy of bank deposits.

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Republic Act No. 1405 (The Law on Secrecy of Bank Deposits)

Enacted in 1955, R.A. No. 1405 mandates the confidentiality of all bank deposits in the Philippines, with limited exceptions. It applies to all types of bank accounts, whether held by individuals or entities, and aims to protect depositors from undue scrutiny and investigation.

Key Provisions of R.A. No. 1405:

1. Confidentiality Mandate: The law prohibits the disclosure of information regarding bank deposits except under specific circumstances.

2. Covered Deposits: R.A. No. 1405 applies to all forms of Philippine currency deposits in banks and other financial institutions in the Philippines.

3. Exceptions to Confidentiality:

   • Written Consent of the Depositor: Disclosure is allowed if the depositor gives explicit, written consent.
   • In Cases of Impeachment: Bank deposits may be examined when it is necessary for impeachment proceedings.
   • Court Order in Specific Cases: Courts may order the examination of bank accounts in cases of bribery, dereliction of duty, and other cases where the integrity of public office is in question.
   • For Tax Purposes: The Bureau of Internal Revenue (BIR) may access deposits in cases where the depositor is involved in tax evasion cases, based on court approval.
   • For Recovery of Ill-Gotten Wealth: The Philippine Commission on Good Government (PCGG) may also access deposits if they relate to the recovery of ill-gotten wealth, such as deposits of former government officials or their associates that are suspected to be derived from public funds or graft and corruption.

4. Penalties for Unauthorized Disclosure: R.A. No. 1405 provides penalties for unauthorized disclosure or acts that infringe upon the confidentiality of bank deposits. This includes criminal liability for bank officers or employees who reveal deposit information without proper authority or legal basis.

5. Prohibited Acts under R.A. No. 1405:

   • Any unauthorized examination, inquiry, or disclosure of information related to deposits is strictly prohibited.
   • Bank officers, employees, and any individuals involved in the handling of deposit information are barred from disclosing deposit details unless an exception is explicitly met.

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Republic Act No. 6426 (The Foreign Currency Deposit Act)

R.A. No. 6426 was enacted in 1974 to protect the confidentiality of foreign currency deposits in Philippine banks. This law was meant to attract foreign investments by ensuring the security and privacy of foreign currency deposits held by both residents and non-residents of the Philippines.

Key Provisions of R.A. No. 6426:

1. Confidentiality of Foreign Currency Deposits: All foreign currency deposits in banks within the Philippines are strictly confidential.
2. Broad Application: The confidentiality provisions apply to both resident and non-resident depositors, regardless of nationality, making it attractive for foreign depositors.
3. Exceptions to Confidentiality:
   • Written Consent of the Depositor: Similar to R.A. No. 1405, the law allows disclosure of foreign currency deposits when the depositor provides written consent.
   • Exception for Criminal Cases: Recent amendments have expanded the cases in which foreign currency deposits may be examined. Courts may now permit examination if the deposits are related to criminal cases involving issues such as money laundering, terrorism financing, and other specified offenses.
4. Prohibited Acts under R.A. No. 6426:
   • Unauthorized examination or disclosure of information on foreign currency deposits is strictly prohibited.
   • Bank officers, employees, or any persons with access to foreign currency deposit information are forbidden from disclosing deposit details without meeting the legal exceptions.

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Prohibited Acts Common to Both Laws

Both R.A. No. 1405 and R.A. No. 6426 aim to ensure that bank deposits, whether in Philippine pesos or foreign currency, are kept confidential unless a legitimate legal exception applies. The following acts are prohibited under both laws:

1. Unauthorized Access and Disclosure: Bank officers, employees, or any individuals with access to deposit information cannot, without authorization, disclose or permit the examination of bank deposits, either in Philippine pesos or foreign currency. This applies to personal, corporate, and government-related deposits.

2. Breach of Confidentiality Without Legal Basis: Any breach of confidentiality not covered by the recognized exceptions (such as for tax cases, court orders, etc.) is prohibited. Unauthorized disclosure, even if motivated by personal curiosity or in response to inquiries by unauthorized individuals or entities, is illegal.

3. Penalties for Violators:

   • Violators of these laws may face criminal, civil, or administrative penalties. Criminal penalties can include imprisonment and fines.
   • Bank officers or employees who engage in unauthorized disclosure may also face disciplinary actions from regulatory agencies like the Bangko Sentral ng Pilipinas (BSP), in addition to penalties prescribed under Philippine law.

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Impact and Enforcement of Secrecy Laws in Philippine Banking

The strict regulations imposed by R.A. No. 1405 and R.A. No. 6426 underscore the Philippine government’s commitment to protecting the privacy of depositors. However, these laws are balanced by provisions that allow lawful examination and disclosure under circumstances involving public interest or the state’s duty to enforce justice, such as criminal investigations or tax collection.

In practice:

• Banks must ensure that internal controls are robust and that employees are well-trained on the limitations surrounding disclosure.
• Violations are taken seriously, and depositors can file complaints if they believe their rights under these laws have been violated.
• The Anti-Money Laundering Council (AMLC) and the BSP play crucial roles in overseeing compliance and investigating breaches when confidentiality laws are suspected to have been violated.

Conclusion: Philippine banking laws on the secrecy of bank deposits protect depositors’ information but recognize limited exceptions for public interest, integrity in public service, and national security. Unauthorized access or disclosure of deposit information is a punishable offense under Philippine law, underscoring the importance of confidentiality and trust in the Philippine banking system.

Secrecy of Bank Deposits (R.A. No. 1405 and R.A. No. 6426, as amended) | BANKING

Secrecy of Bank Deposits in the Philippines under R.A. No. 1405 and R.A. No. 6426

The Secrecy of Bank Deposits in the Philippines is a crucial part of banking and taxation laws. Primarily governed by Republic Act No. 1405 (the Bank Secrecy Law) and Republic Act No. 6426 (Foreign Currency Deposit Act), these laws uphold the confidentiality of bank deposits to encourage financial stability, maintain depositor confidence, and prevent undue intrusion into financial privacy. Here is a detailed breakdown:

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I. Republic Act No. 1405 – The Bank Secrecy Law of 1955

Purpose: R.A. No. 1405, also known as the Bank Secrecy Law, was enacted to ensure absolute confidentiality of bank deposits to encourage depositors to entrust their funds to banking institutions in the Philippines. The law aims to safeguard the privacy of individual financial information, an important aspect of personal privacy rights, and confidence in the banking system.

Coverage: The law provides that all deposits in banks or banking institutions in the Philippines, including investments in bonds issued by the Philippine government, are confidential. The term “deposits” includes savings accounts, current accounts, and time deposits.

Key Provisions:

1. Confidentiality:

   • Section 2 of R.A. No. 1405 mandates that bank deposits are strictly confidential and may not be examined, inquired, or looked into by any person, government official, bureau, or office except under specified circumstances.

2. Exceptions to Confidentiality:

   • Under Section 2 of R.A. No. 1405, the confidentiality of bank deposits may be waived under the following conditions:
     1. Written Consent of the Depositor: Disclosure may be made if the depositor expressly waives their right to secrecy.
     2. Impeachment Cases: Bank records may be accessed in the investigation of impeachment proceedings.
     3. Court Order in Specific Cases: A court order may be issued for access in the event of:
        • Bribery or Dereliction of Duty cases against public officials.
        • Cases involving unexplained wealth.
        • Cases filed by the Anti-Money Laundering Council (AMLC) under the Anti-Money Laundering Act (AMLA).
     4. Deposit Examination for Estate Tax Purposes: When necessary to establish the estate’s assets for tax purposes.
     5. Anti-Money Laundering Law: R.A. No. 9160, as amended, provides further exceptions to allow the AMLC to inquire into or examine deposits with court approval, subject to probable cause related to money laundering or predicate crimes.

3. Scope and Limitations:

   • The law covers only peso deposits in domestic banking institutions. The Bank Secrecy Law does not apply to foreign currency deposits (covered separately under R.A. No. 6426).

4. Penalties for Violation:

   • Violations of R.A. No. 1405, including unauthorized disclosure of deposit information, may result in administrative, civil, or criminal liabilities, including imprisonment and fines.

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II. Republic Act No. 6426 – The Foreign Currency Deposit Act of 1974

Purpose: R.A. No. 6426 was enacted to encourage foreign currency deposits in the Philippines by providing an assurance of absolute confidentiality. The law aims to attract foreign currency funds to strengthen the country’s foreign exchange reserves.

Coverage: The Act applies to all foreign currency deposits in banks within the Philippines. It provides a stricter confidentiality standard than R.A. No. 1405, ensuring that foreign currency deposits cannot be disclosed under any circumstances other than those explicitly stated in the law.

Key Provisions:

1. Confidentiality:

   • Section 8 of R.A. No. 6426 declares that foreign currency deposits are absolutely confidential, prohibiting any disclosure of information about such deposits. Banks are prohibited from revealing details of these deposits to any third party, including the government, without the depositor's consent.

2. Exceptions to Confidentiality:

   • The only recognized exception under R.A. No. 6426 is the express written permission of the depositor.
   • This Act does not allow exceptions for impeachment cases, court orders, or cases involving bribery, dereliction of duty, or tax investigations, which makes it a more stringent law than R.A. No. 1405.

3. Interaction with Other Laws:

   • Although the Anti-Money Laundering Law has expanded the scope of the exceptions to bank secrecy under R.A. No. 1405, there is ongoing debate about the extent to which R.A. No. 6426 is affected by AMLA provisions. Courts have often upheld the strict confidentiality provision in R.A. No. 6426, recognizing that legislative amendments would be needed to make foreign currency deposits subject to anti-money laundering investigations without depositor consent.

4. Penalties for Violation:

   • Unauthorized disclosure of foreign currency deposits may lead to severe sanctions, including fines and imprisonment, emphasizing the law’s strict adherence to confidentiality.

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III. Interaction Between R.A. No. 1405 and R.A. No. 6426

1. General Principle:

   • Both laws seek to protect depositors’ privacy by maintaining the secrecy of their deposits, though R.A. No. 6426 is more stringent. Where R.A. No. 1405 allows specific exceptions, R.A. No. 6426 mandates absolute confidentiality for foreign currency deposits.

2. Application in Cases of Financial Investigation:

   • Peso deposits are subject to more exceptions under R.A. No. 1405 and can be examined in specific instances, such as court orders in bribery cases or in impeachment proceedings.
   • Foreign currency deposits, however, require explicit depositor consent for any disclosure, making them largely immune to judicial or governmental inquiries.

3. Anti-Money Laundering Law (R.A. No. 9160, as amended):

   • The AMLA seeks to combat financial crimes by permitting inquiries into suspicious accounts, yet this power is limited concerning foreign currency deposits under R.A. No. 6426. For peso deposits, AMLA provides a clear pathway for examination by the AMLC, subject to judicial approval, when there is probable cause.
   • Judicial interpretations have generally upheld the non-disclosure of foreign currency deposits in the context of AMLA cases unless the depositor consents.

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IV. Judicial Interpretations and Key Case Law

Several Philippine Supreme Court cases have interpreted the scope of these laws:

1. Banco Filipino Savings and Mortgage Bank v. Purisima – This case established that the Bank Secrecy Law does not cover foreign currency deposits under R.A. No. 6426, solidifying the separate confidentiality protections of foreign currency deposits.

2. Salvacion v. Central Bank of the Philippines – This decision permitted the garnishment of foreign currency deposits of a foreigner convicted of serious crimes, showing an instance where public interest may outweigh absolute confidentiality, although this is an exceptional case and does not form a general rule.

3. Marquez v. Desierto – The Court clarified that bank secrecy is not absolute under R.A. No. 1405, especially in cases involving unexplained wealth or graft, where public interest is a factor.

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V. Conclusion

The Bank Secrecy Law (R.A. No. 1405) and the Foreign Currency Deposit Act (R.A. No. 6426) serve as vital instruments in safeguarding the privacy of bank depositors in the Philippines. While R.A. No. 1405 covers peso deposits and provides several exceptions, R.A. No. 6426 applies more stringent protections for foreign currency deposits, allowing disclosure only with depositor consent. These laws embody a careful balance between protecting individual privacy and promoting public interest, though judicial interpretations and evolving financial regulations such as the AMLA introduce complexities, especially concerning anti-money laundering efforts.