On its second reading, the House of Representatives gave its approval to a proposed bill promoting transparent governance and instituting anti-corruption mechanisms in the operations of banks and other financial institutions.
During Monday's plenary session, the chamber passed House Bill 7446, which seeks to amend the country's bank secrecy law, or Republic Act 1405, by voice vote.
According to the measure's author, Manila Representative Irwin Tieng, the law must be amended to address the unintended consequences of bank deposit laws.
The measure aims to remove impediments to the effective investigation and prosecution of corrupt or illegal financial actions by stockholders, owners, directors, trustees, officers, or employees of entities supervised and regulated by the Bank of the Philippines.
Also, the proposed bill aims to combat tax evasion, money laundering, and other financial crimes while adhering to international standards for financial transaction transparency.
It would also allow the Bangko Sentral ng Pilipinas (BSP) to investigate or examine deposits as part of its investigation of closed banks or when there is reasonable cause to believe that fraud, serious irregularity, or unlawful activity has been committed by a stockholder, owner, director, trustee, officer, or employee of a BSP-supervised institution, or by a representative, agent, related party, or other person.
The results of bank examinations may only be used by the BSP, the Securities and Exchange Commission, the Philippine Deposit Insurance Corporation, the Anti-Money Laundering Council, the Department of Justice, and the courts.
Meanwhile, a safe harbor clause is provided, which exempts banks or financial institutions, their directors, officers, or employees from any action, claim, demand, or liability for acts performed in response to a BSP order of inquiry or examination of deposits.
It forbids officials or employees of the BSP and banking institutions from disclosing any deposit information to anyone other than those authorized by law.
