Scribd Logo
Upload

Welcome to Scribd!

  • 436 views

    RFBT Secrecy of Deposits Law PDF

    Uploaded by

    ARIS
    This document discusses the regulatory framework for bank secrecy in the Philippines. The Bank Secrecy Deposit Act, Republic Act No. 1405, was created to encourage banking deposits and discourage money hoarding. It establishes that all bank deposits are confidential, including foreign currency deposits. Exceptions to confidentiality include cases with depositor permission, impeachment, court orders, litigation involving deposits, or special bank examinations. Auditors can inquire into deposits for audit purposes only if the results are for exclusive bank use. Violations of bank secrecy are punishable by up to 5 years imprisonment and a 20,000 peso fine.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    RFBT Secrecy of Deposits Law PDF

    Uploaded by

    ARIS
    436 views1 page
    This document discusses the regulatory framework for bank secrecy in the Philippines. The Bank Secrecy Deposit Act, Republic Act No. 1405, was created to encourage banking deposits and discourage money hoarding. It establishes that all bank deposits are confidential, including foreign currency deposits. Exceptions to confidentiality include cases with depositor permission, impeachment, court orders, litigation involving deposits, or special bank examinations. Auditors can inquire into deposits for audit purposes only if the results are for exclusive bank use. Violations of bank secrecy are punishable by up to 5 years imprisonment and a 20,000 peso fine.

    Original Title

    RFBT-Secrecy-of-Deposits-Law.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses the regulatory framework for bank secrecy in the Philippines. The Bank Secrecy Deposit Act, Republic Act No. 1405, was created to encourage banking deposits and discourage money hoarding. It establishes that all bank deposits are confidential, including foreign currency deposits. Exceptions to confidentiality include cases with depositor permission, impeachment, court orders, litigation involving deposits, or special bank examinations. Auditors can inquire into deposits for audit purposes only if the results are for exclusive bank use. Violations of bank secrecy are punishable by up to 5 years imprisonment and a 20,000 peso fine.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    436 views1 page

    RFBT Secrecy of Deposits Law PDF

    Uploaded by

    ARIS
    This document discusses the regulatory framework for bank secrecy in the Philippines. The Bank Secrecy Deposit Act, Republic Act No. 1405, was created to encourage banking deposits and discourage money hoarding. It establishes that all bank deposits are confidential, including foreign currency deposits. Exceptions to confidentiality include cases with depositor permission, impeachment, court orders, litigation involving deposits, or special bank examinations. Auditors can inquire into deposits for audit purposes only if the results are for exclusive bank use. Violations of bank secrecy are punishable by up to 5 years imprisonment and a 20,000 peso fine.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    University of Southern Philippines Foundation

    College of Accountancy
    Salinas Drive, Lahug, Cebu City

    Regulatory Framework for Business Transactions November 29, 2020


    Secrecy of Bank Deposits Law Atty. J.M. Denila, CPA

    What is the relevant law on this topic?

    Republic Act No. 1405 is entitled “An Act Prohibiting Disclosure of or Inquiry Into, Deposits with Any Banking Institution
    and Providing Penalty Therefore”

    What are the purposes of the Bank Secrecy Deposit Act?

    The Bank Deposit Secrecy Law was created for the following purposes:

    ➢ To encourage people to deposit their money in banking institutions


    ➢ To discourage private hoarding of money so that the same may be utilized by banks in authorized loans

    What is covered by the law on bank secrecy?

    The law states that all deposits of whatever nature with banks or banking institutions in the Philippines including
    investments in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities are
    considered absolutely confidential.

    Does the law on secrecy also apply to foreign currency deposits?

    Yes.

    Republic Act No. 6426, known as the “Foreign Currency Deposit Act of the Philippines”, Sec. 8 states that all foreign
    currency deposits are also considered of an absolutely confidential nature.

    Are there exceptions to the confidentiality rule on deposits?

    Yes.

    In the following cases, the deposits may be examined, inquired or looked into by any person, government official,
    bureau or office:

    ➢ With written permission of the depositor


    ➢ In cases of impeachment
    ➢ Upon order of a competent court in cases of bribery or dereliction of duty of public officials
    ➢ In cases where the money deposited or invested is the subject matter of litigation
    ➢ During special or general examination of a bank, as authorized by the Monetary Board to investigate bank fraud
    or a serious irregularity

    On the part of the auditor on the audit of bank’s financial statements, does it mean that the auditor can no longer
    inquire into or examine bank deposits because of the law on secrecy?

    Not necessarily.

    Presidential Decree No. 1792, amending Republic Act No. 1405 states that, during a regular audit of a bank by an
    independent auditor, the auditor may inquire, examine or look into deposits, provided that the following conditions are
    satisfied:

    ➢ The examination is for audit purposes only


    ➢ The results of the examination shall be for the exclusive use of the bank

    What are the sanctions for violations of the Bank Secrecy Law?

    Any violation of this law will subject offender upon conviction, to either or both of the following (upon the discretion of
    the court):

    ➢ Imprisonment of not more than 5 years


    ➢ Fine of not more than P20,000

    You might also like