Senator Jinggoy Estrada has filed a measure seeking to relax certain restrictions under the Bank Secrecy Law to allow the Bangko Sentral ng Pilipinas (BSP) to examine bank deposits that may be linked to fraudulent and other serious financial crimes.
In Senate Bill No. 1047, Estrada proposed amendments to Republic Act No. 1405, or the Secrecy of Bank Deposits Law, to authorize the BSP to look into suspicious accounts connected to bribery, fraud, money laundering, and similar offenses.
“Bank secrecy should not be used to commit atrocities. If the BSP has clear grounds to suspect corruption or illegal activities, it should have the ability to inspect accounts according to the law,” Estrada said.
Under the proposed measure, the BSP may examine bank deposits when there is a reasonable basis to believe that fraud, serious irregularities, or unlawful activities have been or are being committed. The inquiry will be conducted by the BSP’s Monetary Board strictly for official purposes.
The bill includes safeguards to prevent abuse, such as prohibiting the examination of bank deposits during election periods if it would prejudice any candidate.
It also ensures that funds deposited before the law takes effect remain protected and that examination results may only be disclosed under strict conditions for criminal prosecution.
“These safeguards ensure that the law will not be weaponized for political harassment, while preventing bank secrecy from being used as a shield for corruption,” Estrada explained.
Estrada said the proposed amendments will apply to both peso and foreign currency deposits, balancing the protection of individual privacy with the need to strengthen the government’s ability to detect and prosecute financial misconduct.
“By amending this law, we empower our institutions to go after dirty money, hold wrongdoers accountable, and restore public trust in government,” he said.