SECRECY OF BANK DEPOSITS (RA 1405)

Question 1

In one sentence explain RA 1405.

Answer 1

An ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY BANKING INSTITUTION AND PROVIDING PENALTY THEREFOR.

Question 2

Secrecy of Bank Deposits or RA ____

Answer 2

RA 1405 (LAOS)

Question 3

RA 1405 was approved on?

Answer 3

September 9, 1955

Question 4

Section VI of the Act stated that the Act shall take effect upon its approval, when was the Act approved?

Answer 4

September 9, 1955

Question 5

Purpose of the Act in accordance with Section I of the Act

Answer 5

To give encouragement to the people to deposit their money in banking institutions and to discourage private hoarding so that the same may be properly utilized by banks in authorized loans to assist in the economic development of the country

Question 6

Prohibited Act(s) under the Act in accordance with Section III of the Act

Answer 6

It shall be unlawful for any official or employee of a banking institution to disclose to any person any information concerning said deposits (Section II).

Question 7

Coverage of the Act in accordance with Section II of the Act

Answer 7

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 hereby
considered as of an absolutely confidential nature and may not be examined, inquired or looked into by any person, government official, bureau or office.

Question 8

Exceptions of the Act in accordance with Section II of the Act

Answer 8

1. upon written permission of the depositor;
2. in cases of impeachment;
3. upon order of a competent court in cases of bribery or dereliction of duty of public officials;
4. in cases where the money deposited or invested is the subject matter of the litigation

Question 9

Other exceptions of the Act (incidental disclosures and prosecutions)

Answer 9

5. incidental disclosures in garnishment or execution of bank deposits
6. incidental disclosures under the Unclaimed Balances Act
7. prosecution of unexplained wealth under the Anti-Graft and Corrupt Practices Act

Question 10

Exceptions of the Act as to person, government officials, bureau or office

Answer 10

8. PDIC or BSP may inquire into the bank deposits if there is a finding of unsound and unsafe banking practices
9. power of the Ombudsman to examine and have access into bank accounts and records of public officers with pending cases, including his spouse and unmarried children
10. authority of the Commission of Internal Revenue (CIR) to inquire into bank deposits of a decedent for estate tax purposes or in case of tax compromise, or upon request for tax information by a foreign tax authority
11. authority of the Anti-Money Laundering Council (AMLC) for suspicious transactions pursuant to AMLA
12. authority of AMLC upon its initiative or at request of Anti-Terrorism Council (ATC) for funds related to financing of terrorim

Question 11

FCDs are entirely, absolutely confidential except for?

Answer 11

1. Upon written permission of depositor
2. authority of AMLC
3. authority of PDIC or BSP
4. authority of CIR

Question 12

Penalties under the Act in accordance with Section V of the Act

Answer 12

1. imprisonment of not more than five years; or
2. a fine of not more than Php 5,000; or
3. both

Question 13

Stipulated penalties under the Act (Section V) are under the discretion of whom?

Answer 13

Dscretion of the court