REPUBLIC ACT No. 1405
AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY BANKING INSTITUTION AND PROVIDING PENALTY THEREFOR.
Section 1. It is hereby declared to be the policy of the Government 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.
Section 2. 1 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, except upon written permission of the depositor, or in cases of impeachment, or upon order of a competent court in cases of bribery or dereliction of duty of public officials, or in cases where the money deposited or...
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Republic Acts
LAW ON SECRECY OF BANK DEPOSITS
Republic Act No. 1405
Summary of Republic Act No. 1405
Confidentiality of Bank Deposits
- It is the policy of the government to encourage people to deposit money in banks and discourage private hoarding, so that banks can utilize the deposits for authorized loans to assist economic development. (Section 1)
- All deposits of any nature with banks or banking institutions in the Philippines, including investments in government bonds, are considered absolutely confidential. (Section 2)
- These deposits cannot be examined, inquired into, or looked into by any person, government official, bureau, or office, except: (Section 2)
- 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
- When the deposited or invested money is the subject matter of litigation
Prohibition on Disclosure by Bank Officials
- It is unlawful for any official or employee of a banking institution to disclose information concerning deposits to any person other than those mentioned in Section 2. (Section 3)
Penalties
- Any violation of this law will subject the offender, upon conviction, to imprisonment of not more than five years or a fine of not more than twenty thousand pesos, or both, at the discretion of the court. (Section 5)
Repealing Clause and Effectivity
- All laws, special charters, executive orders, rules, and regulations inconsistent with this Act are repealed. (Section 4)
- This Act took effect upon its approval on September 9, 1955. (Section 6)
Confidentiality of Bank Deposits
- It is the policy of the government to encourage people to deposit money in banks and discourage private hoarding, so that banks can utilize the deposits for authorized loans to assist economic development. (Section 1)
- All deposits of any nature with banks or banking institutions in the Philippines, including investments in government bonds, are considered absolutely confidential. (Section 2)
- These deposits cannot be examined, inquired into, or looked into by any person, government official, bureau, or office, except: (Section 2)
- 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
- When the deposited or invested money is the subject matter of litigation
Prohibition on Disclosure by Bank Officials
- It is unlawful for any official or employee of a banking institution to disclose information concerning deposits to any person other than those mentioned in Section 2. (Section 3)
Penalties
- Any violation of this law will subject the offender, upon conviction, to imprisonment of not more than five years or a fine of not more than twenty thousand pesos, or both, at the discretion of the court. (Section 5)
Repealing Clause and Effectivity
- All laws, special charters, executive orders, rules, and regulations inconsistent with this Act are repealed. (Section 4)
- This Act took effect upon its approval on September 9, 1955. (Section 6)