Bill empowers BSP to examine bank deposits

A bill being finalized by the committee on banks of the House of Representatives empowers the Bangko Sentral ng Pilipinas (BSP) to look into bank deposits and other accounts.

The committee, chaired by Batangas Rep. Nelson Collantes, is set to endorse the bill for plenary consideration.

The measure seeks to amend Republic Act 7653, or The New Central Bank Act. The power of the BSP to examine bank deposits and other accounts was inserted in Section 25 of the law.

A new paragraph added to the section provides that “the Bangko Sentral shall have regulatory authority over, and conduct regular or special examinations of, entities which under this Act or by special laws are subject to its jurisdiction.”

It also provides that among other powers, the “department heads and the examiners of the supervising and/or examining departments are hereby authorized… to inquire into bank deposits and other investment accounts in the course of an examination in order to ascertain compliance with laws and banking regulations.”

The present law does not allow the BSP to examine bank accounts in ascertaining the financial condition of a bank.

Only the Anti-Money Laundering Council is authorized to inquire into bank deposits whenever there is reasonable suspicion that these hold proceeds from illegal activities specified in the anti-money laundering law.

The Senate, as an impeachment court, could also examine the bank accounts of an impeachable official under trial.

The Bankers Association of the Philippines has lodged its opposition to the proposal to allow the BSP to look into bank deposits.