BSP says ‘full support’ to bank deposits secrecy bill’s passage

THE Bangko Sentral ng Pilipinas (BSP) issued a statement on Monday, expressing its “full support” for the urgent passage of the Bank Deposits Secrecy bill.

In the statement, the BSP said the bill is expected to ultimately “protect the interest of local depositors.”

“The reforms will benefit depositors as the BSP’S capacity to shield them from losses due to fraud and other unlawful activities will be

strengthened,” BSP Governor Benjamin Diokno said.

Earlier this month, the Office of the President (OP) referred the Bank Deposits Secrecy bill to the Legislative-executive Development Advisory Council for prioritization and inclusion in the Common Legislative Agenda for the Executive and Legislative.

While the bill’s aim is to promote transparency among certain bank deposits, provisions of the bill limit inquiries to specified persons only. It also sets parameters for information sharing and protects against political persecution, harassment or attempts to hamper competition in trade and commerce. Diokno also said in its Monday statement that results of bank inquiries or examinations of the BSP shall not be arbitrarily disclosed.

“Nevertheless, the BSP may share the examination results with the Courts and other regulators only if it is necessary to prevent or prosecute an offense or crime,” he added.

“The proposed reforms will likewise place the country’s deposit secrecy law at par with international standards. In fact, the Philippines is the only remaining country in the world with a bank secrecy law after Lebanon passed legislation lifting the secrecy on bank deposits last December 2020,” he further said.

Overall, Diokno said the bill is expected to strengthen the trust of the Filipino public and the global community in the domestic banking system.

“The BSP is committed to further boost its efforts to coordinate with Congress and various offices of Senators for the immediate passage of the Bank Deposits Secrecy Bill,” the BSP chief said.