Bill seeks to amend Philippine's bank secrecy law
A Philippine senator seeks to amend the country’s decades-old Bank Secrecy Law, granting the Bangko Sentral ng Pilipinas (BSP) expansive authority to examine suspicious bank accounts linked to bribery, fraud, money laundering, and other serious financial crimes.
Senate Bill No. 1047, sponsored by Senator Jinggoy Estrada, intends to enhance transparency in financial transactions and prevent the law from being exploited to conceal illicit wealth or facilitate tax evasion. Under the proposed amendment, the BSP’s Monetary Board would be empowered to access full disclosures on bank deposits flagged for irregularities or unlawful activities, whether they are ongoing or already committed.
Estrada emphasised that the measure is part of the government’s broader anti-corruption drive. “Bank secrecy should not be used as an excuse to commit wrongdoing. If the BSP has a clear reason to suspect corruption or illegal activities, it should have the ability to inspect accounts according to the law,” said Estrada in Filipino in a statement on Tuesday. The senator added that the amendment would strengthen institutions, hold wrongdoers accountable, and help restore public trust in the financial system.
Safeguards against abuse
To prevent misuse, the bill includes several safeguards. First, bank deposits cannot be examined during election periods if such action could harm candidates. Next, depository transactions made before the law’s effectiveness will remain protected. Lastly, results of any examination may only be disclosed under strict conditions for criminal prosecution.
“These safeguards ensure the law will not be weaponized for political harassment while preventing bank secrecy from being used as a shield for corruption,” Estrada said.
The proposed changes would cover both peso and foreign currency deposits, striking a balance between protecting individual privacy and strengthening the government’s ability to monitor and prosecute financial misconduct. Ordinary depositors will still enjoy strong privacy protections, but with the approved amendment, only those suspected of illegal financial crimes will be subject to BSP.
Historical context
The Secrecy of Bank Deposits Law, enacted on 9 September 1955, has long been a cornerstone of banking and taxation in the Philippines, promoting financial stability and depositor confidence. Republic Act No. 6426, or the Foreign Currency Deposit Act, further reinforces the confidentiality of deposits.
Efforts to reform the country’s bank secrecy law are nothing new. On 15 December 2025, the lower chamber of the House of Representatives unanimously approved on third and final reading House Bill 6707, which seeks to combat tax evasion, money laundering, and other financial crimes.
Earlier, in September 2025, BSP general counsel Roberto Figuero said that the Philippines remains the only jurisdiction where deposit secrecy laws limit prudential supervision. “The BSP recommends the easing of deposit secrecy within the confines of BSP supervision and its investigation of closed banks,” he said.
Global perspective
By contrast, jurisdictions such as Singapore enforces robust anti-money laundering (AML) frameworks. The Corruption, Drug Trafficking and Other Serious Crimes Act (CDSA) criminalizes money laundering and imposes strict compliance obligations on businesses to prevent illicit financial activities. The Monetary Authority of Singapore (MAS) is the main regulator and ensures financial institutions adhere to AML standards and regulatory requirements.
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