SIX MAJOR Philippine business groups on October 17 gave their support to measures aimed at amending the country’s bank secrecy laws, namely the Republic Act (RA) 1405, the Law on Secrecy of Bank Deposits, and RA 6426, and the Foreign Currency Deposit Act.
The proposed amendments are included in the 44 priority bills proposed by the Legislative-Executive Development Advisory Council (LEDAC) for the 20th Congress, and these include giving the Bangko Sentral ng Pilipinas (BSP) authority to investigate deposit accounts of individuals suspected of being involved in illegal activities.
In a joint statement issued by the Makati Business Club, the Filipina CEO Circle, the Financial Executives Institute of the Philippines, Institute of Corporate Directors, the Justice Reform Initiative, and the Management Association of the Philippines, they said these laws “have acted and continue to act as straitjackets on regulators, preventing them from being efficient in undertaking measures, such as investigating and prosecuting people involved in corruption and money laundering.”
“These legislative initiatives, once enacted, will align the Philippines with international standards on financial transparency and anti-money laundering. By empowering regulators and enforcement agencies with the authority to investigate corruption, tax evasion, and other illicit economic activities, the reforms will help ensure integrity across both public and private financial systems. In doing so, they will also boost the country’s credibility and competitiveness within the global financial community,” it said.
The groups also back the bid to make the Statements of Assets, Liabilities and Net Worth (SALNs) of government officials accessible to the public, “as originally required under RA No. 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees.”
RA 6713, it said, “was designed to create an investigative mechanism that will uphold all government employees and public officials to the highest standards of transparency and accountability.”
“This was supposed to be a critical tool serving as a watchdog to prevent corruption. It sadly hasn’t served those purposes. The reforms for this law will reinforce the constitutional principle that public office is a public trust and that accountability is essential for maintaining citizens’ confidence in their institutions,” it pointed out.
The statement explained that “effectiveness of these laws will not rest solely on the reforms enacted, but also on the enforcement of legal consequences for those who violate, misrepresent, or ignore their provisions.”
“Therefore, good governance is paramount. Good governance fosters a stable environment in which both local and foreign investors can make long-term commitments with confidence. When governance systems are predictable and information is accessible, the risks of corruption and policy uncertainty decrease, lowering the cost of doing business. This attracts sustained capital inflows, promotes fair competition, and contributes to stronger, more resilient economic growth,” it said. (PNA)
