THE Securities and Exchange Commission (SEC) on Wednesday, Sept. 24, expressed support for proposals to amend the country’s bank secrecy laws, said to be among the strictest across the globe, as part of the government’s fight against corruption.
“As a corporate and capital market regulator, the SEC welcomes the proposed easing of our bank secrecy laws as a necessary measure to uphold trust and confidence in the Philippine capital market and overall economy,” SEC chairperson Francis Lim said.
He added: “Corruption is a major concern for local and foreign investors alike. It does not only create crippling uncertainties; it translates to real, unnecessary, additional costs of doing business in the country.”
This comes as several bills are currently pending in Congress to lift the bank secrecy law, primarily to promote transparency and tackle corruption in the government.
Bank deposits are protected by Republic Act No. 1405 or the Law on Secrecy of Bank Deposits. The law mandates that all deposits are considered “absolutely confidential” except upon written permission of the depositor through a waiver.
Other cases in which the bank secrecy law is lifted include impeachment proceedings. A court may also order that the law be waived in cases of bribery or dereliction of duty involving public officials, and when the money deposited in a particular account is the subject of litigation.
Earlier this month, former Bulacan 1st district engineer Henry Alcantara, currently being linked to the alleged anomalous flood control projects, declined the request to sign a waiver that would allow access to his bank records.
With the easing of the law, the SEC said authorities could easily gather evidence from bank records and trace funds flowing into or out of entities or individuals involved in noncompliance.
According to the SEC, the bank secrecy law has prevented the agency from validating information on the declared financial position of companies where there have been grounds to believe that there were efforts to conceal misconduct and corporate fraud, among others.
“The ability to access critical financial information, particularly in cases of insider trading, market manipulation, and investment fraud, will significantly enhance the enforcement capabilities of the SEC,” Lim said. (GMA Integrated News)
