WikiLeaks cables: Philippine bank secrecy laws under fire
by Jojo Malig, ABS-CBNnews.com
February 9, 2012

MANILA, Philippines – The US government had criticized Philippine laws and local court rulings that block investigation and prosecution of suspected corrupt government officials, according to several US embassy cables published by anti-secrecy group WikiLeaks.

Unclassified cable 08MANILA622, dated March 12, 2008 and sent by then Ambassador Kristey Kenney to the US Secretary of State, said anti-corruption efforts in the Philippines were being hampered by local institutions themselves.

“Investigations are hindered by Philippine banking secrecy laws that limit access to certain crucial financial information, and by poor protection for would-be whistleblowers,” said the cable, which was the US Embassy’s 2008 report on the Philippines regarding the International Anticorruption And Good Governance Act.

Republic Act 1405 or the Bank Secrecy Act states that all deposits with Philippine banks are “absolutely confidential” and may not be examined by any person or government official.

However, it cited exemptions such as “upon written permission of the depositor, or in cases of impeachment, or upon order of a competent court in cases of bribery or dereliction of duty of public officials, or in cases where the money deposited or invested is the subject matter of the litigation.”

However, another law, Republic Act 6426 or the Foreign Currency Deposits Act, prohibits all kinds of inquiry into bank accounts involving foreign currencies “except upon the written permission of the depositor.”

“In no instance shall foreign currency deposits be examined, inquired or looked into by any person, government official, bureau or office whether judicial or administrative or legislative, or any other entity whether public or private,” Section 8 of Republic Act 6426 states.

The Supreme Court on Thursday issued an indefinite temporary restraining order on the subpoena issued by the impeachment court on the alleged dollar accounts of Chief Justice Renato Corona in Philippine Savings Bank.

The Supreme Court based its decision on the Foreign Currency Deposit Act, which has not been amended by Congress since it came into law on April 4, 1974, just a year-and-a-half into the Marcos dictatorship.

Read full article @ www.abs-cbnnews.com