House approves amendments to bank secrecy law on third reading

LAWMAKERS approved on third and final reading a measure that would allow the Bangko Sentral ng Pilipinas (BSP) to look into the accounts of individuals involved in illegal financial activities.

During a House session on Monday, 270 members voted in favor of House Bill No. 6707, which seeks to amend the country’s decades-old bank secrecy law and empower the central bank to investigate cases of corruption and illicit financing.

The measure would allow the BSP, with approval from the Monetary Board, to access the bank deposit accounts of a stockholder, owner, director, trustee, officer or employee of a BSP-regulated entity, including any of the conspirators of the person involved.

The central bank is also allowed to probe the foreign currency deposits of all financial institutions in the country as well as their offshore branches, but not in nonstock savings and loan associations that serve only their members.

The proposed measure also seeks to mitigate cases of tax evasion, money laundering, and other financial crimes, while addressing the unintended effects of bank secrecy.

It also aims to harmonize the country’s laws with international standards on financial transparency.

Violators could face imprisonment of two to 10 years, along with fines ranging from P50,000 to P2 million, or both.

The bill was earlier included in President Ferdinand R. Marcos, Jr.’s legislative agenda for the 20th Congress. — Adrian H. Halili