Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1792)
Presidential Decree No. 1792 amends Republic Act No. 1405, specifically sections 2 and 3.
All deposits of whatever nature with banks or banking institutions in the Philippines, including certain government bonds, are considered absolutely confidential and may not be examined or looked into by any person or government official, subject to specific exceptions.
Bank deposits may be examined during a general or special bank examination authorized by the Monetary Board when there is reasonable ground to suspect bank fraud or serious irregularity; by an independent auditor hired by the bank for regular audit purposes; with written permission of the depositor; in cases of impeachment; upon order of a competent court in bribery or dereliction of duty cases; or when the deposits are the subject of litigation.
The Monetary Board must be satisfied that there is reasonable ground to believe that a bank fraud or serious irregularity has been or is being committed, and that examining the deposit is necessary to establish such fraud or irregularity.
No. Independent auditors hired by a bank to conduct regular audits may only disclose information to bank directors, officials, or employees authorized by the bank, and the audit results shall be for the exclusive use of the bank.
It is unlawful for any bank official or employee, or independent auditor hired by the bank, to disclose any information about bank deposits to unauthorized persons.
A competent court may order examination of bank deposits in cases of bribery or dereliction of duty of public officials, or when the money deposited or invested is the subject matter of litigation.
Yes, it includes investments in bonds issued by the Government of the Philippines, its political subdivisions, and instrumentalities within the deposits considered absolutely confidential.
This decree took effect immediately upon its issuance on January 16, 1981.
It adversely limits the examining authority of the Central Bank, leading to limited examination powers which operate against effective bank supervision and endanger the safety of deposits, affecting public faith in the banking system.