Title
PDIC Rules on Insured Deposits Upon Bank Closure
Law
Pdic Regulatory Issuance No. 2002-03, May 2, 2002
Decision Date
May 2, 2002
The Deposit Insurance Guidelines on Determination of Beneficial Ownership of Deposits Including Transfers/Break Up of Deposit provides guidelines for determining the beneficial ownership of deposit accounts in the Philippines, with the Philippine Deposit Insurance Corporation considering the accountees/names shown in the deposit account records as the actual owners, unless certain circumstances apply.
A

Q&A (PDIC REGULATORY ISSUANCE NO. 2002-03, MAY 2, 2002)

PDIC deems deposits as owned by the accountees/names shown in the deposit account records of the bank, except in cases of transfer or breakup where qualified relatives or documented transfers are involved.

A qualified relative is a relative within the third degree of consanguinity or affinity of the transferor.

The deposit account records must disclose certified details establishing the validity of the transfer or relationship, such as a Board Resolution, order of a competent government body, contract, or similar documents as required by law.

Certified details establishing the right and capacity, relationship with the individual(s), and validity of deposit transfers must appear in the deposit account records, supported by documents like Board Resolutions or official orders.

The outstanding deposit is deemed maintained for the benefit of the transferor, even if in the name of the transferee, and is subject to consolidation with other deposits of the transferor.

PDIC may require additional documents from the depositor to verify details of the deposit transfer or the depositor's relationship with the transferor or their right and capacity over the deposit.

Banks must print the PDIC rules in deposit instruments, issue internal circulars for staff compliance, inform depositors by letter, and maintain complete and accurate records of every deposit transaction.

Banks, their directors, officers, and employees may be penalized under Sections 16(f) and (g) of Republic Act 3591, as amended.

It took effect fifteen (15) days after its publication in the Official Gazette or any newspaper of general circulation.


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