Question & AnswerQ&A (Republic Act No. 1405)
The main policy is to encourage people to deposit their money in banking institutions and to discourage private hoarding to utilize funds properly for authorized loans and assist in the country's economic development.
All deposits of whatever nature with banks or banking institutions in the Philippines, including investments in bonds issued by the Government of the Philippines, its political subdivisions, and its instrumentalities, are considered absolutely confidential.
Only persons with written permission from the depositor, government officials in cases of impeachment, competent courts in cases of bribery or dereliction of duty of public officials, or courts where the money deposited is the subject matter of litigation can examine or inquire into deposits.
No, it is unlawful for any official or employee of a banking institution to disclose any information concerning deposits except to those authorized under section 2 of the Act.
Violators upon conviction are subject to imprisonment of not more than five years, a fine of not more than twenty thousand pesos, or both, at the discretion of the court.
The law applies to all banks or banking institutions in the Philippines, so it includes foreign banks operating within the country.
Government officials can only request such information without depositor's consent in cases of impeachment or upon court orders in cases of bribery or dereliction of duty of public officials.
This Act took effect upon its approval on September 9, 1955.
All Acts or parts of Acts, Special Charters, Executive Orders, Rules, and Regulations inconsistent with this Act are repealed.
The law covers all deposits of whatever nature including investments in government bonds made with any banking institution in the Philippines.