QuestionsQuestions (Republic Act No. 1405)
To encourage people to deposit money in banking institutions and discourage private hoarding so that deposits may be properly utilized by banks in authorized loans for the economic development of the country.
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.
They are considered of an “absolutely confidential nature.”
Any person, government official, bureau, or office—unless an exception under Section 2 applies.
When there is (1) written permission of the depositor, (2) impeachment, (3) an order of a competent court in cases of bribery or dereliction of duty of public officials, or (4) cases where the money deposited or invested is the subject matter of the litigation.
It must be upon written permission of the depositor.
No. Without satisfying an exception in Section 2 (e.g., written depositor permission, impeachment, specific court order for bribery/dereliction, or when the money is the subject matter of litigation), examination/inquiry is prohibited.
Under a court order in cases of bribery or dereliction of duty of public officials.
Section 4 provides that all acts or parts of acts, special charters, executive orders, rules and regulations inconsistent with RA 1405 are repealed.
It is unlawful for any official or employee of a banking institution to disclose to any person other than those mentioned in Section 2 any information concerning said deposits.
No. Disclosure is prohibited to persons other than those mentioned in Section 2, absent the stated exceptions.
Upon conviction: imprisonment of not more than five years, or a fine of not more than ₱20,000, or both, at the discretion of the court.
Upon approval (i.e., it takes effect on September 9, 1955).
No. Section 2 allows examination/inquiry in cases where the money deposited or invested is the subject matter of the litigation.
It addresses any inquiry/examination by any person or office, but its exceptions include impeachment and court orders in bribery/dereliction cases, as well as litigation where the money is the subject matter.