Title
Confidentiality of Bank Deposits Law
Law
Republic Act No. 1405
Decision Date
Sep 9, 1955
Republic Act No. 1405 prohibits the disclosure or inquiry into deposits made with any banking institution in the Philippines, with the aim of encouraging people to deposit their money in banks and discouraging private hoarding, and violation of this law can result in imprisonment or a fine.

Law Summary

Confidentiality of Bank Deposits

  • All deposits with banks or banking institutions in the Philippines are absolutely confidential.
  • This confidentiality extends to investments in government bonds issued by the Philippine government, its subdivisions, and instrumentalities.
  • No person, government official, bureau, or office can examine or inquire into deposits except under specific conditions:
    • With written permission from the depositor.
    • In impeachment cases.
    • Upon competent court order for cases involving bribery or dereliction of duty by public officials.
    • When the deposits or investments are subject matter in litigation.

Prohibition of Disclosure by Banking Officials

  • Banking officials and employees are prohibited from disclosing deposit information.
  • Disclosure is only permitted to persons or entities authorized in Section 2.
  • Unauthorized disclosure by banking personnel is unlawful.

Repeal of Inconsistent Laws

  • All prior laws, special charters, executive orders, rules, and regulations inconsistent with this Act are repealed.

Penalties for Violation

  • Violators are subject upon conviction to:
    • Imprisonment up to five years, or
    • A fine up to twenty thousand pesos, or
    • Both penalties as decided by the court.

Effectivity of the Act

  • The Act takes effect immediately upon its approval.

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