Confidentiality of Bank Deposits Law

Section 1 declares government policy to encourage people to deposit money in banking institutions.
Section 1 declares government policy to discourage private hoarding so deposited funds may be properly utilized by banks in authorized loans.
Section 1 states the utilization of deposits through authorized loans is to assist the economic development of the country.

Section 2 treats all deposits of whatever nature with banks or banking institutions in the Philippines as absolutely confidential.
Section 2 covers investments in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities.
Section 2 prohibits any examination, inquiry, or looking into deposits by any person, government official, or bureau or office.
Section 2 limits the prohibition through specific exceptions set out in the same section.

Section 2 establishes that deposits are absolutely confidential.
Section 2 forbids examination, inquiry, or looking into deposits unless an exception applies.
Section 2 recognizes confidentiality as a rule governing access to information about deposits.

Section 2 allows examination, inquiry, or looking into deposits upon written permission of the depositor.
Section 2 allows examination, inquiry, or looking into deposits in impeachment.
Section 2 allows inquiry or disclosure upon order of a competent court in cases of bribery or dereliction of duty of public officials.
Section 2 allows inquiry or disclosure where the money deposited or invested is the subject matter of the litigation.

Section 3 makes it unlawful for any official or employee of a banking institution to disclose information concerning deposits to any person other than those allowed under Section two.
Section 3 limits permissible disclosure to the categories and conditions recognized in Section 2.

Section 5 provides that any violation subjects the offender, upon conviction, to imprisonment of not more than five years.
Section 5 provides that any violation subjects the offender, upon conviction, to a fine of not more than twenty thousand pesos.
Section 5 authorizes the court to impose imprisonment, or a fine, or both, in the court’s discretion.

Section 4 repeals all Acts or parts of Acts, Special Charters, Executive Orders, Rules and Regulations that are inconsistent with Republic Act No. 1405.