The Bank Secrecy Law
On 09 September 1955, Republic Act No. 1405, otherwise known as An Act Prohibiting Disclosure of or Inquiry into, Deposits with any Banking Institution (“Bank Secrecy Law”), was approved. This law was enacted to encourage individuals to deposit their money in banks instead of hoarding them.
Why is bank secrecylaw is important?
- In order for the bank-customer to be organized and well-directed.
- To protect depositors (Privacy and Security from Fraud)
- Bank Secrecy Law paves the way for economic development.
- Reduce Corruption
According to Finance Secretary Carlos Dominguez, the BSP is one with the DOF in its position that a general tax amnesty program cannot be implemented without lifting the bank secrecy restrictions in fraud cases.
BSP Governor Benjamin Diokno has informed him that the central bank wants to get involved in efforts to convince the Congress that lifting bank secrecy law is a crucial and indispensable part in the grant of amnesty to erring taxpayers.