By Katherine K. chan, reporter
proposed amendment The country's decades-old bank secrecy The law would be a sensible preemptive Measures against illegal financial activitiesDespite the relationship being limited to the bank officeCRS and Employees.
Rizal Commercial Banking Corp. chief economist Michael L. “The Philippines is one of very few of those countries, so (it) is a welcome development to engage with global best practices and help improve governance standards,” Ricafort explained. businessworld In a Viber message.
In December, the House of Representatives approved on third and final reading a bill introducing amendments to the Philippine Bank Secrecy Law.
Under House Bill (HB) No. 6707, the Bangko Sentral ng Pilipinas (BSP) will be empowered to access bank accounts owned by bank officers and employees involved in financial crimes.
The measure consolidated eight similar House bills under 20th Congress, including HB Nos. 7, 1674, 1786, 1918, 3026, 3196, 4388, and 5152.
If the proposal is signed into law, the BSP would be allowed to examine bank deposits.FOfficers, employees, or any related parties of entities under any BSP-supervised institution.
BSP-supervised institutions are banks, non-bank financial institutions with quasi-banking functions, and other entities engaged in financial activities such as pawnshops, electronic money issuers, money services businesses, and trust corporations.
The bill, which is among the 20 priority measures of the Legislative-Executive Development Advisory Councilth Similarly, Congress also wants to allow BSP to exercise equal powers in investigating closed banks.
When asked whether its scope is being limited to the bankFicers and staff are adequate, Mr. Ricafort said: “Better Align banking standards with other ASEAN (Association of Southeast Asian Nations) or Asian countries and other developed countries, depending on Global Banking Best Practices.
Meanwhile, John Paolo R., a senior research fellow at the Philippine Institute for Development Studies. Rivera said that despite the limitations, the proposal is still a “sensible first step” to combat banking-related financial crimes.FSpecific.
“This is a sensible first step as it targets the areas of highest risk and liability without undermining depositor confidence,” he said. businessworld In a Viber message. “Many financial crimes involve insiders who facilitate or ignore suspicious transactions, so stronger investigations here could meaningfully strengthen enforcement while preserving the principle of bank secrecy for the general public.”
The central bank is pushing for amendments to the Philippines' strict bank secrecy laws to boost oversight of the financial sector by curbing cases of insider abuse, citing cases where bankers themselves borrow from their banks or hide the proceeds of fraudulent activities at their banks, putting depositors at risk.
Mr Rivera said introducing further amendments to require ordinary account holders suspected of being linked to illicit financial activities to waive bank deposit secrecy could potentially undermine public trust.
“Allowing the BSP to access the general public's accounts would be far too sensitive and could raise serious privacy and trust concerns if not narrowly defined,” he said.
“Any broader reach should be strictly risk-based, court-authorized and linked to specific investigations, not blanket powers. Otherwise, it risks capital flight, weakening confidence in banks and damage to the reputation of the financial system,” he said.
Meanwhile, analysts said the easing of bank secrecy laws could boost investor confidence in the Philippines.
Jonathan L. Reyes, Senior Counsel, Tacundong & Co. “Making bank secrecy easier is a game-changer,” Ravelas said via Viber. “It strengthens the BSP’s ability to fight fraud and money laundering, keeps us off the global gray list, and signals that the Philippines is serious about transparency.”
“This increases investor confidence and makes us more attractive to foreign capital – because confidence is the currency that drives investment,” he said.
Mr Rivera said investors appreciate clear rules, strong governance and transparent financial channels, all of which is reflected in the rationale behind the proposed amendments to the Bank Secrecy Law.
“Clear, risk-based access with due process implies lower regulatory and reputational risks, which could ultimately make (the Philippines) a more attractive and trustworthy investment destination,” he said.
In a report for its Article IV consultation with the Philippines released last month, the International Monetary Fund (IMF) said the Philippines should continue to prioritize efforts going forward to combat money laundering and terrorist financing.
“Bank deposit secrecy laws should be amended in line with international good practices to enhance the supervisory powers of BSPs and strengthen AML/CFT (anti-money laundering and combating the financing of terrorism) supervisory effectiveness,” the IMF said.
“It is also important to strengthen the AML/CFT framework to support broader anti-corruption efforts and effectively combat the laundering of the proceeds of corruption,” it added.
In February 2025, the Philippines exited the Financial Action Task Force (FATF)'s “grey list” or enhanced jurisdictions list. Monitoring for money laundering.
The FATF is set to re-evaluate the country in 2027, when it will verify whether the country's anti-money laundering measures are in place. Persisted and still persists.