(REPEALED
BY REPUBLIC ACT NO. 7653)
WHEREAS, under existing legal framework, the Central Bank has the
authority to examine all records of banks in the discharge of its
responsibilities under the Central Bank Charter;chanroblesvirtualawlibrary
WHEREAS, the prohibition against inquiry into bank deposits adversely
delimits the examining authority of the Central Bank;chanroblesvirtualawlibrary
WHEREAS, limited examination powers operate against effective
supervision of banks and endangers the safety of deposits which may
affect the public's faith in the banking system.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
decree and make the following part of the law of the land;chanroblesvirtualawlibrary
Section 1. Section 2 of Republic Act No. 1405 is
hereby amended to read as follows:cralaw:red
"Sec. 2. 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, are hereby considered as of an
absolutely confidential nature and may not be examined, inquired or
looked into by any person, government official, bureau or office,
except when the examination is made in the course of a special or
general examination of a bank and is specifically authorized by the
Monetary Board after being satisfied that there is reasonable ground to
believe that a bank fraud or serious irregularity has been or is being
committed and that it is necessary to look into the deposit to
establish such fraud or irregularity, or when the examination is made
by an independent auditor hired by the bank to conduct its regular
audit provided that the examination is for audit purposes only and the
results thereof shall be for the exclusive use of the bank, or upon
written permission of the depositor, or in cases of impeachment, or
upon order of a competent court in cases of bribery or dereliction of
duty of public officials, or in cases where the money deposited or
invested is the subject matter of the litigation. chanroblesvirtualawlibrary
Section 2. Section 3 of the same Act is hereby
amended to read as follows:cralaw:red
"Sec. 3. It shall be unlawful for any official or
employee of a bank to disclose to any person other than those mentioned
in Section Two hereof, or for an independent auditor hired by a bank to
conduct its regular audit to disclose to any person other than a bank
director, official or employee authorized by the bank, any information
concerning said deposits. chanroblesvirtualawlibrary
Section 3. This Decree shall take effect immediately.
Done in the City of Manila,
this 16th day of January, in the year of Our Lord, nineteen hundred and
eighty-one.
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