Six of the country’s top business groups called on lawmakers to amend the Philippines’ bank secrecy laws as a measure to improve the country’s standing in the global financial community amid the damage caused by corruption issues.

In a statement on Friday, Oct. 17, the groups pushed for amendments in the Law on Secrecy of Bank Deposits and the Foreign Currency Deposit Act.

Signatories to the statement include the Makati Business Club (MBC), Management Association of the Philippines (MAP), Financial Executives Institute of the Philippines (FINEX), Justice Reform Initiative (JRI), Filipina CEO Circle (FCC), and Institute of Corporate Directors (ICD).

The groups described the two laws as “straitjackets” on regulators, as they prevent them from investigating and prosecuting people involved in corruption and money laundering.

“These laws’ rigidity, as asserted by the International Monetary Fund (IMF), has then placed severe restrictions on our country's financial and economic stability,” they said.

In a 2020 report on the Philippines’ financial sector, the IMF said the bank secrecy laws restrict the ability of the Bangko Sentral of Pilipinas (BSP) to conduct supervision of banks.

Warning of reputational risks, the IMF also recommended amendments to grant the BSP direct and full access to individual depositor information covered by bank secrecy laws.

Calls to amend bank secrecy laws have reverberated in recent weeks following the corruption scandal involving public works, particularly flood control.

Several bills have been filed in Congress to allow the BSP to examine bank deposits, including foreign currency accounts, on the condition that there is a reasonable suspicion of fraud or unlawful activity.

The business groups said this reform, once enacted, will finally align the Philippines with international standards on financial transparency and anti–money laundering.

“By empowering regulators and enforcement agencies with the authority to investigate corruption, tax evasion, and other illicit economic activities, the reforms will help ensure integrity across both public and private financial systems,” the statement read.

They said this will ultimately boost the country’s credibility and competitiveness within the global financial community.

The business groups also welcomed the decision of Ombudsman Jesus Crispin Remulla to restore public access to the Statements of Assets, Liabilities, and Net Worth (SALNs) of government officials.

Republic Act (RA) No. 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees, authorizes the public to access an official’s SALN.

The law was designed to create an investigative mechanism that will hold public officials to the highest standards of transparency and accountability.

“This was supposed to be a critical tool serving as a watchdog to prevent corruption. It sadly hasn’t served those purposes,” the groups said.

Remulla’s order overturns the memorandum circular of his predecessor Samuel Martires, who was appointed Ombudsman by former president Rodrigo Duterte, that limited access to SALNs.

In a 2020 order, Martires stipulated that no SALN shall be furnished to any requester unless they present a notarized letter of authority from the official concerned allowing the release of the document.

In amending the policy, Remulla noted that transparency is a “safeguard against corruption and a deterrent to abuse of power.”

With these measures on hand, the six business groups stated that their effectiveness will rely on the enforcement of legal consequences for those who “violate, misrepresent, or ignore their provisions.”

In this regard, they stressed that “good governance is paramount.”

“Good governance fosters a stable environment in which both local and foreign investors can make long-term commitments with confidence,” the statement read.

“When governance systems are predictable and information is accessible, the risks of corruption and policy uncertainty decrease, lowering the cost of doing business,” it added.

The groups added that a stable economic environment would attract sustained capital inflows and promote fair competition, which they said would lead to a stronger and more resilient economic growth.

“We remain dedicated to collaborating with policymakers, regulators, and the business community to promote reforms that create a fair, transparent, and trustworthy economic environment; one that strengthens institutions, maintains integrity, and positions the Philippines as an attractive and reliable investment destination,” they said.