Senator Jinggoy Ejercito Estrada has filed a measure seeking to relax some restrictions under the Bank Secrecy Law to allow the Bangko Sentral ng Pilipinas (BSP) to examine bank deposits that could be linked to fraudulent activities. 

In filing Senate Bill No. 1047, Estrada primarily sought to amend Republic Act No. 1405, or the Secrecy of Bank Deposits Law, and allow the BSP to look into suspicious bank accounts linked to bribery, fraud, money laundering, or other serious financial crimes.

“Bank secrecy should not be used to commit atrocities. If the BSP has clear grounds to suspect corruption or illegal activities, it should have the ability to inspect accounts according to the law,” Estrada said.

Under SB No. 1047, the BSP may examine bank deposits when there is a reasonable basis to believe that fraud, serious irregularities, or unlawful activities have been or are being committed. 

The BSP’s Monetary Board will be tasked to conduct the inquiry strictly for official purposes only.

The bill provides stringent mechanisms to prevent abuse. For instance, under the bill, bank deposits cannot be examined during an election period if it would prejudice any candidate.

Also, under the bill, funds deposited before the law takes effect will remain protected; and the results of any examination cannot be disclosed freely and may only be used under strict conditions for criminal prosecution.

“These safeguards ensure that the law will not be weaponized for political harassment, while preventing bank secrecy from being used as a shield for corruption,” Estrada explained.

The senator said the proposed amendments will apply to both peso and foreign currency deposits, striking a balance between protecting individual privacy and strengthening the government’s capacity to detect and prosecute financial misconduct.

“By amending this law, we empower our institutions to go after dirty money, hold wrongdoers accountable, and restore public trust in government,” Estrada said.