CHINABANK

v. CA, GOTIANUY WON Chinabank account of Mary may be inquired into — YES
GR NO. 140687 | Dec. 18, 2006 | Chico-Nazaro, J.
Banking Law • PD 1246 provides that
o SEC. 8. Secrecy of Foreign Currency Deposits. All foreign
DOCTRINE: All foreign currency deposits under RA 9426 and foreign currency deposits authorized under this Act, as amended by
currency deposits under PD 1034 are confidenOal in nature and PresidenOal Decree No. 1035, as well as foreign currency
cannot be inquired into. Except, upon wriTen permission of the deposits authorized under PresidenOal Decree No. 1034, are
depositor – especially when the source of the funds, was also a payee, hereby declared as and considered of an absolutely
has consented thereto. confidenOal nature and, except upon the wriTen permission
of the depositor, in no instance shall such foreign currency
deposits be examined, inquired or looked into by any
ER: Jose alleges that his US dollar account was stolen by Mary. The
person, government official, bureau or office whether
dollar account funds were payable to both Jose and Mary. Jose’s
judicial or administraOve or legislaOve or any other enOty
subsOtute Elizabeth moved for subpoena of Chinabank employees to
whether public or private: Provided, however, that said
tesOfy on the account of Mary. The SC held that the employees may
foreign currency deposits shall be exempt from aTachment,
tesOfy without violaOng PD 1246 because Jose, as payee has
garnishment, or any other order or process of any court,
consented to the inquiry as to the funds.
legislaOve body, government agency or any administraOve
body whatsoever.
1. Jose GoOanuy accused Mary Dee, his daughter, of stealing his US
dollar deposits amounOng to P35M and $864K – the amounts
• All foreign currency deposits under RA 9426 and foreign currency
were deposited in Mary’s Chinabank account through several
deposits under PD 1034 are confidenOal in nature and cannot be
checks
inquired into
a. He also accused George Dee, husband of Mary Dee of
o Except:
transferring his real properOes and shares of stock in George
Dee’s name ▪ upon wriTen permission of the depositor.
▪ in Salvacion vs. Central Bank of the Philippines –
inquiry into the foreign currency deposits was allowed
2. Jose died. So his daughter Elizabeth Lo subsOtuted him
because the American depositor was charged with
a. Elizabeth moved to subpoena Labios and Yap – Chinabank illegal detenOon and rape against a 12-year old. In the
employees to tesOfy on the case and on the checks civil case, the dollar account of the American was
deposited allowed to be garnished because “the law depends on
b. Chinabank moved for reconsideraOon. TC ordered Labios the extent of its jusOce … the law cannot be used by
and Yap to tesOfy the accused for wrongdoing
c. CA affirmed TC’s order o The law intends to draw and encourage deposits from
foreign lenders and investors

• The accounts may be inquired into.

o Because bothJose and Mary Dee are co-payees of the
checks. Mary even admiTed that the checks were sent to
her by Jose GoOanuy, and the checks belonged to Jose;
o There was no issue as to the source of the funds
o As the owner of the funds unlawfully taken and which are
undisputably now deposited with China Bank, Jose GoOanuy
has the right to inquire into the said deposits.

• An inquiry is jusOfied because the funds of Jose was illegally

taken from him
o China Bank employee Cristuta Labios tesOfied that Mary
Margaret Dee came to China Bank and deposited the money
of Jose GoOanuy in CiObank US dollar checks to the dollar
account of her sister Adrienne Chu
o This forOfies the conclusion that an inquiry is necessary.

PETITION DENIED.