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Banking Assignment # 3
Banking Assignment # 3
3-BANKING LAWS
COMMERCIAL LAW REVIEW
Atty. Myra-Diwata A. Rivera-Caroy
INSTRUCTIONS:
I.
(10%)
Enumerate the exceptions to the rule on absolute confidentiality of bank deposits under
pertinent banking laws, rules and regulations.
The following are the exception to the rule on absolute confidentiality of a bank
deposits: a) upon written consent of the depositor; b) in impeachment cases; c) upon
order of a competent court in cases of bribery or dereliction of duties of a public
officers; d) in cases where the deposited money is the subject of litigation; e) upon
order of Commissioner of Internal Revenue in respect of the deposit of a decent for
the purpose of ascertaining the gross estate of the decedent; f) upon order of the
Commissioner of Internal Revenue in respect with the bank account of a tax payer
who filed a compromise of his tax liability by reason of his financial incapacity to pay
his tax liability; g) in the case of a dormant account or deposit for at least 10 years;
h) in the case of garnishment to satisfy a judgment of the depositor; i) in violation of
the AMLA if there is probable cause that it is related to an unlawful activity; j) in
violation of the Anti-Corruption Act; k) when the PDIC and BSP find unsound or
unsafe banking practices.
II.
(10%)
When is a bank deposit considered the “subject matter of litigation” for purposes of invoking
secrecy of bank deposits laws? Explain.
When the investigation does not involve one of the exceptions to the prohibition
against disclosure of information of bank deposits.
III.
(10%)
Ursula is the incumbent mayor of the Municipality of Kakawatian in the province of Isabela
who was charged with criminal cases for technical malversation and a Violation of the Anti-
Graft and Corrupt Practices Act with the Sandiganbayan for transferring Php 85Million from
the municipality’s Development Fund to fund the construction of a plaza fountain. It turned
out that the fountain was only worth Php 5Million. The Php 80Million was deposited in
Ursula’s saving deposit account with XYZ Banking Corporation under Savings Account No.
1234-7658-78. In the course of the presentation of prosecution evidence, the
Sandiganbayan, upon motion by the prosecutors, then issued a subpoena directing XYZ to
produce the pertinent records and documents pertaining to Savings Account No. 1234-7658-
78. Ursula objected invoking the Secrecy of Bank Deposits Act. Is Ursula correct? Explain.
No, Ursula is not correct. She cannot oppose the issuance of the order. Violation of
the Anti-Graft and Corrupt Act is one of the exception of the Bank Secrecy Law,
hence, the examination of her account may be allowed.
IV.
(10%)
V.
(10%)
Emmanuel is an applicant for judgeship with the Judicial and Bar Council. Along with his
application, Emmanuel submitted a duly accomplished Personnel Date Sheet (PDS) that
contains a statement allowing the inquiry into his background, including bank accounts.
Emmanuel has three accounts with MAYAMAN Banking Corporation: (1) Time Deposit
Account No. 123-7465-987; (2) Current Account No. 145-7584-096; and (3) Saving Account
No. 143-7463-50. Emmanuel also maintains a joint savings account with her business partner
Paulo, also with ABC Banking Corporation under Saving Account NO. 143-8563-08. Is the JBC
authorized to inquire into all the bank accounts mentioned? Explain.
Yes, the JBC is authorized to inquire into all the bank accounts mention by virtue of
Emmanuel’s written consent. The Bank Secrecy Law provides an exception and one is
the written consent of the depositor.
Nothing Follows ☺