The business sector has demanded that the government display its commitment to transparency through reforms in the tough law withholding information on bank accounts and similar restrictions on foreign currency deposits.

Six prominent business organizations have voiced support for the government’s push to amend the country’s decades-old bank secrecy laws, citing the need to enhance transparency, strengthen financial governance, and restore investor confidence.

In a joint statement on 17 October, the Makati Business Club, Financial Executives Institute of the Philippines, Filipina CEO Circle, Institute of Corporate Directors, Justice Reform Initiative, and the Management Association of the Philippines urged lawmakers to update Republic Act 1405, the Law on Secrecy of Bank Deposits, and RA 6426, the Foreign Currency Deposit Act.

“These two laws, individually and collectively, by their stringent and rigid nature, have acted and continue to act as straitjackets on regulators, preventing them from being efficient in undertaking measures, such as investigating and prosecuting people involved in corruption and money laundering,” the statement said.

“When governance systems are predictable and information is accessible, the risks of corruption and policy uncertainty decrease, lowering the cost of doing business. This attracts sustained capital inflows, promotes fair competition, and contributes to stronger, more resilient economic growth,” the groups said.

Groups back opening SALN

The business groups also backed the reinstatement of public access to the Statements of Assets, Liabilities, and Net Worth (SALNs) of government officials, as mandated under RA 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees.

The move was announced by Ombudsman Jesus Crispin Remulla last week, lifting the restrictions imposed by his predecessor, Samuel Martires.

“The reforms for this law will reinforce the constitutional principle that public office is a public trust and that accountability is essential for maintaining citizens’ confidence in their institutions,” the statement added.

Enacted in 1955, RA 1405 was designed to promote savings and strengthen public confidence in banks by guaranteeing the confidentiality of peso deposits. In 1974, RA 6426 extended similar protections to foreign currency accounts to attract investments. While effective at the time, these laws have faced mounting criticism for being used to conceal corruption, tax evasion, and money laundering—particularly by public officials.

The International Monetary Fund (IMF), in its 2024 Article IV Consultation Report, again urged the Philippines to amend these statutes, stating that “reforming the bank secrecy law will strengthen AML/CFT effectiveness and enhance the BSP’s supervisory powers.”

The IMF also warned that excessive secrecy “presents a material hindrance to effective supervision,” a concern echoed by both the Bangko Sentral ng Pilipinas (BSP) and the Anti-Money Laundering Council (AMLC).

The coalition emphasized that implementing these reforms and strictly enforcing penalties for violators would boost investor trust.

The six organizations reaffirmed their commitment to working with lawmakers and the Filipino business community to promote transparency, ensure accountability, and create a more trustworthy financial environment.