Gordon introduces amendment to Bank Secrecy Law

As a result of the Senate blue ribbon committee's investigation into the alleged P728-million fertilizer fund scam, Independent Senator Richard J. Gordon is set to file a bill amending Republic Act 1405, or the Secrecy of Bank Deposits Act.

Gordon, committee chairman, said there is a need for the law to be amended so that its threshold level may be lowered in cases where it involves current and former government officials who are facing graft and corruption charges.

"Public officials and employees are accountable to the people all the times. It is but proper that they waive their right to confidentiality of their bank deposits once probable cause is found that they have violated the Anti-Graft and Corrupt Practices Act or they have been involved in money laundering," he said.

Gordon specifically wants to amend Section 2 of RA 1405 which states that:

"All deposits of whatever nature with banks or banking institutions in the Philippines including investments in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities, are hereby considered as of an absolutely confidential nature and may not be examined, inquired or looked into by any person, government official, bureau or office, except upon written permission of the depositor, or in cases of impeachment, or upon order of a competent court in cases of bribery or dereliction of duty of public officials, or in cases where the money deposited or invested is the subject matter of the litigation."

During the Senate's investigation into the alleged P728-million fertilizer fund scam, Section 2 of RA 1405 had been used to ward off moves to inquire into the questionable bank records of former government officials whose accounts had been frozen under the Anti-Money Laundering Act.

"Even after freezing a government official's bank accounts because of money laundering charges, the law restrains us - the people - from finding out anything about it. Section 2 raises too much suspicion about what is being hidden and raises the question of whether records are being sanitized behind closed doors," said Gordon.

The bill proposing amendments to Section 2 of RA 1405 will open to inquiry questionable bank deposits of all government officials and employees charged with graft and corruption or money laundering.

The bill also seeks to revise the bank secrecy law to declare that government officials and employees are "deemed to have given their permission to inquiry, examination or inspection to all their accounts that are subject matter of the litigation."

Gordon also pointed out that purveyors of graft and corruption behave like cockroaches as they prefer to do their dirty deeds in the dark.

"To rid the government of graft and corruption, we have to get rid of these convenient hiding places. You cannot steal money without leaving a trace and where the trail points to bank deposits, the doors must be open," he said.