House approves bank secrecy amendments on third reading
THE HOUSE of Representatives on Monday approved on third and final reading a bill seeking to ease deposit secrecy rules and a measure regulating the use of financial accounts.
During its Monday plenary session, 257 congressmen approved House Bill No. 7446, which seeks to ease deposit secrecy rules to give the Bangko Sentral ng Pilipinas (BSP) the power to investigate deposit accounts of bank officials and employees for fraud.
The bill, which seeks to amend Republic Act (RA) No. 1495 or the Bank Secrecy Law, had zero “no” votes and abstentions.
The measure proposes to exempt from the Bank Secrecy Law the BSP’s inquiry or examination of deposits in relation to possible fraud, serious irregularity, or unlawful activity being committed by bank officials.
The BSP said in an e-mail last month that the Philippines needs to amend its “unusually stringent” deposit secrecy law.
It cited studies conducted by the International Monetary Fund and the World Bank that “show significant weaknesses in the legislative and regulatory framework of the Philippines, arising notably from the existing bank deposits secrecy laws, which present a material hindrance to effective supervision by the Bangko Sentral ng Pilipinas.”
Meanwhile, 256 lawmakers approved House Bill 7393 or the Anti-Financial Account Scamming Act, while there were zero “no” votes and abstentions.
The bill prohibits the use of bank accounts and e-wallets for suspicious activities, with those found guilty set to pay fines or face imprisonment.
Money mule schemes involve opening, buying, renting, selling, or lending a financial or e-wallet account to receive, transfer or withdraw proceeds from criminal activity.
Meanwhile, social engineering schemes involve a person falsely presenting him or herself as a representative of a financial institution to gain the trust of others and take over their accounts or electronic communication to ask an account owner for their information.
Lastly, acts of economic sabotage involve offenses committed by syndicates in large scale or using a mass mailer.
Under the bill, the central bank will have the authority to examine and investigate financial accounts or e-wallets suspected to be involved in these prohibited acts.
According to the BSP, HB 7393 and 7446 “will also strengthen consumer protection and further inspire trust and confidence in the financial system, as scammers and fraudsters will be held to account more easily for victimizing an already pandemic-weary public.” — Beatriz Marie D. Cruz
