Lawmakers belonging to the Makabayan bloc have filed a invoice eradicating absolutely the confidentiality of financial institution deposits in international forex by permitting authorities to open such deposits throughout sure authorized proceedings.
Under House Bill 573, financial institution deposits in international forex will be opened in circumstances impeachment or upon courtroom order in circumstances involving bribery or dereliction of responsibility of public officers the place the financial institution deposit is the subject material of litigation.
HB 573 — filed by House Deputy Minority Leader France Castro, House Assistant Minority Leader Arlene Brosas and Kabataan party-list Representative Raoul Manuel — seeks to amends the Foreign Currency Deposit Act (FCDA), which was enacted into legislation in 1974.
The invoice particularly amends Section 8 of the FCDA by stating that every one international forex deposits approved beneath the legislation, as amended by Presidential Decree No. 1035, in addition to international forex deposits approved beneath Presidential Decree No. 1034, are hereby declared as and thought of a completely confidential in nature and that in no occasion will international forex be examined, inquired or seemed into besides within the following circumstances:
- upon written consent of depositor
- in circumstances of impeachment
- in circumstances of bribery or dereliction of responsibility of public officers
- in circumstances the place the cash deposited or invested is the matter of litigation
“Presidential Decree 1246 conferred an absolute cloak of confidentiality over international forex deposits and exempted them from ‘attachment, garnishment, or another order or technique of any courtroom, legislative physique, authorities company or any administrative physique to higher encourage the influx of international forex deposits Philippine banks that might channel these funds into loans and investments, and thereby contribute to the nation’s growth’,” the authors said in their explanatory note.
“Subsequent growth have rendered out of date the particular protections supplied by legislation to international forex deposits.”
While there may have been a relative scarcity of foreign currency in the domestic banking and financial system in the 1970s, the Makabayan lawmakers argued that this is clearly no longer the case at present, with remittances by overseas Filipino workers reaching over US$ 9.739 billion from January to April 2019 alone, on top of traditional sources of foreign currency.
The authors also said recent history has shown how the absolute and unqualified secrecy of foreign currency deposits, and their exemption from government orders and processes, may be exploited to cloak financial transactions by individuals and entities involved in illegal activities.
“For occasion, authorities officers, together with these conferred with immunity from swimsuit throughout their incumbency and detachable solely via impeachment, could make use of international forex deposits to amass ill-gotten wealth,” they said.
Under the FCDA, the exemption provided for opening bank deposits in foreign currency is limited to upon written consent of the depositor.
“If this invoice is enacted into legislation, international forex deposits will, in these respects, take pleasure in the identical stage of safety as deposits in the nationwide forex. Thus, the approval of this invoice is earnestly sought,” the Makabayan lawmakers mentioned.
The extra three exemptions proposed by Makabayan as amendments to FCDA modification are already supplied beneath the Bank Secrecy legislation overlaying financial institution deposits in native forex. —KBK, GMA Integrated News
