Corruption, like STD, can be hidden for a while but eventually, everyone will know. Having said that, what is more interesting is that there is a cure.
In 1955, Republic Act No. 1405, or the bank secrecy law, was enacted to encourage people to deposit their money in banking institutions and to discourage private hoarding so that moneys may be properly utilized by banks in authorized loans to assist in the economic development of the country.
Over the course of the next 68 years to 2023, circumstances evolved. Banks are utilized by the unscrupulous, whose right to secrecy becomes their shield against the long arm of the law. Everything is secret except any of two conditions—when the depositor waives the right or when a court so orders.
Who in his right mind would waive? And who in his right mind would expose the “secret” against a looming court order? Herein lie failures to prosecute corruption, bribery, extortion, laundering, and more in public and private institutions and in the criminal world.
Finance and business organizations have been bent on getting bank secrecy eased by another knot for tax purposes and predicate crimes and to allow the Philippines to comply with its international obligations. BSP Governor Amando Tentangco once Jr. said: “The Philippines is one of only three remaining countries in the world with such ultra secrecy.” The other two are Lebanon and North Korea.
The only way forward is to amend RA 1405—by introducing a third exception in cases where the inquiry or examination is made by the Bangko Sentral ng Pilipinas (BSP), provided that, there is reasonable ground to believe that fraud, serious irregularity, or unlawful activity has been or is being committed by persons and that it is necessary to look into the deposit to establish such fraud, irregularity, or unlawful activity. The results of the inquiry or examination shall be for BSP’s exclusive use and shall not be made available except as applicable to the Securities and Exchange Commission, Philippine Deposit Insurance Corp., Anti-Money Laundering Council, Department of Finance, Department of Justice, and/or the courts, provided, that the sharing of the results or examination of the inquiry or examination is necessary to prevent or prosecute any offense or crime.
The committee on banks and financial intermediaries in the House of Representatives (18th Congress) had already recommended in March 2021 the foregoing amendments, contained in House Bill No. 8991 entitled, “An Act promoting transparent governance and instituting anti-corruption mechanisms in the operation of banks, amending for the purpose Republic Act No. 1405.”
This bill is the one being supported by the BSP with the intention to refile it in the 19th Congress. It considers the various deliberations during the hearings in which various concerned stakeholders participated and provided comments, including the Bankers Association of the Philippines, Chamber of Thrift Banks, Rural Bankers Association of the Philippines, Cooperative Banks Federation of the Philippines, Alliance of Non-Stock Savings and Loan Associations, and Al-Amanah Islamic Investment Bank of the Philippines.
In support, Kapatiran Party is filing in both Houses of Congress a slightly edited version of HB 8991 through indirect initiative. Indirect initiative in RA 6735 is “the exercise of initiative by the people through a proposition sent to Congress or the local legislative body for action.” “The procedure to be followed on the initiative bill shall be the same as the enactment of any legislative measure before the House of Representatives except that the said initiative bill shall have precedence over the pending legislative measures on the committee.” To give precedence means to give priority or more importance. This people’s right ingrained in the law is substantial.
“Hindi pwedeng tahimik. About time to raise more awareness on corruption,” Mayor Benjamin Magalong said. Magalong’s speech went abuzz in the media and generated resounding support including from 600-plus retired military officers.
What’s next? Let’s keep on building awareness and bring the battle (again) to Congress.
Norman V. Cabrera,
nv_cabrera2003@yahoo.com