The Philippine Chamber of Commerce and Industry (PCCI) yesterday said amending the stringent bank secrecy law will give government stronger monitoring and enforcement tools to fight tax evasion and other financial crimes.
In a statement, the largest business organization in the country, said it supports the immediate passage of the Banking Secrecy Act Amendment.
PCCI said the country’s stringent bank secrecy law has frequently been referenced in international reports spotlighting offshore tax evasion, money laundering, and corruption.
Bank secrecy has continued to be cited as a constitutional and statutory right despite causal evidence between the secrecy laws and illegal activities.
Republic Act (RA) 1405 forbids the disclosure of or inquiry into deposits with any banking institution, unless the depositor gives permission or a competent court orders the examination of bank accounts.
The Bank Secrecy Act needs to be amended to align the country’s banking and financial systems with international best practices and meet global standards of transparency, combat illegal financial transactions and promote the safety and soundness of the financial system, PCCI said.
Greater transparency could bolster the country’s reputation as compliant and well-regulated. A transparent financial banking system cultivates trust and represents a commitment to restricting money laundering, corruption, tax evasion and other fraudulent banking schemes.
But the PCCI said safeguards need to be put in place to avoid abuses and maintain public trust.
Private banks will need to embrace accountability not only in sharing information over bank activities where there are suspicions or evidence of criminal activity, but also in restricting access to banking that potential criminals might have before they are able to place and manage illicit funds in offshore accounts.
PCCI also banks and honest depositors must also be protected from the use of the law for harassment or other illicit motives.
