The Philippine Congress is currently deliberating a significant legislative proposal aimed at amending the existing "Bank Secrecy Law" to allow the Central Bank (BSP) to access bank account information, including foreign currency accounts, without court authorization under specific circumstances. This change is intended to enhance the supervision of economic crimes such as money laundering, corruption, and cross-border fraud.
The bill is jointly submitted by House Speaker Martin Romualdez and Tingog party members Andrew Julian Romualdez and Jude Acidre. The core content empowers the BSP to investigate accounts directly in cases of suspicious transactions or suspected illegal fund flows without prior court permission.
Currently, the Philippines' bank secrecy laws are considered among the strictest globally. Even in severe cases of corruption, drug trafficking, and money laundering, law enforcement agencies must go through judicial review processes to access account data. This system has long been regarded as a "regulatory blind spot" by the Financial Action Task Force (FATF), hindering the Philippines' cooperation with international anti-money laundering efforts.
The bill also specifies that investigative powers will extend to various foreign currency accounts, including US dollars and Chinese yuan. If the bill passes, it will not only mark significant progress in enhancing financial transparency in the Philippines but also help expedite its removal from the FATF's "grey list."
Although the proposal is supported by financial regulatory authorities and seen as a crucial tool for strengthening anti-corruption and anti-money laundering mechanisms, it has also raised concerns among the business community and the public about the potential infringement on financial privacy rights. How to balance financial regulation with citizens' privacy rights will be a focal point of attention for all sectors in the future.
