• A person bought some goods from a department store and paid with her BPI personal check. When the check was presented for payment, it was dishonored for having been drawn against insufficient funds. Not knowing who the buyer was, the store proprietor, through his lawyer, wrote a letter to BPI inquiring about the name of the drawer of the check. BPI refused to disclose the name of the drawer. Was BPI’s refusal justified? Nature of Deposits
•All deposits of whatever nature with
banks or banking institutions in the Philippines including investments in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities, are hereby considered as of an absolutely confidential. • Chang Corporation bought numerous treasury bills at DBP. The Economic and Intelligence Bureau of the DoF was investigating Chang for underpayment of taxes. The EIIB thus requested from the DBP a list of the Treasury Bills bought by Chang. Can the request be granted? Punishable Act
• Unauthorized disclosure by an official or employee of a banking institution. Exceptions – Peso Accounts
• upon written permission of the
depositor; • in cases of impeachment; • upon order of a competent court in cases of bribery or dereliction of duty of public officials; Exceptions – Peso Accounts
• prosecution for unexplained
wealth; • authority of the BIR commissioner to inquire into bank accounts; • power of the Ombudsman to examine bank records; Exceptions – Peso Accounts
• garnishment of bank deposits;
• authority of the AMLC to inquire into bank accounts; • reporting of covered or suspicious transactions; Exceptions – Peso Accounts
• unclaimed balances law;
• authority of the BSP/PDIC to inquire into bank accounts; • foreign account tax compliance; Exceptions – Peso Accounts
• in cases where the money
deposited or invested is the subject matter of the litigation. • Anne Investments, Inc. bought T-bills from Sheen Brokers Corporation, a dealer of T- bills. Anne paid P200 million to Sheen but the latter did not deliver the T-bills to Anne. Sheen’s officers and employees deposited the money in various bank accounts. Anne sued Sheen for its failure to deliver the T-bills. During the pendency of the case, Anne applied for an order to examine the bank accounts to which the money was deposited. Should the application for the order be granted? Magsino vs. Mellon Bank •Magsino spouses received USD1,000,000 instead of the USD1,000 which they were actually supposed to receive. In the suit by Mellon Bank against the Magsinos, the action was for recovery of the money by virtue of a constructive trust. Can Mellon Bank inquire into the bank deposits of Spouses Magsino? Exceptions – Foreign Current Account
•depositor’s written permission;
•authority of the AMLC to inquire into bank deposits; •reporting of covered or suspicious transactions; Exceptions – Foreign Current Account
•authority of the BSP/PDIC to
examine bank accounts; •authority of the BIR commissioner to inquire into bank deposits; •foreign tax account compliance. Unclaimed balances (PD 679) • Shall include credits or deposits of money, bullion, security or other evidence of indebtedness of any kind, and interest thereon with banks, buildings and loan associations, and trust corporations, as hereinafter defined, in favor of any person known to be dead or who has not made further deposits or withdrawals during the preceding ten years or more. Unclaimed balances (PD 679) • Such unclaimed balances, together with the increase and proceeds thereof, shall be deposited with the Treasurer of the Philippines to the credit of the Government of the Republic of the Philippines to be used as the Congress may direct. Thank You!