AMENDING REPUBLIC ACT NO. 1405

WHEREAS, under existing legal framework, the Central Bank
has the authority to examine all records of banks in the discharge of its
responsibilities under the Central Bank Charter;

WHEREAS, the prohibition against inquiry into bank deposits
adversely delimits the examining authority of the Central Bank;

WHEREAS, limited examination powers operate against
effective supervision of banks and endangers the safety of deposits which may
affect the public’s faith in the banking system.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution, do hereby
decree and make the following part of the law of the land:

SECTION 1. Section 2 of Republic Act No. 1405 is hereby
amended to read as follows:

“SEC. 2. 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 nature
and may not be examined, inquired or looked into by any person, government
official, bureau or office, except when the examination is made in the course of
a special or general examination of a bank and is specifically authorized by the
Monetary Board alter being satisfied that there is reasonable ground to believe
that a bank fraud or serious irregularity has been or is being committed and
that it is necessary to look into the deposit to establish such traud or
irregularity, or when the examination is made by an independent auditor hired by
the bank to conduct its regular audit provided that the examination is
for audit purposes only and the results thereof shall be for the exclusive use
of the bank, or upon written permission of the depositor, or in cases of
impeachment, or upon order of a competent court in cases of bribery or
dereliction of duty of public officials, or in cases where the money deposited
or invested is the subject matter of the litigation.”

SEC. 2. Section 3 of the same Act is hereby amended to read
as follows:

SEC. 3. It shall be unlawful for any official or employee of
a bank to disclose to any person other than those mentioned in Section Two
hereof, or for an independent auditor hired by a bank to conduct its regular
audit to disclose to any person other than a bank director, official or employee
authorized by the bank, any information concerning said deposits.

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 16th day of January, in the year of Our
Lord, nineteen hundred and eighty-one.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant

Vol. 25, Vital Documents, Presidential Decree 1980-1981