By Kaela Patricia B. Gabriel
AMENDING the Philippines’ decades-old Bank Secrecy law could strengthen investor confidence by improving transparency, helping recover unpaid taxes and unexplained wealth, and reinforcing the country’s financial integrity, analysts said.
“Bank secrecy should protect legitimate privacy, not shield unexplained wealth, tax evasion or corruption,” Raymond “Mon” A. Abrea, chairman and chief executive officer of Asian Consulting Group, said in a Viber message.
The comments come as the Legislative-Executive Development Advisory Council includes among its priority measures the Banking Reform for Integrity, Good Governance, Honesty, and Transparency (BRIGHT) Act, which President Ferdinand R. Marcos, Jr. wants enacted by June 2027.
Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. earlier told a Senate Development Budget Coordination Committee hearing that the country’s strict bank secrecy regime limits access to suspicious transaction information during investigations.
Mr. Remolona noted that banks must report covered transactions worth more than P500,000 in a single day to the Anti-Money Laundering Council (AMLC).
The House of Representatives approved on third and final reading House Bill No. 6707 or the proposed Transparency in Banking Act in December. The Senate has yet to pass a counterpart measure.
“For the Philippines, P500,000 could be a reasonable starting point, aligned with the existing AMLA (Anti-Money Laundering Act) covered-transaction threshold,” Mr. Abrea said. “High-value purchases above that level should leave a traceable financial footprint.”
He said enforcement is constrained by the absence of systems that match financial records with tax returns, statements of assets, liabilities and net worth, and beneficial ownership data.
Hansley A. Juliano, a political science instructor at the Ateneo de Manila University, said amendments could help the Philippines meet global transparency standards and improve its appeal to investors.
“This encourages investors and business operations who value a government that is creating an environment preventing money laundering,” he said in a Messenger chat.
He said civil society groups should be included in discussions on the proposed reforms to enhance public trust in the process.
“The biggest shortcoming in this conversation is not integrating and deputizing relevant civil society forces and actors,” Mr. Juliano said. “Granting them and similar organizations a seat at the processes to be created by BRIGHT and connected legislation would help establish credibility in the process.”
Eric Daniel C. de Torres, a political science professor at the University of the East, said stronger transparency rules could improve perceptions of governance and stability, helping attract investment.
“This would allow better and more transparency in our politicians and government officials,” he said via Messenger. “The only concern is the willingness of our policymakers, the Executive branch and the details of the amendment that would really allow better transparency.”
He said private sector and sectoral groups should have opportunities to participate in crafting the legislation.
Mr. Abrea proposed stronger beneficial ownership disclosure requirements covering nominees, related corporations and connected accounts, as well as a cash payment ceiling for high-value transactions.
He also backed granting authorities clearly defined access to financial records in investigations involving corruption, tax evasion, money laundering and unexplained wealth.
Mr. Abrea proposed an AMLC-Bureau of Internal Revenue database that would automatically compare significant financial flows against declared income.
“Better financial data matching can improve tax compliance, recover unpaid taxes and illicit assets, and allow the government to move from broad audits toward targeted, risk-based enforcement,” he said. “That strengthens fiscal stability without immediately resorting to higher tax rates or more borrowing.”
Mr. Remolona has said the Bangko Sentral and AMLC are using artificial intelligence tools to detect potential red flags in financial transactions.
The Bank Secrecy law has figured in legal arguments surrounding the impeachment proceedings against Vice-President Sara Duterte-Carpio. Her defense team previously cited the law in opposing requests by House prosecutors for bank and tax records belonging to the Vice-President and her spouse, Manases R. Carpio.
House prosecutor Party-list Rep. Jose Manuel Tadeo I. Diokno has argued that impeachment proceedings constitute an exception to confidentiality protections covering bank deposits.