PSBank says foreign currency deposits are ‘absolutely confidential’

MANILA, Philippines—Philippine Savings Bank, the thrift banking arm of the Metrobank group, said on Wednesday it was required by law to keep confidential all accounts of its foreign currency deposit unit (FCDU).

The statement was issued by the bank in response to reports about an alleged secret US dollar account kept in PSBank by impeached Supreme Court Chief Justice Renato Corona, who is currently on trial by the Senate.

PSBank president Pascual Garcia III said the public must be reminded of the provision on Foreign Currency Deposit Act of the Philippines (Republic Act No. 6426), specifically Section 8 (Secrecy of Foreign Currency Deposits).

The provision states:  “All foreign currency deposits authorized under this Act are hereby declared as and considered of an absolutely confidential nature and, except upon the written permission of the depositors, in no instance shall such foreign currency deposits be examined, inquired or looked into by any person, government official, bureau or office whether judicial or administrative or private.”

“Therefore, any inquiry on any dollar deposit account by any party is a violation of this law,” Garcia said.

An FCDU is a banking unit authorized to transact in foreign exchange, such as accepting foreign-currency deposits and making foreign-currency loans.