PSBank cites bank secrecy law

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05:44 AM February 2nd, 2012

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February 2nd, 2012 05:44 AM

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

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

The bank issued the statement in response to reports about an alleged secret US dollar account kept in PSBank by Chief Justice Renato Corona, who is on trial at the Senate impeachment court.

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

The provision says: “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. Doris C. Dumlao

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