PSBank says it risks BSP sanction with release of Corona accounts

MANILA, Philippines—The Philippine Savings Bank (PSBank) fears being sanctioned by the Bangko Sentral ng Pilipinas, as it petitioned the Supreme Court to stop the Senate impeachment court from compelling it to release the bank records of impeached Chief Justice Renato Corona, who is under trial.

“Petitioner PSBank will likewise risk revocation or suspension of its authority to accept new foreign currency deposits by the Bangko Sentral ng Pilipinas pursuant to Section 87 of the Manual Regulations on Foreign Exchange Transactions,” the bank, through its president, Pascual M. Garcia III, said.

Garcia said that they might also incur criminal liability for violation of Republic Act 6426, or the Foreign Currency Deposit Act.

Under Section 87 of the Manual Regulations on Foreign Exchange Transactions, any violation of RA 6426 provides, upon conviction, a penalty of imprisonment of not less than one year but not more than five years or a fine of not less than P5,000 or more than P25,000. Also, the BSP may revoke or suspend the authority of a bank to accept new foreign currency deposits.

They said the Senate impeachment court committed grave abuse of discretion in issuing the subpoena to bank records of the Chief Justice.
“It is settled jurisprudence that there is grave abuse of discretion amounting to lack or excess of jurisdiction when a tribunal contravenes the Constitution, the laws and the existing jurisprudence,” the bank said.

“As admitted by the respondent impeachment court, RA 6426 which is the recognized law that governs foreign currency deposits, clearly provides for only one exception to the prohibition on disclosure—upon prior written permission of the depositor,” it added.

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