In The Know: Powers of Ombudsman

(Editor’s Note: What follows is the pertinent section of the Constitution relating to the powers of the Ombudsman, and the laws that were created covering the secrecy of foreign currency deposits and the crime of money-laundering. )

Article XI

Section 12. The Ombudsman and his Deputies, as protectors of the people, shall act promptly on complaints filed in any form or manner against public officials or employees of the Government …

Section 13. The Office of the Ombudsman shall have the following powers [to] investigate on its own, or on complaint by any person, any act or omission of any public official, employee, office or agency, when such act or omission appears to be illegal, unjust, improper or inefficient.

Foreign Currency Deposits Act

Section 8. Secrecy of foreign currency deposits. All foreign currency deposits authorized under this Act, as amended by PD No. 1035, as well as foreign currency deposits authorized under PD No. 1034, are hereby declared as and considered of an absolutely confidential nature and, except upon the written permission of the depositor, in no instance shall foreign currency deposits be examined, inquired or looked into by any person, government official, bureau or office whether judicial or administrative or legislative, or any other entity whether public or private; …

Anti-Money Laundering Act

Section 3(b). “Covered transaction” is a transaction in cash or other equivalent monetary instrument involving a total amount in excess of P500,000.00 within one banking day.

Section 3(b-1). “Suspicious transactions” are transactions … regardless of the amounts involved, where any of the following circumstances exist:

1. There is no underlying legal or trade obligation, purpose or economic justification;

2. The client is not properly identified;

3. The amount involved is not commensurate with the business or financial capacity of the client;

4. Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements under the Act;

5. Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with the covered institution;

6. The transaction is in any way related to an unlawful activity or offense under this Act that is about to be, is being or has been committed; or

7. Any transaction that is similar or analogous to any of the foregoing.

Sec. 14(d) Breach of confidentiality. The punishment of imprisonment ranging from 3 to 8 years and a fine of not less than P500,000.00 but not more than  P1,000,000.00 shall be imposed … In the case of a breach of confidentiality that is published or reported by media, the responsible reporter, writer, president, publisher, manager and editor in chief shall be liable under this Act.