NEWSFLASH

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BANKERS AGAINST LIFTING BANK SECRECY LAW

Manila, May 8, 1998 - Bankers are taking a strong position against the lifting of the Bank Secrecy Law, which they claim ultimately protests the interest of depositors who do not wish others to know the level of their savings placed in the safe vaults of banks.

The banking industry is one in pointing out that lifting the law would lead to abuses leaving depositors defenseless.

"Until they can come up with the rational and logical explanation on why it should be lifted, then the banking system is not in favor of it," said Rafael Buenaventura, former president of the Bankers Association of the Philippines and current CEO of the Philippine Commercial International Bank (PCIB).

He said the secrecy law has always been very important to depositors, and lifting it would destabilize deposits in the banks.

"What we don't want is when people go on a fishing expedition. Lifting the secrecy law is tantamount to baring a person's earnings to a pack of thieves," he said.

Buenaventura pointed out that the courts have the power to lift this law on a case-to-case basis, upon a clear justification that a violation has been committed by a depositor.

"It's not as though you cannot look at the deposits; you can. But there must be a legal justification for it, to protect the rights of individuals. If there is reason to believe a deposit is ill-gotten or money is laundered, they can go to court to have the secrecy law lifted on specific cases," Buenaventura advised.

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