My Google Page Rank

Recto seeks review of laws on foreign currency deposits, bank secrecy

PDFPrintE-mail

Senator Ralph Recto on Friday called for a revisit of the laws on foreign currency deposit units (FCDUs) and the confidentiality of bank accounts to hammer out better laws responsive to “changing times and changing crimes.”

“With FCDUs and the Bank Secrecy Act taking center stage in the ongoing impeachment trial, we deem it imperative to call a review of these laws,” Recto, Senate ways and means committee chairman, said.

“The review is not meant to de-fang said laws but to make certain that no one gets hurt or gets special treatment when the claws of these laws start to pounce on its object of prey,” he added.

Recto said he has been receiving friendly admonitions from concerned members of the banking community about the ramifications of waiving or liberal application of the laws on FCDUs and the Bank Secrecy Act.

“The sum of the friendly heads-up that I have been getting is that this may result to a complete breakdown of confidence in the banking system,” Recto said.

“Businessmen would be pondering the question -- if the current banking laws would not be able to protect us, who would?” the senator from Batangas added.

Recto said the review of the laws should provide a clearer direction on what revisions may be adopted to ensure that the banking sector would be shielded from political exercises such as the impeachment process.

“We don’t want to start a fad wherein banks are called as hostile witness in every impeachment trial with its officers risking the pain of contempt should they fail to satisfy the demands of the impeachment court,” he said, in filing Senate Resolution 711.

Recto said that conversely, the Senate probe must also ensure that no public official or any individual running afoul of the law would hide under the cloak of the FCDU law or the Bank Secrecy Act.

The Senate impeachment court has allowed the opening of peso and FCDU accounts of Chief Justice Renato Corona in relation to the charge of the House impeachment panel that the chief justice failed to truthfully disclose his assets, including bank deposits and investments, in filing his SALN.

The president of Philippine Savings Bank (PSBank), one of the banks subpoenaed to bring Corona’s bank accounts, however, only produced the peso bank accounts but invoked the absolute confidentiality of FCDU or foreign currency accounts of the chief justice.

Last Thursday, the Supreme Court (SC) issued a temporary restraining order through the petition filed by PSBank, stopping the impeachment court from discussing Corona’s dollar accounts.

The Foreign Currency Deposit Act of the Philippines or Republic Act No. 6426, specifically Section 8 (Secrecy of Foreign Currency Deposits) provides that: “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.”

An FCDU is a banking unit authorized to transact in foreign exchange, such as accepting foreign-currency deposits and making foreign-currency loans.
Data from the Bangko Sentral ng Pilipinas (BSP) indicated that total resources of FCDUs in the first half of 2011 went up by 9.5 percent to $ 31.12 billion from $ 28.41 billion the same period in 2010 after its financial assets surged 16.9 percent to $ 16.48 billion from $ 14.1 billion while gross loans jumped 21 percent to $ 6.45 billion from $ 5.33 billion.

Data also showed universal and commercial banks accounted for 95.9 percent of the total FCDU assets with $ 29.8 billion, followed by thrift banks with 4.1 percent or $ 1.3 billion as well as rural and cooperative banks with less than one percent or $ 1 million.

By PNA




Related news items:
Newer news items:
Older news items:

Add comment


Security code
Refresh

Beng welcomes Litlit’s appointment as SP member

15 Feb 2018 Hits:189 Be the first to comment!

President Rodrigo Duterte has appointed San Roque Barangay Chairman Joselito “Litlit” Macrohom as member of the Sangguniang Panlungsod or City council replacing Charlie Mariano who stepped down from office last November 2017. As this developed, Mayor Beng Climaco congratulated Macrohon on his appointment and wished him luck in all his endeavors. With the complete set of councilors for both Districts I and II and the sectoral representatives, the Sangguniang Panlungsod can maximize its potentials and come up with quality legislations that are in line with the priority thrust of the local government on Security Health and Education, the mayor said. Macrohon ran for Councilor under District I during the May 2016 local elections and landed 9th place. Macrohon’s appointment, along with other new appointments [...] Read more

Prev Next Page:

City Registrar observes Civil Reg Month

15 Feb 2018 Hits:105 Be the first to comment!

The city, through the Office of the City Civil Registrar,is observing the Civil Registration Month this February with several activities highlighting the importance of civil registration. The month-long observance is punctuated [...] Read more


CHO stresses need for measles vaccination

14 Feb 2018 Hits:160 Be the first to comment!

The City Health Office (CHO) yesterday appealed to parents to submit their children for measles vaccination. This after a seven-month baby died last February 6, 2018 allegedly due to measles, five [...] Read more


MYEISHA JOLO DOWN M.LOZANO TAWI – TAWI

11 Jan 2018 Hits:307 Be the first to comment!

Este el Istoria del Jong Cariaga Mindanao Cup 2018 que ya hace na Golden Boys gym anoche. Ya sale Champion el Myeisha Jolo kay completo todo departamento del juego especialmente [...] Read more


BFP personnel to undergo fire suppression activities

10 Jan 2018 Hits:265 Be the first to comment!

Personnel of the Bureau of Fire Protection in Zamboanga City will undergo fire suppression trainings in the days to come in a bid to keep them abreast of the firefighting [...] Read more


RED CORALS UNITED Y RESTO DEL MUNDO FC –TABLA

10 Jan 2018 Hits:252 Be the first to comment!

Del Domingo pasao ya mira kita con el Resto Del Mundo FC contra Red Corals United donde ya sale Tabla el juego na Soccer Football. Amo quel el ultimo juego [...] Read more


TFZ gets 10 motorcycles from City Government

09 Jan 2018 Hits:285 Be the first to comment!

Task Force Zamboanga (TFZ) on Monday received from the local government 10 units of XRM motorcycles for security patrols in the outskirts of the city. Mayor Beng Climaco together with Councilor [...] Read more


Beng leads destruction of seized items

09 Jan 2018 Hits:306 Be the first to comment!

To show the Local Government’s firm commitment to public safety and security, Mayor Beng Climaco on Monday personally maneuvered a road roller and led the destruction of seized items such [...] Read more


Warring clans arm cache seized by gov't troops in Lanao del Sur

09 Jan 2018 Hits:328 Be the first to comment!

The military on Saturday seized a cached of high-powered firearms from warring clans, following a clearing operation in Lanao del Sur province. Capt. Jo-Ann Petinglay, spokesperson of the Western Mindanao Command, [...] Read more


BOALAN AGM TEAM OUTSMART FARRAH J

09 Jan 2018 Hits:265 Be the first to comment!

MINDANAO LEAGUE 2018 BY JONG CARIAGA: Boalan Agm  nuevo star athlete Kaiwa Sabdulla y si Neil Jumao-as ya dale mira kay puede sila gana con el maga mapuersa team como el [...] Read more


ANIMO JORTZ SURPRISED FARRAH J TEAM

08 Jan 2018 Hits:201 Be the first to comment!

JONG CARIAGA BASKETBALL MINDANAO CUP ‘18. Que el juego ta ase na golden boys gym ta principia 7:00 del noche. Fritz Vesagas amo el ya ase gana con el disuyu [...] Read more


BASKETBALL THRILLA IN ZAMBOANGA

07 Jan 2018 Hits:237 Be the first to comment!

JONG CARIAGA MINDANAO CUP Este el un torneo que debe kita mira kay el team del Myiesha Jolo tiene 5 ex PBA athleta y el losdemas puru mga star players de [...] Read more


Climaco reiterates appeal to Customs: Stop smuggling

06 Jan 2018 Hits:821 Be the first to comment!

Mayor Beng Climaco has once again appealed to the Bureau of Customs to clean up Zamboanga City against smuggling, and it can only be done if the agency will deputize [...] Read more


Escapee recaptured in Isabela

06 Jan 2018 Hits:254 Be the first to comment!

An inmate who escaped last Tuesday night from his cell in Isbela City was recaptured by the Isabela City Police on Wednesday afternoon in one of the islands in Maluso, [...] Read more


Beng orders intensified drive vs illegal quarrying

06 Jan 2018 Hits:236 Be the first to comment!

Mayor Beng Climaco has ordered a renewed campaign against illegal quarrying activities as she cited the city’s firm advocacy on environmental protection. Mayor Climaco Thursday has directed City Police Director PSSupt. [...] Read more


Four hurt in motorcycle collision

06 Jan 2018 Hits:245 Be the first to comment!

Four people were injured when two motorcycles accidentally collided in Zone 3, Barangay Guisao, Zamboanga City, on Thursday. Injured were Ryan Pantaleon y Atilano, 27, single, driver of the XRM motorcycle [...] Read more


Old man, old woman found dead in different barangays

05 Jan 2018 Hits:245 Be the first to comment!

Two elders were found dead inside their house in two separate places in Sitio Parkas, Barangay Boalan and Zone 2, Barangay Lumbangan, both in this city last Wednesday. Reports showed that [...] Read more


MUAY THAI PITBULL … BRY

05 Jan 2018 Hits:203 Be the first to comment!

Este si Bryan Ray Mangaser Siglos, su palayao “Bry”, 17 años de edad, anak di Severino Ledesma Siglos y Maria Ruzen Ramos Mangaser. Su hermano si Bennett Jhordany hermana si [...] Read more


CDRRMC okeys P3M cash aid for Vinta-stricken towns

04 Jan 2018 Hits:306 Be the first to comment!

The City Disaster Risk Reduction and Management Council (CDRRMC) has approved a resolution recommending the allocation of some P3 million from the city’s quick response fund, for financial assistance to [...] Read more