SEC Backs Bank Secrecy Repeal for Investor Protection

MANILA – The Securities and Exchange Commission (SEC) has officially thrown its support behind legislative measures to lift the country's stringent bank secrecy laws, a move aimed at bolstering the agency's power to prosecute financial crimes and protect investors. The endorsement aligns with the Marcos administration's broader push for enhanced transparency and economic integrity.
In a statement, the SEC emphasized that the existing Republic Act No. 1405, or the Secrecy of Bank Deposits Law, significantly hampers investigations into investment scams, insider trading, and corporate fraud. "Lifting these restrictions is a critical step in fortifying our markets and ensuring a level playing field for all investors," an SEC official noted. Proponents argue the reform is long overdue. A key supporter in Congress stated, “Opponents of this reform fail to see the bigger picture. If these globally-respected financial institutions like the IMF and FATF say this is necessary for a modern economy, then it’s clearly the correct path for the Philippines.” However, some business groups remain cautious, with one leader warning that this could be a slippery slope towards the complete erosion of financial privacy for every law-abiding citizen, not just criminals. The initiative is a cornerstone of the administration's economic agenda, framed as a necessary measure to build a more trustworthy and competitive business environment in the Philippines.