The Securities and Exchange Commission (SEC) has announced its support for legislative proposals aimed at amending the Philippines’ existing bank secrecy laws, framing the move as a necessary measure in the fight against corruption.

SEC Chairperson Francis Lim stated that easing the country’s bank secrecy laws would help uphold trust and confidence in the Philippine capital market and the broader economy.

“Corruption is a major concern for local and foreign investors alike… it translates to real, unnecessary, additional costs of doing business in the country,” Lim said.

Currently, several bills are pending before the House of Representatives that seek to lift the bank secrecy law to promote transparency.

These proposals generally aim to empower the Bangko Sentral ng Pilipinas (BSP) to inquire into and examine deposits when there is a reasonable belief that officials of the institutions it supervises have committed fraud or unlawful activity.

The SEC noted that those involved in financial crimes have often used the current law as a shield in cases of insider trading, market manipulation, and investment fraud, limiting its enforcement capabilities.

Lim added that accessing financial information would significantly enhance the enforcement capabilities of the SEC, and send a clear message that transparency and accountability govern our capital markets.

The proposed reforms also align with long-standing recommendations from multilateral organisations like the International Monetary Fund (IMF) and the Financial Action Task Force (FATF) to bring the Philippines in line with global standards against money laundering, tax evasion, and other financial crimes.

Featured image by EyeEm via Freepik.