The Securities and Exchange Commission (SEC) expressed strong support for proposed amendments to lift bank secrecy restrictions to help address government corruption and enhance its investigative powers.
“As a corporate and capital market regulator, the SEC welcomes the proposed easing of our bank secrecy laws as a necessary measure to uphold trust and confidence in the Philippine capital market and overall economy,” SEC chairman Francis Lim said.
“Corruption is a major concern for local and foreign investors alike. It does not only create crippling uncertainties; it translates to real, unnecessary, additional costs of doing business in the country,” he said.
Lim said the current banking secrecy laws have often been used as a shield by owners of bank accounts, limiting the SEC’s enforcement capacities. It has also prevented the SEC from validating information on the declared financial position of companies, especially when there are suspicions of fraud, misrepresentation, or violations of securities regulations.
“We are optimistic that further easing of bank secrecy—especially relating to securities law violations—can significantly aid enforcement efforts,” Lim said.
