To fight corruption, Senator Villanueva wants changes in 70-year law on bank secrecy

Senator Joel Villanueva sponsored a bill aimed at overhauling a legal framework that has remained largely unchanged for more than 70 years, a framework that has long impeded transparency, blocked accountability, and weakened the government’s ability to combat corruption and financial crimes.

Senate Bill No. 1728, also known as the Banking Reform for Integrity, Good Governance, Honesty, and Transparency (BRIGHT) Act, seeks to enhance transparency and integrity within the country’s financial system.

“For over seventy years, the Philippines has maintained one of the most restrictive bank secrecy regimes in the world. What was originally crafted to protect depositor confidence has, over time, evolved into a shield for impunity, a refuge for illicit wealth, and a serious obstacle to effective financial regulation,” Villanueva said during Wednesday’s plenary session, January 28, 2026.

“The BRIGHT Act proposes not wholesale disclosure, but measured transparency under very specific, legitimate circumstances. Deposits remain confidential as the general rule and may be examined only under conditions explicitly defined in the law,” he added.

Among these legitimate purposes are: investigations by the courts; inquiries by Congress, including impeachment proceedings; investigations conducted by the Office of the Ombudsman; supervisory examinations by the BSP; inquiries by the AMLC, BIR, and specific financial regulators; lawful access for the settlement of estates of deceased depositors; and voluntary authorization by the depositor.

The BRIGHT Act also identifies the government agencies authorized to examine, investigate, or review bank deposits and includes a safe harbor provision protecting banks and non-bank financial institutions that follow the bill’s mandatory disclosure rules.

To prevent abuse, the measure allows for penalties against individuals who misuse their authority to access deposit information, as well as those who unjustifiably refuse to provide it when required by the proper authorities.

“The BRIGHT Act is not merely a compliance measure, it is a governance reform, an anti-corruption reform, and a national integrity reform,” Villanueva said. “It is a step toward recovering stolen public funds, preventing money laundering, strengthening tax enforcement, empowering regulators, and building a trustworthy and resilient financial system,” Villanueva said.

“Transparency is not the enemy of progress. Secrecy is. The era when bank secrecy could be used to hide wrongdoing must come to an end — and with the BRIGHT Act, the Philippines can finally join the rest of the world in upholding modern standards of financial integrity,” he added. 

-Paraluman News