Why public officials’ finances are so secret

A RECENT proposal by a Cebu City councilor to publicize officials’ bank accounts and Statements of Assets, Liabilities and Net Worth (SALN) highlights the long-running struggle to combat corruption in the Philippines.

The push for transparency challenges one of the country’s most restrictive measures — the 1955 Bank Secrecy Law — which has long shielded public officials and hindered investigations into unexplained wealth.

Lifestyle checks and asset declarations aim to promote accountability, but critics say they are ineffective without the means to verify them against bank records. Cebu City’s debate reflects a national issue with major implications for governance and public trust.

“If there’s nothing to hide, there is nothing to fear,” Councilor Pastor “Jun” Alcover said in his privilege speech during the regular session on Tuesday, Sept. 16, 2025.

What happened

Alcover urged his colleagues to sign waivers to open their bank accounts to scrutiny, echoing a prior proposal by Councilor Sisinio Andales for a local task force to conduct lifestyle audits.

The City Council approved a resolution urging the national legislature to amend Republic Act (RA) 1405 (Bank Secrecy Law) to allow anti-corruption agencies access to the bank records of officials under investigation.

This local push follows a public declaration by Mayor Nestor Archival, who expressed his willingness to undergo a lifestyle check.

Financial transparency

The call for public officials to open their financial records to scrutiny strikes at the core of the Philippines’ enduring corruption problem.

Public declarations of wealth through the SALN system are a key component of the country’s anti-graft laws, but their effectiveness is widely debated.

“Our people demand more than lip service to the fight against corruption. They demand action, accountability and nothing less than the highest standard of integrity,” he said.

Without the ability to cross-check declared assets with bank deposits, investigators struggle to detect discrepancies or hidden wealth.

This limitation has allowed some officials to under-declare assets, undermining public confidence in accountability measures.

The Cebu City Council’s action is significant because it elevates a local concern into a national debate, urging Congress to address a systemic barrier to good governance.

Why the need for amendments

RA 1405 is one of the strictest bank secrecy laws in the world. Enacted in 1955, it was originally intended to protect depositors’ privacy and encourage savings. Over time, however, it has become a major obstacle to investigating corruption, bribery and money laundering.

While the law allows exceptions, such as during impeachment or litigation, these are considered too narrow and often require a court order, a process seen as slow and cumbersome.

Alcover described the exemptions as too narrow and outdated, saying they fail to reflect today’s reality where corruption is hidden behind layers of financial transactions.

This contrasts with other countries that have relaxed bank secrecy laws to meet international standards set by the Financial Action Task Force.

Alcover also cited repeated calls by the International Monetary Fund and World Bank for the Philippines to ease its bank secrecy regime to curb money laundering and graft.

He moved to adopt a resolution urging Congress to amend RA 1405 to create exemptions for elected and appointed officials, giving the Ombudsman, the Commission on Audit and other anti-corruption bodies lawful access to their bank records when under investigation.

The City Council approved Alcover’s motion to furnish copies of the resolution to the House, Senate and Office of the President for further action. / CAV