Bank secrecy is dead – also for the Philippines?

PHILIPPINES-ECONOMY-FOREXThe Organisation for Economic Cooperation and Development (OECD), an international economic grouping of 34 countries, has urged the Philippines to lift its bank secrecy law “to strengthen the country’s tax system and fight tax evasion while meeting global standards in tracking tax fraud.”

“Bank secrecy is dead,” said Richard Parry, head of OECD’s Global Relations Division in the Center for Tax Policy and Administration, in a briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Workshop on Fiscal Management Through Transparency and Reforms held in Bataan province, west of Manila.

Parry added that G20 countries have abolished their laws on bank secrecy to align them with international standards. He said the Philippine government needs to have legislation in place to meet these global standards on transparency.

“It is possible to do it. The political will is needed for the Philippines to meet international standards in that area,” he said.

Currently, about 3.6 per cent of global gross domestic product (GDP) is lost to illegal financial flows, according tot he OECD. It was “not easy” for governments to tackle these issues especially if there is lack of transparency, Parry said. Transparency, he added, will allow governments to assess risks.

The bank secrecy law is a special legislation that requires banks and financial institutions to protect and keep confidential customer information from third parties even if these are government or tax authorities, unless the client relieves the bank of its duty.

In the Philippines, a violator can be convicted to an imprisonment of not more than five years or a monetary fine, or both, depending on the court’s decision.

In March 2014, Bureau of Internal Revenue commissioner Kim Henares urged lawmakers to lift the bank secrecy law amid renewed calls for greater exchange of information and increased transparency globally.



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The Organisation for Economic Cooperation and Development (OECD), an international economic grouping of 34 countries, has urged the Philippines to lift its bank secrecy law "to strengthen the country’s tax system and fight tax evasion while meeting global standards in tracking tax fraud." "Bank secrecy is dead," said Richard Parry, head of OECD's Global Relations Division in the Center for Tax Policy and Administration, in a briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Workshop on Fiscal Management Through Transparency and Reforms held in Bataan province, west of Manila. Parry added that G20 countries have abolished their laws...

PHILIPPINES-ECONOMY-FOREXThe Organisation for Economic Cooperation and Development (OECD), an international economic grouping of 34 countries, has urged the Philippines to lift its bank secrecy law “to strengthen the country’s tax system and fight tax evasion while meeting global standards in tracking tax fraud.”

“Bank secrecy is dead,” said Richard Parry, head of OECD’s Global Relations Division in the Center for Tax Policy and Administration, in a briefing on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Workshop on Fiscal Management Through Transparency and Reforms held in Bataan province, west of Manila.

Parry added that G20 countries have abolished their laws on bank secrecy to align them with international standards. He said the Philippine government needs to have legislation in place to meet these global standards on transparency.

“It is possible to do it. The political will is needed for the Philippines to meet international standards in that area,” he said.

Currently, about 3.6 per cent of global gross domestic product (GDP) is lost to illegal financial flows, according tot he OECD. It was “not easy” for governments to tackle these issues especially if there is lack of transparency, Parry said. Transparency, he added, will allow governments to assess risks.

The bank secrecy law is a special legislation that requires banks and financial institutions to protect and keep confidential customer information from third parties even if these are government or tax authorities, unless the client relieves the bank of its duty.

In the Philippines, a violator can be convicted to an imprisonment of not more than five years or a monetary fine, or both, depending on the court’s decision.

In March 2014, Bureau of Internal Revenue commissioner Kim Henares urged lawmakers to lift the bank secrecy law amid renewed calls for greater exchange of information and increased transparency globally.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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