Philippines urged to tighten anti-corruption efforts through bank secrecy reform

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Bank secrecy reform urged

Highlights

SGV & Co.'s Jules E. Riego urges the Philippines to reform its strict bank deposit secrecy law and join the Common Reporting Standard to combat corruption and tax evasion.
Finance Undersecretary Rolando T. Ligon, Jr. reports ASEAN states prioritize financial data exchange, but legal and administrative barriers impede timely access to needed information.
The Philippines has finalized a double taxation agreement with Singapore, ongoing talks with Laos and Malaysia, and expects the Cambodia agreement to take effect on Jan. 1, 2027.

Transparency reforms and regional tax coordination

As reported by BusinessWorld Online, SGV & Co. Head of Tax Jules E. Riego says the Philippines should revisit its strict bank deposit secrecy law and strengthen the exchange of financial information with other countries to help curb corruption and tax evasion.

Speaking at the 5th SGV Tax Symposium in Makati, Riego says the Philippines stands alone among its ASEAN neighbors in maintaining such a strict bank secrecy regime. He also says the country has yet to sign up for the Common Reporting Standard among the original five ASEAN member states, even as other jurisdictions move toward automatic exchange of financial account information for tax purposes.

Riego says further reforms are needed to close opportunities for corruption and tax evasion. He also urges continued public vigilance over the use of state funds, pointing to the flood control corruption scandal as a drag on the economy.

Finance Undersecretary Rolando T. Ligon, Jr. says ASEAN member states have identified exchange of information as a priority in addressing illicit financial flows and cross-border tax avoidance. He says discussions at the 22nd ASEAN Forum on Taxation in March focus on delays in responses, and on legal and administrative barriers that limit access to financial data.

Ligon says the forum ends with a commitment to improve bilateral data matching among member states. He adds that the Philippines has concluded negotiations on a double taxation agreement with Singapore, while talks with Laos and Malaysia are continuing, and that the agreement with Cambodia is expected to enter into force on Jan. 1, 2027.

Our earlier article on planned Philippine sovereign bond reforms explained how the shift to a new pricing convention and the targeted inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets could improve liquidity and broaden foreign participation. It also stressed that market modernization alone is not enough: lower borrowing costs and stronger investment outcomes ultimately hinge on fiscal credibility, better governance, and more transparent use of public resources to limit corruption risks.

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