RA 6426: The Plunderer’s Panic Room, Where Dirty Dollars Nap in Peace

Reform or Ruin: Congress, Choose Between People’s Trust and Politicos’ Treasures

By Louis ‘Barok‘ C Biraogo — October 15, 2025

REPUBLIC Act No. 6426 (RA 6426), the Foreign Currency Deposit Act of 1974, isn’t just a banking law; it’s the ultimate “Do Not Disturb” sign for stolen wealth. A Facebook post sliced through the noise, branding it an “impenetrable legal shield for stolen wealth,” and oh, how it nailed the target. This isn’t a statute; it’s a gilded bunker where corrupt officials stash their loot, smirking at the Constitution’s quaint notion that “public office is a public trust.” RA 6426 is a middle finger to accountability, a loophole so brazen it could star in a heist movie. Let’s rip it apart.

The Kick in the Teeth: A Law That Laughs at Justice

The Facebook post doesn’t pull punches, and neither will I. RA 6426, born in the Marcos-era fog, cloaks foreign currency deposits in “absolute confidentiality.” No government agency—not the Office of the Ombudsman, not the Anti-Money Laundering Council (AMLC), not even a court—can peek inside without the depositor’s written consent. Picture a senator drowning in plunder allegations, their Statement of Assets, Liabilities, and Net Worth (SALN) claiming they own a tricycle and a shack, while their dollar accounts bulge with unexplained millions. RA 6426 slams the vault shut, leaving investigators begging like door-to-door salesmen. This isn’t law; it’s legalized larceny.

The Mockery Parade: A Statute That Moonlights as a Crony’s Concierge

RA 6426 is the Fort Knox of financial secrecy. Section 8 declares foreign currency deposits “absolutely confidential,” barring any inquiry without the depositor’s permission. Section 10 goes further, shielding these accounts from attachment, garnishment, or any judicial process. Compare this to Republic Act No. 1405 (RA 1405), the Bank Secrecy Law for peso accounts, which allows exceptions for impeachment, bribery, or court orders. RA 6426? It’s a steel trap. The 1987 Constitution (Article XI, Section 1) demands public accountability, but RA 6426 hands officials a velvet-lined hideout for their cash. It’s like mandating transparency while installing blackout curtains.

The economic excuse is a bad joke. We’re told RA 6426 was meant to attract foreign currency, stabilize the peso, and charm Overseas Filipino Workers (OFWs) and investors. But let’s not kid ourselves—this smells like a love note to Marcos-era cronies, not a lifeline for OFWs. The 1970s economic playbook is as relevant today as a flip phone. RA 6426 isn’t saving the economy; it’s saving the corrupt.

The Legal Bloodbath: A Loophole That Cackles at Scrutiny

RA 6426‘s absurdity is its invincibility. Imagine the Ombudsman chasing a public official accused of looting billions. The SALN screams poverty, but their lifestyle—private jets, Swiss watches—tells a different story. Dollar accounts could hold the truth, but RA 6426 steps in like a mob enforcer: “No consent, no entry.” The AMLC, tasked with sniffing out dirty money under Republic Act No. 9160 (RA 9160), is reduced to a paper tiger, unable to access accounts without a court order or the depositor’s blessing. Spoiler: corrupt officials aren’t known for volunteering their secrets.

Republic Act No. 3019 (RA 3019), the Anti-Graft and Corrupt Practices Act, brands unexplained wealth as evidence of corruption. Republic Act No. 6713 (RA 6713), the Code of Conduct and Ethical Standards for Public Officials and Employees, demands truthful SALNs. Yet RA 6426 renders these laws impotent, shielding the juiciest assets from scrutiny. The Supreme Court tried to dent this fortress in Salvacion v. Central Bank (G.R. No. 94723, 21 August 1997), carving out an equitable exception for a child-victim’s justice. But that’s a rare crack in the armor—RA 6426 still stands as a monument to impunity.

The Corona Caper: When Dollars Dodged the Gavel

The 2012 impeachment of Chief Justice Renato Corona was RA 6426‘s star turn as a legal villain. Corona was ousted for a shady SALN, a sin against RA 6713 and the Constitution’s accountability mandate.

But here’s the kicker: his alleged dollar accounts—potential proof of guilt or innocence—were locked tight by RA 6426‘s secrecy. The AMLC and Senate were left empty-handed, as Rappler reported in 2012.

This wasn’t a technicality; it was a heist of justice, echoing Republic v. Sandiganbayan (G.R. No. 152154, 15 July 2003), where the Supreme Court called unexplained wealth a red flag for corruption, only to have RA 6426 slam the door on the evidence.

The Crocodile Tears Takedown: Privacy? Try Impunity

Defenders of RA 6426 wail about “financial privacy” and “capital flight.” Let’s torch these excuses. Privacy? The Constitution (Article III, Section 3) protects privacy, but not as a shield for public theft. When public funds vanish, the right to hide your dollars evaporates. RA 6426 doesn’t protect the OFW’s hard-earned remittance; it protects the official who declares a hut on their SALN while stashing millions offshore. This isn’t privacy—it’s impunity.

Capital flight? Spare me. The Philippines liberalized its banking sector decades ago (BSP Circular No. 1389, 1993). Legitimate investors crave transparency, not a system that screams “corruption haven.” RA 6426‘s secrecy doesn’t attract capital; it repels trust. Worse, it risks landing the Philippines on the Financial Action Task Force (FATF) gray list for weak anti-money laundering measures. Losing kleptocrat cash is a small price to pay for global credibility.

The Battle Cry: Torch the Panic Room

RA 6426 isn’t just outdated; it’s a moral disgrace. Congress, it’s time to gut this law. Don’t just nibble—amend it with precision:

Carve Exceptions: Allow AMLC investigations, SALN verification, and plunder cases to pierce RA 6426‘s secrecy with court orders based on probable cause.
Unify Bank Secrecy: Fold RA 6426 into a reformed RA 1405, aligning with FATF standards and closing loopholes.
Mandate Transparency: Require public officials to waive secrecy for foreign currency accounts as a condition of office.

Reform isn’t anti-investor; it’s anti-corruption. Legitimate capital flees markets riddled with graft, not those enforcing accountability. The Bangko Sentral ng Pilipinas (BSP) has pushed for bank secrecy reforms—Congress should listen. Until then, RA 6426 remains a sanctuary for plunderers, mocking every anti-corruption pledge. Lawmakers, the spotlight’s on you: are you guarding the public’s money or your colleagues’ secrets? Choose, because the lawyers, journalists, and politicos reading this know the truth—and they’re not pretending otherwise.