The Sandiganbayan has ruled that foreign currency deposits in foreign banks are protected by bank secrecy laws and cannot be seized by the government in ill-gotten wealth probes, in a case involving Swiss deposits held in escrow by the brother of former first lady Imelda Marcos.
On January 15, 2026, the Sandiganbayan's Sixth Division issued a resolution denying the Presidential Commission on Good Government's (PCGG) request for a writ of preliminary attachment against the joint bank deposits of Benjamin “Kokoy” Romualdez and his wife Juliette, held in escrow at the Philippine National Bank (PNB) since 1999. The account balance stands at P410.012 million.
The PCGG seeks to forfeit $5,193,726.37 in alleged ill-gotten wealth hidden in Swiss bank deposits by the couple, parents of former House Speaker Martin Romualdez. The court ruled that the account falls under Section 8 of Republic Act 6426, the Foreign Currency Deposit Act, which exempts such deposits from attachment.
“Section 8 of the FCDA expressly provides that all foreign currency deposits authorized under the FCDA shall be exempt from attachment,” the court stated. Although the PCGG, represented by the Office of the Solicitor General (OSG), argued that the attachment is necessary to keep the funds within the court's reach during the ongoing case, the court found that no exceptions to the law apply.
The escrow agreement provides safeguards, preventing disposal of the funds without a final judgment or mutual consent from the couple and the PCGG. On June 18, 2018, the Fourth Division dismissed the original suit due to the ombudsman's lack of jurisdiction; the OSG refiled it late last year.
The funds are part of Romualdez's unexplained wealth from his time as Leyte governor and ambassador to China, Saudi Arabia, and Washington. The PCGG noted his 1983 net worth was only P2.348 million. The deposits were traced in December 1998 through a Swiss district attorney.
