Republic Act No.

6713             February 20, 1989 term shall also apply to the parties to a voting
trust.
AN ACT ESTABLISHING A CODE OF CONDUCT AND
ETHICAL STANDARDS FOR PUBLIC OFFICIALS AND (g) "Family of public officials or employees" means
EMPLOYEES, TO UPHOLD THE TIME-HONORED their spouses and unmarried children under
PRINCIPLE OF PUBLIC OFFICE BEING A PUBLIC TRUST, eighteen (18) years of age.
GRANTING INCENTIVES AND REWARDS FOR
EXEMPLARY SERVICE, ENUMERATING PROHIBITED (h) "Person" includes natural and juridical
ACTS AND TRANSACTIONS AND PROVIDING persons unless the context indicates otherwise.
PENALTIES FOR VIOLATIONS THEREOF AND FOR
OTHER PURPOSES (i) "Conflict of interest" arises when a public
official or employee is a member of a board, an
Be it enacted by the Senate and House of Representatives of officer, or a substantial stockholder of a private
the Philippines in Congress assembled: corporation or owner or has a substantial interest
in a business, and the interest of such corporation
Section 1. Title. - This Act shall be known as the "Code of or business, or his rights or duties therein, may be
Conduct and Ethical Standards for Public Officials and opposed to or affected by the faithful performance
Employees." of official duty.

Section 2. Declaration of Policies. - It is the policy of the (j) "Divestment" is the transfer of title or disposal
State to promote a high standard of ethics in public service. of interest in property by voluntarily, completely
Public officials and employees shall at all times be and actually depriving or dispossessing oneself of
accountable to the people and shall discharge their duties his right or title to it in favor of a person or
with utmost responsibility, integrity, competence, and persons other than his spouse and relatives as
loyalty, act with patriotism and justice, lead modest lives, defined in this Act.
and uphold public interest over personal interest.
(k) "Relatives" refers to any and all persons
Section 3. Definition of Terms. - As used in this Act, the related to a public official or employee within the
term: fourth civil degree of consanguinity or affinity,
including bilas, inso and balae.
(a) "Government" includes the National
Government, the local governments, and all other Section 4. Norms of Conduct of Public Officials and
instrumentalities, agencies or branches of the Employees. - (A) Every public official and employee shall
Republic of the Philippines including government- observe the following as standards of personal conduct in
owned or controlled corporations, and their the discharge and execution of official duties:
subsidiaries.lawphi1.net
(a) Commitment to public interest. -
(b) "Public Officials" includes elective and Public officials and employees shall
appointive officials and employees, permanent or always uphold the public interest over
temporary, whether in the career or non-career and above personal interest. All
service, including military and police personnel, government resources and powers of
whether or not they receive compensation, their respective offices must be employed
regardless of amount. and used efficiently, effectively, honestly
and economically, particularly to avoid
(c) "Gift" refers to a thing or a right to dispose of wastage in public funds and revenues.
gratuitously, or any act or liberality, in favor of
another who accepts it, and shall include a (b) Professionalism. - Public officials and
simulated sale or an ostensibly onerous employees shall perform and discharge
disposition thereof. It shall not include an their duties with the highest degree of
unsolicited gift of nominal or insignificant value excellence, professionalism, intelligence
not given in anticipation of, or in exchange for, a and skill. They shall enter public service
favor from a public official or employee. with utmost devotion and dedication to
duty. They shall endeavor to discourage
(d) "Receiving any gift" includes the act of wrong perceptions of their roles as
accepting directly or indirectly, a gift from a dispensers or peddlers of undue
person other than a member of his family or patronage.
relative as defined in this Act, even on the
occasion of a family celebration or national (c) Justness and sincerity. - Public officials
festivity like Christmas, if the value of the gift is and employees shall remain true to the
neither nominal nor insignificant, or the gift is people at all times. They must act with
given in anticipation of, or in exchange for, a favor. justness and sincerity and shall not
discriminate against anyone, especially
(e) "Loan" covers both simple loan and the poor and the underprivileged. They
commodatum as well as guarantees, financing shall at all times respect the rights of
arrangements or accommodations intended to others, and shall refrain from doing acts
ensure its approval. contrary to law, good morals, good
customs, public policy, public order,
(f) "Substantial stockholder" means any person public safety and public interest. They
who owns, directly or indirectly, shares of stock shall not dispense or extend undue favors
sufficient to elect a director of a corporation. This on account of their office to their relatives
whether by consanguinity or affinity
 except with respect to appointments of Section 5. Duties of Public Officials and Employees. - In the
such relatives to positions considered performance of their duties, all public officials and
strictly confidential or as members of employees are under obligation to:lawphi1.net
their personal staff whose terms are
coterminous with theirs. (a) Act promptly on letters and requests. - All
public officials and employees shall, within fifteen
(d) Political neutrality. - Public officials (15) working days from receipt thereof, respond
and employees shall provide service to to letters, telegrams or other means of
everyone without unfair discrimination communications sent by the public. The reply
and regardless of party affiliation or must contain the action taken on the request.
preference.
(b) Submit annual performance reports. - All
(e) Responsiveness to the public. - Public heads or other responsible officers of offices and
officials and employees shall extend agencies of the government and of government-
prompt, courteous, and adequate service owned or controlled corporations shall, within
to the public. Unless otherwise provided forty-five (45) working days from the end of the
by law or when required by the public year, render a performance report of the agency
interest, public officials and employees or office or corporation concerned. Such report
shall provide information of their policies shall be open and available to the public within
and procedures in clear and regular office hours.
understandable language, ensure
openness of information, public (c) Process documents and papers expeditiously. -
consultations and hearings whenever All official papers and documents must be
appropriate, encourage suggestions, processed and completed within a reasonable
simplify and systematize policy, rules and time from the preparation thereof and must
procedures, avoid red tape and develop contain, as far as practicable, not more than three
an understanding and appreciation of the (3) signatories therein. In the absence of duly
socio-economic conditions prevailing in authorized signatories, the official next-in-rank or
the country, especially in the depressed officer in charge shall sign for and in their behalf.
rural and urban areas.
(d) Act immediately on the public's personal
(f) Nationalism and patriotism. - Public transactions. - All public officials and employees
officials and employees shall at all times must attend to anyone who wants to avail himself
be loyal to the Republic and to the Filipino of the services of their offices and must, at all
people, promote the use of locally times, act promptly and expeditiously.
produced goods, resources and
technology and encourage appreciation (e) Make documents accessible to the public. - All
and pride of country and people. They public documents must be made accessible to, and
shall endeavor to maintain and defend readily available for inspection by, the public
Philippine sovereignty against foreign within reasonable working hours.
intrusion.
Section 6. System of Incentives and Rewards. - A system of
(g) Commitment to democracy. - Public annual incentives and rewards is hereby established in
officials and employees shall commit order to motivate and inspire public servants to uphold the
themselves to the democratic way of life highest standards of ethics. For this purpose, a Committee
and values, maintain the principle of on Awards to Outstanding Public Officials and Employees
public accountability, and manifest by is hereby created composed of the following: the
deeds the supremacy of civilian authority Ombudsman and Chairman of the Civil Service
over the military. They shall at all times Commission as Co-Chairmen, and the Chairman of the
uphold the Constitution and put loyalty to Commission on Audit, and two government employees to
country above loyalty to persons or party. be appointed by the President, as members.

(h) Simple living. - Public officials and It shall be the task of this Committee to conduct a periodic,
employees and their families shall lead continuing review of the performance of public officials
modest lives appropriate to their and employees, in all the branches and agencies of
positions and income. They shall not Government and establish a system of annual incentives
indulge in extravagant or ostentatious and rewards to the end that due recognition is given to
display of wealth in any form. public officials and employees of outstanding merit on the
basis of the standards set forth in this Act.
(B) The Civil Service Commission shall adopt
positive measures to promote (1) observance of The conferment of awards shall take into account, among
these standards including the dissemination of other things, the following: the years of service and the
information programs and workshops authorizing quality and consistency of performance, the obscurity of
merit increases beyond regular progression steps, the position, the level of salary, the unique and exemplary
to a limited number of employees recognized by quality of a certain achievement, and the risks or
their office colleagues to be outstanding in their temptations inherent in the work. Incentives and rewards
observance of ethical standards; and (2) to government officials and employees of the year to be
continuing research and experimentation on announced in public ceremonies honoring them may take
measures which provide positive motivation to the form of bonuses, citations, directorships in
public officials and employees in raising the government-owned or controlled corporations, local and
general level of observance of these standards. foreign scholarship grants, paid vacations and the like.
They shall likewise be automatically promoted to the next
higher position with the commensurate salary suitable to As to gifts or grants from foreign governments, the
their qualifications. In case there is no next higher position Congress consents to:
or it is not vacant, said position shall be included in the
budget of the office in the next General Appropriations Act. (i) The acceptance and retention by a
The Committee on Awards shall adopt its own rules to public official or employee of a gift of
govern the conduct of its activities. nominal value tendered and received as a
souvenir or mark of courtesy;
Section 7. Prohibited Acts and Transactions. - In addition to
acts and omissions of public officials and employees now (ii) The acceptance by a public official or
prescribed in the Constitution and existing laws, the employee of a gift in the nature of a
following shall constitute prohibited acts and transactions scholarship or fellowship grant or medical
of any public official and employee and are hereby treatment; or
declared to be unlawful:
(iii) The acceptance by a public official or
(a) Financial and material interest. - Public employee of travel grants or expenses for
officials and employees shall not, directly or travel taking place entirely outside the
indirectly, have any financial or material interest Philippine (such as allowances,
in any transaction requiring the approval of their transportation, food, and lodging) of more
office. than nominal value if such acceptance is
appropriate or consistent with the
(b) Outside employment and other activities interests of the Philippines, and permitted
related thereto. - Public officials and employees by the head of office, branch or agency to
during their incumbency shall not: which he belongs.

(1) Own, control, manage or accept The Ombudsman shall prescribe such regulations
employment as officer, employee, as may be necessary to carry out the purpose of
consultant, counsel, broker, agent, trustee this subsection, including pertinent reporting and
or nominee in any private enterprise disclosure requirements.
regulated, supervised or licensed by their
office unless expressly allowed by law; Nothing in this Act shall be construed to restrict or
prohibit any educational, scientific or cultural
(2) Engage in the private practice of their exchange programs subject to national security
profession unless authorized by the requirements.
Constitution or law, provided, that such
practice will not conflict or tend to Section 8. Statements and Disclosure. - Public officials and
conflict with their official functions; or employees have an obligation to accomplish and submit
declarations under oath of, and the public has the right to
(3) Recommend any person to any know, their assets, liabilities, net worth and financial and
position in a private enterprise which has business interests including those of their spouses and of
a regular or pending official transaction unmarried children under eighteen (18) years of age living
with their office. in their households.

These prohibitions shall continue to apply for a (A) Statements of Assets and Liabilities and
period of one (1) year after resignation, Financial Disclosure. - All public officials and
retirement, or separation from public office, employees, except those who serve in an honorary
except in the case of subparagraph (b) (2) above, capacity, laborers and casual or temporary
but the professional concerned cannot practice his workers, shall file under oath their Statement of
profession in connection with any matter before Assets, Liabilities and Net Worth and a Disclosure
the office he used to be with, in which case the of Business Interests and Financial Connections
one-year prohibition shall likewise apply. and those of their spouses and unmarried children
under eighteen (18) years of age living in their
(c) Disclosure and/or misuse of confidential households.
information. - Public officials and employees shall
not use or divulge, confidential or classified The two documents shall contain information on
information officially known to them by reason of the following:
their office and not made available to the public,
either: (a) real property, its improvements,
acquisition costs, assessed value and
(1) To further their private interests, or current fair market value;
give undue advantage to anyone; or
(b) personal property and acquisition
(2) To prejudice the public interest. cost;

(d) Solicitation or acceptance of gifts. - Public (c) all other assets such as investments,
officials and employees shall not solicit or accept, cash on hand or in banks, stocks, bonds,
directly or indirectly, any gift, gratuity, favor, and the like;
entertainment, loan or anything of monetary value
from any person in the course of their official (d) liabilities, and;
duties or in connection with any operation being
regulated by, or any transaction which may be (e) all business interests and financial
affected by the functions of their office. connections.
 The documents must be filed: (2) Such statements shall be made available for
copying or reproduction after ten (10) working
(a) within thirty (30) days after days from the time they are filed as required by
assumption of office; law.

(b) on or before April 30, of every year (3) Any person requesting a copy of a statement
thereafter; and shall be required to pay a reasonable fee to cover
the cost of reproduction and mailing of such
(c) within thirty (30) days after statement, as well as the cost of certification.
separation from the service.
(4) Any statement filed under this Act shall be
All public officials and employees required under available to the public for a period of ten (10)
this section to file the aforestated documents shall years after receipt of the statement. After such
also execute, within thirty (30) days from the date period, the statement may be destroyed unless
of their assumption of office, the necessary needed in an ongoing investigation.
authority in favor of the Ombudsman to obtain
from all appropriate government agencies, (D) Prohibited acts. - It shall be unlawful for any person to
including the Bureau of Internal Revenue, such obtain or use any statement filed under this Act for:
documents as may show their assets, liabilities,
net worth, and also their business interests and (a) any purpose contrary to morals or public
financial connections in previous years, including, policy; or
if possible, the year when they first assumed any
office in the Government. (b) any commercial purpose other than by news
and communications media for dissemination to
Husband and wife who are both public officials or the general public.
employees may file the required statements
jointly or separately. Section 9. Divestment. - A public official or employee shall
avoid conflicts of interest at all times. When a conflict of
The Statements of Assets, Liabilities and Net interest arises, he shall resign from his position in any
Worth and the Disclosure of Business Interests private business enterprise within thirty (30) days from
and Financial Connections shall be filed by: his assumption of office and/or divest himself of his
shareholdings or interest within sixty (60) days from such
(1) Constitutional and national elective assumption.
officials, with the national office of the
Ombudsman; The same rule shall apply where the public official or
employee is a partner in a partnership.
(2) Senators and Congressmen, with the
Secretaries of the Senate and the House of The requirement of divestment shall not apply to those
Representatives, respectively; Justices, who serve the Government in an honorary capacity nor to
with the Clerk of Court of the Supreme laborers and casual or temporary workers.
Court; Judges, with the Court
Administrator; and all national executive Section 10. Review and Compliance Procedure. - (a) The
officials with the Office of the President. designated Committees of both Houses of the Congress
shall establish procedures for the review of statements to
(3) Regional and local officials and determine whether said statements which have been
employees, with the Deputy Ombudsman submitted on time, are complete, and are in proper form.
in their respective regions; In the event a determination is made that a statement is
not so filed, the appropriate Committee shall so inform the
(4) Officers of the armed forces from the reporting individual and direct him to take the necessary
rank of colonel or naval captain, with the corrective action.
Office of the President, and those below
said ranks, with the Deputy Ombudsman (b) In order to carry out their responsibilities
in their respective regions; and under this Act, the designated Committees of both
Houses of Congress shall have the power within
(5) All other public officials and their respective jurisdictions, to render any
employees, defined in Republic Act No. opinion interpreting this Act, in writing, to
3019, as amended, with the Civil Service persons covered by this Act, subject in each
Commission. instance to the approval by affirmative vote of the
majority of the particular House concerned.
(B) Identification and disclosure of relatives. - It shall be
the duty of every public official or employee to identify and The individual to whom an opinion is rendered,
disclose, to the best of his knowledge and information, his and any other individual involved in a similar
relatives in the Government in the form, manner and factual situation, and who, after issuance of the
frequency prescribed by the Civil Service Commission. opinion acts in good faith in accordance with it
shall not be subject to any sanction provided in
(C) Accessibility of documents. - (1) Any and all statements this Act.
filed under this Act, shall be made available for inspection
at reasonable hours. (c) The heads of other offices shall perform the
duties stated in subsections (a) and (b) hereof
insofar as their respective offices are concerned,
subject to the approval of the Secretary of Justice,
 in the case of the Executive Department and the Section 14. Appropriations. - The sum necessary for the
Chief Justice of the Supreme Court, in the case of effective implementation of this Act shall be taken from the
the Judicial Department. appropriations of the Civil Service Commission. Thereafter,
such sum as may be needed for its continued
Section 11. Penalties. - (a) Any public official or employee, implementation shall be included in the annual General
regardless of whether or not he holds office or Appropriations Act.
employment in a casual, temporary, holdover, permanent
or regular capacity, committing any violation of this Act Section 15. Separability Clause. - If any provision of this
shall be punished with a fine not exceeding the equivalent Act or the application of such provision to any person or
of six (6) months' salary or suspension not exceeding one circumstance is declared invalid, the remainder of the Act
(1) year, or removal depending on the gravity of the or the application of such provision to other persons or
offense after due notice and hearing by the appropriate circumstances shall not be affected by such declaration.
body or agency. If the violation is punishable by a heavier
penalty under another law, he shall be prosecuted under Section 16. Repealing Clause. - All laws, decrees and orders
the latter statute. Violations of Sections 7, 8 or 9 of this Act or parts thereof inconsistent herewith, are deemed
shall be punishable with imprisonment not exceeding five repealed or modified accordingly, unless the same provide
(5) years, or a fine not exceeding five thousand pesos for a heavier penalty.
(P5,000), or both, and, in the discretion of the court of
competent jurisdiction, disqualification to hold public Section 17. Effectivity. - This Act shall take effect after
office. thirty (30) days following the completion of its publication
in the Official Gazette or in two (2) national newspapers of
(b) Any violation hereof proven in a proper general circulation.
administrative proceeding shall be sufficient cause
for removal or dismissal of a public official or Approved, February 20, 1989.
employee, even if no criminal prosecution is
instituted against him.

(c) Private individuals who participate in

conspiracy as co-principals, accomplices or
accessories, with public officials or employees, in
violation of this Act, shall be subject to the same
penal liabilities as the public officials or
employees and shall be tried jointly with them.

(d) The official or employee concerned may bring

an action against any person who obtains or uses a
report for any purpose prohibited by Section 8 (D)
of this Act. The Court in which such action is
brought may assess against such person a penalty
in any amount not to exceed twenty-five thousand
pesos (P25,000). If another sanction hereunder or
under any other law is heavier, the latter shall
apply.

Section 12. Promulgation of Rules and Regulations,

Administration and Enforcement of this Act. - The Civil
Service Commission shall have the primary responsibility
for the administration and enforcement of this Act. It shall
transmit all cases for prosecution arising from violations of
this Act to the proper authorities for appropriate action:
Provided, however, That it may institute such
administrative actions and disciplinary measures as may
be warranted in accordance with law. Nothing in this
provision shall be construed as a deprivation of the right of
each House of Congress to discipline its Members for
disorderly behavior.

The Civil Service Commission is hereby authorized to

promulgate rules and regulations necessary to carry out
the provisions of this Act, including guidelines for
individuals who render free voluntary service to the
Government. The Ombudsman shall likewise take steps to
protect citizens who denounce acts or omissions of public
officials and employees which are in violation of this Act.

Section 13. Provisions for More Stringent Standards. -

Nothing in this Act shall be construed to derogate from any
law, or any regulation prescribed by any body or agency,
which provides for more stringent standards for its official
and employees.
[REPUBLIC ACT NO. 9485] resolution of the issues raised in the request or needed in
the application submitted by the client.
AN ACT TO IMPROVE EFFICIENCY IN THE DELIVERY OF
GOVERNMENT SERVICE TO THE PUBLIC BY REDUCING (g) “Fixer” refers to any individual whether or not officially
BUREAUCRATIC RED TAPE, PREVENTING GRAFT AND involved in the operation of a government office or agency
CORRUPTION, AND PROVIDING PENALTIES THEREFOR who has access to people working therein, and whether or
not in collusion with them, facilitates speedy completion of
Be it enacted by the Senate and House of Representatives of transactions for pecuniary gain or any other advantage or
the Philippines in Congress assembled: consideration.

SECTION 1. Short Title. — This Act shall be known as the SEC. 5. Reengineering of Systems and Procedures. — All
“Anti-Red Tape Act of 2007.” offices and agencies which provide frontline services are
hereby mandated to regularly undertake time and motion
SEC. 2. Declaration of Policy. — It is hereby declared the studies, undergo evaluation and improvement of their
policy of the State to promote integrity, accountability, transaction systems and procedures and re-engineer the
proper management of public affairs and public property same if deemed necessary to reduce bureaucratic red tape
as well as to establish effective practices aimed at the and processing time.
prevention of graft and corruption in government.
Towards this end, the State shall maintain honesty and SEC. 6. Citizen’s Charter. — All government agencies
responsibility among its public officials and employees, including departments, bureaus, offices, instrumentalities,
and shall take appropriate measures to promote or government-owned and/or controlled corporations, or
transparency in each agency with regard to the manner of local government or district units shall set up their
transacting with the public, which shall encompass a respective service standards to be known as the Citizen’s
program for the adoption of simplified procedures that will Charter in the form of information billboards which should
reduce red tape and expedite transactions in government. be posted at the main entrance of offices or at the most
conspicuous place, and in the form of published materials
SEC. 3. Coverage. — This Act shall apply to all government written either in English, Filipino or in the local dialect,
offices and agencies including local government units and that detail:
government-owned or -controlled corporations that
provide frontline services as defined in this Act. Those (a) The procedure to obtain a particular service;
performing judicial, quasi-judicial and legislative functions
are excluded from the coverage of this Act. (b) The person/s responsible for each step;

SEC. 4. Definition of Terms. — As used in this Act, the (c) The maximum time to conclude the process;
following terms are defined as follows:
(d) The document/s to be presented by the customer, if
(a) “Simple Transactions” refer to requests or applications necessary;
submitted by clients of a government office or agency
which only require ministerial actions on the part of the (e) The amount of fees, if necessary; and
public officer or employee, or that which present only
inconsequential issues for the resolution by an officer or (f) The procedure for filing complaints.
employee of said government office.
SEC. 7. Accountability of the Heads of Offices and Agencies.
(b) “Complex Transactions” refer to requests or — The head of the office or agency shall be primarily
applications submitted by clients of a government office responsible for the implementation of this Act and shall be
which necessitate the use of discretion in the resolution of held accountable to the public in rendering fast, efficient,
complicated issues by an officer or employee of said convenient and reliable service. All transactions and
government office, such transaction to be determined by processes are deemed to have been made with the
the office concerned. permission or clearance from the highest authority having
jurisdiction over the government office or agency
(c) “Frontline Service” refers to the process or transaction concerned.
between clients and government offices or agencies
involving applications for any privilege, right, permit, SEC. 8. Accessing Frontline Services. — The following shall
reward, license, concession, or for any modification, be adopted by all government offices and agencies:
renewal or extension of the enumerated applications
and/or requests which are acted upon in the ordinary
(a) Acceptance of Applications and Requests — (1) All
course of business of the agency or office concerned.
officers or employees shall accept written applications;
requests, and/or documents being submitted by clients of
(d) “Action” refers to the written approval or disapproval the office or agency.
made by a government office or agency on the application
or request submitted by a client for processing.
(2) The responsible officer or employee shall acknowledge
receipt of such application and/or request by writing or
(e) “Officer or Employee” refers to a person employed in a printing clearly thereon his/her name, the unit where
government office or agency required to perform specific he/she is connected with, and the time and date of receipt.
duties and responsibilities related to the application or
request submitted by a client for processing.
(3) The receiving officer or employee shall perform a
preliminary assessment of the request so as to promote a
(f) “Irrelevant requirements” refer to any document or more expeditious action on requests.
performance of an act not directly material to the
(b) Action of Offices — (1) All applications and/or requests SEC. 10. Report Card Survey. — All offices and agencies
submitted shall be acted upon by the assigned officer or providing frontline services shall be subjected to a Report
employee during the period stated in the Citizen’s Charter Card Survey to be initiated by the Civil Service
which shall not be longer than five working days in the Commission, in coordination with the Development
case of simple transactions and ten (10) working days in Academy of the Philippines, which shall be used to obtain
the case of complex transactions from the date the request feedback on hour provisions in the Citizen’s Charter are
or application was received. Depending on the nature of being followed and how the agency is performing.
the frontline services requested or the mandate of the
office or agency under unusual circumstances, the The Report Card Survey shall also be used to obtain
maximum time prescribed above may be extended. For the information and/or estimates of hidden costs incurred by
extension due to the nature of frontline services or the clients to access frontline services which may include, but
mandate of the office or agency concerned, the period for is not limited to, bribes and payment to fixers.
the delivery of frontline services shall be indicated in the
Citizen’s Charter. The office or agency concerned shall A feedback mechanism shall be established in all agencies
notify the requesting party in writing of the reason for the covered by this Act and the results thereof shall be
extension and the final date of release for the extension incorporated in their annual report.
and the final date of release of the frontline service/s
requested.
SEC. 11. Violations. — After compliance with the
substantive and procedural due process, the following
(2) No application or request shall be returned to the client shall constitute violations of this Act together with their
without appropriate action. In case an application or corresponding penalties:
request is disapproved, the officer or employee who
rendered the decision shall send a formal notice to the
(a) Light Offense — (1) Refusal to accept application
client within five working days from the receipt of the
and/or request within the prescribed period or any
request and/or application, stating therein the reason for
document being submitted by a client;
the disapproval including a list of specific requirements
which the client failed to submit.
(2) Failure to act on an application and/or request or
failure to refer back to the client a request which cannot be
(c) Denial of Request for Access to Government Service —
acted upon due to lack of requirement’s within the
Any denial of request for access to government service
prescribed period;
shall be fully explained in writing, stating the name of the
person making the denial and the grounds upon which
such denial is based. Any denial of request is deemed to (3) Failure to attend to clients who are within the premises
have been made with the permission or clearance from the of the office or agency concerned prior to the end of official
highest authority having jurisdiction over the government working hours and during lunch break;
office or agency concerned.
(4) Failure to render frontline services within the
(d) Limitation of Signatories — The number of signatories prescribed period on any application and/or request
in any document shall be limited to a maximum of five without due cause;
signatures which shall represent officers directly
supervising the office or agency concerned. (5) Failure to give the client a written notice on the
disapproval of an application or request; and
(e) Adoption of Working Schedules to Serve Clients —
Heads of offices and agencies which render frontline (6) Imposition of additional irrelevant requirements other
services shall adopt appropriate working schedules to than those listed in the first notice.
ensure that all clients who are within their premises prior
to the end of official working hours are attended to and Penalties for light offense shall be as follows:
served even during lunch break and after regular working
hours. First Offense — Thirty (30) days suspension without pay
and mandatory attendance in Values Orientation Program;
(f) Identification Card — All employees transacting with
the public shall be provided with an official identification Second Offense — Three months suspension without pay;
card which should be visibly worn during office hours. and

(g) Establishment of Public Assistance/Complaints Desk — Third Offense — Dismissal and perpetual disqualification
Each office or agency shall establish a public from public service.
assistance/complaints desk in all their offices.
(b) Grave Offense — Fixing and/or collusion with fixers in
SEC. 9. Automatic Extension of Permits and Licenses. — If a consideration of economic and/or other gain or advantage.
government office or agency fails to act on an application
and/or request for renewal of a license, permit or
Penalty — Dismissal and perpetual disqualification from
authority subject for renewal within the prescribed period,
public service.
said permit, license or authority shall automatically be
extended until a decision or resolution is rendered on the
application for renewal: Provided, That the automatic SEC. 12. Criminal Liability for Fixers. — In addition to
extension shall not apply when the permit, license, or Section 11(b), fixers, as defined in this Act, shall suffer the
authority covers activities which pose danger to public penalty of imprisonment not exceeding six years or a fine
health, public safety, public morals or to public policy of not less than Twenty thousand pesos (P20,000.00) but
including, but not limited to, natural resource extraction not more than Two hundred thousand pesos
activities. (P200,000.00) or both fine and imprisonment at the
discretion of the court.
SEC. 13. Civil and Criminal Liability, Not Barred. — The Gazette or in two national newspapers of general
finding of administrative liability under this Act shall not circulation.
be a bar to the filing of criminal, civil or other related
charges under existing laws arising from the same act or
omission as herein enumerated.

SEC. 14. Administrative Jurisdiction. — The administrative

jurisdiction on any violation of the provisions of this Act
shall be vested on either the Civil Service Commission
(CSC), the Presidential Anti-Graft Commission (PAGC) or
the Office of the Ombudsman as determined by
appropriate laws and issuances.

SEC. 15. Immunity; Discharge of Co-Respondent/Accused to

be a Witness. — Any public official or employee or any
person having been charged with another under this Act
and who voluntarily gives information pertaining to an
investigation or who willingly testifies therefor, shall be
exempt from prosecution in the case/s where his/her
information and testimony are given. The discharge may
be granted and directed by the investigating body or court
upon the application or petition of any of the
respondent/accused-informant and before the termination
of the investigation: Provided, That:

a) There is absolute necessity for the testimony of the

respondent/accused-informant whose discharge is
requested;

b) There is no other direct evidence available for the

proper prosecution of the offense committed, except the
testimony of said respondent/accused-informant;

c) The testimony of said respondent/accused-informant

can be substantially corroborated in its material points;

d) The respondent/accused-informant has not been

previously convicted of a crime involving moral turpitude;
and

e) Said respondent/accused-informant does not appear to

be the most guilty.

Evidence adduced in support of the discharge shall

automatically form part of the records of the investigation.
Should the investigating body or court deny the motion of
request for discharge as a witness, his/her sworn
statement shall be inadmissible as evidence.

SEC. 16. Implementing Rules and Regulations. — The Civil

Service Commission, in coordination with the
Development Academy of the Philippines (DAP), the Office
of the Ombudsman and the Presidential Anti-Graft
Commission (PAGC), shall promulgate the necessary rules
and regulations within ninety (90) days from the
effectivity of this Act.

SEC. 17. Separability Clause. — If any provision of this Act

shall be declared invalid or unconstitutional, such
declaration shall not affect the validity of the remaining
provisions of this Act.

SEC. 18. Repealing Clause. — All provisions of laws,

presidential decrees, letters of instruction and other
presidential issuances which are incompatible or
inconsistent with the provisions of this Act are hereby
deemed amended or repealed.

SEC. 19. Effectivity. — This Act shall take effect within

fifteen (15) days following its publication in the Official
PRESIDENTIAL DECREE No. 46 November 10, 1972

MAKING IT PUNISHABLE FOR PUBLIC OFFICIALS AND

EMPLOYEES TO RECEIVE, AND FOR PRIVATE PERSONS
TO GIVE, GIFTS ON ANY OCCASION, INCLUDING
CHRISTMAS

WHEREAS, under existing laws and the civil service rules,

it is prohibited to receive, directly or indirectly, any gift,
present or any other form of benefit in the course of official
duties;

WHEREAS, it is believed necessary to put more teeth to

existing laws and regulations to wipe out all conceivable
forms of graft and corruption in the public service, the
members of which should not only be honest but above
suspicion and reproach; and

WHEREAS, the stoppage of the practice of gift-giving to

government men is a concrete step in the administration's
program of reforms for the development of new moral
values in the social structure of the country, one of the
main objectives of the New Society;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President

of the Philippines, by virtue of the powers vested in me by
the Constitution as Commander-in-Chief of all the Armed
Forces of the Philippines, and pursuant to Proclamation
No. 1081 dated September 21, 1972, and General Order
No. 1 dated September 22, 1972, do hereby make it
punishable for any public official or employee, whether of
the national or local governments, to receive, directly or
indirectly, and for private persons to give, or offer to give,
any gift, present or other valuable thing to any occasion,
including Christmas, when such gift, present or other
valuable thing is given by reason of his official position,
regardless of whether or not the same is for past favor or
favors or the giver hopes or expects to receive a favor or
better treatment in the future from the public official or
employee concerned in the discharge of his official
functions. Included within the prohibition is the throwing
of parties or entertainments in honor of the official or
employees or his immediate relatives.

For violation of this Decree, the penalty of imprisonment

for not less than one (1) year nor more than five (5) years
and perpetual disqualification from public office shall be
imposed. The official or employee concerned shall likewise
be subject to administrative disciplinary action and, if
found guilty, shall be meted out the penalty of suspension
or removal, depending on the seriousness of the offense.

Any provision of law, executive order, rule or regulation or

circular inconsistent with this Decree is hereby repealed or
modified accordingly.

This Decree shall take effect immediately after its

publication.

Done in the City of Manila, this 10th day of November, in

the year of Our Lord, nineteen hundred and seventy-two.
[REPUBLIC ACT NO. 9160] (1) coins or currency of legal tender of the Philippines, or
of any other country;
AN ACT DEFINING THE CRIME OF MONEY
LAUNDERING, PROVIDING PENALTIES THEREFOR AND (2) drafts, checks and notes;
FOR OTHER PURPOSES
(3) securities or negotiable instruments, bonds,
Be it enacted by the Senate and the House of commercial papers, deposit certificates, trust certificates,
Representatives of the Philippines in Congress assembled. custodial receipts or deposit substitute instruments,
trading orders, transaction tickets and confirmations of
SECTION 1. Short Title. — This Act shall be known as the sale or investments and money market instruments; and
“Anti-Money Laundering Act of 2001.”
(4) other similar instruments where title thereto passes to
SEC. 2. Declaration of Policy. — It is hereby declared the another by endorsement, assignment or delivery.
policy of the State to protect and preserve the integrity and
confidentiality of bank accounts and to ensure that the (d) “Offender” refers to any person who commits a money
Philippines shall not be used as a money laundering site laundering offense.
for the proceeds of any unlawful activity. Consistent with
its foreign policy, the State shall extend cooperation in (e) “Person” refers to any natural or juridical person.
transnational investigations and prosecutions of persons
involved in money laundering activities wherever (f) “Proceeds” refers to an amount derived or realized from
committed. an unlawful activity.

SEC. 3. Definitions. — For purposes of this Act, the (g) “Supervising Authority” refers to the appropriate
following terms are hereby defined as follows: supervisory or regulatory agency, department or office
supervising or regulating the covered institutions
(a) “Covered institution” refers to: enumerated in Section 3(a).

(1) banks, non-banks, quasi-banks, trust entities, and all (h) “Transaction” refers to any act establishing any right or
other institutions and their subsidiaries and affiliates obligation or giving rise to any contractual or legal
supervised or regulated by the Bangko Sentral ng Pilipinas relationship between the parties thereto. It also includes
(BSP); any movement of funds by any means with a covered
institution.
(2) insurance companies and all other institutions
supervised or regulated by the Insurance Commission; and (i) “Unlawful activity” refers to any act or omission or
series or combination thereof involving or having relation
(3) (i) securities dealers, brokers, salesmen, investment to the following:
houses and other similar entities managing securities or
rendering services as investment agent, advisor, or (1) Kidnapping for ransom under Article 267 of Act No.
consultant, (ii) mutual funds, closed-end investment 3815, otherwise known as the Revised Penal Code, as
companies, common trust funds, pre-need companies and amended;
other similar entities, (iii) foreign exchange corporations,
money changers, money payment, remittance, and transfer
companies and other similar entities, and (iv) other
(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic
entities administering or otherwise dealing in currency,
Act No. 6425, as amended, otherwise known as the
commodities or financial derivatives based thereon,
Dangerous Drugs Act of 1972;
valuable objects, cash substitutes and other similar
monetary instruments or property supervised or regulated
by Securities and Exchange Commission. (3) Section 3 paragraphs B, C, E, G, H and I of Republic Act
No. 3019, as amended; otherwise known as the Anti-Graft
and Corrupt Practices Act;
(b) “Covered transaction” is a single, series, or combination
of transactions involving a total amount in excess of Four
million Philippine pesos (Php4,000,000.00) or an (4) Plunder under Republic Act No. 7080, as amended;
equivalent amount in foreign currency based on the
prevailing exchange rate within five (5) consecutive (5) Robbery and extortion under Articles 294, 295, 296,
banking days except those between a covered institution 299, 300, 301 and 302 of the Revised Penal Code, as
and a person who, at the time of the transaction was a amended;
properly identified client and the amount is commensurate
with the business or financial capacity of the client; or (6) Jueteng and Masiao punished as illegal gambling under
those with an underlying legal or trade obligation, Presidential Decree No. 1602;
purpose, origin or economic justification.
(7) Piracy on the high seas under the Revised Penal Code,
It likewise refers to a single, series or combination or as amended and Presidential Decree No. 532;
pattern of unusually large and complex transactions in
excess of Four million Philippine pesos (Php4,000,000.00) (8) Qualified theft under Article 310 of the Revised Penal
especially cash deposits and investments having no Code, as amended;
credible purpose or origin, underlying trade obligation or
contract.
(9) Swindling under Article 315 of the Revised Penal Code,
as amended;
(c) “Monetary instrument” refers to:
(10) Smuggling under Republic Act Nos. 455 and 1937; (1) to require and receive covered transaction reports
from covered institutions;
(11) Violations under Republic Act No. 8792, otherwise
known as the Electronic Commerce Act of 2000; (2) to issue orders addressed to the appropriate
Supervising Authority or the covered institution to
(12) Hijacking and other violations under Republic Act No. determine the true identity of the owner of any monetary
6235; destructive arson and murder, as defined under the instrument or property subject of a covered transaction
Revised Penal Code, as amended, including those report or request for assistance from a foreign State, or
perpetrated by terrorists against non-combatant persons believed by the Council, on the basis of substantial
and similar targets; evidence, to be, in whole or in part, wherever located,
representing, involving, or related to, directly or indirectly,
(13) Fraudulent practices and other violations under in any manner or by any means, the proceeds of an
Republic Act No. 8799, otherwise known as the Securities unlawful activity;
Regulation Code of 2000;
(3) to institute civil forfeiture proceedings and all other
(14) Felonies or offenses of a similar nature that are remedial proceedings through the Office of the Solicitor
punishable under the penal laws of other countries. General;

  (4) to cause the filing of complaints with the Department of

Justice or the Ombudsman for the prosecution of money
laundering offenses;
SEC. 4. Money Laundering Offense. — Money laundering is
a crime whereby the proceeds of an unlawful activity are
transacted, thereby making them appear to have (5) to initiate investigations of covered transactions,
originated from legitimate sources. It is committed by the money laundering activities and other violations of this
following: Act;

(a) Any person knowing that any monetary instrument or (6) to freeze any monetary instrument or property alleged
property represents, involves, or relates to, the proceeds of to be proceeds of any unlawful activity;
any unlawful activity, transacts or attempts to transact
said monetary instrument or property. (7) to implement such measures as may be necessary and
justified under this Act to counteract money laundering;
(b) Any person knowing that any monetary instrument or
property involves the proceeds of any unlawful activity, (8) to receive and take action in respect of, any request
performs or fails to perform any act as a result of which he from foreign states for assistance in their own anti-money
facilitates the offense of money laundering referred to in laundering operations provided in this Act;
paragraph (a) above.
(9) to develop educational programs on the pernicious
(c) Any person knowing that any monetary instrument or effects of money laundering, the methods and techniques
property is required under this Act to be disclosed and used in money laundering, the viable means of preventing
filed with the Anti-Money Laundering Council (AMLC), fails money laundering and the effective ways of prosecuting
to do so. and punishing offenders; and

SEC. 5. Jurisdiction of Money Laundering Cases. — The (10) to enlist the assistance of any branch, department,
regional trial courts shall have jurisdiction to try all cases bureau, office, agency or instrumentality of the
on money laundering. Those committed by public officers government, including government-owned and -controlled
and private persons who are in conspiracy with such corporations, in undertaking any and all anti-money
public officers shall be under the jurisdiction of the laundering operations, which may include the use of its
Sandiganbayan. personnel, facilities and resources for the more resolute
prevention, detection and investigation of money
SEC. 6. Prosecution of Money Laundering. laundering offenses and prosecution of offenders.

(a) Any person may be charged with and convicted of both SEC. 8. Creation of a Secretariat. — The AMLC is hereby
the offense of money laundering and the unlawful activity authorized to establish a secretariat to be headed by an
as herein defined. Executive Director who shall be appointed by the Council
for a term of five (5) years. He must be a member of the
Philippine Bar, at least thirty-five (35) years of age and of
(b) Any proceeding relating to the unlawful activity shall good moral character, unquestionable integrity and known
be given precedence over the prosecution of any offense or probity. All members of the Secretariat must have served
violation under this Act without prejudice to the freezing for at least five (5) years either in the Insurance
and other remedies provided. Commission, the Securities and Exchange Commission or
the Bangko Sentral ng Pilipinas (BSP) and shall hold full-
SEC. 7. Creation of Anti-Money Laundering Council time permanent positions within the BSP.
(AMLC). — The Anti-Money Laundering Council is hereby
created and shall be composed of the Governor of the SEC. 9. Prevention of Money Laundering; Customer
Bangko Sentral ng Pilipinas as chairman, the Identification Requirements and Record Keeping. — (a)
Commissioner of the Insurance Commission and the Customer Identification. — Covered institutions shall
Chairman of the Securities and Exchange Commission as establish and record the true identity of its clients based
members. The AMLC shall act unanimously in the on official documents. They shall maintain a system of
discharge of its functions as defined hereunder: verifying the true identity of their clients and, in case of
corporate clients, require a system of verifying their legal
existence and organizational structure, as well as the
authority and identification of all persons purporting to act act within seventy-two (72) hours from receipt of the
on their behalf. depositor’s explanation, the freeze order shall
automatically be dissolved. The fifteen (15)-day freeze
The provisions of existing laws to the contrary order of the AMLC may be extended upon order of the
notwithstanding, anonymous accounts, accounts under court, provided that the fifteen (15)-day period shall be
fictitious names, and all other similar accounts shall be tolled pending the court’s decision to extend the period.
absolutely prohibited. Peso and foreign currency non-
checking numbered accounts shall be allowed. The BSP No court shall issue a temporary restraining order or writ
may conduct annual testing solely limited to the of injunction against any freeze order issued by the AMLC
determination of the existence and true identity of the except the Court of Appeals or the Supreme Court.
owners of such accounts.
SEC. 11. Authority to Inquire into Bank Deposits. —
(b) Record Keeping. — All records of all transactions of Notwithstanding the provisions of Republic Act No. 1405,
covered institutions shall be maintained and safely stored as amended; Republic Act No. 6426, as amended; Republic
for five (5) years from the dates of transactions. With Act No. 8791, and other laws, the AMLC may inquire into
respect to closed accounts, the records on customer or examine any particular deposit or investment with any
identification, account files and business correspondence, banking institution or non-bank financial institution upon
shall be preserved and safely stored for at least five (5) order of any competent court in cases of violation of this
years from the dates when they were closed. Act when it has been established that there is probable
cause that the deposits or investments involved are in any
(c) Reporting of Covered Transactions. — Covered way related to a money laundering offense: Provided, That
institutions shall report to the AMLC all covered this provision shall not apply to deposits and investments
transactions within five (5) working days from occurrence made prior to the effectivity of this Act.
thereof, unless the Supervising Authority concerned
prescribes a longer period not exceeding ten (10) working SEC. 12. Forfeiture Provisions.
days.
(a) Civil Forfeiture. — When there is a covered transaction
When reporting covered transactions to the AMLC, report made, and the court has, in a petition filed for the
covered institutions and their officers, employees, purpose ordered seizure of any monetary instrument or
representatives, agents, advisors, consultants or associates property, in whole or in part, directly or indirectly, related
shall not be deemed to have violated Republic Act No. to said report, the Revised Rules of Court on civil forfeiture
1405, as amended; Republic Act No. 6426, as amended; shall apply.
Republic Act No. 8791 and other similar laws, but are
prohibited from communicating, directly or indirectly, in (b) Claim on Forfeiture Assets. — Where the court has
any manner or by any means, to any person the fact that a issued an order of forfeiture of the monetary instrument or
covered transaction report was made, the contents thereof, property in a criminal prosecution for any money
or any other information in relation thereto. In case of laundering offense defined under Section 4 of this Act, the
violation thereof, the concerned officer, employee, offender or any other person claiming an interest therein
representative, agent, advisor, consultant or associate of may apply, by verified petition, for a declaration that the
the covered institution, shall be criminally liable. However, same legitimately belongs to him and for segregation or
no administrative, criminal or civil proceedings, shall lie exclusion of the monetary instrument or property
against any person for having made a covered transaction corresponding thereto. The verified petition shall be filed
report in the regular performance of his duties and in good with the court which rendered the judgment of conviction
faith, whether or not such reporting results in any criminal and order of forfeiture, within fifteen (15) days from the
prosecution under this Act or any other Philippine law. date of the order of forfeiture, in default of which the said
order shall become final and executory. This provision
When reporting covered transactions to the AMLC, shall apply in both civil and criminal forfeiture.
covered institutions and their officers, employees,
representatives, agents, advisors, consultants or associates (c) Payment in Lieu of Forfeiture. — Where the court has
are prohibited from communicating, directly or indirectly, issued an order of forfeiture of the monetary instrument or
in any manner or by any means, to any person, entity, the property subject of a money laundering offense defined
media, the fact that a covered transaction report was under Section 4, and said order cannot be enforced
made, the contents thereof, or any other information in because any particular monetary instrument or property
relation thereto. Neither may such reporting be published cannot, with due diligence, be located, or it has been
or aired in any manner or form by the mass media, substantially altered, destroyed, diminished in value or
electronic mail, or other similar devices. In case of otherwise rendered worthless by any act or omission,
violation thereof, the concerned officer, employee, directly or indirectly, attributable to the offender, or it has
representative, agent, advisor, consultant or associate of been concealed, removed, converted or otherwise
the covered institution, or media shall be held criminally transferred to prevent the same from being found or to
liable. avoid forfeiture thereof, or it is located outside the
Philippines or has been placed or brought outside the
SEC. 10. Authority to Freeze. — Upon determination that jurisdiction of the court, or it has been commingled with
probable cause exists that any deposit or similar account is other monetary instruments or property belonging to
in any way related to an unlawful activity, the AMLC may either the offender himself or a third person or entity,
issue a freeze order, which shall be effective immediately, thereby rendering the same difficult to identify or be
on the account for a period not exceeding fifteen (15) days. segregated for purposes of forfeiture, the court may,
Notice to the depositor that his account has been frozen instead of enforcing the order of forfeiture of the monetary
shall be issued simultaneously with the issuance of the instrument or property or part thereof or interest therein,
freeze order. The depositor shall have seventy-two (72) accordingly order the convicted offender to pay an amount
hours upon receipt of the notice to explain why the freeze equal to the value of said monetary instrument or
order should be lifted. The AMLC has seventy-two (72) property. This provision shall apply in both civil and
hours to dispose of the depositor’s explanation. If it fails to criminal forfeiture.
SEC. 13. Mutual Assistance among States. launderer named therein or that he has been convicted of
any money laundering offense; (2) state the grounds on
(a) Request for Assistance from a Foreign State. — Where which any person is being investigated or prosecuted for
a foreign State makes a request for assistance in the money laundering or the details of his conviction; (3) give
investigation or prosecution of a money laundering sufficient particulars as to the identity of said person; (4)
offense, the AMLC may execute the request or refuse to give particulars sufficient to identify any covered
execute the same and inform the foreign State of any valid institution believed to have any information, document,
reason for not executing the request or for delaying the material or object which may be of assistance to the
execution thereof. The principles of mutuality and investigation or prosecution; (5) ask from the covered
reciprocity shall, for this purpose, be at all times institution concerned any information, document, material
recognized. or object which may be of assistance to the investigation or
prosecution; (6) specify the manner in which and to whom
(b) Powers of the AMLC to Act on a Request for Assistance said information, document, material or object obtained
from a Foreign State. — The AMLC may execute a request pursuant to said request, is to be produced; (7) give all the
for assistance from a foreign State by: (1) tracking down, particulars necessary for the issuance by the court in the
freezing, restraining and seizing assets alleged to be requested State of the writs, orders or processes needed
proceeds of any unlawful activity under the procedures by the requesting State; and (8) contain such other
laid down in this Act; (2) giving information needed by the information as may assist in the execution of the request.
foreign State within the procedures laid down in this Act;
and (3) applying for an order of forfeiture of any monetary (f) Authentication of Documents. — For purposes of this
instrument or property in the court: Provided, That the Section, a document is authenticated if the same is signed
court shall not issue such an order unless the application is or certified by a judge, magistrate or equivalent officer in
accompanied by an authenticated copy of the order of a or of, the requesting State, and authenticated by the oath
court in the requesting State ordering the forfeiture of said or affirmation of a witness or sealed with an official or
monetary instrument or property of a person who has public seal of a minister, secretary of State, or officer in or
been convicted of a money laundering offense in the of, the government of the requesting State, or of the person
requesting State, and a certification or an affidavit of a administering the government or a department of the
competent officer of the requesting State stating that the requesting territory, protectorate or colony. The certificate
conviction and the order of forfeiture are final and that no of authentication may also be made by a secretary of the
further appeal lies in respect of either. embassy or legation, consul general, consul, vice consul,
consular agent or any officer in the foreign service of the
Philippines stationed in the foreign State in which the
record is kept, and authenticated by the seal of his office.
(c) Obtaining Assistance from Foreign States. — The AMLC
may make a request to any foreign State for assistance in
(1) tracking down, freezing, restraining and seizing assets (g) Extradition. — The Philippines shall negotiate for the
alleged to be proceeds of any unlawful activity; (2) inclusion of money laundering offenses as herein defined
obtaining information that it needs relating to any covered among extraditable offenses in all future treaties.
transaction, money laundering offense or any other matter
directly or indirectly related thereto; (3) to the extent SEC. 14. Penal Provisions. — (a) Penalties for the Crime of
allowed by the law of the foreign State, applying with the Money Laundering. The penalty of imprisonment ranging
proper court therein for an order to enter any premises from seven (7) to fourteen (14) years and a fine of not less
belonging to or in the possession or control of, any or all of than Three million Philippine pesos (Php3,000,000.00) but
the persons named in said request, and/or search any or not more than twice the value of the monetary instrument
all such persons named therein and/or remove any or property involved in the offense, shall be imposed upon
document, material or object named in said request: a person convicted under Section 4(a) of this Act.
Provided, That the documents accompanying the request
in support of the application have been duly authenticated The penalty of imprisonment from four (4) to seven (7)
in accordance with the applicable law or regulation of the years and a fine of not less than One million five hundred
foreign State; and (4) applying for an order of forfeiture of thousand Philippine pesos (Php1,500,000.00) but not
any monetary instrument or property in the proper court more than Three million Philippine pesos
in the foreign State: Provided, That the request is (Php3,000,000.00), shall be imposed upon a person
accompanied by an authenticated copy of the order of the convicted under Section 4(b) of this Act.
regional trial court ordering the forfeiture of said
monetary instrument or property of a convicted offender The penalty of imprisonment from six (6) months to four
and an affidavit of the clerk of court stating that the (4) years or a fine of not less than One hundred thousand
conviction and the order of forfeiture are final and that no Philippine pesos (Php100,000.00) but not more than Five
further appeal lies in respect of either. hundred thousand Philippine pesos (Php500,000.00), or
both, shall be imposed on a person convicted under
(d) Limitations on Request for Mutual Assistance. — The Section 4(c) of this Act.
AMLC may refuse to comply with any request for
assistance where the action sought by the request (b) Penalties for Failure to Keep Records. The penalty of
contravenes any provision of the Constitution or the imprisonment from six (6) months to one (1) year or a fine
execution of a request is likely to prejudice the national of not less than One hundred thousand Philippine pesos
interest of the Philippines unless there is a treaty between (Php100,000.00) but not more than Five hundred
the Philippines and the requesting State relating to the thousand Philippine pesos (Php500,000.00), or both, shall
provision of assistance in relation to money laundering be imposed on a person convicted under Section 9(b) of
offenses. this Act.

(e) Requirements for Requests for Mutual Assistance from (c) Malicious Reporting. Any person who, with malice, or in
Foreign States. — A request for mutual assistance from a bad faith, report or files a completely unwarranted or false
foreign State must (1) confirm that an investigation or information relative to money laundering transaction
prosecution is being conducted in respect of a money against any person shall be subject to a penalty of six (6)
months to four (4) years imprisonment and a fine of not composed of seven (7) members from the Senate and
less than One hundred thousand Philippine pesos seven (7) members from the House of Representatives.
(Php100,000.00) but not more than Five hundred The members from the Senate shall be appointed by the
thousand Philippine pesos (Php500,000.00), at the Senate President based on the proportional representation
discretion of the court: Provided, That the offender is not of the parties or coalitions therein with at least two (2)
entitled to avail the benefits of the Probation Law. Senators representing the minority. The members from the
House of Representatives shall be appointed by the
If the offender is a corporation, association, partnership or Speaker also based on proportional representation of the
any juridical person, the penalty shall be imposed upon the parties or coalitions therein with at least two (2) members
responsible officers, as the case may be, who participated representing the minority.
in the commission of the crime or who shall have
knowingly permitted or failed to prevent its commission. If The Oversight Committee shall have the power to
the offender is a juridical person, the court may suspend or promulgate its own rules, to oversee the implementation
revoke its license. If the offender is an alien, he shall, in of this Act, and to review or revise the implementing rules
addition to the penalties herein prescribed, be deported issued by the Anti-Money Laundering Council within thirty
without further proceedings after serving the penalties (30) days from the promulgation of the said rules.
herein prescribed. If the offender is a public official or
employee, he shall, in addition to the penalties prescribed SEC. 20. Appropriations Clause. — The AMLC shall be
herein, suffer perpetual or temporary absolute provided with an initial appropriation of Twenty-five
disqualification from office, as the case may be. million Philippine pesos (Php25,000,000.00) to be drawn
from the national government. Appropriations for the
Any public official or employee who is called upon to succeeding years shall be included in the General
testify and refuses to do the same or purposely fails to Appropriations Act.
testify shall suffer the same penalties prescribed herein.
SEC. 21. Separability Clause. — If any provision or section
(d) Breach of Confidentiality. The punishment of of this Act or the application thereof to any person or
imprisonment ranging from three (3) to eight (8) years circumstance is held to be invalid, the other provisions or
and a fine of not less than Five hundred thousand sections of this Act, and the application of such provision
Philippine pesos (Php500,000.00) but not more than One or section to other persons or circumstances, shall not be
million Philippine pesos (Php1,000,000.00), shall be affected thereby.
imposed on a person convicted for a violation under
Section 9(c). SEC. 22. Repealing Clause. — All laws, decrees, executive
orders, rules and regulations or parts thereof, including
SEC. 15. System of Incentives and Rewards. — A system of the relevant provisions of Republic Act No. 1405, as
special incentives and rewards is hereby established to be amended; Republic Act No. 6426, as amended; Republic
given to the appropriate government agency and its Act No. 8791, as amended and other similar laws, as are
personnel that led and initiated an investigation, inconsistent with this Act, are hereby repealed, amended
prosecution and conviction of persons involved in the or modified accordingly.
offense penalized in Section 4 of this Act.
SEC. 23. Effectivity. — This Act shall take effect fifteen (15)
SEC. 16. Prohibitions Against Political Harassment. — This days after its complete publication in the Official Gazette or
Act shall not be used for political persecution or in at least two (2) national newspapers of general
harassment or as an instrument to hamper competition in circulation.
trade and commerce.
The provisions of this Act shall not apply to deposits and
No case for money laundering may be filed against and no investments made prior to its effectivity.
assets shall be frozen, attached or forfeited to the prejudice
of a candidate for an electoral office during an election
period.

SEC. 17. Restitution. — Restitution for any aggrieved party

shall be governed by the provisions of the New Civil Code.

SEC. 18. Implementing Rules and Regulations. — Within

thirty (30) days from the effectivity of this Act, the Bangko
Sentral ng Pilipinas, the Insurance Commission and the
Securities and Exchange Commission shall promulgate the
rules and regulations to implement effectively the
provisions of this Act. Said rules and regulations shall be
submitted to the Congressional Oversight Committee for
approval.

Covered institutions shall formulate their respective

money laundering prevention programs in accordance
with this Act including, but not limited to, information
dissemination on money laundering activities and its
prevention, detection and reporting, and the training of
responsible officers and personnel of covered institutions.

SEC. 19. Congressional Oversight Committee. — There is

hereby created a Congressional Oversight Committee
Republic Act No. 7080             July 12, 1991 to the damage and prejudice of the
Filipino people and the Republic of the
AN ACT DEFINING AND PENALIZING THE CRIME OF Philippines.
PLUNDER
See Section 2 As amended by Section 12 of RA No.7659
Be it enacted by the Senate and House of Representatives of Section 2. Definition of the Crime of Plunder; Penalties -
the Philippines in Congress assembled: Any public officer who, by himself or in connivance with
members of his family, relatives by affinity or
Section 1. Definition of Terms - As used in this Act, the consanguinity, business associates, subordinates or other
term - persons, amasses, accumulates or acquires ill-gotten
wealth through a combination or series of overt or
criminal acts as described in Section 1(d) hereof, in the
a) Public Officer means any person holding any aggregate amount or total value of at least Seventy-five
public office in the Government of the Republic of million pesos (P75,000,000.00), shall be guilty of the crime
the Philippines by virtue of an appointment, of plunder and shall be punished by life imprisonment
election or contract. with perpetual absolute disqualification from holding any
public office. Any person who participated with said public
b) Government includes the National Government, officer in the commission of plunder shall likewise be
and any of its subdivisions, agencies or punished. In the imposition of penalties, the degree of
instrumentalities, including government-owned or participation and the attendance of mitigating and
-controlled corporations and their subsidiaries. extenuating circumstances shall be considered by the
court. The court shall declare any and all ill-gotten wealth
c) Person includes any natural or juridical person, and their interests and other incomes and assets including
unless the context indicates otherwise. the properties and shares of stock derived from the
deposit or investment thereof forfeited in favor of the
d) Ill-gotten wealth means any asset, property, State.
business enterprise or material possession of any
person within the purview of Section Two (2) Section 3. Competent Court - Until otherwise provided by
hereof, acquired by him directly or indirectly law, all prosecutions under this Act shall be within the
through dummies, nominees, agents, subordinates original jurisdiction of the Sandiganbayan.
and/or business associates by any combination or
series of the following means or similar schemes: Section 4. Rule of Evidence - For purposes of establishing
the crime of plunder, it shall not be necessary to prove
1) Through misappropriation, conversion, each and every criminal act done by the accused in
misuse, or malversation of public funds or furtherance of the scheme or conspiracy to amass,
raids on the public treasury; accumulate or acquire ill-gotten wealth, it being sufficient
to establish beyond reasonable doubt a pattern of overt or
2) By receiving, directly or indirectly, any criminal acts indicative of the overall unlawful scheme or
commission, gift, share, percentage, conspiracy.
kickbacks or any other form of pecuniary
benefit from any person and/or entity in Section 5. Suspension and Loss of Benefits - Any public
connection with any government contract officer against whom any criminal prosecution under a
or project or by reason of the office or valid information under this Act in whatever stage of
position of the public officer concerned; execution and mode of participation, is pending in court,
shall be suspended from office. Should he be convicted by
3) By the illegal or fraudulent conveyance final judgment, he shall lose all retirement or gratuity
or disposition of assets belonging to the benefits under any law, but if he is acquitted, he shall be
National Government or any of its entitled to reinstatement and to the salaries and other
subdivisions, agencies or benefits which he failed to receive during suspension,
instrumentalities or government-owned unless in the meantime, administrative proceedings have
or -controlled corporations and their been filed against him.
subsidiaries;
Section 6. Prescription of Crimes - The crime punishable
4) By obtaining, receiving or accepting under this Act shall prescribe in twenty (20) years.
directly or indirectly any shares of stock, However, the right of the State to recover properties
equity or any other form of interest or unlawfully acquired by public officers from them or from
participation including promise of future their nominees or transferees shall not be barred by
employment in any business enterprise or prescription, laches, or estoppel.
undertaking;
Section 7. Separability of Provisions - If any provisions of
5) By establishing agricultural, industrial this Act or the application thereof to any person or
or commercial monopolies or other circumstance is held invalid, the remaining provisions of
combinations and/or implementation of this Act and the application of such provisions to other
decrees and orders intended to benefit persons or circumstances shall not be affected thereby.
particular persons or special interests; or
Section 8. Scope - This Act shall not apply to or affect
6) By taking undue advantage of official pending prosecutions or proceedings, or those which may
position, authority, relationship, be instituted under Executive Order No. 1, issued and
connection or influence to unjustly enrich promulgated on February 28, 1986.
himself or themselves at the expense and
Section 9. Effectivity - This Act shall take effect after
fifteen (15) days from its publication in the Official Gazette
and in a newspaper of general circulation.
PRESIDENTIAL DECREE No. 1602 transportation owned or controlled by
him. If the place where gambling is
PRESCRIBING STIFFER PENALTIES ON ILLEGAL carried on has a reputation of a gambling
GAMBLING place or that prohibited gambling is
frequently carried on therein, or the place
WHEREAS, Philippine Gambling Laws such as Articles 195- is a public or government building or
199 of the Revised Penal Code (Forms of Gambling and barangay hall, the malfactor shall be
Betting), R.A. 3063 (Horse racing Bookies), P.D. 449 punished by prision correccional in its
(Cockfighting), P.D. 483 (Game Fixing), P.D. 510 (Slot maximum period and a fine of six
Machines) in relation to Opinion Nos. 33 and 97 of the thousand pesos.
Ministry of Justice, P.D. 1306 (Jai-Alai Bookies) and other
City and Municipal Ordinances or gambling all over the (b) The penalty of prision correccional in its
country prescribe penalties which are inadequate to maximum period or a fine of six thousand pesos
discourage or stamp out this pernicious activities; shall be imposed upon the maintainer or
conductor of the above gambling schemes.
WHEREAS, there is now a need to increase their penalties
to make them more effective in combating this social (c) The penalty of prision mayor in its medium
menace which dissipate the energy and resources of our period with temporary absolute disqualification or
people; a fine of six thousand pesos shall be imposed if the
maintainer, conductor or banker of said gambling
NOW, THEREFORE, I, FERDINAND E. MARCOS, President schemes is a government official, or where such
of the Republic of the Philippines, by virtue of the powers government official is the player, promoter,
vested in me by the Constitution, do hereby order and referee, umpire, judge or coach in case of game
decree: fixing, point shaving and machination.

Section 1. Penalties. The following penalties are hereby (d) The penalty of prision correccional in its
imposed: medium period or a fine ranging from four
hundred to two thousand pesos shall be imposed
upon any person who shall, knowingly and
(a) The penalty of prison correccional in its without lawful purpose in any hour of any day,
medium period of a fine ranging from one possess any lottery list, paper or other matter
thousand to six thousand pesos, and in case of containing letters, figures, signs or symbols
recidivism, the penalty of prision mayor in its pertaining to or in any manner used in the games
medium period or a fine ranging from five of jueteng, jai-alai or horse racing bookies, and
thousand to ten thousand pesos shall be imposed similar games of lotteries and numbers which
upon: have taken place or about to take place.

1. Any person other than those referred to (e) The penalty of temporary absolute
in the succeeding sub-sections who in any disqualifications shall be imposed upon any
manner, shall directly or indirectly take barangay official who, with knowledge of the
part in any illegal or unauthorized existence of a gambling house or place in his
activities or games of cockfighting, jurisdiction fails to abate the same or take action
jueteng, jai alai or horse racing to include in connection therewith.
bookie operations and game fixing,
numbers, bingo and other forms of
lotteries; cara y cruz, pompiang and the (f) The penalty of prision correccional in its
like; 7-11 and any game using dice; black maximum period or a fine ranging from five
jack, lucky nine, poker and its derivatives, hundred pesos to two thousand pesos shall be
monte, baccarat, cuajao, pangguingue and imposed upon any security officer, security guard,
other card games; paik que, high and low, watchman, private or house detective of hotels,
mahjong, domino and other games using villages, buildings, enclosures and the like which
plastic tiles and the likes; slot machines, have the reputation of a gambling place or where
roulette, pinball and other mechanical gambling activities are being held.
contraptions and devices; dog racing, boat
racing, car racing and other forms of Section 2. Informer's reward. Any person who shall
races, basketball, boxing, volleyball, disclose information that will lead to the arrest and final
bowling, pingpong and other forms of conviction of the malfactor shall be rewarded twenty
individual or team contests to include percent of the cash money or articles of value confiscated
game fixing, point shaving and other or forfeited in favor of the government.
machinations; banking or percentage
game, or any other game scheme, whether Section 3. Repealing Clause. Provisions of Art. 195-199 of
upon chance or skill, wherein wagers the Revised Penal Code, as amended, Republic Act No.
consisting of money, articles of value or 3063, Presidential Decrees Numbered 483, 449, 510 and
representative of value are at stake or 1306, letters of instructions, laws, executive orders, rules
made; and regulations, city and municipal ordinances which are
inconsistent with this Decree are hereby repealed.
2. Any person who shall knowingly permit
any form of gambling referred to in the Section 4. Effectivity. This Decree shall take effect
preceding subparagraph to be carried on immediately upon publication at least once in a newspaper
in inhabited or uninhabited place or in of general circulation.
any building, vessel or other means of
Done in the City of Manila, this 11th day of June, in the year
of Our Lord, nineteen hundred and seventy-eight.