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SPECIAL PENAL LAWS

BANK SECRECY ACT (RA 1405) Approved on September 9, 1955
What is the purpose of the Bank Secrecy Act?
To give encouragement to the people to deposit their money in banking institutions and
to discourage private hoarding so that the same may be properly utilized by banks in
authorized loans to assist in the economic development of the country.
What are considered absolutely confidential in nature and hence cannot be
examined, inquired or looked into by any person, government official, bureau,
or office?
All deposits of whatever nature with banks or banking institutions in the Philippines
including investments in bonds issued by the Government of the Philippines,
its political subdivisions and its instrumentalities.
What is the exception to this prohibition?
Upon written permission of the depositor.
In impeachment cases, there is a different rule. What is it?
Upon order of a competent court in cases of bribery or dereliction of duty of public
officials. or in cases where the money deposited or invested is the subject matter of the
litigation.
What is the responsibility of any official or employee of a banking institution?
To not disclose information concerning said deposits.
Exception:
Upon written permission of the depositor or upon court order in cases of impeachment.
FOREIGN CURRENCY DEPOSIT ACT (RA 6426)Approved on April 4,
1974
Who may be authorized to deposit foreign currency?
Any person, natural or juridical, may deposit with such Philippine banks in
good standing.
What foreign currencies are acceptable?
Foreign currencies which are acceptable as part of the international reserve, except
those which are required by the Central Bank to be surrendered.
What are the authority of banks designated by Central Bank?
(1)
To accept deposits and to accept foreign currencies in trust Provided, That
numbered accounts for recording and servicing of said deposits shall be allowed;
(2) To issue certificates to evidence such deposits;
(3) To discount said certificates;

(4) To accept said deposits as collateral for loans subject to such rules and regulations as
may be promulgated by the Central Bank from time to time; and
(5) To pay interest in foreign currency on such deposits.
What are the requirements for foreign currency cover?
Except as the Monetary Board may otherwise prescribe or allow, the depository banks
shall maintain at all times a one hundred percent foreign currency cover for their
liabilities, of which cover at least fifteen percent shall be in the form of foreign currency
deposit with the Central Bank, and the balance in the form of foreign currency loans or
securities, which loans or securities shall be of short term maturities and
readily marketable. Such foreign currency loans may include loans to domestic
enterprises which are export-oriented or registered with the Board of Investments,
subject to the limitations to be prescribed by the Monetary Board on such loans. Except
as the Monetary Board may otherwise prescribe or allow, the foreign currency cover
shall be in the same currency as that of the corresponding foreign currency deposit
liability. The Central Bank may pay interest on the foreign currency deposit, and if
requested shall exchange the foreign currency notes and coins into foreign currency
instruments drawn on its depository banks. (As amended by PD No. 1453, June11,
1978.)
Who are excepted from the 15% deposit requirement?
Depository banks which, on account of networth, resources, past performance, or other
pertinent criteria, have been qualified by the Monetary Board to function under an
expanded foreign currency deposit system.
Can the said depositary banks extend foreign currency loans to any domestic
enterprise?
Yes.
But subject to prior Central Bank approval when required by Central Bank regulations. It
is without the limitations prescribed in the preceding paragraph regarding maturity and
marketability, and such loans shall be eligible for purposes of the 100% foreign currency
cover.
May the depositor withdraw or transfer his deposit abroad?
Yes. There shall be no restriction.
Exception:
Those arising from the contract between the depositor and the bank.
Are foreign currency deposits subject to tax?
No. Including interest and all other income or earnings of such deposits are hereby
exempted from any and all taxes whatsoever irrespective of whether or not these
deposits are made by residents or nonresidents so long as the deposits are eligible or

allowed and, in the case of nonresidents, irrespective of whether or not they are
engaged in trade or business in the Philippines.
Do foreign currency deposits enjoy confidentiality?
Yes. They are declared as and considered of an absolutely confidential nature and,
except upon the written permission of the depositor, in no instance shall foreign currency
deposits be examined, inquired or looked into by any person, government official,
bureau or office whether judicial or administrative or legislative, or any other entity
whether public or private.
May foreign currency deposits be subject to attachment or garnishment?
No. They shall be exempt from attachment, garnishment, or any other order or process
of any court, legislative body, government agency or any administrative body
whatsoever.
Are foreign currency deposits insured?
Yes. They shall be insured under Philippine Deposit Insurance Corporation
(PDIC).Insurance payment shall be in the same currency in which the insured deposits
are denominated.
OBSTRUCTION OF JUSTICE (PD 1829)Effective on January 16, 1981
How is obstruction of justice committed?
Knowingly or willfully obstructing, impeding, frustrating or delaying the apprehension of
suspects and the investigation and prosecution of criminal cases.
What are the specific acts in under obstruction of justice?
(a) preventing witnesses from testifying in any criminal proceeding or from reporting
the commission of any offense or the identity of any offender/s by means of bribery,
misrepresentation, deceit, intimidation, force or threats;
(b) altering, destroying, suppressing or concealing any paper, record, document, or
object, with intent to impair its verity, authenticity, legibility, availability, or
admissibility as evidence in any investigation of or official proceedings in,
criminal cases, or to be used in the investigation of, or official proceedings
in, criminal cases;
(c) harboring or concealing, or facilitating the escape of, any person he knows, or has
reasonable ground to believe or suspect, has committed any offense under existing
penal laws in order to prevent his arrest prosecution and conviction;
(d) publicly using a fictitious name for the purpose of concealing a crime, evading
prosecution or the execution of a judgment, or concealing his true name and other
personal circumstances for the same purpose or purposes;
(e) delaying the prosecution of criminal cases by obstructing the service of process or
court orders or disturbing proceedings in the fiscal's offices, in Tanodbayan, or in the
courts;

(f) making, presenting or using any record, document, paper or object with knowledge
of its falsity and with intent to affect the course or outcome of the investigation of, or
official proceedings in, criminal cases;
(g) soliciting, accepting, or agreeing to accept any benefit in consideration of
abstaining from, discounting, or impeding the prosecution of a criminal offender;
(h) threatening directly or indirectly another with the infliction of any wrong upon his
person, honor or property or that of any immediate member or members of his family
in order to prevent such person from appearing in the investigation of, or official
proceedings in, criminal cases, or imposing a condition, whether lawful or unlawful, in
order to prevent a person from appearing in the investigation of or in
official proceedings in, criminal cases;
(i) giving of false or fabricated information to mislead or prevent the law enforcement
agencies from apprehending the offender or from protecting the life or property of the
victim; or fabricating information from the data gathered in confidence by
investigating authorities for purposes of background information and not for
publication and publishing or disseminating the same to mislead the investigator or to
the court.
Suppose a higher penalty is imposed by another law on one of
abovementioned acts?
The higher penalty shall be imposed.
Suppose the violator is a public official or employee
?He shall in addition to the penalties provided there under, suffer perpetual
disqualification from holding public office.
PLUNDER (RA 7080)
Approved on July 12, 1991
Who can be guilty of Plunder?
1) Any public officer who, by himself or in connivance with members of his family,
relatives by affinity or consanguinity, business associates, subordinates or other
persons, amasses, accumulates or acquires ill-gotten wealth through a
combination or series of overt criminal acts in the aggregate amount or total
value of at least P50 million.
2) 2) Any person who participated with the said public officer in the commission of
an offense contributing to the crime of plunder shall likewise be punished for such
offense.
What is Ill-gotten wealth?
Any asset, property, business enterprise or material possession of any person, acquired
by him directly or indirectly through dummies, nominees, agents, subordinates and/or

business associates by any combination or series of specific or similar

criminal means or schemes.
How is ill-gotten wealth acquired?
1)Misappropriation, conversion, misuse, or malversation
: Public funds or raids on the public treasury
2)Receive (directly or indirectly) in connection with any government contract
or project or by reason of the office or position
: Commission, gift, share, percentage, kickbacks or any other form of pecuniary benefit
from any person and/or entity
3)Illegal or fraudulent conveyance or disposition
: Assets of the Government or any of its subdivisions, agencies or
instrumentalities or GOCCs and their subsidiaries
4)Obtaining, receiving or accepting (directly or indirectly) in any business
enterprise or undertaking
: Shares of stock, equity or any other form of interest or participation including promise
of future employment
5) Establishing the ff. to benefit particular persons or special interests
: Agricultural, industrial or commercial monopolies or other combinations and/or
implementation of decrees and orders
6) Taking undue advantage of the ff.
to unjustly enrich himself at the expense and to the damage and prejudice of
the country and its citizens
: Official position, authority, relationship, connection or influence
What must be the total value or aggregate amount of ill-gotten wealth?
At least P50 Million.
What is the penalty?
Reclusion perpetua to death.
How is the penalty determined?
In the imposition of penalties, the degree of participation and the attendance of
mitigating circumstances shall be considered by the court.
What shall happen to the ill-gotten wealth?
Any or all ill-gotten wealth and their interests and other incomes and assets including
the properties and shares of stocks derived from the deposit or investment thereof shall
be forfeited in favor of the State.
Who is a Public Officer?
Any person holding any public office in the Philippine Government by virtue of an
appointment, election or contract.

What is the scope of the Government?

It includes the National Government, and any of its subdivisions, agencies or
instrumentalities, including GOCCs and their subsidiaries.
What is a Person?
It includes any natural
indicates otherwise.

or

juridical

person,

unless

the

context

Which court has competent jurisdiction over plunder cases?

The Sandiganbayan in its original jurisdiction, until otherwise provided by law.
How is the crime of plunder established by means of evidence?
It shall not be necessary to prove each and every criminal act done by the accused. It is
sufficient to establish beyond reasonable doubt a pattern of overt or criminal acts
indicative of the overall unlawful scheme or conspiracy.
Will the public officer accused of plunder be suspended from office?
Yes. Any public officer against whom any criminal prosecution under a valid information
under this Act in whatever stage of execution and mode of participation, is pending in
court, shall be suspended from office.
What happens if he is convicted by final judgment?
He shall lose all retirement or gratuity benefits under any law.
If acquitted?
He shall be entitled to reinstatement and to the salaries and other benefits which he
failed to receive during suspension, unless in the meantime, administrative
proceedings have been filed against him