REPUBLIC ACT No.

11032 covering business and nonbusiness related

transactions as defined in this Act."
AN ACT PROMOTING EASE OF DOING
BUSINESS AND EFFICIENT DELIVERY OF Section 4. Section 4 of the same Act is hereby
GOVERNMENT SERVICES, AMENDING FOR amended to read as follows:
THE PURPOSE REPUBLIC ACT NO. 9485,
OTHERWISE KNOWN AS THE ANTI-RED "Sec. 4. Definition of Terms. – As used in this
TAPE ACT OF 2007, AND FOR OTHER Act, the following terms are defined as follows:
PURPOSES
"(a) Action refers to the written approval or
Be it enacted by the Senate and House of disapproval made by a government office or
Representatives of the Philippines in Congress agency on the application or request submitted
assembled: by an applicant or requesting party for
processing;
Section 1. Section 1 of Republic Act No. 9485,
otherwise known as the "Anti-Red Tape Act of "(b) Business One Stop Shop (BOSS) – a single
2007", is hereby amended to read as follows: common site or location, or a single online
website or portal designated for the Business
"Sec. 1. Short Title. – This Act shall be known as Permit and Licensing System (BPLS) of an LGU
the Ease of Doing Business and Efficient to receive and process applications, receive
Government Service Delivery Act of 2018" payments, and issue approved licenses,
clearances, permits, or authorizations;
Section 2. Section 2 of the same Act is hereby
amended to read as follows: "(c) Business-related transactions – a set of
regulatory requirements that a business entity
"Sec. 2. Declaration of Policy. – It is hereby must comply with to engage, operate or continue
declared the policy of the State to promote to operate a business, such as, but not limited
integrity, accountability, proper management of to, collection or preparation of a number of
public affairs and public property as well as to documents, submission to national and local
establish effective practices, aimed at efficient government authorities, approval of application
turnaround of the delivery of government submitted, and receipt of a formal certificate or
services and the prevention of graft and certificates, permits, licenses which include
corruption in government. Towards this end, the primary and secondary, clearances and such
State shall maintain honesty and responsibility similar authorization or documents which confer
among its public officials and employees, and eligibility to operate or continue to operate as a
shall take appropriate measures to promote legitimate business;
transparency in each agency with regard to the
manner of transacting with the public, which "(d) Complex transactions – applications or
shall encompass a program for the adoption of requests submitted by applicants or requesting
simplified requirements and procedures that will parties of a government office which necessitate
reduce red tape and expedite business and evaluation in the resolution of complicated
nonbusiness related transactions in issues by an officer or employee of said
government." government office, such transactions to be
determined by the office concerned;
Section 3. Section 3 of the same Act is hereby
amended to read as follows: "(e) Fixer – any individual whether or not
officially involved in the operation of a
"Sec. 3 . Coverage. – This Act shall apply to all government office or agency who has access to
government offices and agencies including local people working therein, and whether or not in
government units (LGUs), government-owned or collusion with them, facilitates speedy
controlled corporations and other government completion of transactions for pecuniary gain or
instrumentalities, whether located in the any other advantage or consideration;
Philippines or abroad, that provide services
"(f) Government service – the process or only require ministerial actions on the part of the
transaction between applicants or requesting public officer or employee, or that which present
parties and government offices or agencies only inconsequential issues for the resolution by
involving applications for any privilege, right, an officer or employee of said government."
reward, license, clearance, permit or
authorization, concession, of for any Section 5. Section 5 of the same Act is hereby
modification, renewal or extension of the amended to read as follows:
enumerated applications or requests which are
acted upon in the ordinary course of business of
"Sec. 5. Reengineering of Systems and
the agency or office concerned;
Procedures. – All offices and agencies which
provide government services are hereby
"(g) Highly technical application – an application mandated to regularly undertake cost
which requires the use of technical knowledge, compliance analysis, time and motion studies,
specialized skills and/or training in the undergo evaluation and improvement of their
processing and/or evaluation thereof; transaction systems and procedures and
reengineer the same if deemed necessary to
"(h) Nonbusiness transactions – all other reduce bureaucratic red tape and processing
government transactions not falling under time.
Section 4 (c) of this Act;
"The Anti-Red Tape Authority, created in this
"(i) Officer or employee – a person employed in Act, shall coordinate with all government offices
a government office or agency required to covered under Section 3 of this Act in the review
perform specific duties and responsibilities of existing laws, executive issuances and local
related to the application or request submitted ordinances, and recommend the repeal of the
by an applicant or requesting party for same if deemed outdated, redundant, and adds
processing; undue regulatory burden to the transacting
public.
"(j) Processing time – the time consumed by an
LGU or national government agency (NGA) from "All proposed regulations of government
the receipt of an application or request with agencies under Section 3 of this Act shall
complete requirements, accompanying undergo regulatory impact assessment to
documents and payment of fees to the issuance establish if the proposed regulation does not add
of certification or such similar documents undue regulatory burden and cost to these
approving or disapproving an application or agencies and the applicants or requesting
request; parties: Provided, That when necessary, any
proposed regulation may undergo pilot
"(k) Red tape – any regulation, rule, or implementation to assess regulatory impact.
administrative procedure or system that is
ineffective or detrimental in achieving its "Upon effectivity of this Act, all LGUs and NGAs
intended objectives and, as a result, produces are directed to initiate review of existing policies
slow, suboptimal, and undesirable social and operations and commence with the
outcomes; reengineering of their systems and procedures
in compliance with the provisions of this Act,
"(l) Regulation – any legal instrument that gives pending the approval of the implementing rules
effect to a government policy intervention and and regulations (IRR) thereof."
includes licensing, imposing information
obligation, compliance to standards or payment Section 6. Section 6 of the same Act is hereby
of any form of fee, levy, charge or any other amended to read as follows:
statutory and regulatory requirements necessary
to carry out activity; and "Sec. 6. Citizen’s Charter. – All government
agencies including departments, bureaus,
"(m) Simple transactions – applications or offices, instrumentalities, or government-owned
requests submitted by applicants or requesting and/or –controlled corporations, or LGUs shall
parties of a government office or agency which set up their respective most current and updated
service standards to be known as the Citizen’s accountable to the public in rendering fast,
Charter in the form of information billboards efficient, convenient and reliable service. All
which shall be posted at the main entrance of transactions and processes are deemed to have
offices or at the most conspicuous place, in their been made with the permission or clearance
respective websites and in the form of published from the highest authority having jurisdiction
materials written either in English, Filipino, or in over the government office or agency
the local dialect, that detail: concerned."

"(a) A comprehensive and uniform checklist of Section 9. Section 8 of the same Act is hereby
requirements for each type of application or amended and renumbered as Section 9 to read
request; as follows:

"(b) The procedure to obtain a particular service; "Sec. 9. Accessing Government Services. – The
following shall adopted by all government offices
"(c) The person/s responsible for each step; and agencies:

"(d) The maximum time to conclude the process; "(a) Acceptance of Applications or
Requests. –
"(e) The document/s to be presented by the
applicant or requesting party, if necessary; "(1) All officers or employees
shall accept written applications,
requests, and/or documents
"(f) The amount of fees, if necessary; and
being submitted by applicants or
requesting parties of the offices
"(g) The procedure for filing complaints." or agencies.

Section 7. A new Section 7 is hereby inserted "(2) The receiving officer or

after Section 6 of the same Act to read as employee shall perform a
follows: preliminary assessment of the
application or request submitted
"Sec. 7. Zero-Contact Policy. – Except during with its supporting documents to
the preliminary assessment of the request and ensure a more expeditious
evaluation of sufficiency of submitted action on the application or
requirements, no government officer or request. The receiving officer or
employee shall have any contact, in any employee shall immediately
manner, unless strictly necessary with any inform the applicant or
applicant or requesting party concerning an requesting party of any
application or request. Once the Department of deficiency in the accompanying
Information and Communications Technology requirements, which shall be
(DICT) has completed a web-based software limited to those enumerated in
enabled business registration system that is the Citizen’s Charter.
acceptable to the public as mandated under
Section 26 of this Act, all transactions shall be "(3) The receiving officer or
coursed through such system. All government employee shall assign a unique
agencies including LGUs shall adopt a zero- identification number to an
contact policy." application or request, which
shall be the identifying number
Section 8. Section 7 of the same Act is hereby for all subsequent transactions
renumbered as Section 8 to read as follows: between the government and
the applicant or requesting party
"Sec. 8. Accountability of Heads of Offices and regarding such specific
Agencies. – The head of the office or agency application or request.
shall be primarily responsible for the
implementation of this Act and shall be held
 "(4) The receiving officer or the applicant or requesting party
employee shall issue an to serve as proof of notice.
acknowledgement receipt
containing the seal of the "If the application or request for
agency, the name of the license, clearance permit,
responsible officer or employee, certification or authorization
his/her unit and designation, shall require the approval of the
and the date and time of receipt local Sangguniang
of such application or request. Bayan, Sangguniang
Panlungsod, or
"(b) Action of Offices. – the Sangguniang
Panlalawigan as the case may
"(1) All applications or requests be, the Sanggunian concerned
submitted shall be acted upon shall be given a period of forty-
by the assigned officer or five (45) working days to act on
employee within the prescribed the application or request, which
processing time stated in the can be extended for another
Citizen’s Charter which shall not twenty (20) working days. If the
be longer than three (3) working local Sanggunian concerned
days in the case of simple has denied the application or
transactions and seven (7) request, the reason for the
working days in the case of denial, as well as the remedial
complex transactions from the measures that may be taken by
date the request and/or the applicant shall be cited by
complete application or request the concerned Sanggunian.
was received.
"In cases where the cause of
"For applications or requests delay is due to force majeure or
involving activities which pose natural or man-made disasters,
danger to public health, public which result to damage or
safety, public morals, public destruction of documents,
policy, and highly technical and/or system failure of the
application, the prescribed computerized or automatic
processing time shall in no case processing, the prescribed
be longer than twenty (20) processing times mandated in
working days or as determined this Act shall be suspended and
by the government agency or appropriate adjustments shall
instrumentality concerned, be made.
whichever is shorter.
"(2) No application or request
"The maximum time prescribed shall be returned to the
above may be extended only applicant or requesting party
once for the same number of without appropriate action. In
days, which shall be indicated in case an application or request is
the Citizen’s Charter. Prior to disapproved, the officer or
the lapse of the processing time, employee who rendered the
the office or agency concerned decision shall send a formal
shall notify the applicant or notice to the applicant or
requesting party in writing of the requesting party within the
reason for the extension and prescribed processing time,
final date of release of the stating therein the reason for the
government service/s disapproval. A finding by a
requested. Such written competent authority of a
notification shall be signed by violation of any or other laws by
the applicant or requesting party
 shall constitute a valid ground parties who are within their premises
for the disapproval of the prior to the end of official working hours
application or request, without are attended to and served even during
prejudice to other grounds lunch break and after regular working
provided in this Act or other hours.
pertinent laws.
"(g) Identification Card. – All employees
"(c) Denial of Application or Request for transacting with the public shall be
Access to Government Service. – Any provided with an official identification
denial of application or request for card which shall be visibly worn during
access to government service shall be office hours.
fully explained in writing, stating the
name of the person making the denial "(h) Establishment of Public
and the grounds upon which such denial Assistance/Complaints Desk. – Each
is based. Any denial of application or office or agency shall establish a public
request is deemed to have been made assistance/complaints desk in all their
with the permission or clearance from offices."
the highest authority having jurisdiction
over the government office or agency
Section 10. Section 9 of the same Act is hereby
concerned.
amended and renumbered as Section 10 to read
as follows:
"(d) Limitation of Signatories – The
number of signatories in any document
"Sec. 10. Automatic Approval or Automatic
shall be limited to a maximum of three
Extension of License, Clearance, Permit,
(3) signatures which shall represent Certification or Authorization. – If a government
officers directly supervising the office or office or agency fails to approve or disapprove
agency concerned: Provided, That in an original application or request for issuance of
case the authorized signatory is on
license, clearance, permit, certification or
official business or official leave, an
authorization within the prescribed processing
alternate shall be designated as
time, said application or request shall be
signatory. Electronic signatures or pre- deemed approved: Provided, That all required
signed license, clearance, permit,
documents have been submitted and all
certification or authorization with
required fees and charges have been paid. The
adequate security and control
acknowledgment receipt together with the official
mechanism may be used.
receipt for payment of all required fees issued to
the applicant or requesting party shall be
"(e) Electronic Versions of Licenses, enough proof or has the same force and effect
Clearances, Permits, Certifications or of a license, clearance, permit, certification or
Authorizations. – All government authorization under this automatic approval
agencies covered under Section 3 of mechanism.
this Act shall, when applicable, develop
electronic versions of licenses, "if a government office or agency fails to act on
clearances, permits, certifications or an application or request for renewal of a
authorizations with the same level of
license, clearance, permit, certification or
authority as that of the signed hard
authorization subject for renewal within the
copy, which may be printed by the prescribed processing time, said license,
applicants or requesting parties in the clearance, permit, certification or authorization
convenience of their offices. shall automatically be extended: Provided, That
the Authority, in coordination with the Civil
"(f) Adoption of Working Schedules to Service Commission (CSC), Department of
Serve Applicants or Requesting Parties. Trade and Industry (DTI), Securities and
– Heads of offices and agencies which Exchange Commission (SEC), Department of
render government services shall adopt the Interior and Local Government (DILG) and
appropriate working schedules to other agencies which shall formulate the IRR of
ensure that all applicants or requesting this Act, shall provide a listing of simple,
complex, highly technical applications, and queuing mechanism in the BOSS to
activities which pose danger to public health, better manage the flow of applications
public safety, public morals or to public policy." among the LGUs’ departments receiving
and processing applications. LGUs shall
Section 11. New sections to be numbered as implement collocation of the offices of
Sections 11, 12, 13, 14, 15, 16, 17, 18 and 19 the treasury, business permits and
are herby inserted after Section 9 of the same licensing office, zoning office, including
Act, to read as follows: the BFP, and other relevant
city/municipality offices/departments,
among others, engaged in starting a
"Sec. 11. Streamlined Procedures for the
Issuance of Local Business Licenses, business, dealing with construction
permits.
Clearances, Permits, Certifications or
Authorizations. – The LGUs are mandated to
implement the following revised guidelines in the "(c) Cities/Municipalities are mandated
issuance of business licenses, clearances, to automate their business permitting
permits, certifications or authorizations: and licensing system or set up an
electronic BOSS within a period of three
"(a) A single or unified business (3) years upon the effectivity of this Act
for a more efficient business registration
application form shall be used in
processes. Cities/Municipalities with
processing new applications for
business permits and business renewals electronic BOSS shall develop
which consolidates all the information of electronic versions of licenses,
clearances, permits, certifications or
the applicant or requesting party by
authorizations with the same level of
various local government departments,
authority, which may be printed by
such as, but not limited to, the local
businesses in the convenience of their
taxes and clearances, building
clearance, sanitary permit, zoning offices. The DICT shall make available
to LGUs the software for the
clearance, and other specific LGU
computerization of the business permit
requirements, as the case may be,
and licensing system. The DICT, DTI,
including the fire clearance from the
Bureau of Fire Protection (BFP). The and DILG, shall provide technical
unified form shall be made available assistance in the planning and
online using technology-neutral implementation of a computerized or
software-enabled business permitting
platforms such as, but not limited to, the
and licensing system.
central business portal or the
city/municipality’s website and various
channels for dissemination. Hard copies "(d) To lessen the transaction
of the unified forms shall likewise be requirements, other local clearances
made available at all times in such as, but not limited to, sanitary
designated areas of the concerned permits, environmental and agricultural
office and/or agency. clearances shall be issued together with
the business permit.
"(b) A one-stop business facilitation
service, hereinafter referred to as the "(e) Business permits shall be valid for a
business one stop shop, (BOSS) for the period of one (1) year. The
city/municipality’s business permitting city/municipality may have the option to
and licensing system to receive and renew business permits within the first
process manual and/or electronic month of the year or on the anniversary
submission of application for license, date of the issuance of the business
clearance, permit, certification or permit.
authorization shall be established within
the cities/municipalities’ Negosyo "(f) Barangay clearances and permits
Center as provided for under Republic related to doing business shall be
Act No. 10644, otherwise known as the applied, issued, and collected at the
"Go Negosyo Act." There shall be a city/municipality in accordance with the
 prescribed processing time of this "(e) Issuance of the certification of fire
Act: Provided, That the share in the incident for fire insurance purposes shall
collections shall be remitted to the in no case be longer than twenty (20)
respective barangays. working days, and may be extended
only once for another twenty (20)
"The pertinent provisions of Republic Act No. working days;
7160, otherwise known as "The Local
Government Code of 1991", specifically Article "(f) The BFP or any of its officials or
IV, Section 152(c) is hereby amended employees shall not sell, offer to sell, or
accordingly." recommend specific brands of fire
extinguishers and other fire safety
"Sec. 12. Sreamlined Procedures for Securing equipment to any applicant or
Fire Safety Evaluation Clearance (FSEC), Fire requesting party or business entity. Any
Safety Inspection Certificate (FSIC), and violation thereof shall be punishable by
Certification of Fire Incidents for Fire Insurance.- imprisonment of one (1) year to six (6)
For the issuance of FSEC, FSIC, and years and a penalty of not less than Five
certification of fire incidents, the following shall hundred thousand pesos (P500,000.00),
be adopted to make business permitting more but not more than Two million pesos
efficient: (P2,000,000.00);

"(a) Issuance of FSEC and FSIC shall in "(g) The BFP shall collocate with the
no case be longer than seven (7) BOSS or in an appropriate area
working days; designated by the city/municipality
within its premises to assess and collect
"(b) For new business permit the fire safety inspection fees;
application, the FSIC already issued
during the occupancy permit stage shall "(h) The BFP may enter into agreements
be sufficient as basis for the issuance of with cities/municipalities, allowing the
the FSIC for a business entity as a latter to be deputized as assessors
requirement for the business permit; and/or collecting agents for the fire
safety inspection fees; and
"(c) For renewal of business permit, the
BFP shall, within three (3) working days "(i) The BFP shall develop and adopt an
from application, present the FSIC to the online or electronic mechanism in
city/municipality, either thru the copy of assessing fees, collecting/accepting
the FSIC or the negative/positive payments and sharing/exchange of
list: Provided, That the business entity other relevant data on business permit
shall inform the BFP and submit the processing.
necessary documentary requirements if
renovations, modifications or any form "The pertinent provisions of Republic Act No.
of alterations are made to the original 9514, otherwise known as the "Revised Fire
building structure thirty (30) working Code of the Philippines of 2008", are herby
days before the expiration of the amended accordingly."
business permit;
"Sec. 13. Central Business Portal (CBP). – To
"(d) If the BFP fails to furnish the eliminate bureaucratic red tape, avert graft and
city/municipality with an FSIC or to corrupt practices and to promote transparency
inform the same through the and sustain ease of doing business, the DICT
negative/positive list within three (3) shall be primarily responsible in establishing,
working days from the application of operating and maintaining a CBP or other similar
business renewal, the business entity technology, as the DICT may prescribe.
shall be deemed to have a temporary
valid FSIC and, therefore, shall serve as "The CBP shall serve as a central system to
the basis for the automatic renewal of receive applications and capture application
the business permit;
data involving business-related transactions, access. Documents or information shall be
including primary and secondary licenses, and crosschecked and retrieved in the PBD.
business clearances, permits, certifications, or
authorizations issued by the "At the local government level, the city or
LGUs: Provided, That the CBP may also provide municipal business process and licensing office
links to the online registration or application shall not require the same documents already
systems established by NGAs. provided by an applicant or requesting party to
the local government departments in connection
"The DICT, upon consultation with the National with other business-related licenses, clearances,
Privacy Commission (NPC), NGAs and LGUs permits, certifications or authorizations such as,
shall issue rules and guidelines on the following: but not limited to, tax clearance, occupancy
(a) the establishment, operation and permit and barangay clearance."
maintenance of the CBP; and (b) the use of
electronic signatures. "Sec. 15. Interconnectivity Infrastructure
Development. – In order to expedite the
"The DICT is hereby mandated to implement an processing of licenses, clearances, permits,
Interconnectivity Infrastructure Development certifications or authorizations, the Authority,
Program for interconnectivity between and together with the DICT, shall develop a fast and
among NGAs and LGUs. reliable interconnectivity infrastructure. In
relation to this, the processing and approval or
"The DICT, in coordination with other concerned licenses, clearances, permits, certifications or
NGAs and LGUs shall also conduct information authorizations for the installation and operation
dissemination campaigns aimed towards raising of telecommunication, broadcast towers,
public awareness on the existence of the CBP facilities, equipment and service shall be:
and the improved access to and effective
utilization of the program." "(a) a total of seven (7) working days for
those issued by the barangay;
"Sec. 14. Philippine Business Databank
(PBD). – Within a period of one (1) year from the "(b) a total of seven (7) working days for
effectivity of this Act, the DICT, in coordination those issued by LGUs; and
with the concerned agencies, shall established,
manage and maintain a PBD which shall provide "(c) seven (7) working days for those
the concerned NGAs and LGUs access to data issued by NGAs.
and information of registered business entities
for purposes of verifying the validity, existence of "If the granting authority fails to approve or
and other relevant information pertaining to disapprove an application for a license,
business entities. All concerned NGAs and
clearance, permit, certification or authorization
LGUs shall either link their own database with
within the prescribed processing time, said
the system or periodically submit to the system application shall be deemed
updates relevant to the information registered approved: Provided, That when the approval of
with them. the appropriate local legislative body is
necessary, a nonextendible period of twenty (20)
"The DICT, in consultation with the DTI, SEC, working days is hereby prescribed.
Cooperative Development Authority (CDA),
NPC, DILG, LGUs, and other concerned "For homeowners and other community
agencies, shall issue the IRR on the clearances, the officers of the homeowners
development management, operation and association shall be given ten (10) working days
maintenance of the PBD within three (3) months
to refer the application to the members of the
from the effectivity of this Act.
association pursuant to Section 10(k) of
Republic Act No. 9904, otherwise known as the
"Documents already submitted by an applicant "Magna Carta for Homeowners and
or requesting party to an agency which has Homeowners Associations": Provided, That a
access to the PBD shall no longer be required nonextendible period of thirty (30) working days
by other NGAs and LGUs having the same is granted the homeowners association to give
its consent or disapproval: Provided, "(d) Initiate investigation, motu proprio or
further, That in case of disapproval, the granting upon receipt of a complaint, refer the
authority shall notify the applicant or requesting same to the appropriate agency, or file
party within the prescribed period of the cases for violations of this Act;
reason/s for disapproval as well as remedial
measures that may be taken by the applicant or "(e) Assist complainants in filing
requesting party. necessary cases with the CSC, the
Ombudsman and other appropriate
"Within three (3) months upon the approval of courts, as the case may be;
the IRR of this Act, the Authority, in coordination
with the DICT, shall review and recommend the "(f) Recommend policies, processes and
repeal of outdated, redundant and unnecessary systems to improve regulatory
licenses, clearances, permits, certifications or management to increase the
authorizations being required by NGAs, LGUs, productivity, efficiency, and
and private entities." effectiveness of business permitting and
licensing agencies;
"Sec. 16. Anti-Red Tape Unit in the Civil Service
Commission (CSC). – The CSC shall maintain "(g) Review proposed major regulations
an anti-red tape unit in its central and all its of government agencies, using
regional offices, utilize Report Card Survey submitted regulatory impact
findings for purposive and integrated assessments, subject to proportionality
government-wide human resource systems and rules to be determined by the Authority;
programs toward efficient delivery of
government service as contemplated in this Act;
"(h) Conduct regulatory management
and receive, review, hear, and decide on training programs to capacitate NGAs
complaints on erring government employees and LGUs to comply with sound
and officials and noncompliance with the regulatory management practices;
provisions of this Act."
"(i) Prepare, in consultation with the
"Sec. 17. Anti-Red Tape Authority. – To ensure appropriate agencies, regulatory
the attainment of the objectives of this Act, there management manuals for all
is hereby created the Anti-Red Tape Authority,
government agencies and/or
herein referred to as the Authority, which shall
instrumentalities and LGUs;
be organized within six (6) months after the
effectivity of this Act. The authority shall be
attached to the Office of the President. "(j) Provide technical assistance and
advisory opinions in the review of
proposed national or local legislation,
"The Authority shall have the following powers
regulations or procedures;
and functions:
"(k) Ensure the dissemination of and
"(a) Implement and oversee a national public access to information on
policy on anti-red tape and ease of
regulatory management system and
doing business;
changes in laws and regulations
relevant to the public by establishing the
"(b) Implement various ease of doing Philippine Business Regulations
business and anti-red tape reform Information System;
initiatives aimed at improving the
ranking of the Philippines;
"(l) Enlist the assistance of the CSC, DTI
and other government agencies in the
"(c) Monitor and evaluate the implementation of its powers and
compliance of agencies covered under functions provided for in this Act; and
Section 3 of this Act, and issue notice of
warning to erring and/or noncomplying
government employees or officials;
 "(m) Perform such acts as may be President of the Philippines for a term of three
necessary to attain the objectives of this (3) years, and may be reappointed only once,
Act." from the nominees submitted by reputable
business groups or associations.
"Sec. 18. Composition of the Authority.- The
Authority shall be headed by a Director General "The Council shall be the policy and advisory
to be appointed by the President of the body to the Authority. The Council shall
Philippines upon effectivity of this Act, and such formulate policies and programs that will
appointment shall be coterminous with the continuously enhance and improve the country’s
tenure of the President of the Philippines. The competitiveness and ease of doing business.
Director General shall enjoy the benefits, Towards this end, the Council shall have the
privileges, and emoluments equivalent to the following powers and functions:
rank of Secretary.
"(a) Plan, draft and propose a national
"The Director General shall oversee the day-to- policy on ease of doing business and
day operations of the Authority. He/She shall be anti-red tape;
assisted by three (3) Deputy Directors General
each for legal, operations, and administration "(b) Recommend policies, processes
and finance: Provided, That they are career and systems to improve regulatory
officials as defined in existing laws, rules and management to increase the
regulations. The Deputy Directors General shall productivity, efficiency, and
enjoy the benefits, privileges, and emoluments effectiveness of permitting and licensing
equivalent to the rank of Undersecretary and agencies;
shall likewise be appointed by the President of
the Philippines. "(c) Design and identify systems that will
continuously enhance and improve the
"The Director General of the Authority, in delivery of services in government and
consultation with the CSC, DTI and the ease of doing business in the country;
Department of Budget and Management (DBM),
shall determine the organizational structures "(d) Authorize the creation or
including regional or field offices, qualification appointment of specific working groups
standards, staffing pattern and compensation of
or task forces in aid of the
the newly created Authority in accordance with
implementation of this Act;
existing laws, rules and
regulations: Provided, That in the absence of
regional or field offices, the Authority may "(e) Propose legislation, amendments or
deputize the regional personnel of the DTI to modifications to Philippine laws related
perform its powers and functions." to anti-red tape and ease of doing
business;
"Sec. 19. Ease of Doing Business and Anti-Red
Tape Advisory Council.- There is hereby created "(f) Periodically review and assess the
an Ease of Doing Business and Anti-Red Tape country’s competitiveness performance,
Advisory Council, herein referred to as the challenges, and issues;
Council. It shall be composed of the Secretary of
the DTI as Chairperson, the Director General of "(g) Provide technical assistance and
the Authority as Vice-Chairperson, the advisory opinions in the review of
Secretaries of the DICT, DILG and Department proposed national or local legislation,
of Finance (DOF), and two (2) representatives regulations, or procedures;
from the private sector as the members. The
department secretaries may designate their "(h) Recommend to the Authority the
representatives, who shall sit in a permanent issuance of the appropriate measures to
capacity, with no less than Undersecretary in promote transparency and efficiency in
rank, and their acts shall be considered the acts business practices and delivery of
of their principals. The private sector services in government; and
representatives shall be appointed by the
 "(i) Perform such other functions as may "Sec. 21. Violations and Persons Liable. – Any
be necessary or as may be directed by person who performs or cause the performance
the President of the Philippines for the of the following acts shall be liable:
successful implementation to attain the
objectives of this Act. "(a) Refusal to accept application or
request with complete requirements
"The Authority shall serve as Secretariat to the being submitted by an applicant or
Council to be headed by its Deputy Director requesting party without due cause;
General for operations.
"(b) Imposition of additional
"The National Competitiveness Council (NCC), requirements other than those listed in
created under Executive Order No. 44, Series of the Citizen’s Charter;
2011, shall be renamed and reorganized as the
Council. The pertinent provisions under the "(c) Imposition of additional costs not
following presidential orders: Executive Order reflected in the Citizen’s Charter;
No. 571, Executive Order No. 44, and
Administrative Order No. 38 are hereby repealed "(d) Failure to give the applicant or
accordingly."
requesting party a written notice on the
disapproval of an application or request;
Section 12. Section 10 of the same Act is hereby
amended and renumbered as Section 20 to read "(e) Failure to render government
as follows:
services within the prescribed
processing time on any application or
"Sec. 20. Report Card Survey. – All offices and request without due cause;
agencies providing government services shall be
subjected to a Report Card Survey to be initiated
"(f) Failure to attend to applicants or
by the Authority, in coordination with the CSC,
requesting parties who are within the
and the Philippine Statistics Authority (PSA),
premises of the office or agency
which shall be used to obtain feedback on how concerned prior to the end of official
provisions of this Act are being followed and
working hours and during lunch break;
how the agency is performing.
"(g) Failure or refusal to issue official
"The Report Card Survey shall also be used to
receipts; and
obtain information and/or estimates of hidden
costs incurred by applicants or requesting
parties to access governments services which "(h) Fixing and/or collusion with fixers in
may include, but is not limited to, bribes and consideration of economic and/or other
payment to fixers. The result of the survey shall gain or advantage."
also become basis for the grant of awards,
recognition and/or incentives for excellent "Sec. 22. Penalties and Liabilities. – Any
delivery of services in all government agencies. violations of the preceding actions will warrant
the following penalties and liabilities.1âw phi1

"A feedback mechanism shall be established in

all agencies covered by this Act and the results "(a) First Offense: Administrative liability
thereof shall be incorporated in their annual with six (6) months
report." suspension: Provided, however, That in
the case of fixing and/or collusion with
Section 13. Sections 11 and 12 of the same Act fixers under Section 21(h), the penalty
are hereby deleted, and replaced with new and liability under Section 22(b) of this
sections to be numbered as Sections 21 and 22, Act shall apply.
to read as follows:
"(b) Second Offense: Administrative
liability and criminal liability of dismissal
from the service, perpetual
 disqualification from holding public office "(a) There is absolute necessity for the
and forfeiture of retirement benefits and testimony of the respondent/accused-
imprisonment of one (1) year to six (6) informant whose discharge is requested;
years with a fine of not less than Five
hundred thousand pesos (P500,000.00), "(b) There is no other direct evidence
but not more than Two million pesos available for the proper prosecution of
(P2,000,000.00). the offense committed, except the
testimony of said respondent/accused-
"Criminal liability shall also be incurred through informant;
the commission of bribery, extortion, or when the
violation was done deliberately and maliciously "(c) The testimony of said respondent
to solicit favor in cash or in kind. In such cases, can be substantially corroborated in its
the pertinent provisions of the Revised Penal material points;
Code and other special laws shall apply."
"(d) The respondent/accused-informant
Section 14. Section 13 of the same Act is hereby has not been previously convicted of a
renumbered as Section 23 to read as follows: crime involving moral turpitude; and

"Sec. 23. Civil and Criminal Liability, Not "(e) Said respondent/accused-informant
Barred.- The finding of administrative liability does not appear to be the most guilty.
under this Act shall not be a bar to the filing of
criminal, civil or other related charges under
"Evidence adduced in support of the discharge
existing laws arising from the same act or
shall automatically form part of the records of
omission as herein enumerated."
the investigation. Should the investigating body
or court deny the motion or request for
Section 15. Section 14 of the same Act is hereby discharge as a witness, his/her sworn statement
amended and renumbered as Section 24 to read shall be inadmissible as evidence."
as follows:
Section 17. New sections to be numbered as
"Sec. 24. Administrative Jurisdiction. – The Sections 26, 27, 28, 29, 30, 31, 32 and 33 are
administrative jurisdiction on any violation of the hereby inserted after Section 15 of the same Act
provisions of this Act shall be vested in either to read as follows:
the CSC, or the Office of the Ombudsman as
determined by appropriate laws and issuances." "Sec. 26. Transition from Manual to Software-
Enabled Business-Related Transactions. – The
Section 16. Section 15 of the same Act is hereby DICT, in coordination with other concerned
renumbered as Section 25, and all succeeding agencies, shall within three (3) years after the
sections of the same Act are hereby deleted. effectivity of this Act, automate business-related
transactions by developing the necessary
"Sec. 25. Immunity, Discharge of Co- software and technology-neutral platforms and
Respondent/Accused to be a Witness. – Any secure infrastructure that is web-based and
public official or employee or any person having accessible to the public. The DICT shall ensure
been charged with another offense under this that all municipalities and provinces classified as
Act and who voluntarily gives information third (3rd), fourth (4th), fifth (5th) and sixth (6th)
pertaining to an investigation or who willingly class are provided with appropriate equipment
testifies therefore, shall be exempt from and connectivity, information and
prosecution in the case/s where his/her communications technology platform, training
information and testimony are given. The and capability building to ensure the LGUs
discharge may be granted and directed by the compliance with this Act."
investigating body or court upon the application
or petition of any of the respondent/accused- "Sec. 27. Transitory Provisions. –
informant and before the termination of the
investigation: Provided, That: "(a) The Director General of the Authority, in
consultation with the DTI, shall determine the
organizational structure and personnel House of Representatives Committee on Trade
complement of the Authority. To ensure1âwphi1 and Industry: Provided, That the oversight
continued implementation of ease of doing committee shall cease to exist after five (5)
business and anti-red tape reforms, the teams or years upon the effectivity of this Act.
units involved in regulatory improvement and/or
ease of doing business-related programs of the "The Secretariat of the COC-EODB shall be
DTI-Competitiveness Bureau shall serve as drawn from the existing personnel of the Senate
temporary secretariat of the Authority until such and House of Representatives committees
time that its organizational structure and comprising the COC-EODB."
personnel complement have been determined
and filled up: Provided, That the staff of the DTI- "Sec. 29. Appropriations. – The amount
Competitiveness Bureau shall have the option to
necessary to carry out the provisions of this Act
be absorbed or transferred laterally to the
shall be charged against the current year’s
Authority without diminution of their rank, appropriations of the concerned agencies. In
position, salaries and other emoluments once addition, the amount of Three hundred million
the staffing pattern and plantilla position of the pesos (P300,000,000.00) as initial funding for
Authority has been approved. the Authority to be charged against the
unexpended Contingency Fund of the Office of
"(b) All regulatory management programs and the President is hereby appropriated. Thereafter,
anti-red tape initiatives across government the amount needed for the implementation of
agencies shall be gathered by the Authority. The this Act shall be included in the annual General
DTI, CDA, NCC, DOF, Development Academy Appropriations Act."
of the Philippines (DAP), and National Economic
and Development Authority (NEDA) shall submit
"Sec. 30. Implementing Rules and
to the Authority a report on the status of their
Regulations. – The Authority with the CSC and
respective projects related to regulatory
DTI, and in coordination with the DICT, DOF,
management. DILG, NEDA, PSA, CDA, SEC, the Office of the
Ombudsman, Housing and Land Use Regulatory
"(c) The Authority, in coordination with CSC and Board (HLURB) and the Union of Local
the Council, shall conduct an information Authorities of the Philippines (ULAP), shall
dissemination campaign in all NGAs and LGUs promulgate the necessary rules and regulations
to inform them of this Act amending Republic within ninety (90) working days from the
Act No. 9485, otherwise known as the Anti-Red effectivity of this Act."
Tape Act of 2007."
"Sec. 31. Separability Clause. – If any provision
"Sec. 28. Congressional Oversight Committee. – of this Act shall be declared invalid or
To monitor the implementation of this Act, there unconstitutional, such declaration shall not affect
shall be created a Congressional Oversight the validity of the remaining provisions of this
Committee on Ease of Doing Business (COC- Act."
EODB), to be composed of five (5) members
from the Senate, which shall include the
"Sec. 32. Repealing Clause. – All provisions of
Chairpersons of the Senate Committees on laws, presidential decrees, letters of instruction
Trade and Commerce and Entrepreneurship, and other presidential issuances which are
Civil Service, Government Reorganization and
incompatible or inconsistent with the provisions
Professional Regulation, and Economic Affairs;
of this Act are hereby deemed amended or
and five (5) members from the House of repealed accordingly."
Representatives which shall include the
Chairpersons of the House Committees on
Trade and Industry, Civil Service and "Sec. 33. Effectivity. – This Act shall take effect
Professional Regulation, Government within fifteen (15) days following its publication in
Reorganization, and Economic Affairs. The the Official Gazette or in two (2) national
COC-EODB shall be jointly chaired by the newspapers of general circulation."
Chairpersons of the Senate Committee on Trade
and Commerce and Entrepreneurship and the Section 18. Effectivity. – This Act shall take effect fifteen (15)

days after its publication in the Official Gazette or in two (2) newspapers of general circulation.
BATAS PAMBANSA BLG. 22 amount due thereon, or makes arrangements for
payment in full by the drawee of such check
AN ACT PENALIZING THE MAKING OR within (5) banking days after receiving notice
DRAWING AND ISSUANCE OF A CHECK that such check has not been paid by the
WITHOUT SUFFICIENT FUNDS OR CREDIT drawee.
AND FOR OTHER PURPOSES.
Sec. 3. Duty of drawee; rules of evidence. - It
shall be the duty of the drawee of any check,
Section 1. Checks without sufficient funds. - Any when refusing to pay the same to the holder
person who makes or draws and issues any thereof upon presentment, to cause to be
check to apply on account or for value, knowing written, printed, or stamped in plain language
at the time of issue that he does not have thereon, or attached thereto, the reason for
sufficient funds in or credit with the drawee bank drawee's dishonor or refusal to pay the
for the payment of such check in full upon its same: Provided, That where there are no
presentment, which check is subsequently sufficient funds in or credit with such drawee
dishonored by the drawee bank for insufficiency bank, such fact shall always be explicitly stated
of funds or credit or would have been in the notice of dishonor or refusal. In all
dishonored for the same reason had not the prosecutions under this Act, the introduction in
drawer, without any valid reason, ordered the evidence of any unpaid and dishonored check,
bank to stop payment, shall be punished by having the drawee's refusal to pay stamped or
imprisonment of not less than thirty days but not written thereon or attached thereto, with the
more than one (1) year or by a fine of not less reason therefor as aforesaid, shall be prima
than but not more than double the amount of the facie evidence of the making or issuance of said
check which fine shall in no case exceed Two check, and the due presentment to the drawee
Hundred Thousand Pesos, or both such fine and for payment and the dishonor thereof, and that
imprisonment at the discretion of the court. chan the same was properly dishonored for the
robles virtual law library reason written, stamped or attached by the
drawee on such dishonored check.
The same penalty shall be imposed upon any
person who, having sufficient funds in or credit Notwithstanding receipt of an order to stop
with the drawee bank when he makes or draws payment, the drawee shall state in the notice
and issues a check, shall fail to keep sufficient that there were no sufficient funds in or credit
funds or to maintain a credit to cover the full with such bank for the payment in full of such
amount of the check if presented within a period check, if such be the fact.
of ninety (90) days from the date appearing
thereon, for which reason it is dishonored by the Sec. 4. Credit construed. - The word "credit" as
drawee bank. used herein shall be construed to mean an
arrangement or understanding with the bank for
Where the check is drawn by a corporation, the payment of such check.
company or entity, the person or persons who
actually signed the check in behalf of such Sec. 5. Liability under the Revised Penal Code. -
drawer shall be liable under this Act. Prosecution under this Act shall be without
prejudice to any liability for violation of any
Sec. 2. Evidence of knowledge of insufficient provision of the Revised Penal Code.
funds. - The making, drawing and issuance of a Sec. 6. Separability clause. - If any separable
check payment of which is refused by the provision of this Act be declared
drawee because of insufficient funds in or credit unconstitutional, the remaining provisions shall
with such bank, when presented within ninety continue to be in force.
(90) days from the date of the check, shall be
prima facie evidence of knowledge of such Sec. 7. Effectivity. - This Act shall take effect
insufficiency of funds or credit unless such fifteen days after publication in the Official
maker or drawer pays the holder thereof the Gazette.
AN ACT DEFINING THE CRIME OF MONEY (b) “Covered transaction” is a single, series, or
LAUNDERING, PROVIDING PENALTIES combination of transactions involving a total
THEREFOR AND FOR OTHER PURPOSES amount in excess of Four million Philippine
pesos (Php4,000,000.00) or an equivalent
Be it enacted by the Senate and the House of amount in foreign currency based on the
Representatives of the Philippines in Congress prevailing exchange rate within five (5)
assembled. consecutive banking days except those between
SECTION 1. Short Title. — This Act shall be a covered institution and a person who, at the
known as the “Anti-Money Laundering Act of time of the transaction was a properly identified
2001.” client and the amount is commensurate with the
business or financial capacity of the client; or
SEC. 2. Declaration of Policy. — It is hereby those with an underlying legal or trade
declared the policy of the State to protect and obligation, purpose, origin or economic
preserve the integrity and confidentiality of bank justification.
accounts and to ensure that the Philippines shall
not be used as a money laundering site for the It likewise refers to a single, series or
proceeds of any unlawful activity. Consistent combination or pattern of unusually large and
with its foreign policy, the State shall extend complex transactions in excess of Four million
cooperation in transnational investigations and Philippine pesos (Php4,000,000.00) especially
prosecutions of persons involved in money cash deposits and investments having no
laundering activities wherever committed. credible purpose or origin, underlying trade
obligation or contract.
SEC. 3. Definitions. — For purposes of this Act,
the following terms are hereby defined as (c) “Monetary instrument” refers to:
follows: (1) coins or currency of legal tender of the
(a) “Covered institution” refers to: Philippines, or of any other country;

(1) banks, non-banks, quasi-banks, trust entities, (2) drafts, checks and notes;
and all other institutions and their subsidiaries (3) securities or negotiable instruments, bonds,
and affiliates supervised or regulated by the commercial papers, deposit certificates, trust
Bangko Sentral ng Pilipinas (BSP); certificates, custodial receipts or deposit
(2) insurance companies and all other substitute instruments, trading orders,
institutions supervised or regulated by the transaction tickets and confirmations of sale or
Insurance Commission; and investments and money market instruments; and

(3) (i) securities dealers, brokers, salesmen, (4) other similar instruments where title thereto
investment houses and other similar entities passes to another by endorsement, assignment
managing securities or rendering services as or delivery.
investment agent, advisor, or consultant, (ii) (d) “Offender” refers to any person who commits
mutual funds, closed-end investment a money laundering offense.
companies, common trust funds, pre-need
companies and other similar entities, (iii) foreign (e) “Person” refers to any natural or juridical
exchange corporations, money changers, person.
money payment, remittance, and transfer
companies and other similar entities, and (iv) (f) “Proceeds” refers to an amount derived or
other entities administering or otherwise dealing realized from an unlawful activity.
in currency, commodities or financial derivatives (g) “Supervising Authority” refers to the
based thereon, valuable objects, cash appropriate supervisory or regulatory agency,
substitutes and other similar monetary department or office supervising or regulating
instruments or property supervised or regulated the covered institutions enumerated in Section
by Securities and Exchange Commission. 3(a).
(h) “Transaction” refers to any act establishing by terrorists against non-combatant persons and
any right or obligation or giving rise to any similar targets;
contractual or legal relationship between the
parties thereto. It also includes any movement of (13) Fraudulent practices and other violations
funds by any means with a covered institution. under Republic Act No. 8799, otherwise known
as the Securities Regulation Code of 2000;
(i) “Unlawful activity” refers to any act or
omission or series or combination thereof (14) Felonies or offenses of a similar nature that
involving or having relation to the following: are punishable under the penal laws of other
countries.
(1) Kidnapping for ransom under Article 267 of
Act No. 3815, otherwise known as the Revised
Penal Code, as amended; SEC. 4. Money Laundering Offense. — Money
laundering is a crime whereby the proceeds of
(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of an unlawful activity are transacted, thereby
Republic Act No. 6425, as amended, otherwise making them appear to have originated from
known as the Dangerous Drugs Act of 1972; legitimate sources. It is committed by the
following:
(3) Section 3 paragraphs B, C, E, G, H and I of
Republic Act No. 3019, as amended; otherwise (a) Any person knowing that any monetary
known as the Anti-Graft and Corrupt Practices instrument or property represents, involves, or
Act; relates to, the proceeds of any unlawful activity,
transacts or attempts to transact said monetary
(4) Plunder under Republic Act No. 7080, as instrument or property.
amended;
(b) Any person knowing that any monetary
(5) Robbery and extortion under Articles 294, instrument or property involves the proceeds of
295, 296, 299, 300, 301 and 302 of the Revised any unlawful activity, performs or fails to perform
Penal Code, as amended; any act as a result of which he facilitates the
offense of money laundering referred to in
(6) Jueteng and Masiao punished as illegal paragraph (a) above.
gambling under Presidential Decree No. 1602;
(c) Any person knowing that any monetary
(7) Piracy on the high seas under the Revised instrument or property is required under this Act
Penal Code, as amended and Presidential to be disclosed and filed with the Anti-Money
Decree No. 532; Laundering Council (AMLC), fails to do so.
(8) Qualified theft under Article 310 of the SEC. 5. Jurisdiction of Money Laundering
Revised Penal Code, as amended; Cases. — The regional trial courts shall have
(9) Swindling under Article 315 of the Revised jurisdiction to try all cases on money laundering.
Penal Code, as amended; Those committed by public officers and private
persons who are in conspiracy with such public
(10) Smuggling under Republic Act Nos. 455 officers shall be under the jurisdiction of the
and 1937; Sandiganbayan.
(11) Violations under Republic Act No. 8792, SEC. 6. Prosecution of Money Laundering.
otherwise known as the Electronic Commerce
Act of 2000; (a) Any person may be charged with and
convicted of both the offense of money
(12) Hijacking and other violations under laundering and the unlawful activity as herein
Republic Act No. 6235; destructive arson and defined.
murder, as defined under the Revised Penal
Code, as amended, including those perpetrated (b) Any proceeding relating to the unlawful
activity shall be given precedence over the
prosecution of any offense or violation under this
Act without prejudice to the freezing and other (9) to develop educational programs on the
remedies provided. pernicious effects of money laundering, the
methods and techniques used in money
SEC. 7. Creation of Anti-Money Laundering laundering, the viable means of preventing
Council (AMLC). — The Anti-Money Laundering money laundering and the effective ways of
Council is hereby created and shall be prosecuting and punishing offenders; and
composed of the Governor of the Bangko
Sentral ng Pilipinas as chairman, the (10) to enlist the assistance of any branch,
Commissioner of the Insurance Commission and department, bureau, office, agency or
the Chairman of the Securities and Exchange instrumentality of the government, including
Commission as members. The AMLC shall act government-owned and -controlled corporations,
unanimously in the discharge of its functions as in undertaking any and all anti-money laundering
defined hereunder: operations, which may include the use of its
personnel, facilities and resources for the more
(1) to require and receive covered transaction resolute prevention, detection and investigation
reports from covered institutions; of money laundering offenses and prosecution
(2) to issue orders addressed to the appropriate of offenders.
Supervising Authority or the covered institution SEC. 8. Creation of a Secretariat. — The AMLC
to determine the true identity of the owner of any is hereby authorized to establish a secretariat to
monetary instrument or property subject of a be headed by an Executive Director who shall
covered transaction report or request for be appointed by the Council for a term of five (5)
assistance from a foreign State, or believed by years. He must be a member of the Philippine
the Council, on the basis of substantial Bar, at least thirty-five (35) years of age and of
evidence, to be, in whole or in part, wherever good moral character, unquestionable integrity
located, representing, involving, or related to, and known probity. All members of the
directly or indirectly, in any manner or by any Secretariat must have served for at least five (5)
means, the proceeds of an unlawful activity; years either in the Insurance Commission, the
(3) to institute civil forfeiture proceedings and all Securities and Exchange Commission or the
other remedial proceedings through the Office of Bangko Sentral ng Pilipinas (BSP) and shall
the Solicitor General; hold full-time permanent positions within the
BSP.
(4) to cause the filing of complaints with the
Department of Justice or the Ombudsman for SEC. 9. Prevention of Money Laundering;
the prosecution of money laundering offenses; Customer Identification Requirements and
Record Keeping. — (a) Customer Identification.
(5) to initiate investigations of covered — Covered institutions shall establish and
transactions, money laundering activities and record the true identity of its clients based on
other violations of this Act; official documents. They shall maintain a system
of verifying the true identity of their clients and,
(6) to freeze any monetary instrument or
in case of corporate clients, require a system of
property alleged to be proceeds of any unlawful
verifying their legal existence and organizational
activity;
structure, as well as the authority and
(7) to implement such measures as may be identification of all persons purporting to act on
necessary and justified under this Act to their behalf.
counteract money laundering;
The provisions of existing laws to the contrary
(8) to receive and take action in respect of, any notwithstanding, anonymous accounts, accounts
request from foreign states for assistance in under fictitious names, and all other similar
their own anti-money laundering operations accounts shall be absolutely prohibited. Peso
provided in this Act; and foreign currency non-checking numbered
accounts shall be allowed. The BSP may
conduct annual testing solely limited to the
determination of the existence and true identity such reporting be published or aired in any
of the owners of such accounts. manner or form by the mass media, electronic
mail, or other similar devices. In case of violation
(b) Record Keeping. — All records of all thereof, the concerned officer, employee,
transactions of covered institutions shall be representative, agent, advisor, consultant or
maintained and safely stored for five (5) years associate of the covered institution, or media
from the dates of transactions. With respect to shall be held criminally liable.
closed accounts, the records on customer
identification, account files and business SEC. 10. Authority to Freeze. — Upon
correspondence, shall be preserved and safely determination that probable cause exists that
stored for at least five (5) years from the dates any deposit or similar account is in any way
when they were closed. related to an unlawful activity, the AMLC may
issue a freeze order, which shall be effective
(c) Reporting of Covered Transactions. — immediately, on the account for a period not
Covered institutions shall report to the AMLC all exceeding fifteen (15) days. Notice to the
covered transactions within five (5) working days depositor that his account has been frozen shall
from occurrence thereof, unless the Supervising be issued simultaneously with the issuance of
Authority concerned prescribes a longer period the freeze order. The depositor shall have
not exceeding ten (10) working days. seventy-two (72) hours upon receipt of the
When reporting covered transactions to the notice to explain why the freeze order should be
AMLC, covered institutions and their officers, lifted. The AMLC has seventy-two (72) hours to
employees, representatives, agents, advisors, dispose of the depositor’s explanation. If it fails
consultants or associates shall not be deemed to act within seventy-two (72) hours from receipt
to have violated Republic Act No. 1405, as of the depositor’s explanation, the freeze order
amended; Republic Act No. 6426, as amended; shall automatically be dissolved. The fifteen
Republic Act No. 8791 and other similar laws, (15)-day freeze order of the AMLC may be
but are prohibited from communicating, directly extended upon order of the court, provided that
or indirectly, in any manner or by any means, to the fifteen (15)-day period shall be tolled
any person the fact that a covered transaction pending the court’s decision to extend the
report was made, the contents thereof, or any period.
other information in relation thereto. In case of No court shall issue a temporary restraining
violation thereof, the concerned officer, order or writ of injunction against any freeze
employee, representative, agent, advisor, order issued by the AMLC except the Court of
consultant or associate of the covered Appeals or the Supreme Court.
institution, shall be criminally liable. However, no
administrative, criminal or civil proceedings, SEC. 11. Authority to Inquire into Bank Deposits.
shall lie against any person for having made a — Notwithstanding the provisions of Republic
covered transaction report in the regular Act No. 1405, as amended; Republic Act No.
performance of his duties and in good faith, 6426, as amended; Republic Act No. 8791, and
whether or not such reporting results in any other laws, the AMLC may inquire into or
criminal prosecution under this Act or any other examine any particular deposit or investment
Philippine law. with any banking institution or non-bank financial
institution upon order of any competent court in
When reporting covered transactions to the cases of violation of this Act when it has been
AMLC, covered institutions and their officers, established that there is probable cause that the
employees, representatives, agents, advisors, deposits or investments involved are in any way
consultants or associates are prohibited from related to a money laundering offense: Provided,
communicating, directly or indirectly, in any That this provision shall not apply to deposits
manner or by any means, to any person, entity, and investments made prior to the effectivity of
the media, the fact that a covered transaction this Act.
report was made, the contents thereof, or any
other information in relation thereto. Neither may SEC. 12. Forfeiture Provisions.
(a) Civil Forfeiture. — When there is a covered instrument or property. This provision shall apply
transaction report made, and the court has, in a in both civil and criminal forfeiture.
petition filed for the purpose ordered seizure of
any monetary instrument or property, in whole or SEC. 13. Mutual Assistance among States.
in part, directly or indirectly, related to said (a) Request for Assistance from a Foreign State.
report, the Revised Rules of Court on civil — Where a foreign State makes a request for
forfeiture shall apply. assistance in the investigation or prosecution of
(b) Claim on Forfeiture Assets. — Where the a money laundering offense, the AMLC may
court has issued an order of forfeiture of the execute the request or refuse to execute the
monetary instrument or property in a criminal same and inform the foreign State of any valid
prosecution for any money laundering offense reason for not executing the request or for
defined under Section 4 of this Act, the offender delaying the execution thereof. The principles of
or any other person claiming an interest therein mutuality and reciprocity shall, for this purpose,
may apply, by verified petition, for a declaration be at all times recognized.
that the same legitimately belongs to him and for (b) Powers of the AMLC to Act on a Request for
segregation or exclusion of the monetary Assistance from a Foreign State. — The AMLC
instrument or property corresponding thereto. may execute a request for assistance from a
The verified petition shall be filed with the court foreign State by: (1) tracking down, freezing,
which rendered the judgment of conviction and restraining and seizing assets alleged to be
order of forfeiture, within fifteen (15) days from proceeds of any unlawful activity under the
the date of the order of forfeiture, in default of procedures laid down in this Act; (2) giving
which the said order shall become final and information needed by the foreign State within
executory. This provision shall apply in both civil the procedures laid down in this Act; and (3)
and criminal forfeiture. applying for an order of forfeiture of any
(c) Payment in Lieu of Forfeiture. — Where the monetary instrument or property in the court:
court has issued an order of forfeiture of the Provided, That the court shall not issue such an
monetary instrument or property subject of a order unless the application is accompanied by
money laundering offense defined under Section an authenticated copy of the order of a court in
4, and said order cannot be enforced because the requesting State ordering the forfeiture of
any particular monetary instrument or property said monetary instrument or property of a
cannot, with due diligence, be located, or it has person who has been convicted of a money
been substantially altered, destroyed, laundering offense in the requesting State, and a
diminished in value or otherwise rendered certification or an affidavit of a competent officer
worthless by any act or omission, directly or of the requesting State stating that the
indirectly, attributable to the offender, or it has conviction and the order of forfeiture are final
been concealed, removed, converted or and that no further appeal lies in respect of
otherwise transferred to prevent the same from either.
being found or to avoid forfeiture thereof, or it is
located outside the Philippines or has been (c) Obtaining Assistance from Foreign States. —
placed or brought outside the jurisdiction of the The AMLC may make a request to any foreign
court, or it has been commingled with other State for assistance in (1) tracking down,
monetary instruments or property belonging to freezing, restraining and seizing assets alleged
either the offender himself or a third person or to be proceeds of any unlawful activity; (2)
entity, thereby rendering the same difficult to obtaining information that it needs relating to any
identify or be segregated for purposes of covered transaction, money laundering offense
forfeiture, the court may, instead of enforcing the or any other matter directly or indirectly related
order of forfeiture of the monetary instrument or thereto; (3) to the extent allowed by the law of
property or part thereof or interest therein, the foreign State, applying with the proper court
accordingly order the convicted offender to pay therein for an order to enter any premises
an amount equal to the value of said monetary belonging to or in the possession or control of,
any or all of the persons named in said request, particulars necessary for the issuance by the
and/or search any or all such persons named court in the requested State of the writs, orders
therein and/or remove any document, material or processes needed by the requesting State;
or object named in said request: Provided, That and (8) contain such other information as may
the documents accompanying the request in assist in the execution of the request.
support of the application have been duly
authenticated in accordance with the applicable (f) Authentication of Documents. — For
law or regulation of the foreign State; and (4) purposes of this Section, a document is
applying for an order of forfeiture of any authenticated if the same is signed or certified
monetary instrument or property in the proper by a judge, magistrate or equivalent officer in or
court in the foreign State: Provided, That the of, the requesting State, and authenticated by
request is accompanied by an authenticated the oath or affirmation of a witness or sealed
copy of the order of the regional trial court with an official or public seal of a minister,
ordering the forfeiture of said monetary secretary of State, or officer in or of, the
instrument or property of a convicted offender government of the requesting State, or of the
and an affidavit of the clerk of court stating that person administering the government or a
the conviction and the order of forfeiture are final department of the requesting territory,
and that no further appeal lies in respect of protectorate or colony. The certificate of
either. authentication may also be made by a secretary
of the embassy or legation, consul general,
(d) Limitations on Request for Mutual consul, vice consul, consular agent or any officer
Assistance. — The AMLC may refuse to comply in the foreign service of the Philippines stationed
with any request for assistance where the action in the foreign State in which the record is kept,
sought by the request contravenes any provision and authenticated by the seal of his office.
of the Constitution or the execution of a request
is likely to prejudice the national interest of the (g) Extradition. — The Philippines shall
Philippines unless there is a treaty between the negotiate for the inclusion of money laundering
Philippines and the requesting State relating to offenses as herein defined among extraditable
the provision of assistance in relation to money offenses in all future treaties.
laundering offenses. SEC. 14. Penal Provisions. — (a) Penalties for
(e) Requirements for Requests for Mutual the Crime of Money Laundering. The penalty of
Assistance from Foreign States. — A request for imprisonment ranging from seven (7) to fourteen
mutual assistance from a foreign State must (1) (14) years and a fine of not less than Three
confirm that an investigation or prosecution is million Philippine pesos (Php3,000,000.00) but
being conducted in respect of a money not more than twice the value of the monetary
launderer named therein or that he has been instrument or property involved in the offense,
convicted of any money laundering offense; (2) shall be imposed upon a person convicted under
state the grounds on which any person is being Section 4(a) of this Act.
investigated or prosecuted for money laundering The penalty of imprisonment from four (4) to
or the details of his conviction; (3) give sufficient seven (7) years and a fine of not less than One
particulars as to the identity of said person; (4) million five hundred thousand Philippine pesos
give particulars sufficient to identify any covered (Php1,500,000.00) but not more than Three
institution believed to have any information, million Philippine pesos (Php3,000,000.00), shall
document, material or object which may be of be imposed upon a person convicted under
assistance to the investigation or prosecution; Section 4(b) of this Act.
(5) ask from the covered institution concerned
any information, document, material or object The penalty of imprisonment from six (6) months
which may be of assistance to the investigation to four (4) years or a fine of not less than One
or prosecution; (6) specify the manner in which hundred thousand Philippine pesos
and to whom said information, document, (Php100,000.00) but not more than Five
material or object obtained pursuant to said hundred thousand Philippine pesos
request, is to be produced; (7) give all the
(Php500,000.00), or both, shall be imposed on a person convicted for a violation under Section
person convicted under Section 4(c) of this Act. 9(c).

(b) Penalties for Failure to Keep Records. The SEC. 15. System of Incentives and Rewards. —
penalty of imprisonment from six (6) months to A system of special incentives and rewards is
one (1) year or a fine of not less than One hereby established to be given to the
hundred thousand Philippine pesos appropriate government agency and its
(Php100,000.00) but not more than Five personnel that led and initiated an investigation,
hundred thousand Philippine pesos prosecution and conviction of persons involved
(Php500,000.00), or both, shall be imposed on a in the offense penalized in Section 4 of this Act.
person convicted under Section 9(b) of this Act.
SEC. 16. Prohibitions Against Political
(c) Malicious Reporting. Any person who, with Harassment. — This Act shall not be used for
malice, or in bad faith, report or files a political persecution or harassment or as an
completely unwarranted or false information instrument to hamper competition in trade and
relative to money laundering transaction against commerce.
any person shall be subject to a penalty of six
(6) months to four (4) years imprisonment and a No case for money laundering may be filed
fine of not less than One hundred thousand against and no assets shall be frozen, attached
Philippine pesos (Php100,000.00) but not more or forfeited to the prejudice of a candidate for an
than Five hundred thousand Philippine pesos electoral office during an election period.
(Php500,000.00), at the discretion of the court: SEC. 17. Restitution. — Restitution for any
Provided, That the offender is not entitled to aggrieved party shall be governed by the
avail the benefits of the Probation Law. provisions of the New Civil Code.
If the offender is a corporation, association, SEC. 18. Implementing Rules and Regulations.
partnership or any juridical person, the penalty — Within thirty (30) days from the effectivity of
shall be imposed upon the responsible officers, this Act, the Bangko Sentral ng Pilipinas, the
as the case may be, who participated in the Insurance Commission and the Securities and
commission of the crime or who shall have Exchange Commission shall promulgate the
knowingly permitted or failed to prevent its rules and regulations to implement effectively
commission. If the offender is a juridical person, the provisions of this Act. Said rules and
the court may suspend or revoke its license. If regulations shall be submitted to the
the offender is an alien, he shall, in addition to Congressional Oversight Committee for
the penalties herein prescribed, be deported approval.
without further proceedings after serving the
penalties herein prescribed. If the offender is a Covered institutions shall formulate their
public official or employee, he shall, in addition respective money laundering prevention
to the penalties prescribed herein, suffer programs in accordance with this Act including,
perpetual or temporary absolute disqualification but not limited to, information dissemination on
from office, as the case may be. money laundering activities and its prevention,
detection and reporting, and the training of
Any public official or employee who is called responsible officers and personnel of covered
upon to testify and refuses to do the same or institutions.
purposely fails to testify shall suffer the same
penalties prescribed herein. SEC. 19. Congressional Oversight Committee.
— There is hereby created a Congressional
(d) Breach of Confidentiality. The punishment of Oversight Committee composed of seven (7)
imprisonment ranging from three (3) to eight (8) members from the Senate and seven (7)
years and a fine of not less than Five hundred members from the House of Representatives.
thousand Philippine pesos (Php500,000.00) but The members from the Senate shall be
not more than One million Philippine pesos appointed by the Senate President based on the
(Php1,000,000.00), shall be imposed on a proportional representation of the parties or
coalitions therein with at least two (2) Senators
representing the minority. The members from the
House of Representatives shall be appointed by
the Speaker also based on proportional
representation of the parties or coalitions therein
with at least two (2) members representing the
minority.

The Oversight Committee shall have the power

to promulgate its own rules, to oversee the
implementation of this Act, and to review or
revise the implementing rules issued by the Anti-
Money Laundering Council within thirty (30)
days from the promulgation of the said rules.

SEC. 20. Appropriations Clause. — The AMLC

shall be provided with an initial appropriation of
Twenty-five million Philippine pesos
(Php25,000,000.00) to be drawn from the
national government. Appropriations for the
succeeding years shall be included in the
General Appropriations Act.

SEC. 21. Separability Clause. — If any provision

or section of this Act or the application thereof to
any person or circumstance is held to be invalid,
the other provisions or sections of this Act, and
the application of such provision or section to
other persons or circumstances, shall not be
affected thereby.

SEC. 22. Repealing Clause. — All laws,

decrees, executive orders, rules and regulations
or parts thereof, including the relevant provisions
of Republic Act No. 1405, as amended; Republic
Act No. 6426, as amended; Republic Act No.
8791, as amended and other similar laws, as are
inconsistent with this Act, are hereby repealed,
amended or modified accordingly.

SEC. 23. Effectivity. — This Act shall take effect

fifteen (15) days after its complete publication in
the Official Gazette or in at least two (2) national
newspapers of general circulation.

The provisions of this Act shall not apply to

deposits and investments made prior to its
effectivity.