BANK SECRECY ACT (RA 1405)
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.
1. What is the law on Secrecy of Bank
Deposits?
According to Republic Act (RA) No.
Section 2, 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, are hereby considered as
of an absolutely confidential nature and may
not be examined, inquired or looked into by
any person, government official, bureau or
office.
Exceptions include written permission of
the depositor, or in cases of impeachment,
or 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.
Deposits may only be disclosed if a bank
account is being investigated in court. This is
also extended in the Foreign Currency
Deposit Act of the Philippines, or FCDA, also
known as Republic Act No. 6426. Foreign
currency accounts may not be disclosed,
except upon a written permission of the
depositor.
Section 3 also states that, It shall be
unlawful for any official or employee of a
banking institution to disclose to any person
other than those mentioned in Section two
hereof any information concerning said
deposits.
2. What will happen to any violation of the
Law on Secrecy of Bank Deposits?
Section 5 of the RA states that violators will
be subject to conviction, to an
imprisonment of not more than five years or
a fine of not more than P20, 000, or both, in
the discretion of the court.
3. What accounts are covered in the secrecy
law?
Savings account, checking account, and
other types of bank deposits are included in
the secrecy law. Money markets, trust funds,
mutual funds, and the like are not covered.
4. If someone purportedly gained access to
an individuals bank account, does that
mean the bank involved isnt safe? Should I
withdraw all my money from the said
account and move it to another bank?
Bank employees are able to see some bank
accounts in the system. Whats important is
that they dont disclose the information they
see to anyone.
In the event of data breach, it is best to move
your deposits to a bank with stronger data
protection in place.
5. What happens when the depositor dies
and the spouse or dependent requests to
withdraw the funds?
Upon knowing of the depositors death,
Section 97 of the Tax Code allows banks to
freeze the deceased depositors account
until the Estate Tax Clearance from the BIR is
submitted. This applies to both individual
and joint accounts. The withdrawal will only
be granted if the Estate Tax has been paid.
The deposit is considered tax-exempt if its
P200,000 or below, and the spouse or
dependent only needs to submit documents
such as marriage certificate, birth certificate,
and certificate of deposit (e.g. a passbook) to
withdraw the account. However, if the
amount deposited is more than P200, 000, it
is subject to Estate Tax, and the spouse or
dependent is mandated by law to pay a
certain percentage for the amount
deposited. When its paid, a Certificate of
Tax Clearance will be provided to the spouse
or dependent. It should be submitted along
with the Deed of Extra-Judicial Settlement of
the Estate, and other document
requirements stipulated by the bank.
6. What has been done toward a more
transparent investigation for public
officials bank deposits?
At the height of the Bangladesh stolen
government funds worth some $81 million,
vice presidential candidate Senator Francis
Escudero urged fellow public officials to sign
a waiver or written permission to the Office
of the Ombudsman to grant permission into
all bank deposits and other investments,
within and outside the country.
This is in support of Senate Bill No. 16 he filed
in 2016, which makes lifestyle checks
mandatory for public officials and
employees. They will be required to sign a
waiver for the transparency of their bank
accounts.
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, June
11, 1978.)
Who are exempted 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.
Q. What guarantees on confidentiality do
depositors enjoy under the law?
A. For peso deposits, Republic Act No. 1405
(Bank Deposits Secrecy Law) disclosure of information related thereto is
declares all deposits of whatever nature with
banks in the Philippines, including
investments in government bonds, as of an
absolutely confidential nature and prohibits
the examination or inquiry into such deposits
or investments by any person, government
official, bureau or office, as well as the
disclosure by any official or employee of a
bank of any information concerning said
deposits.
There are only four (4) instances under the
law where bank deposits or investment in
government bonds may be disclosed or
looked into, namely: (1) upon written
permission of the depositor; or (2) in cases of
impeachment; or (3) upon order of a
competent court in cases of bribery or
dereliction of duty; or (4) in cases where the
money deposited or invested is the subject
matter of the litigation.
It may be noted that RA 1405 covers not only
bank deposits but also investments in
government bonds.
For foreign currency deposits, Republic Act
No. 6426 (The Foreign Currency Deposit
Act) similarly declares that these deposits
are of an absolutely confidential nature and
cannot 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. There is only one instance for
disclosure under said law and, that is, upon
the written permission of the depositor. RA
6426 also exempts foreign currency deposits
from attachment, garnishment, or any other
order or process of any court, legislative
body, government agency or any
administrative body whatsoever.
For investments in trust accounts or in
deposit substitutes, if these are in the form of
investments in government bonds or
deposits, the protection under RA 1405 and
RA 6426 extends thereto accordingly. If
these are in other forms of investments, the
covered by Section 55 of the General
Banking Law of 2000 (Republic Act No.
8791) which prohibits, unless there is an
order of a court of competent jurisdiction, the
disclosure by any director, official, employee
or agent of any bank any information relative
to the funds or properties in the custody of
the bank belonging to private individuals,
corporations or any other entity.
Q. How do banks respond to an order of a
competent court?
A. For peso deposits, banks comply with
orders for disclosure in court cases subject to
these requirements: (a) there must be a court
order; (b) the order must be issued by a
competent court specifically directing the
bank concerned to disclose the required
information; and (c) the bank should check
and satisfy itself that the deposits or
investment in government bonds being
inquired into are either the subject of a case
of bribery or dereliction of duty of public
officials, or of a case where the deposit or
investment itself is the subject matter of the
litigation. If these requirements are not met,
there would be basis for the bank to request
the court to excuse compliance with the court
order.
In impeachment cases, it is necessary that
there be an order issued by the impeachment
court or by its authorized officer. For foreign
currency deposits, the law does not provide
an instance for disclosure upon a court order.
As mentioned above, there is only a single
instance for disclosure under RA 6426 and,
that is, upon written permission of the
depositor. Thus, for foreign currency deposit
accounts subject of a court order, the bank
can invoke RA 6426 to excuse compliance.
Q. What is the liability of the banks and/or
its officers and employees for violating
the laws against disclosure?
A. Violations of the prohibitions against
disclosures under RA 1405, RA 6426 and
under the General Banking Law of 2000 are
subject to stiff criminal penalties.
Under RA 1405, the offender is subject to
imprisonment of not more than five years or
a fine of not more than P20,000, or both, in
the discretion of the court. Under RA 6426,
the penalty is imprisonment of not less than
one year not more than five years or a fine of
not less than P5,000 nor more than P25,000,
or both, in the discretion of the court. The
violation of Sec. 55 of the General Banking
Law of 2000, the penalty is imprisonment of
not less than two years nor more than 10
years or a fine of not less than P50,000 nor
more than P200,000, or both, in the
discretion of the court; and in addition, if the
offender is a director or officer of a bank, he
is subject to suspension or removal by the
Monetary Board.
B. Use of alias or number in opening
deposit accounts
Q. Are banks allowed to open accounts
using an alias or a number?
A. There is no specific banking law up to the
present prohibiting banks from opening
deposit accounts using an alias or a number.
Prior to July 7, 2000, there is also no banking
regulation providing for such prohibition. On
July 7, 2000 and in seeking the adoption of
anti-money laundering measures, the
Bangko Sentral ng Pilipinas (BSP) issued a
regulation, Circular No. 251, providing that,
unless otherwise prescribed under existing
laws, anonymous accounts or accounts
under fictitious names are prohibited.
The exception referred to under Circular No.
251 was RA 6426 (The Foreign Currency
Deposit Act) which explicitly allows the
keeping of numbered accounts for the
recording and servicing of deposits.
For peso accounts, when banks allow the
opening of deposit accounts under
pseudonyms, it is assumed that: (1) they
have exercised due diligence to ascertain the
identity of their clients; and (2) they are
aware of the legal provisions and
requirements on the use of pseudonyms.
The above notwithstanding, it may be
pointed out that in the Manual of Regulations
issued by BSP, or even before the issuance
of Circular 251, there were already
regulations requiring the banks to: (a) adopt
systems to establish the identity of their
depositors; and (b) require to set a minimum
of three (3) specimen signatures from each
of their depositors subject to regular
updating. Even for numbered accounts as
authorized under RA 6426, BSP has required
banks, under Circular 258, to take necessary
measures to establish and record the true
identity of their clients, which identification
may be based on official or other reliable
documents and records.
Q. Are there other laws governing the use
of pseudonyms or aliases?
A. Art. 178 of the Revised Penal Code
penalizes the: (a) publicly using of a fictitious
name for the purpose of concealing a crime,
evading the execution of a judgment, or
causing damage; and (b) concealment by
any person of his true name and other
personal circumstances.
On the other hand, there is also
Commonwealth Act No. 142, as amended by
Republic Act No. 6085 (Regulating the Use
of Aliases) which provides that, except only
as a pseudonym for literary purposes and
athletic events, it is unlawful for any person
to use an alias, unless the same is duly
recorded in the proper local civil registry.
Related thereto, Articles 379 and 380 of the
Civil Code provide that no person shall use
different names and surnames except the
employment of pen and stage names
provided it is done in good faith and there is
no injury to third persons.
What can be noted is that the above
provisions allow the use of aliases under
certain circumstances. Conversely stated,
the use of aliases is not absolutely
disallowed. Moreover, the sanctions for any
violation of the above provisions on aliases
are mainly directed to the one using the
unauthorized alias.
Q. How does Circular No. 251 apply to
existing numbered accounts?
A. For peso accounts, the banks should have
their respective programs of compliance with
the Circular. For foreign currency deposit
accounts, they are allowed to continue
maintaining numbered accounts opened in
accordance with RA 6426 subject to the
requirement that the banks shall take
necessary measures to establish and record
the true identity of their clients.
Q. What penalties/sanctions are
applicable for violating the
laws/regulations?
A. Article 178 of the Revised Penal Code is
directed to the person concealing his identity
publicly or using a fictitious name and the
penalty would range from one day up to six
months imprisonment and/or a fine up to
P500,000. For violation of Commonwealth
Act 142, which is likewise directed to the
person using an unauthorized alias, the
penalty is imprisonment from one year to five
years and a fine of P5,000 to P10,000. For
the violation of Circular 251, it is subject to
the administrative sanction on the bank
and/or responsible directors/officers of fine
up to P30,000 per transaction.
C. Continued confidentiality/secrecy of
deposit transactions
Q. Is confidentiality/secrecy of deposit
accounts compromised with the issuance
of Circular 251?
A. No. Circular 251 merely disallowed the
opening of fictitious and anonymous
accounts and has not in any way modified
nor lessened the safeguards and protection
to depositors under RA 1405. This means
that, notwithstanding Circular 251, deposit
accounts cannot be examined or looked into
except under the limited circumstances
provided for in RA 1405.
Q. Why are the BSP and the BAP
advocating the amendment to bank
secrecy laws?
A. The proposal of BSP and BAP is for
access to deposit accounts only under
exceptional circumstances, such as deposits
only above the P50-million level and in
relation to the commission of serious
offenses like racketeering and illicit drug
trade. Except for these instances, depositors
and those with legitimate transactions remain
protected under RA 1405. The objective of
the proposal is to institute this measure as an
anti-money laundering campaign so as to
delete the Philippines as a non-cooperative
country in the list of the Financial Action Task
Force against money laundering.
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) 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 or juridical person,
unless the context indicates otherwise.
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.
Is plunder prescriptible?
Yes. It shall prescribe in 20 years. However,
the right of the State to recover properties
unlawfully acquired by public officers from
them or from their nominees or transferees
shall not be barred by prescription, laches, or
estoppel.
ANTI-GRAFT AND CORRUPT PRACTICES
ACT (RA 3019)
Approved on August 17, 1960
Who is a Public Officer?
Elective and appointive officials and
employees, permanent or temporary,
whether in the classified or unclassified or
exempt service receiving compensation,
even nominal, from the government.
What do you mean by "receiving any
gift"?
It is the act of accepting (directly or indirectly)
a gift from a person other than a member of
the public officer's immediate family, in
behalf of himself or of any member of his
family or relative within the fourth civil
degree, either by consanguinity or affinity,
even on the occasion of a family celebration
or national festivity like Christmas, if the
value of the gift is under the circumstances
manifestly excessive.
What constitutes unlawful and corrupt
practices of a public officer?
(a) Persuading, inducing or influencing
another public officer to perform an act
constituting a violation of rules and
regulations duly promulgated by competent
authority or an offense in connection with the
official duties of the latter, or allowing himself
to be persuaded, induced, or influenced to
commit such violation or offense.
(b) Directly or indirectly requesting or
receiving any gift, present, share,
percentage, or benefit, for himself or for any
other person, in connection with any contract
or transaction between the Government and
any other part, wherein the public officer in
his official capacity has to intervene under
the law.
(c) Directly or indirectly requesting or
receiving any gift, present or other pecuniary
or material benefit, for himself or for another,
from any person for whom the public officer,
in any manner or capacity, has secured or
obtained, or will secure or obtain, any
Government permit or license, in
consideration for the help given or to be
given.
(d) Accepting or having any member of his
family accept employment in a private
enterprise which has pending official
business with him during the pendency
thereof or within one year after its
termination.
(e) Causing any undue injury to any party,
including the Government, or giving any
private party any unwarranted benefits,
advantage or preference in the discharge of
his official administrative or judicial functions
through manifest partiality, evident bad faith
or gross inexcusable negligence. This
provision shall apply to officers and
employees of offices or government
corporations charged with the grant of
licenses or permits or other concessions.
(f) Neglecting or refusing, after due demand
or request, without sufficient justification, to
act within a reasonable time on any matter
pending before him for the purpose of
obtaining, directly or indirectly, from any
person interested in the matter some
pecuniary or material benefit or advantage,
or for the purpose of favoring his own interest
or giving undue advantage in favor of or
discriminating against any other interested
party.
(g) Entering, on behalf of the Government,
into any contract or transaction manifestly
and grossly disadvantageous to the same,
whether or not the public officer profited or
will profit thereby.
(h) Directly or indirectly having financing or
pecuniary interest in any business, contract
or transaction in connection with which he
intervenes or takes part in his official
capacity, or in which he is prohibited by the
Constitution or by any law from having any
interest.

(i) Directly or indirectly becoming interested,
for personal gain, or having a material
interest in any transaction or act requiring the
approval of a board, panel or group of which
he is a member, and which exercises
discretion in such approval, even if he votes
against the same or does not participate in
the action of the board, committee, panel or
group. Interest for personal gain shall be
presumed against those public officers
responsible for the approval of manifestly
unlawful, inequitable, or irregular transaction
or acts by the board, panel or group to which
they belong.
(j) Knowingly approving or granting any
license, permit, privilege or benefit in favor of
any person not qualified for or not legally
entitled to such license, permit, privilege or
advantage, or of a mere representative or
dummy of one who is not so qualified or
entitled.
(k) Divulging valuable information of a
confidential character, acquired by his office
or by him on account of his official position to
unauthorized persons, or releasing such
information in advance of its authorized
release date.
What happens to the person giving the
gift, present, share, percentage or benefit,
or offering or giving to the public officer
employment, or urging the divulging or
untimely release of the confidential
information?
Such person, together with the offending
public officer, will be punished under this Act
and shall be permanently or temporarily
disqualified in the discretion of the Court,
from transacting business in any form with
the Government.
What includes Family Relation?
It shall include the spouse or relatives by
consanguinity or affinity in the third civil
degree.
What is Close Personal Relation?
It shall include close personal friendship,
social and fraternal connections, and
professional employment all giving rise to
intimacy which assures free access to such
public officer.
Who among those related to the
President, Vice-President, Senate
President, House Speaker are prohibited
to intervene, directly or indirectly, in any
business, transaction, contract or
application with the government?
The spouse or any relative, by consanguinity
or affinity, within the third civil degree.
Exception: Any person who, prior to the
assumption of office of the official, has been
already dealing with the Government along
the same line of business, or to any
transaction, contract or application already
existing or pending at the time of such
assumption of public office, or to any
application filed by him the approval of which
is not discretionary on the part of the official
or officials concerned but depends upon
compliance with requisites provided by law,
or rules or regulations issued pursuant to
law, or to any act lawfully performed in an
official capacity or in the exercise of a
profession.
What is the prohibition on any member of
the Congress?
To acquire or receive any personal pecuniary
interest in any specific business enterprise
which will be directly and particularly favored
or benefited by any law or resolution
authored by him previously approved or
adopted by the Congress during the his term.
With regard to enactment or adoption of a
law or resolution, who can be liable?
Any public officer who recommended the
initiation in Congress of the enactment or
adoption of any law or resolution, and
acquires or receives any such interest during
his incumbency.
Suppose the member of the Congress or
a public officer has an interest even prior
to the approval or the law or resolution
authored or recommended by him?
It is unlawful for such member of Congress
or other public officer to continue to retain
such interest for 30 days after approval.
When should every public officer prepare
and file his Statement of Assets and
Liabilities (SAL)?
Within thirty days after the approval of this
Act or after assuming office, and within the
month of January of every other year
thereafter, as well as upon the expiration of
his term of office, or upon his resignation or
separation from office.
What should the SAL contain?
A true detailed and sworn statement of
assets and liabilities, including a statement of
the amounts and sources of his income, the
amounts of his personal and family expenses
and the amount of income taxes paid for the
next preceding calendar year.
Suppose a public officer assumed office
less than two months before the end of
the calendar year?
He may file his statement in the following
months of January.
When can a public official be considered
guilty of graft and corruption?
If he has been found to have acquired during
his incumbency, whether in his name or in
the name of other persons, an amount of
property and/or money manifestly out of
proportion to his salary and to his other lawful
income.
What is the consequence of such
violation?
It shall be a ground for dismissal or removal.
What are also considered in the
determination of the public official's
guilt?
Properties in the name of the spouse and
unmarried children of such public official may
be taken into consideration, when their
acquisition through legitimate means cannot
be satisfactorily shown. Bank deposits shall
be taken into consideration in the
enforcement of this section, notwithstanding
any provision of law to the contrary.
Who has competent jurisdiction of graft
and corruption cases?
Until otherwise provided by law, the proper
Court of First Instance in its original
jurisdiction.
What is the prescription period?
10 years.
Is the public officer concerned allowed to
resign pending an investigation, criminal
or administrative, or pending a
prosecution against him?
No.
Will the public officer be suspended?
Yes. Any public officer against whom any
criminal prosecution under a valid
information under this Act or under the
provisions of the Revised Penal Code on
bribery is pending in court, shall be
suspended from office.
What happens if he is convicted?
He shall lose all retirement or gratuity
benefits under any law.
If he is acquitted?
He shall be entitled to reinstatement and to
the salaries and benefits which he failed to
receive during suspension, unless in the
meantime administrative proceedings have
been filed against him.
What gifts or presents are excepted in
this Act?
Unsolicited gifts or presents of small or
insignificant value offered or given as a mere
ordinary token of gratitude or friendship
according to local customs or usage.
Can a public official still practice his
profession, lawful trade or occupation
during his incumbency?
Yes. Provided that, under the law, he may
legitimately practice his profession, trade or
occupation during his incumbency.
Exception: Where the practice of such
profession, trade or occupation involves
conspiracy with any other person or public
official to commit any of the violations
penalized in this Act.
RA 6713 Code of Conduct and Ethical
Standards for Public Officials and
Employees
Public office is a public trust.
Main points of the law
accountability to the people and
public interest over private interest.
Emphasis on conflict of interest
Public Officer elective, appointive,
permanent, temporary, whether in
the career or non-career service
including military and police
personnel, whether or not receiving
compensation.
In RA 3019, the public officer must be
receiving compensation no matter
how nominal, whereas in RA 6713,
he may not be a compensated PO.
The offense does not include gifts
that are unsolicited which are of
nominal value, not given in
anticipation of or in exchange of a
favor from a PO.
Family shall include spouses and
children below 18 years old.
Relatives shall include those related
to the PO within the 4th civil degree
of affinity or consanguinity
Conflict of interest arises when a
PO is a member of a board, an officer
or stockholder of a private
corporation or owner or has
substantial interest in a business and
the interest of such corporation of
business, or his rights or duties
therein, may be opposed to or
affected by the faithful performance
of official duty.
Norms and conduct
Professionalism, Justice and
Sincerity, Simple Living,
Professionalism, Political Neutrality,
Responsiveness to the public,
Nationalism and Patriotism,
Commitment to public interest and
commitment to democracy.
Duties of public officers
1. Act promptly on letters and requests
2. Submit annual performance reports
3. Process documents and paper
expeditiously
4. Act immediately on the publics personal
transactions
5. Make documents more accessible to the
public
Prohibited acts and transactions
1. Financial and material interest. - Public
officials and employees shall not, directly or
indirectly, have any financial or material
interest in any transaction requiring the
approval of their office.
2. Own, control, manage or accept
employment as officer, employee,
consultant, counsel, broker, agent, trustee or
nominee in any private enterprise regulated,
supervised or licensed by their office unless
expressly allowed by law 1 year prohibition
applies
3. Engage in the private practice of their
profession unless authorized by the
Constitution or law, provided, that such
practice will not conflict or tend to conflict with
their official functions 1 year prohibition
only applies to those in connection with any
matter before the office he used to be with
4. Recommend any person to any position in
a private enterprise which has a regular or
pending official transaction with their office.
1 year prohibition applies
5. Disclosure and/or misuse of confidential
information to further private interest, give
undue advantage to another or to the
prejudice of public interest

6. Solicitation or acceptance of gift
Allowed undertakings Gifts or grants
from foreign government, the Congress
consents to
1. The acceptance and retention by a public
official or employee of a gift of nominal value
tendered and received as a souvenir or mark
of courtesy
2. The acceptance by a public official or
employee of a gift in the nature of a
scholarship or fellowship grant or medical
treatment; or
3. The acceptance by a public official or
employee of travel grants or expenses for
travel taking place entirely outside the
Philippine of more than nominal value if such
acceptance is appropriate or consistent with
the interests of the Philippines, and permitted
by the head of office, branch or agency to
which he belongs.
Teaching of law by a member of the
judiciary allowed by law, provided that a
permit is acquired from the office of the
court administrator.
In case of Conflict of Interest
1. Resignation in any private business
enterprise within 30 days from his
assumption of office, or
2. Divest his shareholdings or interest within
60 days from assumption, except
a. Those who serve the government in an
honorary capacity
b. Laborers and casual or temporary workers
Ombudsman can dismiss employees
even without criminal proceedings.
Private individuals who participate in
conspiracy as co-principals,
accessories or accomplices may be
held liable under RA 6713.
Animal Welfare Act of 1998
The Republic Act 8485, otherwise known as
the Animal Welfare Act of 1998, is an act to
promote animal welfare in the Philippines. It
was passed during former President Fidel V.
Ramos' term.
Section 1 states that the act aims to protect
and promote the welfare of all animals in the
Philippines by supervising and regulating the
establishment and operations of all facilities
of all animals.
Section 2 states that nobody shall establish,
maintain and operate any animal facility (pet
shop, kennel, veterinary clinic, veterinary
hospital, stockyard, corral, stud farm or stock
farm or zoo) without first securing from the
Bureau of Animal Industry a certificate of
registration. A certificate may be issued if
facilities of such establishments are
adequate, clean, and sanitary and will not be
used to cause pain or suffering to the
animals.
Section 3 states that the Director of the
Bureau of Animal Industry shall supervise
and regulate the establishment and
operation and maintenance of animal
facilities and any other form or structure for
the confinement of animals to provide
maximum comfort while in transit and
minimize incidence of sickness and death
and prevent any cruelty from being inflicted
upon animals.
Section 4 states that it shall be the duty of
any air, land, or water public utility which
transports animals to provide adequate,
clean, and sanitary facilities for the safe
conveyance and delivery of animals.
Sufficient food and water shall be provided to
animals while in transit. No one shall transit
any animal without a written permit from the
Director of the Bureau of Animal Industry.
Any form of cruelty shall be penalized.
Section 6 states that it shall be unlawful to
torture, neglect providing adequate care,
sustenance or shelter or maltreat any animal.
Killing of animals other than cattle pigs,
goats, sheep, poultry, rabbits, carabaos,
horses, deer and crocodiles is declared
unlawful except during the following
instances:
When it is done as a part of religious
rituals of an established religion or an
ethnic custom of indigenous cultural
groups
When an animal is afflicted with an
incurable and communicable disease
as certified by a veterinarian
When the killing is necessary to put
an end to the misery suffered by an
animal
When it is done to prevent an
imminent danger to the life of a
human being
When done to control animal
population
When an animal is killed after it has
been used in an authorized research
or experiment
Section 7 states that every person shall
protect the natural habitat of animals.
Destruction of animal habitat is considered
animal cruelty and its preservation is
considered a way of protecting animals.
Section 8 states that a convicted person who
violates any provision of this Act shall be
punished by imprisonment of not less than
six (6) months to not more than two (2) years
or a fine of not less than one thousand pesos
(P1, 000.00) to not more than five thousand
pesos (P5, 000.00) or both at the discretion
of the Court.
Anti Carnapping (READ CODAL)
The elements of carnapping, as
mentioned in People vs. Calabroso, 340
SCRA 332, are as follows:
1.) Actual taking of the vehicle
2.) The offender intends to gain from taking
the vehicle
3.) The vehicle belongs to another person,
not the offender
4.) The taking was either without the owner's
consent, by means of violence or intimidation
or the use of force on things
The taking of a vehicle is completed the
moment the carnapper is in possession of it,
even if he has the opportunity to dispose of it
(People vs. Ellasos, 411 Phil 139.) "Gain"
doesn't necessarily mean profit; even if the
taking was for a joyride it's still considered
carnapping (Villacorta vs. Insurance
Commission, GR 54171, October 28, 1980.)
R.A. No. 6539, or the Anti-Carnapping Act
of 1972, as amended, defines carnapping
as the taking, with intent to gain, of a
motor vehicle belonging to another
without the latters consent, or by means
of violence against or intimidation against
persons, or by using force upon
things1. By the amendment in Section
20 of R.A. No. 7659, Section 14 of the Anti-
Carnapping Act now reads:
SEC. 14. Penally for Carnapping. Any
person who is found guilty of carnapping,
as this term is defined in Section two of
this Act, shall, irrespective of the value of
the motor vehicle taken, be punished by
imprisonment for not less than fourteen
years and eight months and not more
than seventeen years and four months,
when the carnapping is committed
without violence or intimidation of
persons, or force upon things, and by
imprisonment for not less than seventeen
years and four months and not more than
thirty years, when the carnapping is
committed by means of violence or
intimidation of any person, or force upon
things; and the penalty of reclusion
perpetua to death shall be imposed when
the owner, driver or occupant of the
carnapped motor vehicle is killed or raped
in the course of the commission of the
carnapping or on the occasion thereof.
(Emphasis supplied)
Three amendments have been made to the
original Section 14 of the Anti-Carnapping
Act: (1) the penalty of life imprisonment was
changed to reclusion perpetua, (2) the
inclusion of rape, and (3) the change of the
phrase in the commission of the carnapping
to in the course of the commission of the
carnapping or on the occasion thereof. This
third amendment clarifies the laws intent to
make the offense a special complex crime,
by way of analogy vis-a-vis paragraphs 1 to
4 of the Revised Penal Code on robbery with
violence against or intimidation of persons.
Thus, under the last clause of Section 14 of
the Anti-Carnapping Act, the prosecution has
to prove the essential requisites of
carnapping and of the homicide or murder of
the victim, and more importantly, it must
show that the original criminal design of the
culprit was carnapping and that the killing
was perpetrated in the course of the
commission of the carnapping or on the
occasion thereof. Consequently, where the
elements of carnapping are not proved, the
provisions of the Anti-Carnapping Act would
cease to be applicable and the homicide or
murder (if proven) would be punishable
under the Revised Penal Code.
REPUBLIC ACT NO. 8048
AN ACT PROVIDING FOR THE
REGULATION OF THE
CUTTING OF COCONUT TREES,
ITS REPLENISHMENT,
PROVIDING PENALTIES
THEREFOR AND FOR OTHER
PURPOSES.
Declaration of Policy
Considering the importance of the
coconut industry in nation building
being one of the principal industries
1
Section 2, RA 8048
and one of the largest income
earners of the country, it becomes
mandatory for the Government to
step-in and regulate the unabated
and indiscriminate cutting of the
coconut trees.For reasons of
national interest, it is hereby
declared the policy of the State to
provide for the growth of the
industry by embarking on a
sustainable and efficient replanting
program. 1
Prohibition
No coconut tree shall be cut except in
the following cases and only after a
permit had been issued therefor:
(a) When the tree is sixty (60) years old
in the case of tall varieties, and at least
forty (40) years old for dwarf varieties;
(b) When the tree is no longer
economically productive;
(c) When the tree is severely disease-
infested and beyond rehabilitation;
(d) When the tree is severely damaged
by typhoon or lightning;
(e) When the agricultural land devoted
to coconut production shall have been
converted in accordance with law into
residential, commercial or industrial
areas;
(f) When the land devoted to coconut
production shall be converted into
other agricultural uses or other
agriculture-related activities in
pursuance to a conversion duly applied
for by the owner and approved by the
proper authorities: Provided, That no
conversion shall be allowed by the
PCA until after it shall have been
verified and certified that for a period
of at least three (3) years the majority
of the coconut trees have become
senescent and economically
unproductive or where the coconut
farm is not adaptable to sound
management practices on account of
geographical location, topography,
drainage and other conditions
rendering the farm economically
unproductive; and
(g) When the tree would cause hazard
to life and property.
No other causes other than those
abovementioned shall be considered as
a valid ground for cutting. 2
Permit to cut
No coconut tree or trees shall be cut
unless a permit therefore, upon due
application being made, has been
issued by the PCA pursuant to Section
6 of this Act.
The applicant shall pay an application
fee in the amount of One hundred
2
Section 4, RA 8048
pesos (P100.00) for every tree
intended to be cut payable to the PCA.
Forty pesos (P40.00) of the fee shall
accrue in favor of the PCA, Forty pesos
(P40.00) in favor of the municipal
government concerned, and Twenty
pesos (P20.00) in favor of the barangay
unit concerned.
The fees allocated to the PCA shall be
used for its replanting program and the
fees allocated to the municipal/city
government shall be used for the repair
and rehabilitation of roads of the
respective local government units
which have been damaged by the
continuous passage of heavy vehicles
used for transporting coconut lumber.
Fees herein collected shall be
deposited with the nearest Land Bank
of the Philippines branch or other
government depository banks. Fees
accruing to the local government unit
shall be remitted within three (3)
months in accordance with existing
Commission on Audit (COA) rules and
regulations.
No permit to cut shall be granted
unless the applicant has secured from
the barangay captain of the locality
where the cutting will be done, a
certification under oath that he/she has
already planted the equivalent number
of coconut trees applied for to be cut.
Such replanting, however, shall not
apply to areas converted into
industrial, commercial or residential
sites or land transformed in accordance
with law, into other agricultural
purposes.
The PCA, in coordination with the
local government unit concerned, shall
verify if a replanting was implemented
and regulate and oversee the
fertilization and care of the newly
planted coconut trees. For this purpose,
it shall be incumbent upon the PCA to
conduct, from time to time, on-the-spot
inspections of the sites where the
coconut trees have been planted. 3
The Philippine Coconut Authority
The Philippine Coconut Authority
shall have the exclusive authority to
grant permit for the cutting of
coconut trees.The authority may be
delegated to the city or municipal
mayors as the PCA may determine.4
The PCA shall be vested with the
authority to exercise duly delegated
police powers for the proper
performance of its functions and
duties, to wit:
(a) Investigate suspected violations of
this Act;
3 4
Section 5, RA 8048
(b) Arrest and apprehend any person
actually committing or attempting to
commit an offense under this Act;
(c) Arrest and apprehend possessor of
coconut lumber without the necessary
permit as required under this Act;
(d) Search and seize a moving vehicle
with illegally cut, gathered, collected
or removed coconut
lumber: Provided, That probable
cause for the search is established;
(e) Stop the transport and/or shipment
of coconut lumber without authority or
without legal documents in accordance
with pertinent laws, regulations or
policies on the matter;
(f) Confiscate and forfeit in favor of
the government the illegally cut,
gathered, collected, removed,
possessed or abandoned coconut
lumber, as well as the machinery,
equipment, implements and tools
illegally used in the commission of the
offense and to dispose of the same in
accordance with pertinent laws,
regulations or policies on the matter;
and
(g) Seek the assistance of other law
enforcement agencies for the efficient
Section 6, RA 8048
and effective implementation of this the processing and sawing of coconut
Act. 5 trees. 6

The Philippine Coconut Authority

shall be the lead agency to implement
the provisions of this Act. For this
purpose, the Philippine Coconut
Authority shall prescribe the necessary
rules and regulations for the immediate
and effective implementation of this
Act.

The PCA, in order to effectively

implement the provisions of this Act,
may request the assistance of any local
government unit, to monitor and
ensure compliance with this Act
including its implementing rules and
regulations. For this purpose, the PCA
may deputize the Philippine National
Police or other law enforcement
agencies to investigate and apprehend
those caught violating the provisions
of this Act, including the confiscation
of illegally cut coconut trees. In order
to prevent wastage, the PCA shall
order the immediate disposition of
confiscated coconut lumber in a
manner to be determined by the PCA.

In addition to the foregoing, the PCA

shall also, in coordination, with the
local government unit concerned,
require the registration of all sawmills,
lumberyards, coconut wood dealers
and other persons or entities dealing in

5 6
Section 7, RA 8048 Section 8, RA 8048