You are on page 1of 17

BANK SECRECY ACT (RA 1405) According to Republic Act (RA) No.

Approved on September 9, 1955 Section 2, All deposits of whatever nature
with banks or banking institutions in the
What is the purpose of the Bank Secrecy Philippines including investments in bonds
Act? issued by the Government of the Philippines,
To give encouragement to the people to its political subdivisions and its
deposit their money in banking institutions instrumentalities, are hereby considered as
and to discourage private hoarding so that of an absolutely confidential nature and may
the same may be properly utilized by banks not be examined, inquired or looked into by
in authorized loans to assist in the economic any person, government official, bureau or
development of the country. office.

What are considered absolutely Exceptions include written permission of

confidential in nature and hence cannot be the depositor, or in cases of impeachment,
examined, inquired or looked into by any or upon order of a competent court in cases
person, government official, bureau, or of bribery or dereliction of duty of public
office? officials, or in cases where the money
All deposits of whatever nature with banks deposited or invested is the subject matter
or banking institutions in the Philippines of the litigation.
including investments in bonds issued by the
Government of the Philippines, its political Deposits may only be disclosed if a bank
subdivisions and its instrumentalities. account is being investigated in court. This is
also extended in the Foreign Currency
What is the exception to this prohibition? Deposit Act of the Philippines, or FCDA, also
Upon written permission of the depositor. known as Republic Act No. 6426. Foreign
In impeachment cases, there is a different currency accounts may not be disclosed,
rule. What is it? except upon a written permission of the
Upon order of a competent court in cases of depositor.
bribery or dereliction of duty of public
officials or in cases where the money Section 3 also states that, It shall be
deposited or invested is the subject matter unlawful for any official or employee of a
of the litigation. banking institution to disclose to any person
other than those mentioned in Section two
What is the responsibility of any official or hereof any information concerning said
employee of a banking institution? deposits.
To not disclose information concerning said
deposits. 2. What will happen to any violation of the
Exception: Upon written permission of the Law on Secrecy of Bank Deposits?
depositor or upon court order in cases of
impeachment. Section 5 of the RA states that violators will
be subject to conviction, to an
1. What is the law on Secrecy of Bank imprisonment of not more than five years or
Deposits? a fine of not more than P20, 000, or both, in
the discretion of the court.
3. What accounts are covered in the secrecy or dependent. It should be submitted along
law? with the Deed of Extra-Judicial Settlement of
Savings account, checking account, and the Estate, and other document
other types of bank deposits are included in requirements stipulated by the bank.
the secrecy law. Money markets, trust funds,
mutual funds, and the like are not covered. 6. What has been done toward a more
transparent investigation for public
4. If someone purportedly gained access to officials bank deposits?
an individuals bank account, does that
mean the bank involved isnt safe? Should I At the height of the Bangladesh stolen
withdraw all my money from the said government funds worth some $81 million,
account and move it to another bank? vice presidential candidate Senator Francis
Bank employees are able to see some bank Escudero urged fellow public officials to sign
accounts in the system. Whats important is a waiver or written permission to the Office
that they dont disclose the information they of the Ombudsman to grant permission into
see to anyone. all bank deposits and other investments,
within and outside the country.
In the event of data breach, it is best to move
your deposits to a bank with stronger data This is in support of Senate Bill No. 16 he filed
protection in place. in 2016, which makes lifestyle checks
mandatory for public officials and
5. What happens when the depositor dies employees. They will be required to sign a
and the spouse or dependent requests to waiver for the transparency of their bank
withdraw the funds? accounts.
Upon knowing of the depositors death,
Section 97 of the Tax Code allows banks to FOREIGN CURRENCY DEPOSIT ACT (RA
freeze the deceased depositors account 6426)
Approved on April 4, 1974
until the Estate Tax Clearance from the BIR is Who may be authorized to deposit foreign
submitted. This applies to both individual currency?
and joint accounts. The withdrawal will only Any person, natural or juridical, may deposit
be granted if the Estate Tax has been paid. with such Philippine banks in good standing.

The deposit is considered tax-exempt if its What foreign currencies are acceptable?
Foreign currencies which are acceptable as
P200,000 or below, and the spouse or
part of the international reserve, except those
dependent only needs to submit documents which are required by the Central Bank to be
such as marriage certificate, birth certificate, surrendered.
and certificate of deposit (e.g. a passbook) to
withdraw the account. However, if the What are the authority of banks
amount deposited is more than P200, 000, it designated by Central Bank?
(1) To accept deposits and to accept foreign
is subject to Estate Tax, and the spouse or
currencies in trust Provided, That numbered
dependent is mandated by law to pay a accounts for recording and servicing of said
certain percentage for the amount deposits shall be allowed;
deposited. When its paid, a Certificate of (2) To issue certificates to evidence such
Tax Clearance will be provided to the spouse deposits;
(3) To discount said certificates; regulations. It is without the limitations
(4) To accept said deposits as collateral for prescribed in the preceding paragraph
loans subject to such rules and regulations regarding maturity and marketability, and
as may be promulgated by the Central Bank such loans shall be eligible for purposes of
from time to time; and the 100% foreign currency cover.
(5) To pay interest in foreign currency on
such deposits. May the depositor withdraw or transfer
his deposit abroad?
What are the requirements for foreign Yes. There shall be no restriction.
currency cover? Exception: Those arising from the contract
Except as the Monetary Board may between the depositor and the bank.
otherwise prescribe or allow, the depository
banks shall maintain at all times a one Are foreign currency deposits subject to
hundred percent foreign currency cover for tax?
their liabilities, of which cover at least fifteen No. Including interest and all other income or
percent shall be in the form of foreign earnings of such deposits are hereby
currency deposit with the Central Bank, and exempted from any and all taxes whatsoever
the balance in the form of foreign currency irrespective of whether or not these deposits
loans or securities, which loans or securities are made by residents or nonresidents so
shall be of short term maturities and readily long as the deposits are eligible or allowed
marketable. Such foreign currency loans and, in the case of nonresidents, irrespective
may include loans to domestic enterprises of whether or not they are engaged in trade
which are export-oriented or registered with or business in the Philippines.
the Board of Investments, subject to the
limitations to be prescribed by the Monetary Do foreign currency deposits enjoy
Board on such loans. Except as the confidentiality?
Monetary Board may otherwise prescribe or Yes. They are declared as and considered of
allow, the foreign currency cover shall be in an absolutely confidential nature and, except
the same currency as that of the upon the written permission of the depositor,
corresponding foreign currency deposit in no instance shall foreign currency deposits
liability. The Central Bank may pay interest be examined, inquired or looked into by any
on the foreign currency deposit, and if person, government official, bureau or office
requested shall exchange the foreign whether judicial or administrative or
currency notes and coins into foreign legislative, or any other entity whether public
currency instruments drawn on its depository or private.
banks. (As amended by PD No. 1453, June
11, 1978.) May foreign currency deposits be subject
to attachment or garnishment?
Who are exempted from the 15% deposit No. They shall be exempt from attachment,
requirement? garnishment, or any other order or process of
Depository banks which, on account of any court, legislative body, government
networth, resources, past performance, or agency or any administrative body
other pertinent criteria, have been qualified whatsoever.
by the Monetary Board to function under an
expanded foreign currency deposit system. Are foreign currency deposits insured?
Yes. They shall be insured under Philippine
Can the said depositary banks extend Deposit Insurance Corporation (PDIC).
foreign currency loans to any domestic Insurance payment shall be in the same
enterprise? currency in which the insured deposits are
Yes. But subject to prior Central Bank denominated.
approval when required by Central Bank
Q. What guarantees on confidentiality do deposits, the protection under RA 1405 and
depositors enjoy under the law? RA 6426 extends thereto accordingly. If
A. For peso deposits, Republic Act No. 1405 these are in other forms of investments, the
(Bank Deposits Secrecy Law) disclosure of information related thereto is
declares all deposits of whatever nature with covered by Section 55 of the General
banks in the Philippines, including Banking Law of 2000 (Republic Act No.
investments in government bonds, as of an 8791) which prohibits, unless there is an
absolutely confidential nature and prohibits order of a court of competent jurisdiction, the
the examination or inquiry into such deposits disclosure by any director, official, employee
or investments by any person, government or agent of any bank any information relative
official, bureau or office, as well as the to the funds or properties in the custody of
disclosure by any official or employee of a the bank belonging to private individuals,
bank of any information concerning said corporations or any other entity.
Q. How do banks respond to an order of a
There are only four (4) instances under the competent court?
law where bank deposits or investment in A. For peso deposits, banks comply with
government bonds may be disclosed or orders for disclosure in court cases subject to
looked into, namely: (1) upon written these requirements: (a) there must be a court
permission of the depositor; or (2) in cases of order; (b) the order must be issued by a
impeachment; or (3) upon order of a competent court specifically directing the
competent court in cases of bribery or bank concerned to disclose the required
dereliction of duty; or (4) in cases where the information; and (c) the bank should check
money deposited or invested is the subject and satisfy itself that the deposits or
matter of the litigation. investment in government bonds being
inquired into are either the subject of a case
It may be noted that RA 1405 covers not only of bribery or dereliction of duty of public
bank deposits but also investments in officials, or of a case where the deposit or
government bonds. investment itself is the subject matter of the
litigation. If these requirements are not met,
there would be basis for the bank to request
For foreign currency deposits, Republic Act the court to excuse compliance with the court
No. 6426 (The Foreign Currency Deposit order.
Act) similarly declares that these deposits
are of an absolutely confidential nature and In impeachment cases, it is necessary that
cannot be examined, inquired or looked into there be an order issued by the impeachment
by any person, government official, bureau or court or by its authorized officer. For foreign
office whether judicial or administrative or currency deposits, the law does not provide
legislative or any other entity whether public an instance for disclosure upon a court order.
or private. There is only one instance for As mentioned above, there is only a single
disclosure under said law and, that is, upon instance for disclosure under RA 6426 and,
the written permission of the depositor. RA that is, upon written permission of the
6426 also exempts foreign currency deposits depositor. Thus, for foreign currency deposit
from attachment, garnishment, or any other accounts subject of a court order, the bank
order or process of any court, legislative can invoke RA 6426 to excuse compliance.
body, government agency or any
administrative body whatsoever. Q. What is the liability of the banks and/or
its officers and employees for violating
For investments in trust accounts or in the laws against disclosure?
deposit substitutes, if these are in the form of A. Violations of the prohibitions against
investments in government bonds or disclosures under RA 1405, RA 6426 and
under the General Banking Law of 2000 are aware of the legal provisions and
subject to stiff criminal penalties. requirements on the use of pseudonyms.

Under RA 1405, the offender is subject to The above notwithstanding, it may be

imprisonment of not more than five years or pointed out that in the Manual of Regulations
a fine of not more than P20,000, or both, in issued by BSP, or even before the issuance
the discretion of the court. Under RA 6426, of Circular 251, there were already
the penalty is imprisonment of not less than regulations requiring the banks to: (a) adopt
one year not more than five years or a fine of systems to establish the identity of their
not less than P5,000 nor more than P25,000, depositors; and (b) require to set a minimum
or both, in the discretion of the court. The of three (3) specimen signatures from each
violation of Sec. 55 of the General Banking of their depositors subject to regular
Law of 2000, the penalty is imprisonment of updating. Even for numbered accounts as
not less than two years nor more than 10 authorized under RA 6426, BSP has required
years or a fine of not less than P50,000 nor banks, under Circular 258, to take necessary
more than P200,000, or both, in the measures to establish and record the true
discretion of the court; and in addition, if the identity of their clients, which identification
offender is a director or officer of a bank, he may be based on official or other reliable
is subject to suspension or removal by the documents and records.
Monetary Board.
Q. Are there other laws governing the use
B. Use of alias or number in opening of pseudonyms or aliases?
deposit accounts A. Art. 178 of the Revised Penal Code
penalizes the: (a) publicly using of a fictitious
Q. Are banks allowed to open accounts name for the purpose of concealing a crime,
using an alias or a number? evading the execution of a judgment, or
A. There is no specific banking law up to the causing damage; and (b) concealment by
present prohibiting banks from opening any person of his true name and other
deposit accounts using an alias or a number. personal circumstances.
Prior to July 7, 2000, there is also no banking
regulation providing for such prohibition. On On the other hand, there is also
July 7, 2000 and in seeking the adoption of Commonwealth Act No. 142, as amended by
anti-money laundering measures, the Republic Act No. 6085 (Regulating the Use
Bangko Sentral ng Pilipinas (BSP) issued a of Aliases) which provides that, except only
regulation, Circular No. 251, providing that, as a pseudonym for literary purposes and
unless otherwise prescribed under existing athletic events, it is unlawful for any person
laws, anonymous accounts or accounts to use an alias, unless the same is duly
under fictitious names are prohibited. recorded in the proper local civil registry.
Related thereto, Articles 379 and 380 of the
The exception referred to under Circular No. Civil Code provide that no person shall use
251 was RA 6426 (The Foreign Currency different names and surnames except the
Deposit Act) which explicitly allows the employment of pen and stage names
keeping of numbered accounts for the provided it is done in good faith and there is
recording and servicing of deposits. no injury to third persons.

For peso accounts, when banks allow the What can be noted is that the above
opening of deposit accounts under provisions allow the use of aliases under
pseudonyms, it is assumed that: (1) they certain circumstances. Conversely stated,
have exercised due diligence to ascertain the the use of aliases is not absolutely
identity of their clients; and (2) they are disallowed. Moreover, the sanctions for any
violation of the above provisions on aliases
are mainly directed to the one using the Q. Why are the BSP and the BAP
unauthorized alias. advocating the amendment to bank
secrecy laws?
Q. How does Circular No. 251 apply to A. The proposal of BSP and BAP is for
existing numbered accounts? access to deposit accounts only under
A. For peso accounts, the banks should have exceptional circumstances, such as deposits
their respective programs of compliance with only above the P50-million level and in
the Circular. For foreign currency deposit relation to the commission of serious
accounts, they are allowed to continue offenses like racketeering and illicit drug
maintaining numbered accounts opened in trade. Except for these instances, depositors
accordance with RA 6426 subject to the and those with legitimate transactions remain
requirement that the banks shall take protected under RA 1405. The objective of
necessary measures to establish and record the proposal is to institute this measure as an
the true identity of their clients. anti-money laundering campaign so as to
delete the Philippines as a non-cooperative
Q. What penalties/sanctions are country in the list of the Financial Action Task
applicable for violating the Force against money laundering.
A. Article 178 of the Revised Penal Code is PLUNDER (RA 7080)
directed to the person concealing his identity Approved on July 12, 1991
publicly or using a fictitious name and the
penalty would range from one day up to six Who can be guilty of Plunder?
months imprisonment and/or a fine up to 1) Any public officer who, by himself or in
P500,000. For violation of Commonwealth connivance with members of his family,
Act 142, which is likewise directed to the relatives by affinity or consanguinity,
person using an unauthorized alias, the business associates, subordinates or other
penalty is imprisonment from one year to five persons, amasses, accumulates or acquires
years and a fine of P5,000 to P10,000. For ill-gotten wealth through a combination or
the violation of Circular 251, it is subject to series of overt criminal acts in the aggregate
the administrative sanction on the bank amount or total value of at least P50 million.
and/or responsible directors/officers of fine
up to P30,000 per transaction. 2) Any person who participated with the said
public officer in the commission of an offense
contributing to the crime of plunder shall
C. Continued confidentiality/secrecy of likewise be punished for such offense.
deposit transactions
What is Ill-gotten wealth?
Q. Is confidentiality/secrecy of deposit Any asset, property, business enterprise or
accounts compromised with the issuance material possession of any person, acquired
of Circular 251? by him directly or indirectly through dummies,
A. No. Circular 251 merely disallowed the nominees, agents, subordinates and/or
opening of fictitious and anonymous business associates by any combination or
accounts and has not in any way modified series of specific or similar criminal means or
nor lessened the safeguards and protection schemes.
to depositors under RA 1405. This means
that, notwithstanding Circular 251, deposit How is ill-gotten wealth acquired?
accounts cannot be examined or looked into 1) Misappropriation, conversion, misuse, or
except under the limited circumstances malversation: Public funds or raids on the
provided for in RA 1405. public treasury
2) Receive (directly or indirectly) in
connection with any government contract or
project or by reason of the office or position: What is the scope of the Government?
Commission, gift, share, percentage, It includes the National Government, and any
kickbacks or any other form of pecuniary of its subdivisions, agencies or
benefit from any person and/or entity instrumentalities, including GOCCs and their
3) Illegal or fraudulent conveyance or subsidiaries.
disposition: Assets of the Government or any
of its subdivisions, agencies or
instrumentalities or GOCCs and their What is a Person?
subsidiaries It includes any natural or juridical person,
4) Obtaining, receiving or accepting (directly unless the context indicates otherwise.
or indirectly) in any business enterprise or
undertaking: Shares of stock, equity or any Which court has competent jurisdiction
other form of interest or participation over plunder cases?
including promise of future employment The Sandiganbayan in its original
5) Establishing the ff. to benefit particular jurisdiction, until otherwise provided by law.
persons or special interests: Agricultural,
industrial or commercial monopolies or other How is the crime of plunder established
combinations and/or implementation of by means of evidence?
decrees and orders It shall not be necessary to prove each and
6) Taking undue advantage of the ff. to every criminal act done by the accused. It is
unjustly enrich himself at the expense and to sufficient to establish beyond reasonable
the damage and prejudice of the country and doubt a pattern of overt or criminal acts
its citizens: Official position, authority, indicative of the overall unlawful scheme or
relationship, connection or influence conspiracy.

What must be the total value or aggregate Will the public officer accused of plunder
amount of ill-gotten wealth? be suspended from office?
At least P50 Million. Yes. Any public officer against whom any
criminal prosecution under a valid
What is the penalty? information under this Act in whatever stage
Reclusion perpetua to death. of execution and mode of participation, is
pending in court, shall be suspended from
How is the penalty determined? office.
In the imposition of penalties, the degree of
participation and the attendance of mitigating What happens if he is convicted by final
circumstances shall be considered by the judgment?
court. He shall lose all retirement or gratuity
benefits under any law.
What shall happen to the ill-gotten If acquitted?
wealth? He shall be entitled to reinstatement and to
Any or all ill-gotten wealth and their interests the salaries and other benefits which he
and other incomes and assets including the failed to receive during suspension, unless in
properties and shares of stocks derived from the meantime, administrative proceedings
the deposit or investment thereof shall be have been filed against him.
forfeited in favor of the State.
Is plunder prescriptible?
Who is a Public Officer? Yes. It shall prescribe in 20 years. However,
Any person holding any public office in the the right of the State to recover properties
Philippine Government by virtue of an unlawfully acquired by public officers from
appointment, election or contract. them or from their nominees or transferees
shall not be barred by prescription, laches, or from any person for whom the public officer,
estoppel. in any manner or capacity, has secured or
obtained, or will secure or obtain, any
Government permit or license, in
ANTI-GRAFT AND CORRUPT PRACTICES consideration for the help given or to be
ACT (RA 3019) given.
Approved on August 17, 1960
(d) Accepting or having any member of his
Who is a Public Officer? family accept employment in a private
Elective and appointive officials and enterprise which has pending official
employees, permanent or temporary, business with him during the pendency
whether in the classified or unclassified or thereof or within one year after its
exempt service receiving compensation, termination.
even nominal, from the government.
(e) Causing any undue injury to any party,
What do you mean by "receiving any including the Government, or giving any
gift"? private party any unwarranted benefits,
It is the act of accepting (directly or indirectly) advantage or preference in the discharge of
a gift from a person other than a member of his official administrative or judicial functions
the public officer's immediate family, in through manifest partiality, evident bad faith
behalf of himself or of any member of his or gross inexcusable negligence. This
family or relative within the fourth civil provision shall apply to officers and
degree, either by consanguinity or affinity, employees of offices or government
even on the occasion of a family celebration corporations charged with the grant of
or national festivity like Christmas, if the licenses or permits or other concessions.
value of the gift is under the circumstances
manifestly excessive. (f) Neglecting or refusing, after due demand
or request, without sufficient justification, to
What constitutes unlawful and corrupt act within a reasonable time on any matter
practices of a public officer? pending before him for the purpose of
(a) Persuading, inducing or influencing obtaining, directly or indirectly, from any
another public officer to perform an act person interested in the matter some
constituting a violation of rules and pecuniary or material benefit or advantage,
regulations duly promulgated by competent or for the purpose of favoring his own interest
authority or an offense in connection with the or giving undue advantage in favor of or
official duties of the latter, or allowing himself discriminating against any other interested
to be persuaded, induced, or influenced to party.
commit such violation or offense.
(g) Entering, on behalf of the Government,
(b) Directly or indirectly requesting or into any contract or transaction manifestly
receiving any gift, present, share, and grossly disadvantageous to the same,
percentage, or benefit, for himself or for any whether or not the public officer profited or
other person, in connection with any contract will profit thereby.
or transaction between the Government and
any other part, wherein the public officer in (h) Directly or indirectly having financing or
his official capacity has to intervene under pecuniary interest in any business, contract
the law. or transaction in connection with which he
intervenes or takes part in his official
(c) Directly or indirectly requesting or capacity, or in which he is prohibited by the
receiving any gift, present or other pecuniary Constitution or by any law from having any
or material benefit, for himself or for another, interest.
It shall include close personal friendship,
(i) Directly or indirectly becoming interested, social and fraternal connections, and
for personal gain, or having a material professional employment all giving rise to
interest in any transaction or act requiring the intimacy which assures free access to such
approval of a board, panel or group of which public officer.
he is a member, and which exercises Who among those related to the
discretion in such approval, even if he votes President, Vice-President, Senate
against the same or does not participate in President, House Speaker are prohibited
the action of the board, committee, panel or to intervene, directly or indirectly, in any
group. Interest for personal gain shall be business, transaction, contract or
presumed against those public officers application with the government?
responsible for the approval of manifestly The spouse or any relative, by consanguinity
unlawful, inequitable, or irregular transaction or affinity, within the third civil degree.
or acts by the board, panel or group to which
they belong. Exception: Any person who, prior to the
assumption of office of the official, has been
(j) Knowingly approving or granting any already dealing with the Government along
license, permit, privilege or benefit in favor of the same line of business, or to any
any person not qualified for or not legally transaction, contract or application already
entitled to such license, permit, privilege or existing or pending at the time of such
advantage, or of a mere representative or assumption of public office, or to any
dummy of one who is not so qualified or application filed by him the approval of which
entitled. is not discretionary on the part of the official
or officials concerned but depends upon
(k) Divulging valuable information of a compliance with requisites provided by law,
confidential character, acquired by his office or rules or regulations issued pursuant to
or by him on account of his official position to law, or to any act lawfully performed in an
unauthorized persons, or releasing such official capacity or in the exercise of a
information in advance of its authorized profession.
release date.
What is the prohibition on any member of
What happens to the person giving the the Congress?
gift, present, share, percentage or benefit, To acquire or receive any personal pecuniary
or offering or giving to the public officer interest in any specific business enterprise
employment, or urging the divulging or which will be directly and particularly favored
untimely release of the confidential or benefited by any law or resolution
information? authored by him previously approved or
Such person, together with the offending adopted by the Congress during the his term.
public officer, will be punished under this Act
and shall be permanently or temporarily With regard to enactment or adoption of a
disqualified in the discretion of the Court, law or resolution, who can be liable?
from transacting business in any form with Any public officer who recommended the
the Government. initiation in Congress of the enactment or
adoption of any law or resolution, and
What includes Family Relation? acquires or receives any such interest during
It shall include the spouse or relatives by his incumbency.
consanguinity or affinity in the third civil
degree. Suppose the member of the Congress or
a public officer has an interest even prior
What is Close Personal Relation? 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. Who has competent jurisdiction of graft
When should every public officer prepare and corruption cases?
and file his Statement of Assets and Until otherwise provided by law, the proper
Liabilities (SAL)? Court of First Instance in its original
Within thirty days after the approval of this jurisdiction.
Act or after assuming office, and within the
month of January of every other year What is the prescription period?
thereafter, as well as upon the expiration of 10 years.
his term of office, or upon his resignation or
separation from office. Is the public officer concerned allowed to
resign pending an investigation, criminal
What should the SAL contain? or administrative, or pending a
A true detailed and sworn statement of prosecution against him?
assets and liabilities, including a statement of No.
the amounts and sources of his income, the
amounts of his personal and family expenses Will the public officer be suspended?
and the amount of income taxes paid for the Yes. Any public officer against whom any
next preceding calendar year. criminal prosecution under a valid
information under this Act or under the
Suppose a public officer assumed office provisions of the Revised Penal Code on
less than two months before the end of bribery is pending in court, shall be
the calendar year? suspended from office.
He may file his statement in the following
months of January. What happens if he is convicted?
He shall lose all retirement or gratuity
When can a public official be considered benefits under any law.
guilty of graft and corruption?
If he has been found to have acquired during If he is acquitted?
his incumbency, whether in his name or in He shall be entitled to reinstatement and to
the name of other persons, an amount of the salaries and benefits which he failed to
property and/or money manifestly out of receive during suspension, unless in the
proportion to his salary and to his other lawful meantime administrative proceedings have
income. been filed against him.

What is the consequence of such What gifts or presents are excepted in

violation? this Act?
It shall be a ground for dismissal or removal. Unsolicited gifts or presents of small or
insignificant value offered or given as a mere
What are also considered in the ordinary token of gratitude or friendship
determination of the public official's according to local customs or usage.
Properties in the name of the spouse and Can a public official still practice his
unmarried children of such public official may profession, lawful trade or occupation
be taken into consideration, when their during his incumbency?
acquisition through legitimate means cannot Yes. Provided that, under the law, he may
be satisfactorily shown. Bank deposits shall legitimately practice his profession, trade or
be taken into consideration in the occupation during his incumbency.
enforcement of this section, notwithstanding
any provision of law to the contrary.
Exception: Where the practice of such Norms and conduct
profession, trade or occupation involves Professionalism, Justice and
conspiracy with any other person or public Sincerity, Simple Living,
official to commit any of the violations Professionalism, Political Neutrality,
penalized in this Act. Responsiveness to the public,
Nationalism and Patriotism,
RA 6713 Code of Conduct and Ethical Commitment to public interest and
Standards for Public Officials and commitment to democracy.
Duties of public officers
Public office is a public trust. 1. Act promptly on letters and requests
Main points of the law 2. Submit annual performance reports
accountability to the people and 3. Process documents and paper
public interest over private interest. expeditiously
Emphasis on conflict of interest 4. Act immediately on the publics personal
Public Officer elective, appointive, transactions
permanent, temporary, whether in 5. Make documents more accessible to the
the career or non-career service public
including military and police
personnel, whether or not receiving Prohibited acts and transactions
compensation. 1. Financial and material interest. - Public
In RA 3019, the public officer must be officials and employees shall not, directly or
receiving compensation no matter indirectly, have any financial or material
how nominal, whereas in RA 6713, interest in any transaction requiring the
he may not be a compensated PO. approval of their office.

The offense does not include gifts 2. Own, control, manage or accept
that are unsolicited which are of employment as officer, employee,
nominal value, not given in consultant, counsel, broker, agent, trustee or
anticipation of or in exchange of a nominee in any private enterprise regulated,
favor from a PO. supervised or licensed by their office unless
expressly allowed by law 1 year prohibition
Family shall include spouses and applies
children below 18 years old.
Relatives shall include those related 3. Engage in the private practice of their
to the PO within the 4th civil degree profession unless authorized by the
of affinity or consanguinity Constitution or law, provided, that such
practice will not conflict or tend to conflict with
Conflict of interest arises when a their official functions 1 year prohibition
PO is a member of a board, an officer only applies to those in connection with any
or stockholder of a private matter before the office he used to be with
corporation or owner or has
substantial interest in a business and 4. Recommend any person to any position in
the interest of such corporation of a private enterprise which has a regular or
business, or his rights or duties pending official transaction with their office.
therein, may be opposed to or 1 year prohibition applies
affected by the faithful performance
of official duty. 5. Disclosure and/or misuse of confidential
information to further private interest, give
undue advantage to another or to the
prejudice of public interest
Animal Welfare Act of 1998
6. Solicitation or acceptance of gift The Republic Act 8485, otherwise known as
the Animal Welfare Act of 1998, is an act to
Allowed undertakings Gifts or grants promote animal welfare in the Philippines. It
from foreign government, the Congress was passed during former President Fidel V.
consents to Ramos' term.
1. The acceptance and retention by a public
official or employee of a gift of nominal value Section 1 states that the act aims to protect
tendered and received as a souvenir or mark and promote the welfare of all animals in the
of courtesy Philippines by supervising and regulating the
establishment and operations of all facilities
2. The acceptance by a public official or of all animals.
employee of a gift in the nature of a
scholarship or fellowship grant or medical Section 2 states that nobody shall establish,
treatment; or maintain and operate any animal facility (pet
shop, kennel, veterinary clinic, veterinary
3. The acceptance by a public official or hospital, stockyard, corral, stud farm or stock
employee of travel grants or expenses for farm or zoo) without first securing from the
travel taking place entirely outside the Bureau of Animal Industry a certificate of
Philippine of more than nominal value if such registration. A certificate may be issued if
acceptance is appropriate or consistent with facilities of such establishments are
the interests of the Philippines, and permitted adequate, clean, and sanitary and will not be
by the head of office, branch or agency to used to cause pain or suffering to the
which he belongs. animals.

Teaching of law by a member of the Section 3 states that the Director of the
judiciary allowed by law, provided that a Bureau of Animal Industry shall supervise
permit is acquired from the office of the and regulate the establishment and
court administrator. operation and maintenance of animal
facilities and any other form or structure for
In case of Conflict of Interest the confinement of animals to provide
1. Resignation in any private business maximum comfort while in transit and
enterprise within 30 days from his minimize incidence of sickness and death
assumption of office, or and prevent any cruelty from being inflicted
2. Divest his shareholdings or interest within upon animals.
60 days from assumption, except
a. Those who serve the government in an Section 4 states that it shall be the duty of
honorary capacity any air, land, or water public utility which
b. Laborers and casual or temporary workers transports animals to provide adequate,
clean, and sanitary facilities for the safe
Ombudsman can dismiss employees conveyance and delivery of animals.
even without criminal proceedings. Sufficient food and water shall be provided to
animals while in transit. No one shall transit
Private individuals who participate in any animal without a written permit from the
conspiracy as co-principals, Director of the Bureau of Animal Industry.
accessories or accomplices may be Any form of cruelty shall be penalized.
held liable under RA 6713.
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, 4.) The taking was either without the owner's
horses, deer and crocodiles is declared consent, by means of violence or intimidation
unlawful except during the following or the use of force on things
When it is done as a part of religious The taking of a vehicle is completed the
rituals of an established religion or an moment the carnapper is in possession of it,
ethnic custom of indigenous cultural even if he has the opportunity to dispose of it
groups (People vs. Ellasos, 411 Phil 139.) "Gain"
When an animal is afflicted with an doesn't necessarily mean profit; even if the
incurable and communicable disease taking was for a joyride it's still considered
as certified by a veterinarian carnapping (Villacorta vs. Insurance
When the killing is necessary to put Commission, GR 54171, October 28, 1980.)
an end to the misery suffered by an
When it is done to prevent an R.A. No. 6539, or the Anti-Carnapping Act
imminent danger to the life of a of 1972, as amended, defines carnapping
human being as the taking, with intent to gain, of a
When done to control animal motor vehicle belonging to another
population without the latters consent, or by means
When an animal is killed after it has of violence against or intimidation against
been used in an authorized research persons, or by using force upon
or experiment things1. By the amendment in Section
Section 7 states that every person shall 20 of R.A. No. 7659, Section 14 of the Anti-
protect the natural habitat of animals. Carnapping Act now reads:
Destruction of animal habitat is considered
animal cruelty and its preservation is SEC. 14. Penally for Carnapping. Any
considered a way of protecting animals. person who is found guilty of carnapping,
as this term is defined in Section two of
Section 8 states that a convicted person who this Act, shall, irrespective of the value of
violates any provision of this Act shall be the motor vehicle taken, be punished by
punished by imprisonment of not less than imprisonment for not less than fourteen
six (6) months to not more than two (2) years years and eight months and not more
or a fine of not less than one thousand pesos than seventeen years and four months,
(P1, 000.00) to not more than five thousand when the carnapping is committed
pesos (P5, 000.00) or both at the discretion without violence or intimidation of
of the Court. persons, or force upon things, and by
imprisonment for not less than seventeen
Anti Carnapping (READ CODAL) years and four months and not more than
thirty years, when the carnapping is
The elements of carnapping, as committed by means of violence or
mentioned in People vs. Calabroso, 340 intimidation of any person, or force upon
SCRA 332, are as follows: things; and the penalty of reclusion
perpetua to death shall be imposed when
1.) Actual taking of the vehicle the owner, driver or occupant of the
2.) The offender intends to gain from taking carnapped motor vehicle is killed or raped
the vehicle in the course of the commission of the
3.) The vehicle belongs to another person, carnapping or on the occasion thereof.
not the offender (Emphasis supplied)

Three amendments have been made to the

original Section 14 of the Anti-Carnapping
Act: (1) the penalty of life imprisonment was and one of the largest income
changed to reclusion perpetua, (2) the
inclusion of rape, and (3) the change of the earners of the country, it becomes
phrase in the commission of the carnapping mandatory for the Government to
to in the course of the commission of the step-in and regulate the unabated
carnapping or on the occasion thereof. This
third amendment clarifies the laws intent to and indiscriminate cutting of the
make the offense a special complex crime, coconut trees.For reasons of
by way of analogy vis-a-vis paragraphs 1 to
4 of the Revised Penal Code on robbery with
national interest, it is hereby
violence against or intimidation of persons. declared the policy of the State to
Thus, under the last clause of Section 14 of provide for the growth of the
the Anti-Carnapping Act, the prosecution has
to prove the essential requisites of industry by embarking on a
carnapping and of the homicide or murder of sustainable and efficient replanting
the victim, and more importantly, it must program. 1
show that the original criminal design of the
culprit was carnapping and that the killing Prohibition
was perpetrated in the course of the
commission of the carnapping or on the
occasion thereof. Consequently, where the No coconut tree shall be cut except in
elements of carnapping are not proved, the the following cases and only after a
provisions of the Anti-Carnapping Act would permit had been issued therefor:
cease to be applicable and the homicide or
murder (if proven) would be punishable
under the Revised Penal Code. (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;
REPUBLIC ACT NO. 8048 (b) When the tree is no longer
AN ACT PROVIDING FOR THE economically productive;
(c) When the tree is severely disease-
infested and beyond rehabilitation;
PROVIDING PENALTIES (d) When the tree is severely damaged
THEREFOR AND FOR OTHER by typhoon or lightning;
(e) When the agricultural land devoted
Declaration of Policy to coconut production shall have been
Considering the importance of the converted in accordance with law into
coconut industry in nation building residential, commercial or industrial
being one of the principal industries areas;

Section 2, RA 8048
(f) When the land devoted to coconut pesos (P100.00) for every tree
production shall be converted into intended to be cut payable to the PCA.
other agricultural uses or other Forty pesos (P40.00) of the fee shall
agriculture-related activities in accrue in favor of the PCA, Forty pesos
pursuance to a conversion duly applied (P40.00) in favor of the municipal
for by the owner and approved by the government concerned, and Twenty
proper authorities: Provided, That no pesos (P20.00) in favor of the barangay
conversion shall be allowed by the unit concerned.
PCA until after it shall have been
verified and certified that for a period The fees allocated to the PCA shall be
of at least three (3) years the majority used for its replanting program and the
of the coconut trees have become fees allocated to the municipal/city
senescent and economically government shall be used for the repair
unproductive or where the coconut and rehabilitation of roads of the
farm is not adaptable to sound respective local government units
management practices on account of which have been damaged by the
geographical location, topography, continuous passage of heavy vehicles
drainage and other conditions used for transporting coconut lumber.
rendering the farm economically
unproductive; and Fees herein collected shall be
deposited with the nearest Land Bank
(g) When the tree would cause hazard of the Philippines branch or other
to life and property. government depository banks. Fees
accruing to the local government unit
No other causes other than those shall be remitted within three (3)
abovementioned shall be considered as months in accordance with existing
a valid ground for cutting. 2 Commission on Audit (COA) rules and
Permit to cut
No permit to cut shall be granted
No coconut tree or trees shall be cut unless the applicant has secured from
unless a permit therefore, upon due the barangay captain of the locality
application being made, has been where the cutting will be done, a
issued by the PCA pursuant to Section certification under oath that he/she has
6 of this Act. already planted the equivalent number
of coconut trees applied for to be cut.
The applicant shall pay an application
fee in the amount of One hundred

Section 4, RA 8048
Such replanting, however, shall not (b) Arrest and apprehend any person
apply to areas converted into actually committing or attempting to
industrial, commercial or residential commit an offense under this Act;
sites or land transformed in accordance
with law, into other agricultural (c) Arrest and apprehend possessor of
purposes. coconut lumber without the necessary
permit as required under this Act;
The PCA, in coordination with the
local government unit concerned, shall (d) Search and seize a moving vehicle
verify if a replanting was implemented with illegally cut, gathered, collected
and regulate and oversee the or removed coconut
fertilization and care of the newly lumber: Provided, That probable
planted coconut trees. For this purpose, cause for the search is established;
it shall be incumbent upon the PCA to
conduct, from time to time, on-the-spot (e) Stop the transport and/or shipment
inspections of the sites where the of coconut lumber without authority or
coconut trees have been planted. 3 without legal documents in accordance
with pertinent laws, regulations or
The Philippine Coconut Authority policies on the matter;

The Philippine Coconut Authority (f) Confiscate and forfeit in favor of

shall have the exclusive authority to the government the illegally cut,
grant permit for the cutting of gathered, collected, removed,
coconut trees.The authority may be possessed or abandoned coconut
delegated to the city or municipal lumber, as well as the machinery,
mayors as the PCA may determine.4 equipment, implements and tools
illegally used in the commission of the
The PCA shall be vested with the offense and to dispose of the same in
authority to exercise duly delegated accordance with pertinent laws,
police powers for the proper regulations or policies on the matter;
performance of its functions and and
duties, to wit:
(g) Seek the assistance of other law
(a) Investigate suspected violations of enforcement agencies for the efficient
this Act;

3 4
Section 5, RA 8048 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

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