No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

Regulatory Framework for Business Transactions

Banking Laws – Supplemental Notes (2)

TIP: Try to look for the common denominator when you are dealing with unlawful activities or “predicate crimes”. See
list below enumerated on a per legal basis (per category) with brief definition per unlawful activity under pertinent
laws.

As to legal basis:

A. Revised Penal Code (10 predicate crimes/unlawful activities)

1. Kidnapping for ransom under Article 267 of Revised Penal Code (RPC)
a. Any private individual who shall kidnap or detain another, or in any other manner deprive another
person of his liberty
2. Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of RPC
a. Any person who, with intent to gain, shall take any personal property belonging to another, by
means of violence or intimidation of any person, or using force upon anything shall be guilty of
robbery.
3. Piracy on the high seas under RPC and PD 532
a. Any person who, on the high seas, shall attack or seize a vessel or, not being a member of its
complement nor a passenger, shall seize the whole or part of the cargo of said vessel, its
equipment, or personal belongings of its complement or passengers.
4. Qualified theft under Article 310 of RPC
a. Committed by a domestic servant, or with grave abuse of confidence, or mail matter, or consists of
coconuts taken from the premises of the plantation or fish taken from a fishpond or fishery, or if
property is taken on the occasion of fire, earthquake, typhoon, volcanic eruption, or any other
calamity, vehicular accident or civil disturbance. (Note: stealing of motor vehicle (carnapping*) and
large cattle (cattle rustling) are not qualified theft anymore)
5. Swindling under Article 315 of RPC
a. Any person who shall defraud another with unfaithfulness or abuse of confidence (such as by
misappropriation), by means of false pretenses or fraudulent acts executed prior or simultaneous
with the commission of fraud or through other fraudulent means.
6. Destructive arson and murder as defined under RPC
a. Destructive Arson -
b. Murder – any person who shall kill another if committed with the following circumstances:
i. With treachery, taking advantage of superior strength, with the aid of armed men, or
employing means to weaken the defense or of means or persons to insure or afford
impunity;

ii. In consideration of a price, reward, or promise;

iii. By means of inundation, fire, poison, explosion, shipwreck, stranding of a vessel,

derailment or assault upon a street car or locomotive, fall of an airship, by means of
motor vehicles, or with the use of any other means involving great waste and ruin;

iv. On occasion of any of the calamities enumerated in the preceding paragraph, or of an

earthquake, eruption of a volcano, destructive cyclone, epidemic or other public
calamity;

v. With evident premeditation; and

vi. With cruelty, by deliberately and inhumanly augmenting the suffering of the victim, or
outraging or scoffing at his person or corpse

7. Bribery under Articles 210, 211 and 211-A of RPC and corruption of public officers under Article 212 of RPC
a. Direct Bribery – Any public officer who shall agree to perform an act constituting a crime, in
connection with the performance of this official duties, in consideration of any offer, promise, gift or
present received by such officer, personally or through the mediation of another.

Indirect bribery - Any public officer who shall accept gifts offered to him by reason of his office.

Example: A gave money to a judge, who in consideration thereof subsequently rendered an unjust
decision in favor of the former. The judge is liable of direct bribery and rendering unjust decision,
while A is liable of corruption of public officer.

But if A gave money to the judge, who subsequently rendered a decision against the A, the crime
committed by the judge is indirect bribery while A is liable of corruption of public officer. The judge
is not liable of direct bribery since rendering a decision against the corruptor indicates that the

1|P a g e RLACO/DSALES/NVALDERAM A
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

former did not receive the money in consideration of rendering a decision in favor of the latter. It
would appear that A merely gave the money to the judge by reason of his position.

b. Corruption of Public Officers – the same penalty shall be imposed against any person who
shall have made the offers or promises or given the gifts or presents.

8. Frauds and illegal exactions and transactions under Articles 213, 214, 215 and 216 of RPC
a. Any public officer in his official capacity, in dealing with any person with regard to furnishing
supplies, the making of contracts, or the adjustment or settlement of accounts relating to public
property or funds, shall enter into an agreement with any interested party or speculator or make
use of any other scheme, to defraud the Government.
b. any public officer who, taking advantage of his official position, shall commit any of the frauds or
deceits.
c. upon a public officer who directly or indirectly, shall become interested in any contract or business
in which it is his official duty to intervene.

9. Malversation of public funds and property under Articles 217 and 222 of RPC
 Any public officer who, by reason of the duties of his office, is accountable for public funds or
property, shall appropriate the same or shall take or misappropriate or shall consent, through
abandonment or negligence, shall permit any other person to take such public funds, or
property, wholly or partially.

10. Forgeries and counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of RPC

 Any person who makes, imports, or utters, false coins, in connivance with counterfeiters, or
importers.
 The forging or falsification of treasury or bank notes or certificates or other obligations and
securities payable to bearer.
 Counterfeiting, importing and uttering instruments not payable to bearer.
 Illegal possession and use of false treasury or bank notes and other instruments of credit.

B. Special Penal Laws (16 predicate crimes/unlawful activities)

1. Violation of Comprehensive Dangerous Drugs Act (RA 9165) (i.e., importation, sale, administration,
distribution, transportation of prohibited drugs, and etc.)
 Importation of prohibited drugs
 Sale of prohibited drugs
 Administration of prohibited drugs
 Distribution of prohibited drugs
 Transportation of prohibited drugs
 Maintenance of a den, dive, or resort for prohibited users
 Manufacture of prohibited drugs
 Possession of prohibited drugs
 Use of prohibited drugs
 Cultivation of plants which are sources of prohibited drugs
 Culture of plants which are sources of prohibited drugs

2. Violation of Section 3, paragraphs B, C E, G, H and I of RA 3019 (Anti-Graft and Corrupt Practices Act)
 Directly or indirectly requesting or receiving any gift, present, share, percentage, or benefit for
himself or for any other person in connection with contract or transaction between the Government
and any party, wherein the public officer in his official capacity has to intervene under the law
 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
 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
 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
 Directly or indirectly having financial 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
 Directly or indirectly becoming interested, for personal gain, or having material interest in any
transaction or act requiring the approval of a board, panel, or group of which he is a member, and
which exercise of discretion in such approval, even if he votes against the same or he does not
participate in the action of the board, committee, panel, group

3. Plunder under RA 7080

 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 or criminal acts.
4. Jueteng and masiao under PD 1602 (forms of illegal gambling)

2|P a g e RLACO/DSALES/NVALDERAM A
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

 Any person who in any manner, shall directly or indirectly take part in any illegal or unauthorized
activities or games such as jueteng.
5. Smuggling under RA 455 and RA 1937 and Customs Modernization and Tariff Act, as amended
 Any person who shall fraudulently import or export or bring into or outside of the Philippines any
goods, or assist in so doing, contrary to law, or shall receive, conceal, buy, sell, or in any other
manner facilitate the transaportation, concealment, or sale of such goods after importation.

6. Hijacking and other violations under RA 6235

 It shall be unlawful for any person to compel a change in the course or destination of an aircraft of
Philippine registry, or to seize or usurp the control thereof, while it is in flight. An aircraft is in flight
from the moment all its external doors are closed following embarkation until any of such doors is
opened for disembarkation.

7. Terrorism and conspiracy to commit terrorism (e.g., persons who conspire to commit the crime of terrorism)
under Sections 3 and 4 of RA 9372
 Any person who commits an act punishable under pertinent provisions of the Revised Penal Code
(e.g., Murder, Piracy, Rebellion, Kidnapping, Coup d’ etat) thereby sowing and creating a condition
of widespread and extraordinary fear and panic among the populace, in order to coerce the
government to give in to an unlawful demand shall be guilty of the crime of terrorism.

8. Financing terrorism under Section 4 and offenses punishable under Sections 5, 6, 7, and 8 of RA 10168
 Any person who, directly or indirectly, willfully and without lawful excuse, possesses, provides,
collects or uses property or funds or makes available property, funds or financial service or other
related services, by any means, with the unlawful and willful intention that they should be used (a)
to carry out or facilitate the commission of any terrorist act, (b) by a terrorist organization,
association or group, (c) by an individual terrorist.

9. Violations of Sections 4, 5 and 6 of RA 9208 (Anti-Trafficking in Persons Act)

 Trafficking in Persons - refers to the recruitment, transportation, transfer or harboring, or receipt of
persons with or without the victim's consent or knowledge, within or across national borders by
means of threat or use of force, or other forms of coercion, abduction, fraud, deception, abuse of
power or of position, taking advantage of the vulnerability of the person, or, the giving or receiving
of payments or benefits to achieve the consent of a person having control over another person for
the purpose of exploitation which includes at a minimum, the exploitation or the prostitution of
others or other forms of sexual exploitation, forced labor or services, slavery, servitude or the
removal or sale of organs.

 The recruitment, transportation, transfer, harboring or receipt of a child for the purpose of
exploitation shall also be considered as "trafficking in persons" even if it does not involve any of the
means set forth in the preceding paragraph.

10. Violation of RA 6539 (Anti-Carnapping Act)* - transfer only from RPC to SPL
 "Carnapping" is the taking, with intent to gain, of a motor vehicle belonging to another without the
latter's consent, or by means of violence against or intimidation of persons, or by using force upon
things.
11. Violations of Section 1, 3 and 5 of PD 1866 (Illegal/Unlawful Possession of Firearms and Explosives)
 any person who shall unlawfully manufacture, deal in, acquire, dispose, or possess any firearm,
part of firearm, ammunition or machinery, tool or instrument used or intended to be used in the
manufacture of any firearm or ammunition.

12. Violation of PD 1612 (Anti-Fencing Law)

 Fencing" is the act of any person who, with intent to gain for himself or for another, shall buy,
receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in any other
manner deal in any article, item, object or anything of value which he knows, or should be known to
him, to have been derived from the proceeds of the crime of robbery or theft.
 "Fence" includes any person, firm, association corporation or partnership or other organization
who/which commits the act of fencing.

13. Violation of Section 4 of RA 9995 (Anti-Photo and Video Voyeurism Act)

14. Violation of Section 4 of RA 9775 (Anti-Child Pornography Act)

15. Violations of Sections 5, 6, 7, 8, 9, 10(c), (d) and 11, 12 and 14 of RA 7610 (Special Protection of Children
against Child Abuse)

16. Felonies or offenses of a similar nature that are punishable under the penal laws of other countries

C. Special Commercial Laws (3 predicate crimes/unlawful activities)

1. Violations of Electronic Commerce Act (RA 8792)

2. Violation of RA 8293 (Intellectual Property Code)
3. Fraudulent practices and other violations under RA 8799 (Securities Regulation Code)

3|P a g e RLACO/DSALES/NVALDERAM A
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

D. Special Environmental Laws (4 predicate crimes/unlawful activities)

1. Violations of Sections 86 to 106 of Chapter VI of RA 8550 (Philippine Fisheries Code)

 Unauthorized Fishing or Engaging in Other Unauthorized Fisheries Activities.
 Poaching in Philippine Waters.
 Fishing Through Explosives, Noxious or Poisonous Substance, and/or Electricity
 Ban on Coral Exploitation and Exportation.
 Ban on Muro-Ami Other Methods and Gear Destructive to Coral Reefs and Other Marine Habitat.

2. Violations of Sections 101 to 107 and 110 of RA 7942 (Philippine Mining Act)
 Illegal exploration
 Theft of minerals
 Destruction of Mining Structures
 Willful damage to a mine

3. Violations of Section 27(c), (e), (f), (g) and (i) of RA 9147 (Wildlife Resources Conservation and Protection
Act)
 it shall be unlawful for any person to willfully and knowingly exploit wildlife resources and their
habitats;
i. trading of wildlife;
ii. collecting, hunting or possessing wildlife, their by-products and derivatives;
iii. gathering or destroying of active nests, nest trees, host plants and the like; and
iv. transporting of wildlife.
4. Violation of Section 7(b) of RA 9072 (National Caves and Cave Resources Management Protection Act)
 Gathering, collecting, possessing, consuming, selling, bartering or exchanging or offering for sale
without authority any, cave resource.

E. Social Legislation (1 predicate crime/unlawful activity)

Violation of Section 6 of RA 8042 (Migrant Workers Act)

 Illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring,
procuring workers and includes referring, contact services, promising or advertising for employment abroad,
whether for profit or not, when undertaken by a non-license or non-holder of authority contemplated under the
Labor Code of the Philippines. Provided, that such non-license or non-holder, who, in any manner, offers or
promises for a fee employment abroad to two or more persons shall be deemed so engaged.

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