REPUBLIC ACT No.

7653 Sentral, regardless of the amount involved, under such terms and
conditions as may be prescribed by the Monetary Board to protect the
THE NEW CENTRAL BANK ACT interests of the Bangko Sentral.
CHAPTER I — ESTABLISHMENT AND ORGANIZATION OF https://lawphil.net/statutes/repacts/ra1993/ra_7653_1993.html
THE BANGKO SENTRAL NG PILIPINAS
REPUBLIC ACT No. 1405
ARTICLE I
CREATION, RESPONSIBILITIES AND CORPORATE AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY
POWERS OF THE BANGKO SENTRAL INTO, DEPOSITS WITH ANY BANKING INSTITUTION AND
PROVIDING PENALTY THEREFOR.
Section 1. Declaration of Policy. - The State shall maintain a
central monetary authority that shall function and operate as an Section 1. It is hereby declared to be the policy of the Government to
independent and accountable body corporate in the discharge of its give encouragement to the people to deposit their money in banking
mandated responsibilities concerning money, banking and credit. In institutions and to discourage private hoarding so that the same may
line with this policy, and considering its unique functions and be properly utilized by banks in authorized loans to assist in the
responsibilities, the central monetary authority established under this economic development of the country.
Act, while being a government-owned corporation, shall enjoy fiscal
and administrative autonomy. Section 2. 1 All deposits of whatever nature with banks or banking
institutions in the Philippines including investments in bonds issued
Section 2. Creation of the Bangko Sentral. - There is hereby by the Government of the Philippines, its political subdivisions and
established an independent central monetary authority, which shall be its instrumentalities, are hereby considered as of an absolutely
a body corporate known as the Bangko Sentral ng Pilipinas, hereafter confidential nature and may not be examined, inquired or looked into
referred to as the Bangko Sentral. by any person, government official, bureau or office, except upon
written permission of the depositor, or in cases of impeachment, or
The capital of the Bangko Sentral shall be Fifty billion pesos upon order of a competent court in cases of bribery or dereliction of
(P50,000,000,000), to be fully subscribed by the Government of the duty of public officials, or in cases where the money deposited or
Republic, hereafter referred to as the Government, Ten billion pesos invested is the subject matter of the litigation.
(P10,000,000,000) of which shall be fully paid for by the
Government upon the effectivity of this Act and the balance to be Section 3. It shall be unlawful for any official or employee of a
paid for within a period of two (2) years from the effectivity of this banking institution to disclose to any person other than those
Act in such manner and form as the Government, through the mentioned in Section two hereof any information concerning said
Secretary of Finance and the Secretary of Budget and Management, deposits.
may thereafter determine.
Section 4. All Acts or parts of Acts, Special Charters, Executive
Section 3. Responsibility and Primary Objective. - The Orders, Rules and Regulations which are inconsistent with the
Bangko Sentral shall provide policy directions in the areas of money, provisions of this Act are hereby repealed.
banking, and credit. It shall have supervision over the operations of
banks and exercise such regulatory powers as provided in this Act Section 5. Any violation of this law will subject offender upon
and other pertinent laws over the operations of finance companies conviction, to an imprisonment of not more than five years or a fine
and non-bank financial institutions performing quasi-banking of not more than twenty thousand pesos or both, in the discretion of
functions, hereafter referred to as quasi-banks, and institutions the court.
performing similar functions.
Section 6. This Act shall take effect upon its approval.
The primary objective of the Bangko Sentral is to maintain
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price stability conducive to a balanced and sustainable growth of the
economy. It shall also promote and maintain monetary stability and REPUBLIC ACT No. 6426
the convertibility of the peso.
AN ACT INSTITUTING A FOREIGN CURRENCY DEPOSIT
Section 4. Place of Business. - The Bangko Sentral shall have SYSTEM IN THE PHILIPPINES, AND FOR OTHER
its principal place of business in Metro Manila, but may maintain PURPOSES.
branches, agencies and correspondents in such other places as the
proper conduct of its business may require. Section 1. Title.– This act shall be known as the "Foreign Currency
Deposit Act of the Philippines."
Section 5. Corporate Powers. - The Bangko Sentral is hereby
authorized to adopt, alter, and use a corporate seal which shall be Section 2. Authority to deposit foreign currencies. – Any person,
judicially noticed; to enter into contracts; to lease or own real and natural or juridical, may, in accordance with the provisions of this
personal property, and to sell or otherwise dispose of the same; to sue Act, deposit with such Philippine banks in good standing, as may,
and be sued; and otherwise to do and perform any and all things that upon application, be designated by the Central Bank for the purpose,
may be necessary or proper to carry out the purposes of this Act. foreign currencies which are acceptable as part of the international
reserve, except those which are required by the Central Bank to be
The Bangko Sentral may acquire and hold such assets and surrendered in accordance with the provisions of Republic Act
incur such liabilities in connection with its operations authorized by Numbered two hundred sixty-five (Now Rep. Act No. 7653).
the provisions of this Act, or as are essential to the proper conduct of
such operations. Section 3. Authority of banks to accept foreign currency deposits.
– The banks designated by the Central Bank under Section two hereof
The Bangko Sentral may compromise, condone or release, in shall have the authority:
whole or in part, any claim of or settled liability to the Bangko
(1) To accept deposits and to accept foreign currencies in of national circulation for at least once a week for three consecutive
trust Provided, That numbered accounts for recording and servicing weeks. In case the Central Bank promulgates new rules and
of said deposits shall be allowed; regulations decreasing the rights of depositors, rules and regulations
at the time the deposit was made shall govern.
(2) To issue certificates to evidence such deposits;
Section 8. Secrecy of foreign currency deposits. – All foreign
(3) To discount said certificates; currency deposits authorized under this Act, as amended by PD No.
1035, as well as foreign currency deposits authorized under PD No.
(4) To accept said deposits as collateral for loans subject to such rules
1034, are hereby declared as and considered of an absolutely
and regulations as may be promulgated by the Central Bank from
confidential nature and, except upon the written permission of the
time to time; and
depositor, in no instance shall foreign currency deposits be examined,
(5) To pay interest in foreign currency on such deposits. inquired or looked into by any person, government official, bureau or
office whether judicial or administrative or legislative, or any other
Section 4. Foreign currency cover requirements. – Except as the entity whether public or private; Provided, however, That said foreign
Monetary Board may otherwise prescribe or allow, the depository currency deposits shall be exempt from attachment, garnishment, or
banks shall maintain at all times a one hundred percent foreign any other order or process of any court, legislative body, government
currency cover for their liabilities, of which cover at least fifteen agency or any administrative body whatsoever. (As amended by PD
percent shall be in the form of foreign currency deposit with the No. 1035, and further amended by PD No. 1246, prom. Nov. 21,
Central Bank, and the balance in the form of foreign currency loans 1977.)
or securities, which loans or securities shall be of short term
maturities and readily marketable. Such foreign currency loans may Section 9. Deposit insurance coverage. – The deposits under this Act
include loans to domestic enterprises which are export-oriented or shall be insured under the provisions of Republic Act No. 3591, as
registered with the Board of Investments, subject to the limitations to amended (Philippine Deposit Insurance Corporation), as well as its
be prescribed by the Monetary Board on such loans. Except as the implementing rules and regulations: Provided, That insurance
Monetary Board may otherwise prescribe or allow, the foreign payment shall be in the same currency in which the insured deposits
currency cover shall be in the same currency as that of the are denominated.
corresponding foreign currency deposit liability. The Central Bank
Section 10. Penal provisions. – Any willful violation of this Act or
may pay interest on the foreign currency deposit, and if requested
any regulation duly promulgated by the Monetary Board pursuant
shall exchange the foreign currency notes and coins into foreign
hereto shall subject the offender upon conviction to an imprisonment
currency instruments drawn on its depository banks. (As amended
of not less than one year nor more than five years or a fine of not less
by PD No. 1453, June 11, 1978.)
than five thousand pesos nor more than twenty-five thousand pesos,
Depository banks which, on account of networth, resources, past or both such fine and imprisonment at the discretion of the court.
performance, or other pertinent criteria, have been qualified by the
Section 11. Separability clause. – The provisions of this Act are
Monetary Board to function under an expanded foreign currency
hereby declared to be separable and in the event one or more of such
deposit system, shall be exempt from the requirements in the
provisions are held unconstitutional, the validity of other provisions
preceding paragraph of maintaining fifteen percent (15%) of the
shall not be affected thereby.
cover in the form of foreign currency deposit with the Central Bank.
Subject to prior Central Bank approval when required by Central Section 12. Repealing clause. – All acts, executive orders, rules and
Bank regulations, said depository banks may extend foreign currency regulations, or parts thereof, which are inconsistent with any
loans to any domestic enterprise, without the limitations prescribed in provisions of this Act are hereby repealed, amended or modified
the preceding paragraph regarding maturity and marketability, and accordingly, without prejudice, however, to deposits made thereunder.
such loans shall be eligible for purposes of the 100% foreign currency
cover prescribed in the preceding paragraph. (As added by PD No. Section 12-A. Amendatory enactments and regulations. – In the
1035.) event a new enactment or regulation is issued decreasing the rights
hereunder granted, such new enactment or regulation shall not apply
Section 5. Withdrawability and transferability of deposits. – There to foreign currency deposits already made or existing at the time of
shall be no restriction on the withdrawal by the depositor of his issuance of such new enactment or regulation, but such new
deposit or on the transferability of the same abroad except those enactment or regulation shall apply only to foreign currency deposits
arising from the contract between the depositor and the bank. made after its issuance. (As added by PD No. 1246, prom. Nov. 21,
1977.)
Section 6. Tax exemption. – All foreign currency deposits made
under this Act, as amended by PD No. 1035, as well as foreign Section 13. Effectivity. – This Act shall take effect upon its approval.
currency deposits authorized under PD No. 1034, including interest
and all other income or earnings of such deposits, are hereby https://lawphil.net/statutes/repacts/ra1993/ra_7653_1993.html
exempted from any and all taxes whatsoever irrespective of whether
or not these deposits are made by residents or nonresidents so long as PRESIDENTIAL DECREE No. 679 April 2, 1975
the deposits are eligible or allowed under aforementioned laws and,
AMENDING ACT NUMBERED THIRTY-NINE HUNDRED
in the case of nonresidents, irrespective of whether or not they are
AND THIRTY-SIX, AN ACT REQUIRING BANKS, TRUST
engaged in trade or business in the Philippines. (As amended by PD
CORPORATIONS, AND BUILDING AND LOAN
No. 1246, prom. Nov. 21, 1977.)
ASSOCIATIONS, TO TRANSFER UNCLAIMED BALANCES
Section 7. Rules and regulations. – The Monetary Board of the HELD BY THEM TO THE TREASURER OF THE
Central Bank shall promulgate such rules and regulations as may be PHILIPPINES AND FOR OTHER PURPOSES.
necessary to carry out the provisions of this Act which shall take
effect after the publications in the Official Gazette and in a newspaper
WHEREAS, Act No. 3936 requires the publication of a sworn "(d) The interest due on such unclaimed balance, if any, and the
statement of unclaimed balances in banks once a week of three amount thereof.
consecutive weeks in at least two newspapers of general circulation
in the locality where the banks are situated, if there be any, and if "A copy of the above sworn statement shall be posted in a
there is none, in the City of Manila, one in English and one in conspicuous place in the premises of the bank, building and loan
Spanish, the cost of which shall be paid by the Bureau of Treasury, association, or trust corporation concerned for at least sixty days from
which shall be reimbursed out of the escheated funds; the date of filing thereof: Provided, That immediately before filing
the above sworn statement, the bank, building and loan association,
WHEREAS, the law also provides for the publication of summons and trust corporation shall communicate with the person in whose
and a notice upon the commencement of the prescribed judicial favor the unclaimed balance stands at his last known place of
proceedings for the escheat of unclaimed balances; residence or post office address.

WHEREAS, past experience has shown that the cost of publication "It shall be the duty of the Treasurer of the Philippines to inform the
required by law, the increase of which has been substantial the past Solicitor General from time to time the existence of unclaimed
few years, is more than the aggregate amount of the unclaimed balances held by banks, building and loan associations, and trust
balances to be escheated, the average amount of which is small; corporations.

WHEREAS, there is a felt need to simplify the procedure for the "Sec. 3. Whenever the Solicitor General shall be informed of such
escheat of unclaimed balances for the purpose of reducing the unclaimed balances, he shall commence an action or actions in the
expenses therefor; name of the People of the Republic of the Philippines in the Court of
First Instance of the province or city where the bank, building and
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the loan association or trust corporation is located, in which shall be
Philippines, by virtue of the powers in me vested by the Constitution, joined as parties the bank, building and loan association or trust
do hereby decree and order: corporation and all such creditors or depositors. All or any of such
creditors or depositors or banks, building and loan association or trust
Section 1. Sections 1, 2, 3, 4, and 5 of Act No. 3936 are hereby
corporations may be included in one action. Service of process in
amended to read as follows:
such action or actions shall be made by delivery of a copy of the
"Sec. 1. "Unclaimed balances", within the meaning of this Act, shall complaint and summons to the president, cashier, or managing officer
include credits or deposits of money, bullion, security or other of each defendant bank, building and loan association or trust
evidence of indebtedness of any kind, and interest thereon with corporation and by publication of a copy of such summons in a
banks, buildings and loan associations, and trust corporations, as newspaper of general circulation, either in English, in Filipino, or in a
hereinafter defined, in favor of any person known to be dead or who local dialect, published in the locality where the bank, building and
has not made further deposits or withdrawals during the preceding ten loan association or trust corporation is situated, if there be any, and in
years or more. Such unclaimed balances, together with the increase case there is none, in the City of Manila, at such time as the court
and proceeds thereof, shall be deposited with the Treasurer of the may order. Upon the trial, the court must hear all parties who have
Philippines to the credit of the Government of the Republic of the appeared therein, and if it be determined that such unclaimed
Philippines to be used as the National Assembly may direct. balances in any defendant bank, building and loan association or trust
corporation are unclaimed as hereinbefore stated, then the court shall
"Banks", "building and loan associations" and "trust corporations", render judgment in favor of the Government of the Republic of the
within the meaning of this Act, shall refer to institutions defined Philippines, declaring that said unclaimed balances have escheated to
under Section two, thirty-nine and fifty-six, respectively, of Republic the Government of the Republic of the Philippines and commanding
Act Numbered Three Hundred Thirty Seven, otherwise known as the said bank, building and loan association or trust corporation to
General Banking Act, as amended, whether organized under special forthwith deposit the same with the Treasurer of the Philippines to
charters or not. credit of the Government of the Republic of the Philippines to be
used as the National Assembly may direct.
"Sec. 2. Immediately after the taking effect of this Act and within the
month of January of every odd year, all banks, building and loan "At the time of issuing summons in the action above provided for, the
associations, and trust corporations shall forward to the Treasurer of clerk of court shall also issue a notice signed by him, giving the title
the Philippines a statement, under oath, of their respective managing and number of said action, and referring to the complaint therein, and
officers, of all credits and deposits held by them in favor of persons directed to all persons, other than those named as defendants therein,
known to be dead, or who have not made further deposits or claiming any interest in any unclaimed balance mentioned in said
withdrawals during the preceding ten years or more, arranged in complaint, and requiring them to appear within sixty days after the
alphabetical order according to the names of creditors and depositors, publication or first publication, if there are several, of such summons,
and showing: and show cause, if they have any, why the unclaimed balances
involved in said action should not be deposited with the Treasurer of
"(a) The names and last known place of residence or post office
the Philippines as in this Act provided and notifying them that if they
addresses of the persons in whose favor such unclaimed balances
do not appear and show cause, the Government of the Republic of the
stand;
Philippines will apply to the court for the relief demanded in the
"(b) The amount and the date of the outstanding unclaimed balance complaint. A copy of said notice shall be attached to, and published
and whether the same is in money or in security, and if the latter, the with the copy of, said summons required to be published as above,
nature of the same; and at the end of the copy of such notice so published, there shall be a
statement of the date of publication, or first publication, if there are
"(c) The date when the person in whose favor the unclaimed balance several, of said summons and notice. Any person interested may
stands died, if known, or the date when he made his last deposit or appear in said action and become a party thereto. Upon the
withdrawal; and publication or the completion of the publication, if there are several,
of the summons and notice, and the service of the summons on the Directors shall be ineligible during the time they are in office and for
defendant banks, building and loan associations or trust corporations, a period of two years thereafter to hold any office, position or
the court shall have full and complete jurisdiction in the Republic of employment in any insured bank, except that this restriction shall not
the Philippines over the said unclaimed balances and over the persons apply to any member who has served the full term for which he was
having or claiming any interest in the said unclaimed balances, or any appointed. No member of the Board of Directors shall be an officer or
of them, and shall have full and complete jurisdiction to hear and director of any insured bank; and before entering upon his duties as
determine the issues herein, and render the appropriate judgment member of the Board of Directors he shall certify under oath that he
thereon. has complied with this requirement and such certification shall be
filed with the Secretary of the Board of Directors. Any vacancy in the
"Sec. 4. If the president, cashier or managing officer of the bank, Board created by the death, resignation, or removal of an appointive
building and loan association, or trust corporation neglects or refuses member shall be filled by the appointment of new member to
to make and file the sworn statement required by this action, such complete the unexpired period of the term of the member concerned.
bank, building and loan association, or trust corporation shall pay to {{1}}
the Government the sum of five hundred pesos a month for each
month or fraction thereof during which such default shall continue. The Board of Directors shall have the authority:

"Sec. 5. Any bank, building and loan association or trust corporation 1. To prepare and issue rules and regulations as it considers necessary
which shall make any deposit with the Treasurer of the Philippines in for the effective discharge of its responsibilities;
conformity with the provisions of this Act shall not thereafter be
liable to any person for the same and any action which may be 2. To direct the management, operations and administration of the
brought by any person against in any bank, building and loan Corporation;
association, or trust corporation for unclaimed balances so deposited
3. To appoint, fix the remunerations and remove all officers and
with the Treasurer of the Philippines shall be defended by the
employees of the Corporation, subject to the Civil Service Law;
Solicitor General without cost to such bank, building and loan
and{{2}}
association or trust corporation."
4. To authorize such expenditures by the Corporation as are in the
Section 2. This Decree shall take effect immediately.
interest of the effective administration and operation of the
DONE in the City of Manila, this 2nd day of April, in the year of Our Corporation.{{3}}
Lord, nineteen hundred and seventy-five.
[See additions as per RA 9302{{4}} and RA 9576{{5}}]
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SECTION 3. As used in this Act —
REPUBLIC ACT NO. 3591
(a) The term “Board of Directors” means the Board of Directors of
AN ACT ESTABLISHING THE PHILIPPINE DEPOSIT the Corporation.
INSURANCE CORPORATION, DEFINING ITS POWERS
(b) The term “Bank” and “Banking Institution” shall be synonymous
AND DUTIES AND FOR OTHER PURPOSES
and interchangeable and shall include banks, commercial banks,
SECTION 1. There is hereby created a Philippine Deposit Insurance savings banks, mortgage banks, rural banks, development banks,
Corporation hereinafter referred to as the “Corporation” which shall cooperative banks, trust companies, branches and agencies in the
insure, as herein provided, the deposits of all banks which are entitled Philippines of foreign banks and all other companies, corporations,
to the benefits of insurance under this Act, and which shall have the partnership performing banking functions in the Philippines.
powers hereinafter granted.
(c) The term “receiver” includes a receiver, liquidating agent,
SECTION 2. The powers and functions of the Corporation shall be conservator, commission, person, or other agency charged by law
vested in a board of directors consisting of three (3) members one of with the duty of winding up the affairs of a bank.
whom shall be the Governor of the Central Bank of the Philippines
(d) The term “insured bank” means any bank the deposit of which are
and two of whom shall be citizens of the Republic of the Philippines
insured in accordance with the provision of this Act;
to be appointed by the President of the Philippines with the advice
and consent of the Commission on Appointments. One of the (e) The term “non-insured bank” means any bank the deposit of
appointive members shall be the Chairman of the Board of Directors which are not insured.
of the Corporation who shall be appointed on a full time basis for a
term of six (6) years at an annual salary of twenty-four thousand (f) The term “deposit” means the unpaid balance of money or its
pesos (P24,000.00). The other appointive member, who shall be equivalent received by a bank in the usual course of business and for
appointed for a term of four (4) years and the Governor of the Central which it has given or is obliged to give credit to a commercial,
Bank shall each receive a per diem of not exceeding fifty pesos checking, savings, time or thrift account or which is evidenced by its
(P50.00) for each day of meeting actually attended by them but in no certificate of deposit, and trust funds held by such bank whether
case shall each of them receive more than five hundred pesos retained or deposited in any department of such bank or deposited in
(P500.00) a month. In the event of a vacancy in the Office of the another bank, together with such other obligations of a bank as the
Governor of the Central Bank of the Philippines, and pending the Board of Directors shall find and shall prescribe by regulations to be
appointment of his successor or during the absence of the Governor, deposit liabilities of the Bank: Provided, That any obligation of a
the Acting Governor of the Central Bank of the Philippines shall act bank which is payable at the office of the bank located outside of the
as member of the Board of Directors. In the event of a vacancy in the Philippines shall not be a deposit for any of the purposes of this Act
Office of the Chairman of the Board of Directors and pending the or included as part of the total deposits or of the insured deposit:
appointment of his successor, the Governor of the Central Bank of the Provided, further, That any insured bank which is incorporated under
Philippines shall act as Chairman. The members of the Board of the laws of the Philippines which maintains a branch outside the
Philippines may elect to include for insurance its deposit obligation course of business or credited to deposit accounts, plus such
payable only at such branch. uncollected items paid or credited on preceding days which are in the
process of collection: Provided, That the Board of Directors may
(g) The term “insured deposit” means the net amount due to any define the terms “cash items”, “process of collection”, and
depositor for deposits in an insured bank (after deducting offsets) less “uncollected items” and shall fix the maximum period for which any
any part thereof which is in excess of P10,000. Such net amount shall such item may be deducted; and
be determined according to such regulations as the Board of Directors
may prescribe and in determining the amount due to any depositor (2) may exclude from its assessment base (i) drafts drawn by it on
there shall be added together all deposits in the bank maintained in deposit accounts in other banks which are issued in the regular course
the same capacity and the same right for his benefit or in his own of business; and the amount of devices or authorizations issued by it
name or in the names of others. for cash letters received, directing that its deposit account in the
sending bank be charged with the amount thereof; and (ii) cash funds
(h) The term “transfer deposit” means a deposit in an insured bank which are received and held solely for the purpose of securing a
made available to a depositor by the Corporation as payment of liability to the bank but not in an amount in excess of such liability,
insured deposit of such depositor in a closed bank and assumed by and which are not subject to withdrawal by the obligor and are
another insured bank. carried in a special non-interest bearing account designated to
properly show their purpose.
(i) The term “trust funds” means funds held by an insured bank in a
fiduciary capacity and includes without being limited to, funds held Each insured bank, as a condition to the right to make any such
as trustee, executor, administrator, guardian, or agent.{{6}} deduction or exclusion in determining its assessment base, shall
maintain such records as will readily permit verification of the
SECTION 4. Any bank or banking institution which is engaged in the
correctness thereof. The semiannual assessment base for one semi-
business of receiving deposits as herein defined on the effective date
annual period shall be the average of the assessment base of the bank
of this Act, or which thereafter may engage in the business of
as of the close of business on March thirty-one and June thirty, and
receiving deposits, may insure its deposit liabilities with the
the semi-annual assessment base for the other semi-annual period
Corporation. Before approving the application of such bank to
shall be the average of the assessment base of the bank as of the close
become an insured bank, the Board of Directors shall give
of business on September thirty and December thirty-one: Provided,
consideration to the factors enumerated in Section 5 and shall
That when any of said days is a nonbusiness day or a legal holiday,
determine upon the basis of a thorough examination of such bank,
either National or Provincial, the preceding business day shall be
that its assets in excess of its capital requirements are adequate to
used. The certified statements required to be filed with the
enable it to meet all its liabilities to depositors and other creditors as
Corporation under subsections (b) and (c) of this section shall be in
shown by the books of the bank.{{7}}
such form and set forth such supporting information as the Board of
SECTION 5. The factors to be considered by the Board of Directors Directors shall prescribe. The assessment payments required from
under the preceding section shall be the following: the financial insured banks under subsections (b) and (c) of this section shall be
history and condition of the Bank, the adequacy of its capital made in such manner and at such time or times as the Board of
structure, its future earning prospects, the general character of its Directors shall prescribe, provided the time or times so prescribed
management, the convenience and needs of the community to be shall not be later than sixty days after filing the certified statement
served by the Bank and whether or not its corporate powers are setting forth the amount of assessment.{{9}}{{10}}
consistent with the purposes of this Act.{{8}}
(b) On or before the 15th of July of each year, each insured bank shall
SECTION 6. (a) The assessment rate shall be determined by the file with the Corporation a certified statement showing for the six
Board of Directors: Provided, That the assessment rate shall not months ending on the preceding June thirty the amount of the
exceed one-twelfth of one per centum per annum. The semiannual assessment base and the amount of the semi-annual assessment due to
assessment for each insured bank shall be in the amount of the the Corporation for the period ending on the following December
product of one-half (1/2) the assessment rate multiplied by the thirty-one, determined in accordance with subsection (a) of this
assessment base. The assessment base shall be the amount of the section, which shall contain or be verified by a written declaration
liability of the bank for deposits, according to the definition of the that it is made under the penalties of perjury. Each insured bank shall
term “deposit” in and pursuant to subsection (f) of Section 3 without pay to the Corporation the amount of the semi-annual assessment it is
any deduction for indebtedness of depositors: Provided, further, That required to certify. On or before the 15th day of January of each year,
the bank — each insured bank shall file with the Corporation a similar certified
statement for the six months ending on the preceding December
(1) may deduct (i) from the deposit balance due to an insured bank thirty-one and shall pay to the Corporation the amount of the semi-
the deposit balance due from such insured bank (other than trust annual assessment for the period ending on the following June thirty
funds deposited by it in such bank) which is subject to an immediate which it is required to certify.{{11}}
withdrawal; and (ii) cash items as determined by either of the
following methods, at the option of the bank: (aa) by multiplying by 2 (c) Each bank which becomes an insured bank shall not be required
the total of the cash items forwarded for collection on the assessment to file any certified statement or pay any assessment for the semi-
base days (being the days on which the average deposits are annual period in which it becomes an insured bank. On the expiration
computed) and cash items held for clearings at the close of business of such period, each such bank shall comply with the provisions of
on said days, which are in the process of collection and which the subsection (b) of this section except that the semi-annual assessment
bank has paid in the regular course of business or credited to deposit base for its first certified statement shall be the assessment base of the
accounts; or (bb) by deducting the total of cash items forwarded for bank as of the close of business on the preceding June thirty or
collection on the assessment base days and cash items held for December thirty-one, whichever is applicable, determined in
clearings at the close of business on said days, which are in the accordance with subsection (a) of this section. If such bank has
process of collection and which the bank has paid in the regular assumed the liabilities for deposits of another bank or banks, it shall
include such liabilities in its assessment base. The first certified be terminated by the Board of Directors. The remedies provided in
statement shall show as the amount of the first semi-annual this subsection and in the two preceding subsections shall not be
assessment due to the Corporation, an amount equal to the product of construed as limiting any other remedies against an insured bank but
one-half of the annual assessment rate multiplied by such assessment shall be in addition thereto.{{13}}
base.
(i) Trust funds held by an insured bank in a fiduciary capacity
(d) As of December thirty-one nineteen hundred sixty-four and as of whether held in trust or deposited in any other department or in
December thirty-one of each calendar year thereafter, the Corporation another bank shall be insured like other forms of deposits, in an
shall transfer 40 per centum of its net assessment income to its capital amount not to exceed P10,000 for each trust estate, and when
account and the balance of the net assessment income shall be deposited by the fiduciary bank in another insured bank, such trust
credited pro rata to the insured banks based upon the assessment of funds shall be similarly insured to the fiduciary bank according to the
each bank becoming due during the said calendar year. Each year trust estates represented. Notwithstanding any other provision of this
such credit shall be applied by the Corporation toward the payment of Act, such insurance shall be separate from and additional to that
the total assessment becoming due for the semi-annual assessment covering other deposits of the owners of such trust funds or the
period beginning the next ensuing July 1 and any excess credit shall beneficiaries of such trust estates: Provided, That where the fiduciary
be applied upon the assessment next becoming due. The term “net bank deposits any of such trust funds in other insured banks, the
assessment income” as used therein means the total assessments amount so held by other insured banks on deposit shall not for the
which become due during the calendar year less (1) the operating purpose of any certified statement required under subsections (b) and
costs and expenses of the Corporation for the calendar year; (2) (c) of this section be considered to be a deposit liability of the
additions to reserve to provide for insurance losses during the fiduciary bank, but shall be considered to be a deposit liability of the
calendar year, except that any adjustment to reserve which result in a bank in which such funds are so deposited by such fiduciary bank.
reduction of such reserve shall be added; and (3) the insurance losses The Board of Directors shall have the power by regulation to
sustained in said calendar year plus losses from any preceding years prescribe the manner of reporting and of depositing such trust funds.
in excess of such reserves. If the above deductions exceed in amount
the total assessments which become due during the calendar year, the SECTION 7. (a) Any insured bank may, upon not less than ninety
amount of such excess shall be restored by deduction from total days, written notice to the Corporation, and to the Development Bank
assessments becoming due in subsequent years.{{12}} of the Philippines if it owns or holds as pledges any preferred stock,
capital notes, or debentures of such bank, terminate its status as an
(e) The Corporation (1) may refund to an insured bank any payment insured bank. Whenever the Board of Directors shall find that an
of assessment in excess of the amount due to the Corporation or (2) insured bank or its directors or trustees have continued unsafe or
may credit such excess toward the payment of the assessment next unsound practices in conducting the business of the bank or which
becoming due from such bank and upon succeeding assessments until have knowingly or negligently permitted any of its officers or agents
the credit is exhausted. to violate any provisions of any law or regulation to which the
insured bank is subject, the Board of Directors shall first give to the
(f) Any insured bank which fails to file any certified statement Central Bank of the Philippines a statement with respect to such
required to be filed by it in connection with determining the amount practices or violations for the purpose of securing the correction
of any assessment payable by the bank to the Corporation may be thereof and shall give a copy thereof to the bank. Unless such
compelled to file such statement by mandatory injunction or other correction shall be made within one hundred twenty days or such
appropriate remedy in a suit brought for such purpose by the shorter period of time as the Central Bank of the Philippines shall
Corporation against the bank and any officer or officers thereof in any require, the Board of Directors, if it shall determine to proceed
court of the Philippines of competent jurisdiction in which such bank further, shall give to the bank not less than thirty days’ written notice
is located. of intention to determine the status of the bank as an insured bank,
and shall fix a time and place for a hearing before the Board of
(g) The Corporation, in a suit brought in any court of competent
Directors or before a person designated by it to conduct such hearing,
jurisdiction, shall be entitled to recover from any insured bank the
at which evidence may be produced, and upon such evidence the
amount of any unpaid assessment lawfully payable by such insured
Board of Directors shall make written findings which shall be
bank to the Corporation, whether or not such bank shall have filed
conclusive. Unless the bank shall appear at the hearing by a duly
any such certified statement and whether or not suit shall have been
authorized representative, it shall be deemed to have consented to the
brought to compel the bank to file any such statement. No action or
termination of its status as an insured bank. If the Board of Directors
proceeding shall be brought for recovery of any assessment due to the
shall find that any unsafe or unsound practice or violation specified in
Corporation or for the recovering of any amount paid to the
such notice has been established and has not been corrected within
Corporation in excess of the amount due to it, unless such action or
the time above prescribed in which to make such correction, the
proceeding shall have been brought within five years after the right
Board of Directors may order that the insured status of the bank be
accrued for which the claim is made, except where the insured bank
terminated on a date subsequent to such finding and to the expiration
has made or filed with the Corporation a false or fraudulent certified
of the time specified in such notice of intention. The Corporation may
statement with the intent to evade, in whole or in part, the payment of
publish notice of such termination and the bank shall give notice of
assessment, in which case the claim shall not have been deemed to
such termination to each of the depositors at his last address of record
have accrued until the discovery by the Corporation that the certified
on the books of the bank, in such a manner and at such a time as the
statement is false or fraudulent.
Board of Directors may find to be necessary and may order for the
(h) Should any insured bank fail or refuse to pay any assessment protection of the depositors. After the termination of the insured
required to be paid by such bank under any provision of this Act, and status of any bank under the provisions of this subsection, the insured
should the bank not correct such failure or refusal within thirty days deposits of each depositor in the bank on the date of such termination,
after written notice has been given by the Corporation to an officer of less all subsequent withdrawals from any deposits of such depositor,
the bank, citing this subsection, and stating that the bank has failed or shall continue for a period of two years to be insured, and the bank
refused to pay as required by law the insured status of such bank shall shall continue to pay to the Corporation assessments as in the case of
an insured bank during such period. No additions to any such Fifth. — To appoint by its Board of Directors such officers and
deposits and no new deposits in such bank made after the date of such employees as are not otherwise provided for in this Act to define their
termination shall be insured by the Corporation, and the bank shall duties, fix their compensation, require bonds of them and fix penalty
not advertise or hold itself out as having insured deposits unless in thereof and to dismiss such officers and employees for cause.
the same connection it shall also state equal prominence that such
additions to deposits and new deposits made after such date are not so Sixth. — To prescribe, by its Board of Directors, by-laws not
insured. Such bank shall, in all other respects, be subject to the duties inconsistent with law, regulating the manner in which its general
and obligations of an insured bank for the period of two years from business may be conducted, and the privileges granted to it by law
the date of such termination, and in the event that such bank shall be may be exercised and enjoyed.
closed on account of insolvency within such period of two years, the
Seventh. — To exercise by its Board of Directors, or duly authorized
Corporation shall have the same powers and rights with respect to
officers or agents, all powers specifically granted by the provisions of
such bank as in case of an insured bank.{{14}}
this Act, and such incidental powers as shall be necessary to carry on
(b) Notwithstanding any other provision of law, whenever the Board the powers so granted.
of Directors shall determine that an insured banking institution is not
Eighth. — To make examinations of and to require information and
engaged in the business of receiving deposits, the Corporation shall
reports from banks, as provided in this Act.{{16}}
notify the banking institution that its insured status will terminate at
the expiration of the first full semi-annual assessment period Ninth. — To act as receiver.
following such notice. A finding by the Board of Directors that a
banking institution is not engaged in the business of receiving Tenth. — To prescribe by its Board of Directors such rules and
deposits shall be conclusive. The Board of Directors shall prescribe regulations as it may deem necessary to carry out the provisions of
the notice to be given by the banking institution of such termination this Act.{{17}}
and the Corporation may publish notice thereof. Upon the termination
[See additions as per PD 1940{{18}} and RA 7400{{19}}]
of the insured status of any such banking institution, its deposits shall
thereupon cease to be insured and the banking institution shall SECTION 9. (a) The Board of Directors shall administer the affairs
thereafter be relieved of all future obligations to the Corporation, of the Corporation fairly and impartially and without discrimination.
including the obligation to pay future assessments.{{15}} The Corporation shall be entitled to the free use of Philippine mail in
the same manner as the other offices of the national government.
(c) Whenever the liabilities of an insured bank for deposits shall have
been assumed by another insured bank or banks, the insured status of (b) The Board of Directors shall appoint examiners who shall have
the bank whose liabilities are so assumed shall terminate on the date power, on behalf of the Corporation to examine any insured bank or
of receipt by the Corporation of satisfactory evidence of such any bank making application to become an insured bank, whenever in
assumption with like effect as if its insured status had been the judgment of the Board of Directors an examination of the bank is
terminated on said date by the Board of Directors after proceedings necessary. Each such examiner shall have power to make a thorough
under subsection (a) of this section: Provided, That if the bank whose examination of all the affairs of the bank and in doing so he shall
liabilities are so assumed gives to its depositors notice of such have power to administer oaths and to examine and take and preserve
assumption within thirty days after such assumption takes effect, by the testimony of any of the officers and agents thereof, and shall
publication or by any reasonable means, in accordance with make a full and detailed report of the condition of the bank to the
regulations to be prescribed by the Board of Directors, the insurance Corporation. The Board of Directors in like manner shall appoint
of its deposits shall terminate at the end of six months from the date claim agents who shall have power to investigate and examine all
such assumption takes effect. Such bank shall be subject to the duties claims for insured deposits and transferred deposits. Each claim agent
and obligations of an insured bank for the period its deposits are shall have power to administer oaths and to examine under oath and
insured: Provided, further, That if the deposits are assumed by a take and preserve the testimony of any person relating to such claims.
newly insured bank, the bank whose deposits are assumed shall not {{20}}{{21}}
be required to pay any assessment upon the deposits which have been
so assumed after the semi-annual period in which the assumption (c) Each insured bank shall make to the Corporation reports of
takes effect. condition in such form and at such times as the Board of Directors
may require such reports to be published in such manner, not
SECTION 8. The Corporation as a corporate body shall have the inconsistent with any applicable law, as it may direct. Every such
power — bank which fails to make or publish any such report within such time,
not less than five days, as the Board of Directors may require, shall
First. — To adopt and use a corporate seal.
be subject to a penalty of not more than P100 for each day of such
Second. — To have succession until dissolved by an Act of Congress. failure recoverable by the Corporation for its use.

Third. — To make contracts. (d) The Corporation shall have access to reports of examination made
by, and reports of condition made to the Superintendent of Banks or
Fourth. — To sue and be sued, complain and defend, in any court of the Governor of the Central Bank of the Philippines, and the
law in the Philippines. All suits of a civil nature to which the Superintendent of Banks or the Governor of the Central Bank of the
corporation shall be a part shall be deemed to arise under the laws of Philippines shall also have access to reports of examination made on
the Philippines. No attachment or execution shall be issued against behalf of, and reports of condition made to the Corporation.{{22}}
the Corporation or its property before final judgment in any suit, {{23}}
action, or proceeding in any court. The Board of Directors shall
designate an agent upon whom service of process may be made in (e) The members of the Board of Directors and the officers and
any province or city or jurisdiction in which any insured bank is employees of the Corporation are prohibited from revealing any
located. information relating to the condition or business of any insured bank
and any member of the Board of Directors, officer or employee of the the closed bank shall fail to claim his insured deposit from the
Corporation violating this provision shall be held liable for any loss Corporation within eighteen months after the Monetary Board of the
or injury suffered by the Corporation.{{24}} Central Bank of the Philippines or the proper court shall have ordered
the conversion of the assets of such closed bank into money, all rights
[See additions as per RA 9302, RA 9576, and RA 7400{{25}}] of the depositor against the Corporation with respect to the insured
deposit shall be barred, and all rights of the depositor against the
SECTION 10. (a) A permanent insurance fund in the amount of
closed bank and its shareholders or the receivership estate to which
P5,000,000 to be appropriated from the General Fund is hereby
the Corporation may have become subrogated, shall thereupon revert
created to be used by the Corporation to carry out the purposes of this
to the depositor.{{29}}
Act; Provided, That the maximum amount of the insured deposit of
any depositor shall be P10,000.{{26}} SECTION 12. (a) Money of the Corporation not otherwise employed
shall be invested in obligations of the Republic of the Philippines or
(b) For the purposes of this Act an insured bank shall be deemed to
in obligations guaranteed as to principal and interest by the Republic
have been closed on account of insolvency in any case in which it has
of the Philippines: Provided, That the Corporation shall not sell or
been closed for the purpose of liquidation without adequate provision
purchase any such obligations for its own account and in its own right
being made for payment of its depositors.{{27}}
and interest, at any one time aggregating in excess of P100,000,
(c) Whenever an insured bank shall have been closed on account of without the approval of the Insurance Commissioner: And Provided,
insolvency, payment of the insured deposits in such bank shall be further, That the Insurance Commissioner may waive the requirement
made by the Corporation as soon as possible either (1) by cash or (2) of his approval with respect to any transaction or classes of
by making available to each depositor a transferred deposit in another transactions subject to the provisions of this subsection for such
insured bank in an amount equal to the insured deposit of such period of time and under such conditions as he may determine.
depositor: Provided, That the Corporation, in its discretion, may
(b) The banking or checking accounts of the Corporation shall be
require proof of claims to be filed before paying the insured deposits,
kept with the Central Bank of the Philippines, with the Philippine
and that in any case where the Corporation is not satisfied as to the
National Bank, or with any other bank designated as depository or
validity of a claim for an insured deposit, it may require the final
fiscal agent of the Philippine Government.
determination of a court of competent jurisdiction before paying such
claim.{{28}} (c) When the Corporation has determined that an insured bank is in
danger of closing, in order to prevent such closing, the Corporation,
(d) The Corporation, upon the payment of any depositor as provided
in the discretion of its Board of Directors, is authorized to make loans
for in subsection (c) of this section shall be subrogated to all rights of
to, or purchase the assets of, or make deposits in, such insured bank,
the depositor against the closed bank to the extent of such payment.
upon such terms and conditions as the Board of Directors may
Such subrogation shall include the right on the part of the
prescribe, when in the opinion of the Board of Directors, the
Corporation to receive the same dividends from the proceeds of the
continued operation of such bank is essential to provide adequate
assets of such closed bank and recoveries on account of stockholders’
banking service in the community. Such loans and deposits may be in
liability as would have been payable to the depositor on a claim for
subordination to the rights of depositors and other creditors.{{30}}
the insured deposits, but such depositor shall retain his claim for any
{{31}}
uninsured portion of his deposit.
SECTION 13. The corporation is authorized to borrow from the
SECTION 11. (a) Payment of an insured deposit to any person by the
Central Bank of the Philippines and the Central Bank is authorized
Corporation shall discharge the Corporation, and payment of a
and directed to loan the Corporation on such terms as may be fixed
transferred deposit to any person by the new bank or by an insured
by the Corporation and the Central Bank, such funds as in the
bank in which a transferred deposit has been made available shall
judgment of the Board of Directors of the Corporation are from time
discharge the Corporation and such new bank or other insured bank,
to time required for insurance purposes not exceeding in the
to the same extent that payment to such person by the closed bank
aggregate of one hundred million pesos outstanding at any one time:
would have discharged it from liability for the insured deposit.
Provided, That the rate of interest to be charged in connection with
(b) Except as otherwise prescribed by the Board of Directors, neither any loan made pursuant to this section shall not be less than the
the Corporation nor such other insured bank shall be required to current average rate on outstanding marketable and nonmarketable
recognize as the owner of any portion of a deposit appearing on the obligations of the Republic of the Philippines as of the last day of the
records of the closed bank under a name other than that of the month preceding the making of such loan. Any such loan shall be
claimant, any person whose name or interest as such owner is not used by the Corporation solely in carrying out its functions with
disclosed on the records of such closed bank as part owner of said respect to such insurance.{{32}}
deposit, if such recognition would increase the aggregate amount of
SECTION 14. All notes, debentures, bonds or such obligations issued
the insured deposits in such closed bank.
by the Corporation shall be exempt from taxation.{{33}}
(c) The Corporation may withhold payment of such portion of the
SECTION 15. (a) The Corporation shall annually make a report of its
insured deposit of any depositor in a closed bank as may be required
operations to the Congress as soon as practicable after the 1st day of
to provide for the payment of any liability of such depositor as a
January in each year.
stockholder of the closed bank, or of any liability of such depositor to
the closed bank or its receiver, which is not offset against a claim due (b) The financial transactions of the Corporation shall be audited by
from such bank, pending the determination and payment of such the General Auditing Office in accordance with the principles and
liability by such depositor or any other person liable therefor. procedures applicable to commercial corporate transactions and under
such rules and regulations as may be prescribed by the Auditor
(d) If, after the Corporation shall have given at least three months
General. The audit shall be conducted at the place or places where
notice to the depositor by mailing a copy thereof to his last-known
accounts of the Corporation are normally kept. The representatives of
address appearing on the records of the closed bank, any depositor in
the General Auditing Office shall have access to all books, accounts, institution in consideration of the assumption of liabilities for any
records, reports, files, and all other papers, things, or property portion of the deposits made in such insured bank.{{37}}
belonging to or in use by the Corporation pertaining to its financial
transactions and necessary to facilitate the audit, and they shall be (d) The Corporation may require any insured bank to provide
afforded full facilities for verifying transactions with the balances or protection and indemnity against burglary, defalcation, and other
securities held by depositaries, fiscal agents, and custodians. All such similar insurable losses. Whenever any insured bank refuses to
books, accounts, records, reports, files, papers, and property of the comply with any such requirement the Corporation may contract for
Corporation shall remain in possession and custody of the such protection and indemnity and add the cost thereof to the
Corporation. assessment otherwise payable by such bank.{{38}}

(c) A report of the Audit for each fiscal year ending on June 30 shall (e) Any insured bank which willfully fails or refuses to file any
be made by the Auditor General to the Congress not later than certified statement or pay any assessment required under this Act
January 15 following the close of such fiscal year. On or before shall be subject to a penalty of not more than P100 for each day that
December 15 following such fiscal year the Auditor General shall such violations continue, which penalty the Corporation may recover
furnish the Corporation a short form report showing the financial for its use: Provided, That this subsection shall not be applicable
position of the Corporation at the close of fiscal year. The report to under the circumstances stated in the provisions of subsection (b) of
the Congress shall set forth the scope of the audit and shall include a this section.{{39}}
statement of assets and liabilities and surplus or deficit; a statement of
SECTION 17. Except with the written consent of the Corporation, no
surplus or deficit analysis; a statement of income and expenses; a
person shall serve as a director, officer, or employee of an insured
statement of sources and application of funds and such comments and
bank who has been convicted, or who is hereafter convicted, of any
information as may be deemed necessary to inform Congress of the
criminal offense involving dishonesty or a breach of trust. For each
financial operations and condition of the Corporation, together with
willful violation of this prohibition, the bank involved shall be subject
such recommendations with respect thereto as the Auditor General
to a penalty of not more than P100 for each day this prohibition is
may deem advisable. The report shall also show specifically any
violated, which the Corporation may recover for its use.{{40}}
program, expenditure, or other financial transactions or undertaking
{{41}}{{42}}{{43}}{{44}}
observed in the course of the audit, which in the opinion of the
Auditor General, has been carried on or made without authority of SECTION 18. If any provision or section of this Act or the
law. A copy of each report shall be furnished to the President of the application thereof to any person or circumstances is held invalid, the
Philippines, to the Governor of the Central Bank of the Philippines, other provisions or sections of this Act, in the application of such
and to the Corporation at the time submitted to the Congress.{{34}} provision or section to other persons or circumstances, shall not be
affected thereby.{{45}}{{46}}
SECTION 16. (a) Every insured bank shall display at each place of
business maintained by it a sign or signs, and shall include a SECTION 19. All Acts or parts of Acts and executive orders,
statement to the effect that its deposits are insured by the Corporation administrative orders, or parts thereof which are inconsistent with the
in all of its advertisements: Provided, That the Board of Directors provisions of this Act are hereby repealed.{{47}}
may exempt from this requirement advertisements which do not
relate to deposits or when it is impractical to include such statement SECTION 20. This Act shall take effect upon approval. The
therein. The Board of Directors shall prescribe by regulation the Philippine Deposit Insurance Corporation shall commence business
forms of such signs and the manner of display and the substance of upon organization of the Board of Directors and certification by the
such statements and the manner of use. For each day an insured bank Treasurer of the Philippines that the Permanent Insurance Fund has
continues to violate any provisions of this subsection or any lawful been appropriated.{{48}}
provisions of said regulations, it shall be subject to a penalty of not
https://mirror.officialgazette.gov.ph/1963/06/22/republic-act-no-3591/
more than P100, which the Corporation may recover for its use.
{{35}} REPUBLIC ACT NO. 8791
(b) No insured bank shall pay any dividend on its capital stock or AN ACT PROVIDING FOR THE REGULATION OF THE
interest on its capital notes or debentures (if such interest is required ORGANIZATION AND OPERATIONS OF BANKS, QUASI-
to be paid only out of net profits) or distribute any of its capital assets BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES
while it remains in default in the payment of any assessment due to CHAPTER I
the Corporation; and any director or officer of any insured bank who TITLE AND CLASSIFICATION OF BANKS
participates in the declaration or payment of any such dividend or
interest or in any such distribution shall, upon conviction, be fined SECTION 1. Title. — The short title of this Act shall be "The General
not more than P1,000 or imprisoned not more than one year, or both: Banking Law of 2000." (1a) SECTION 2. Declaration of Policy. —
Provided, That if such default is due to a dispute between the insured The State recognizes the vital role of banks in providing an
bank and the Corporation over the amount of such assessment, this environment conducive to the sustained development of the national
subsection shall not apply, if such bank shall deposit security economy and the fiduciary nature of banking that requires high
satisfactory to the Corporation of payment upon final determination standards of integrity and performance. In furtherance thereof, the
of the issue.{{36}} State shall promote and maintain a stable and efficient banking and
financial system that is globally competitive, dynamic and responsive
(c) Without prior written consent by the Corporation, no insured bank to the demands of a developing economy. (n) SECTION 3. Definition
shall (1) merge or consolidate with any noninsured bank or institution and Classification of Banks. — 3.1. "Banks" shall refer to entities
or convert into a noninsured bank or institution or (2) assume liability engaged in the lending of funds obtained in the form of deposits. (2a)
to pay any deposits made in, or similar liabilities of, any noninsured 3.2. Banks shall be classified into: (a) Universal banks; (b)
bank or institution or (3) transfer assets to any noninsured bank or Commercial banks; (c) Thrift banks, composed of: (i) Savings and
mortgage banks, (ii) Stock savings and loan associations, and (iii)
Private development banks, as defined in Republic Act No. 7906 in accordance with this Act or other special laws. The department
(hereafter the "Thrift Banks Act"); (d) Rural banks, as defined in head and the examiners of the appropriate supervising and examining
Republic Act No. 7353 (hereafter the "Rural Banks Act"); (e) department are hereby authorized to administer oaths to any such
Cooperative banks, as defined in Republic Act No. 6938 (hereafter person, employee, officer, or director of any such entity and to
the "Cooperative Code"); (f) Islamic banks as defined in Republic Act compel the presentation or production of such books, documents,
No. 6848, otherwise known as the "Charter of Al Amanah Islamic papers or records that are reasonably necessary to ascertain the facts
Investment Bank of the Philippines"; and (g) Other classifications of relative to the true functions and operations of such person or entity.
banks as determined by the Monetary Board of the Bangko Sentral ng Failure or refusal to comply with the required presentation or
Pilipinas. (6-Aa) CHAPTER II AUTHORITY OF THE BANGKO production of such books, documents, papers or records within a
SENTRAL SECTION 4. Supervisory Powers. — The operations and reasonable time shall subject the persons responsible therefore to the
activities of banks shall be subject to supervision of the Bangko penal sanctions provided under the New Central Bank Act. Persons or
Sentral. "Supervision" shall include the following: 4.1. The issuance entities found to be performing banking or quasi-banking functions
of rules of conduct or the establishment of standards of operation for without authority from the Bangko Sentral shall be subject to
uniform application to all institutions or functions covered, taking appropriate sanctions under the New Central Bank Act and other
into consideration the distinctive character of the operations of applicable laws. (4a) SECTION 7. Examination by the Bangko
institutions and the substantive similarities of specific functions to Sentral. — The Bangko Sentral shall, when examining a bank, have
which such rules, modes or standards are to be applied; 4.2. The the authority to examine an enterprise which is wholly or majority-
conduct of examination to determine compliance with laws and owned or controlled by the bank.
regulations if the circumstances so warrant as determined by the
Monetary Board; 4.3. Overseeing to ascertain that laws and https://www.bsp.gov.ph/Regulations/Banking%20Laws/gba.pdf
regulations are complied with; 4.4. Regular investigation which shall
REPUBLIC ACT NO. 9160
not be oftener than once a year from the last date of examination to
determine whether an institution is conducting its business on a safe AN ACT DEFINING THE CRIME OF MONEY LAUNDERING,
or sound basis: Provided, That the deficiencies/irregularities found by PROVIDING PENALTIES THEREFOR AND FOR OTHER
or discovered by an audit shall be immediately addressed; 4.5. PURPOSES
Inquiring into the solvency and liquidity of the institution (2-D); or
4.6. Enforcing prompt corrective action. (n) The Bangko Sentral shall Be it enacted by the Senate and the House of Representatives of the
also have supervision over the operations of and exercise regulatory Philippines in Congress assembled.
powers over quasi-banks, trust entities and other financial institutions
SECTION 1. Short Title. — This Act shall be known as the “Anti-
which under special laws are subject to Bangko Sentral supervision.
Money Laundering Act of 2001.”
(2-Ca) For the purposes of this Act, "quasi-banks" shall refer to
entities engaged in the borrowing of funds through the issuance, SEC. 2. Declaration of Policy. — It is hereby declared the policy of
endorsement or assignment with recourse or acceptance of deposit the State to protect and preserve the integrity and confidentiality of
substitutes as defined in Section 95 of Republic Act No. 7653 bank accounts and to ensure that the Philippines shall not be used as a
(hereafter the "New Central Bank Act") for purposes of relending or money laundering site for the proceeds of any unlawful activity.
purchasing of receivables and other obligations. (2-Da) SECTION 5. Consistent with its foreign policy, the State shall extend cooperation
Policy Direction; Ratios, Ceilings and Limitations. — The Bangko in transnational investigations and prosecutions of persons involved
Sentral shall provide policy direction in the areas of money, banking in money laundering activities wherever committed.
and credit. (n) For this purpose, the Monetary Board may prescribe
ratios, ceilings, limitations, or other forms of regulation on the SEC. 3. Definitions. — For purposes of this Act, the following terms
different types of accounts and practices of banks and quasi-banks are hereby defined as follows:
which shall, to the extent feasible, conform to internationally
accepted standards, including those of the Bank for International (a) “Covered institution” refers to:
Settlements (BIS). The Monetary Board may exempt particular
(1) banks, non-banks, quasi-banks, trust entities, and all other
categories of transactions from such ratios, ceilings and limitations,
institutions and their subsidiaries and affiliates supervised or
but not limited to exceptional cases or to enable a bank or quasi-bank
regulated by the Bangko Sentral ng Pilipinas (BSP);
under rehabilitation or during a merger or consolidation to continue in
business with safety to its creditors, depositors and the general public. (2) insurance companies and all other institutions supervised or
(2-Ca) SECTION 6. Authority to Engage in Banking and Quasi- regulated by the Insurance Commission; and
Banking Functions. — No person or entity shall engage in banking
operations or quasi-banking functions without authority from the (3) (i) securities dealers, brokers, salesmen, investment houses and
Bangko Sentral: Provided, however, That an entity authorized by the other similar entities managing securities or rendering services as
Bangko Sentral to perform universal or commercial banking investment agent, advisor, or consultant, (ii) mutual funds, closed-end
functions shall likewise have the authority to engage in quasi-banking investment companies, common trust funds, pre-need companies and
functions. The determination of whether a person or entity is other similar entities, (iii) foreign exchange corporations, money
performing banking or quasi-banking functions without Bangko changers, money payment, remittance, and transfer companies and
Sentral authority shall be decided by the Monetary Board. To resolve other similar entities, and (iv) other entities administering or
such issue, the Monetary Board may, through the appropriate otherwise dealing in currency, commodities or financial derivatives
supervising and examining department of the Bangko Sentral, based thereon, valuable objects, cash substitutes and other similar
examine, inspect or investigate the books and records of such person monetary instruments or property supervised or regulated by
or entity. Upon issuance of this authority, such person or entity may Securities and Exchange Commission.
commence to engage in banking operations or quasi-banking
functions and shall continue to do so unless such authority is sooner (b) “Covered transaction” is a single, series, or combination of
surrendered, revoked, suspended or annulled by the Bangko Sentral transactions involving a total amount in excess of Four million
Philippine pesos (Php4,000,000.00) or an equivalent amount in
foreign currency based on the prevailing exchange rate within five (5) (7) Piracy on the high seas under the Revised Penal Code, as
consecutive banking days except those between a covered institution amended and Presidential Decree No. 532;
and a person who, at the time of the transaction was a properly
identified client and the amount is commensurate with the business or (8) Qualified theft under Article 310 of the Revised Penal Code, as
financial capacity of the client; or those with an underlying legal or amended;
trade obligation, purpose, origin or economic justification.
(9) Swindling under Article 315 of the Revised Penal Code, as
It likewise refers to a single, series or combination or pattern of amended;
unusually large and complex transactions in excess of Four million
(10) Smuggling under Republic Act Nos. 455 and 1937;
Philippine pesos (Php4,000,000.00) especially cash deposits and
investments having no credible purpose or origin, underlying trade (11) Violations under Republic Act No. 8792, otherwise known as the
obligation or contract. Electronic Commerce Act of 2000;
(c) “Monetary instrument” refers to: (12) Hijacking and other violations under Republic Act No. 6235;
destructive arson and murder, as defined under the Revised Penal
(1) coins or currency of legal tender of the Philippines, or of any
Code, as amended, including those perpetrated by terrorists against
other country;
non-combatant persons and similar targets;
(2) drafts, checks and notes;
(13) Fraudulent practices and other violations under Republic Act No.
(3) securities or negotiable instruments, bonds, commercial papers, 8799, otherwise known as the Securities Regulation Code of 2000;
deposit certificates, trust certificates, custodial receipts or deposit
(14) Felonies or offenses of a similar nature that are punishable under
substitute instruments, trading orders, transaction tickets and
the penal laws of other countries.
confirmations of sale or investments and money market instruments;
and

(4) other similar instruments where title thereto passes to another by SEC. 4. Money Laundering Offense. — Money laundering is a crime
endorsement, assignment or delivery. whereby the proceeds of an unlawful activity are transacted, thereby
making them appear to have originated from legitimate sources. It is
(d) “Offender” refers to any person who commits a money laundering
committed by the following:
offense.
(a) Any person knowing that any monetary instrument or property
(e) “Person” refers to any natural or juridical person.
represents, involves, or relates to, the proceeds of any unlawful
(f) “Proceeds” refers to an amount derived or realized from an activity, transacts or attempts to transact said monetary instrument or
unlawful activity. property.

(g) “Supervising Authority” refers to the appropriate supervisory or (b) Any person knowing that any monetary instrument or property
regulatory agency, department or office supervising or regulating the involves the proceeds of any unlawful activity, performs or fails to
covered institutions enumerated in Section 3(a). perform any act as a result of which he facilitates the offense of
money laundering referred to in paragraph (a) above.
(h) “Transaction” refers to any act establishing any right or obligation
or giving rise to any contractual or legal relationship between the (c) Any person knowing that any monetary instrument or property is
parties thereto. It also includes any movement of funds by any means required under this Act to be disclosed and filed with the Anti-Money
with a covered institution. Laundering Council (AMLC), fails to do so.

(i) “Unlawful activity” refers to any act or omission or series or SEC. 5. Jurisdiction of Money Laundering Cases. — The regional
combination thereof involving or having relation to the following: trial courts shall have jurisdiction to try all cases on money
laundering. Those committed by public officers and private persons
(1) Kidnapping for ransom under Article 267 of Act No. 3815, who are in conspiracy with such public officers shall be under the
otherwise known as the Revised Penal Code, as amended; jurisdiction of the Sandiganbayan.

SEC. 6. Prosecution of Money Laundering.

(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. (a) Any person may be charged with and convicted of both the
6425, as amended, otherwise known as the Dangerous Drugs Act of offense of money laundering and the unlawful activity as herein
1972; defined.
(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. (b) Any proceeding relating to the unlawful activity shall be given
3019, as amended; otherwise known as the Anti-Graft and Corrupt precedence over the prosecution of any offense or violation under this
Practices Act; Act without prejudice to the freezing and other remedies provided.
(4) Plunder under Republic Act No. 7080, as amended; SEC. 7. Creation of Anti-Money Laundering Council (AMLC). —
(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, The Anti-Money Laundering Council is hereby created and shall be
301 and 302 of the Revised Penal Code, as amended; composed of the Governor of the Bangko Sentral ng Pilipinas as
chairman, the Commissioner of the Insurance Commission and the
(6) Jueteng and Masiao punished as illegal gambling under Chairman of the Securities and Exchange Commission as members.
Presidential Decree No. 1602; The AMLC shall act unanimously in the discharge of its functions as
defined hereunder:
(1) to require and receive covered transaction reports from covered may conduct annual testing solely limited to the determination of the
institutions; existence and true identity of the owners of such accounts.

(2) to issue orders addressed to the appropriate Supervising Authority (b) Record Keeping. — All records of all transactions of covered
or the covered institution to determine the true identity of the owner institutions shall be maintained and safely stored for five (5) years
of any monetary instrument or property subject of a covered from the dates of transactions. With respect to closed accounts, the
transaction report or request for assistance from a foreign State, or records on customer identification, account files and business
believed by the Council, on the basis of substantial evidence, to be, in correspondence, shall be preserved and safely stored for at least five
whole or in part, wherever located, representing, involving, or related (5) years from the dates when they were closed.
to, directly or indirectly, in any manner or by any means, the proceeds
of an unlawful activity; (c) Reporting of Covered Transactions. — Covered institutions shall
report to the AMLC all covered transactions within five (5) working
(3) to institute civil forfeiture proceedings and all other remedial days from occurrence thereof, unless the Supervising Authority
proceedings through the Office of the Solicitor General; concerned prescribes a longer period not exceeding ten (10) working
days.
(4) to cause the filing of complaints with the Department of Justice or
the Ombudsman for the prosecution of money laundering offenses; When reporting covered transactions to the AMLC, covered
institutions and their officers, employees, representatives, agents,
(5) to initiate investigations of covered transactions, money advisors, consultants or associates shall not be deemed to have
laundering activities and other violations of this Act; violated Republic Act No. 1405, as amended; Republic Act No. 6426,
as amended; Republic Act No. 8791 and other similar laws, but are
(6) to freeze any monetary instrument or property alleged to be
prohibited from communicating, directly or indirectly, in any manner
proceeds of any unlawful activity;
or by any means, to any person the fact that a covered transaction
(7) to implement such measures as may be necessary and justified report was made, the contents thereof, or any other information in
under this Act to counteract money laundering; relation thereto. In case of violation thereof, the concerned officer,
employee, representative, agent, advisor, consultant or associate of
(8) to receive and take action in respect of, any request from foreign the covered institution, shall be criminally liable. However, no
states for assistance in their own anti-money laundering operations administrative, criminal or civil proceedings, shall lie against any
provided in this Act; person for having made a covered transaction report in the regular
performance of his duties and in good faith, whether or not such
(9) to develop educational programs on the pernicious effects of
reporting results in any criminal prosecution under this Act or any
money laundering, the methods and techniques used in money
other Philippine law.
laundering, the viable means of preventing money laundering and the
effective ways of prosecuting and punishing offenders; and When reporting covered transactions to the AMLC, covered
institutions and their officers, employees, representatives, agents,
(10) to enlist the assistance of any branch, department, bureau, office,
advisors, consultants or associates are prohibited from
agency or instrumentality of the government, including government-
communicating, directly or indirectly, in any manner or by any
owned and -controlled corporations, in undertaking any and all anti-
means, to any person, entity, the media, the fact that a covered
money laundering operations, which may include the use of its
transaction report was made, the contents thereof, or any other
personnel, facilities and resources for the more resolute prevention,
information in relation thereto. Neither may such reporting be
detection and investigation of money laundering offenses and
published or aired in any manner or form by the mass media,
prosecution of offenders.
electronic mail, or other similar devices. In case of violation thereof,
SEC. 8. Creation of a Secretariat. — The AMLC is hereby authorized the concerned officer, employee, representative, agent, advisor,
to establish a secretariat to be headed by an Executive Director who consultant or associate of the covered institution, or media shall be
shall be appointed by the Council for a term of five (5) years. He held criminally liable.
must be a member of the Philippine Bar, at least thirty-five (35) years
SEC. 10. Authority to Freeze. — Upon determination that probable
of age and of good moral character, unquestionable integrity and
cause exists that any deposit or similar account is in any way related
known probity. All members of the Secretariat must have served for
to an unlawful activity, the AMLC may issue a freeze order, which
at least five (5) years either in the Insurance Commission, the
shall be effective immediately, on the account for a period not
Securities and Exchange Commission or the Bangko Sentral ng
exceeding fifteen (15) days. Notice to the depositor that his account
Pilipinas (BSP) and shall hold full-time permanent positions within
has been frozen shall be issued simultaneously with the issuance of
the BSP.
the freeze order. The depositor shall have seventy-two (72) hours
SEC. 9. Prevention of Money Laundering; Customer Identification upon receipt of the notice to explain why the freeze order should be
Requirements and Record Keeping. — (a) Customer Identification. lifted. The AMLC has seventy-two (72) hours to dispose of the
— Covered institutions shall establish and record the true identity of depositor’s explanation. If it fails to act within seventy-two (72)
its clients based on official documents. They shall maintain a system hours from receipt of the depositor’s explanation, the freeze order
of verifying the true identity of their clients and, in case of corporate shall automatically be dissolved. The fifteen (15)-day freeze order of
clients, require a system of verifying their legal existence and the AMLC may be extended upon order of the court, provided that
organizational structure, as well as the authority and identification of the fifteen (15)-day period shall be tolled pending the court’s decision
all persons purporting to act on their behalf. to extend the period.

The provisions of existing laws to the contrary notwithstanding, No court shall issue a temporary restraining order or writ of
anonymous accounts, accounts under fictitious names, and all other injunction against any freeze order issued by the AMLC except the
similar accounts shall be absolutely prohibited. Peso and foreign Court of Appeals or the Supreme Court.
currency non-checking numbered accounts shall be allowed. The BSP
SEC. 11. Authority to Inquire into Bank Deposits. — from a foreign State by: (1) tracking down, freezing, restraining and
Notwithstanding the provisions of Republic Act No. 1405, as seizing assets alleged to be proceeds of any unlawful activity under
amended; Republic Act No. 6426, as amended; Republic Act No. the procedures laid down in this Act; (2) giving information needed
8791, and other laws, the AMLC may inquire into or examine any by the foreign State within the procedures laid down in this Act; and
particular deposit or investment with any banking institution or non- (3) applying for an order of forfeiture of any monetary instrument or
bank financial institution upon order of any competent court in cases property in the court: Provided, That the court shall not issue such an
of violation of this Act when it has been established that there is order unless the application is accompanied by an authenticated copy
probable cause that the deposits or investments involved are in any of the order of a court in the requesting State ordering the forfeiture
way related to a money laundering offense: Provided, That this of said monetary instrument or property of a person who has been
provision shall not apply to deposits and investments made prior to convicted of a money laundering offense in the requesting State, and
the effectivity of this Act. a certification or an affidavit of a competent officer of the requesting
State stating that the conviction and the order of forfeiture are final
SEC. 12. Forfeiture Provisions. and that no further appeal lies in respect of either.
(a) Civil Forfeiture. — When there is a covered transaction report
made, and the court has, in a petition filed for the purpose ordered
seizure of any monetary instrument or property, in whole or in part, (c) Obtaining Assistance from Foreign States. — The AMLC may
directly or indirectly, related to said report, the Revised Rules of make a request to any foreign State for assistance in (1) tracking
Court on civil forfeiture shall apply. down, freezing, restraining and seizing assets alleged to be proceeds
of any unlawful activity; (2) obtaining information that it needs
(b) Claim on Forfeiture Assets. — Where the court has issued an relating to any covered transaction, money laundering offense or any
order of forfeiture of the monetary instrument or property in a other matter directly or indirectly related thereto; (3) to the extent
criminal prosecution for any money laundering offense defined under allowed by the law of the foreign State, applying with the proper
Section 4 of this Act, the offender or any other person claiming an court therein for an order to enter any premises belonging to or in the
interest therein may apply, by verified petition, for a declaration that possession or control of, any or all of the persons named in said
the same legitimately belongs to him and for segregation or exclusion request, and/or search any or all such persons named therein and/or
of the monetary instrument or property corresponding thereto. The remove any document, material or object named in said request:
verified petition shall be filed with the court which rendered the Provided, That the documents accompanying the request in support of
judgment of conviction and order of forfeiture, within fifteen (15) the application have been duly authenticated in accordance with the
days from the date of the order of forfeiture, in default of which the applicable law or regulation of the foreign State; and (4) applying for
said order shall become final and executory. This provision shall an order of forfeiture of any monetary instrument or property in the
apply in both civil and criminal forfeiture. proper court in the foreign State: Provided, That the request is
accompanied by an authenticated copy of the order of the regional
(c) Payment in Lieu of Forfeiture. — Where the court has issued an trial court ordering the forfeiture of said monetary instrument or
order of forfeiture of the monetary instrument or property subject of a property of a convicted offender and an affidavit of the clerk of court
money laundering offense defined under Section 4, and said order stating that the conviction and the order of forfeiture are final and that
cannot be enforced because any particular monetary instrument or no further appeal lies in respect of either.
property cannot, with due diligence, be located, or it has been
substantially altered, destroyed, diminished in value or otherwise (d) Limitations on Request for Mutual Assistance. — The AMLC
rendered worthless by any act or omission, directly or indirectly, may refuse to comply with any request for assistance where the
attributable to the offender, or it has been concealed, removed, action sought by the request contravenes any provision of the
converted or otherwise transferred to prevent the same from being Constitution or the execution of a request is likely to prejudice the
found or to avoid forfeiture thereof, or it is located outside the national interest of the Philippines unless there is a treaty between the
Philippines or has been placed or brought outside the jurisdiction of Philippines and the requesting State relating to the provision of
the court, or it has been commingled with other monetary instruments assistance in relation to money laundering offenses.
or property belonging to either the offender himself or a third person
or entity, thereby rendering the same difficult to identify or be (e) Requirements for Requests for Mutual Assistance from Foreign
segregated for purposes of forfeiture, the court may, instead of States. — A request for mutual assistance from a foreign State must
enforcing the order of forfeiture of the monetary instrument or (1) confirm that an investigation or prosecution is being conducted in
property or part thereof or interest therein, accordingly order the respect of a money launderer named therein or that he has been
convicted offender to pay an amount equal to the value of said convicted of any money laundering offense; (2) state the grounds on
monetary instrument or property. This provision shall apply in both which any person is being investigated or prosecuted for money
civil and criminal forfeiture. laundering or the details of his conviction; (3) give sufficient
particulars as to the identity of said person; (4) give particulars
SEC. 13. Mutual Assistance among States. sufficient to identify any covered institution believed to have any
information, document, material or object which may be of assistance
(a) Request for Assistance from a Foreign State. — Where a foreign to the investigation or prosecution; (5) ask from the covered
State makes a request for assistance in the investigation or institution concerned any information, document, material or object
prosecution of a money laundering offense, the AMLC may execute which may be of assistance to the investigation or prosecution; (6)
the request or refuse to execute the same and inform the foreign State specify the manner in which and to whom said information,
of any valid reason for not executing the request or for delaying the document, material or object obtained pursuant to said request, is to
execution thereof. The principles of mutuality and reciprocity shall, be produced; (7) give all the particulars necessary for the issuance by
for this purpose, be at all times recognized. the court in the requested State of the writs, orders or processes
needed by the requesting State; and (8) contain such other
(b) Powers of the AMLC to Act on a Request for Assistance from a
information as may assist in the execution of the request.
Foreign State. — The AMLC may execute a request for assistance
(f) Authentication of Documents. — For purposes of this Section, a Any public official or employee who is called upon to testify and
document is authenticated if the same is signed or certified by a refuses to do the same or purposely fails to testify shall suffer the
judge, magistrate or equivalent officer in or of, the requesting State, same penalties prescribed herein.
and authenticated by the oath or affirmation of a witness or sealed
with an official or public seal of a minister, secretary of State, or (d) Breach of Confidentiality. The punishment of imprisonment
officer in or of, the government of the requesting State, or of the ranging from three (3) to eight (8) years and a fine of not less than
person administering the government or a department of the Five hundred thousand Philippine pesos (Php500,000.00) but not
requesting territory, protectorate or colony. The certificate of more than One million Philippine pesos (Php1,000,000.00), shall be
authentication may also be made by a secretary of the embassy or imposed on a person convicted for a violation under Section 9(c).
legation, consul general, consul, vice consul, consular agent or any
SEC. 15. System of Incentives and Rewards. — A system of special
officer in the foreign service of the Philippines stationed in the
incentives and rewards is hereby established to be given to the
foreign State in which the record is kept, and authenticated by the
appropriate government agency and its personnel that led and
seal of his office.
initiated an investigation, prosecution and conviction of persons
(g) Extradition. — The Philippines shall negotiate for the inclusion of involved in the offense penalized in Section 4 of this Act.
money laundering offenses as herein defined among extraditable
SEC. 16. Prohibitions Against Political Harassment. — This Act shall
offenses in all future treaties.
not be used for political persecution or harassment or as an
SEC. 14. Penal Provisions. — (a) Penalties for the Crime of Money instrument to hamper competition in trade and commerce.
Laundering. The penalty of imprisonment ranging from seven (7) to
No case for money laundering may be filed against and no assets
fourteen (14) years and a fine of not less than Three million
shall be frozen, attached or forfeited to the prejudice of a candidate
Philippine pesos (Php3,000,000.00) but not more than twice the value
for an electoral office during an election period.
of the monetary instrument or property involved in the offense, shall
be imposed upon a person convicted under Section 4(a) of this Act. SEC. 17. Restitution. — Restitution for any aggrieved party shall be
governed by the provisions of the New Civil Code.
The penalty of imprisonment from four (4) to seven (7) years and a
fine of not less than One million five hundred thousand Philippine SEC. 18. Implementing Rules and Regulations. — Within thirty (30)
pesos (Php1,500,000.00) but not more than Three million Philippine days from the effectivity of this Act, the Bangko Sentral ng Pilipinas,
pesos (Php3,000,000.00), shall be imposed upon a person convicted the Insurance Commission and the Securities and Exchange
under Section 4(b) of this Act. Commission shall promulgate the rules and regulations to implement
effectively the provisions of this Act. Said rules and regulations shall
The penalty of imprisonment from six (6) months to four (4) years or
be submitted to the Congressional Oversight Committee for approval.
a fine of not less than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred thousand Philippine Covered institutions shall formulate their respective money
pesos (Php500,000.00), or both, shall be imposed on a person laundering prevention programs in accordance with this Act
convicted under Section 4(c) of this Act. including, but not limited to, information dissemination on money
laundering activities and its prevention, detection and reporting, and
(b) Penalties for Failure to Keep Records. The penalty of
the training of responsible officers and personnel of covered
imprisonment from six (6) months to one (1) year or a fine of not less
institutions.
than One hundred thousand Philippine pesos (Php100,000.00) but not
more than Five hundred thousand Philippine pesos (Php500,000.00), SEC. 19. Congressional Oversight Committee. — There is hereby
or both, shall be imposed on a person convicted under Section 9(b) of created a Congressional Oversight Committee composed of seven (7)
this Act. members from the Senate and seven (7) members from the House of
Representatives. The members from the Senate shall be appointed by
(c) Malicious Reporting. Any person who, with malice, or in bad
the Senate President based on the proportional representation of the
faith, report or files a completely unwarranted or false information
parties or coalitions therein with at least two (2) Senators
relative to money laundering transaction against any person shall be
representing the minority. The members from the House of
subject to a penalty of six (6) months to four (4) years imprisonment
Representatives shall be appointed by the Speaker also based on
and a fine of not less than One hundred thousand Philippine pesos
proportional representation of the parties or coalitions therein with at
(Php100,000.00) but not more than Five hundred thousand Philippine
least two (2) members representing the minority.
pesos (Php500,000.00), at the discretion of the court: Provided, That
the offender is not entitled to avail the benefits of the Probation Law. The Oversight Committee shall have the power to promulgate its own
rules, to oversee the implementation of this Act, and to review or
If the offender is a corporation, association, partnership or any
revise the implementing rules issued by the Anti-Money Laundering
juridical person, the penalty shall be imposed upon the responsible
Council within thirty (30) days from the promulgation of the said
officers, as the case may be, who participated in the commission of
rules.
the crime or who shall have knowingly permitted or failed to prevent
its commission. If the offender is a juridical person, the court may SEC. 20. Appropriations Clause. — The AMLC shall be provided
suspend or revoke its license. If the offender is an alien, he shall, in with an initial appropriation of Twenty-five million Philippine pesos
addition to the penalties herein prescribed, be deported without (Php25,000,000.00) to be drawn from the national government.
further proceedings after serving the penalties herein prescribed. If Appropriations for the succeeding years shall be included in the
the offender is a public official or employee, he shall, in addition to General Appropriations Act.
the penalties prescribed herein, suffer perpetual or temporary absolute
disqualification from office, as the case may be. SEC. 21. Separability Clause. — If any provision or section of this
Act or the application thereof to any person or circumstance is held to
be invalid, the other provisions or sections of this Act, and the
application of such provision or section to other persons or
circumstances, shall not be affected thereby.

SEC. 22. Repealing Clause. — All laws, decrees, executive orders,

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

SEC. 23. Effectivity. — This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or in at least two
(2) national newspapers of general circulation.

The provisions of this Act shall not apply to deposits and investments
made prior to its effectivity.

http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-
56/republic-act-9160