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Introduced by Senator Miriam Defensor Santiago 
THIRTEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
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.a4 ill% 1 6 
Fj 4 3 6  
First Regular Session 
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EXPLANATORY NOTE 
The Constitution, Article 11, Section 5 provides: 
The maintenance of peace and order, the protection of life, liberty and 
property, and the promotion of the general welfare are essential for the enjoyment 
by all the people of the blessings of democracy. 
Our country has gained notoriety as the regional headquarters of the criminal underworld 
in Asia due to the increasing incidence of syndicated and organized crimes. This situation is 
further exacerbated by the fact that organized crimes are now infiltrating legitimate businesses to 
expand their empire and strengthen their operations. 
As it is the policy of the State to eradicate all forms of criminal enterprises, and their 
corrupting influence and control over legitimate entities engaged in lawful commerce, the 
government must expend efforts in adopting and implementing stronger measures aimed at 
neutralizing the economic base of criminal enterprises. 
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Hence, this bill seeks to prevent organized crime from infiltrating businessed, and other 
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economic entities by prohibiting syndicated gambling, racketeering and similar 
and halting pattern of infiltration of businesses by organized crimes through 
penalties and forfeiture of the proceeds of these racketeering activities. 
MIRlAM DEFENSOR SANTIAGO 


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THETEENTH CONGRESS OF THE REPUBLIC 1 
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OF THE PHILIPPINES 
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’04 nu5 10 :4 :“6 
First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
TO PENALlZE RACKETEERS AND CRIMINAL ENTERPRISES, PROHIBITIN 
CEUMINAL ENTERPRISES AND RACKETEER INFLUENCED 
ORGANIZATIONS FROM INFILTRATING, CONTROLLING OR 
INFLUENCING PHILIPPINE COMMERCE 
Be it enacted by Senate and House of Representatives of the Philippines in Congvess 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Racketeer Influenced and 
Corrupt Organizations Act.” 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to 
eradicate any and all forms of criminal enterprises, and its corrupting influence and control over 
legitimate entities engaged i n  lawful commerce, as w ell as prioritizing the enactment o f  laws 
with stronger measures aimed at neutralizing the economic base of criminal enterprises 
SECTION 3. Definition of Terms. -As used in this Act, the following terms shall mean: 
(1) “Person” mean_s .any individual, association, p artnership, corporation, entity or any 
group of individuals, associations, corporations or entities, capable of holding a legal interest in 
property. 
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(2) “Enterprise” includes any individual, association, partnership, corporation or other 
legal entity or any union or group of individuals associated in fact although not a legal entity. 
(3) “Racketeering Activity” means any act involving kidnapping; 
homicide; serious physical injuries; arson; robbery; theft; illegal 
ammunition or explosives; bribery &d other graft and corrupt 
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catnapping; fencing; guxming; illegal logging; white slavery or prostitution; illegal 


recruitment; smuggling; piracy; illegal fishing; illegal importation; manufacture or sale of 
dangerous drugs and illegal maintenance of a drug den; swindling (estafa); counterfeiting; 
monopolies; and combinations in restraint of trade; falsification of land titles; securities fiaud; 
bank frauds; dealing in &scene matters and sexual and economic exploitation of the disabled 
and mendicants as defined under existing criminal statutes. 
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(4) “Pattern of Racketeering Activity” requires at least two (2) acts of racketeering 
activity one of which occurred after the effectivity date of this Act, and the other occurring 
within ten (10) years (excluding any period of imprisonment) after the commission of a prior act 
of racketeering activity. 
(5) “Racketeer Investigator” means any attorney or investigator so 
Secretary of Justice and charged with ‘the duty of enforcing or carrying this Act 
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(6) “Department” refers to the Department of Justice. 
(7) “Secretary” refers to the Secretary of Justice. 
SECTION 4. Prohibited Activities. - (1) It shall be unlawful for any person who has 
received any income or benefit, either directly or indirectly, from a pattern of racketeering 
activity, to use or invest, directly indirectly, any part of such income or benefit, or the proceeds 
of such income or benefit, in acquisition of any interest in, or the establishment or operation of, 
any enterprise which is engaged in, or the activities of which affect commerce. 
(2) It shall be unlawful for any person through a pattern of racketeering activity to 
acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is 
engaged in, or the activities ofwhich affect commerce. 
(3) It shall be unlawful for any person employed by or associated with any enterprise 
engaged in, or the activities of which affect commerce, to conduct or participate, directly or 
indirectly, in the control of such enterprise’s affairs through a pattern of racketeering activity. 
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SECTION 5. Cvirninal Penalties. - (1) Imprisonment or fine or both - Any person found 
guilty or convicted by final judgment of violating any of the prohibited activities enumerated in 
Section 4 above, shall be punished by imprisonment of not less than ten (IO) years nor more than 


twenty (20) years, and if the violation is based on a racketeering activity for which thc maximum 
penalty includes life imprisonment or death, the death penalty for violating any provision of 
Section 4 above, shall likewise be life imprisonment or death, and a fine ranging from One 
Hundred Thousand pesos (PlOO,000.00) up to One Million pesos (Pl,OOO,OOO.OO); 
(2) Forfeiture - In addition to imprisonment and fine, the defendant shall forfeit to the 
Government: 
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any in%est the defendant has acquired or maintained in violation of Section 4; 
@) any interest in, security of, claim against, or property or contractual right of 
any kind affording a source of influence over any enterprise which the defendant bas 
established, operated, controlled, conducted, or participated in the conduct of, in violation 
of Section 4: and 
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(c) any property constituting or derived from any proceeds which the defendant 
obtained, directly or indirectly, from racketeering activities in violation of Secti n 4. 
If any of the properties described in Section 5(2), as a result or omission of the efendant, 
cannot be located even with the exercise of due diligence; or has been transferred or sold to, or 
deposited with a third party; or has been placed beyond the jurisdiction of the conrts; or has been 
substantially diminished in value; or has been commingled with other property which cannot be 
divided without difficulty, the court shall order the forfeiture of any other property of the 
defendant up to the value of any property described in Section 5(2). 
SECTION 6 .  Jurisdiction. - The Regional Trial Court exercisingj urisdiction over the 
place where any one of the elements constituting an act racketeering activity is committed, 
resulting in a pattern of racketeering activity, shall exercise exclusive original jurisdiction over 
criminal prosecutions for violation of any provisions of this Act, as well as over applications for 
the issuance and grant of applicable provisional remedies under the Rules of Court filed in 
relation to said criminal Erosecutions, 
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which provisional remedy may include attachment, and/or 
injunctions with prayer for the issuance of a temporary restraining order, as well as the forfeiture 
of property provided for under this Act, regardless pf the place or location of any property object 
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of the provisional remedy sought or subject of forfeiture, the residence of the defendants, or the 
location of the enterprise of the defendant. 
SECTION 7. Tenzporaly Restraining Order (TRO). - For purposes of securing a 
temporary restraining order from the court, there must be clear and convincing evidence that the 
properties of the defendant which are sought to be restrained, where involved in a violation of 
this Act, that such properties would be subject to forfeiture under provisions of this Act and that 
the government have reasonable grounds to believe that defendant was likely to conceal or 
otherwise make the properties inaccessible to the Government prior to conclusion of trial.. 
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A~temTorary restraining order effective for a period of thirty (30) days may be issued, 
with or without notice and hearing, depending on the exigencies of each case, on or after the 
filing of a sworn complaint with the Office of the Secretary of the Department of Justice, but 
before the filing of the information with the court. The TRO may direct the defendant, or any 
person acting o n his b ehalf, to c ease and desist from alienating, disposing, s elling, a signing, 
conveying, transferring, or otherwise concealing any interest or right of the defenda t over his 
property. The applicant for a TRO, without notice to the adverse party, must establish that there 
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is probable cause to engender a well-founded belief that the property of the defendan 1 
would be 
subject to forfeiture under the provisions of this Act, and the notice to the adverse party will 
jeopardize the availability of the property for forfeiture. 
SECTION 8. Preliniinaly Injunction. - Prior to the lapse of the effectivity of a temporary 
restraining order, the court shall immediately conduct a hearing with notice to all parties 
concerned, to determine if there is sufficient and valid grounds for the issuance of a writ of 
preliminary injunction in favor of the Government, and preponderance of evidence to support the 
finding that: 
(1) The Government will prevail on the issue of forfeiture of properties of the defendant; 
(2) Failure to issue the writ will grossly prejudice public interest, or cause grave and 
irreparable damage to the interests of the Government by undermining the efforts to ensure that 
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the property will not be concealed, place in hiding, destroyed, disposed or otherwise made 
unavailable for forfeiture; and 
(3) The need to preserve the availability of the property through the writ outweighs the 
hardship on the adverse party against whom it is directed. 
SECTION 9. Judgment ofFofeituue. - Upon conviction and a declaration of guilt of the 
defendant by final judgment for violation of this Act, the Court shall enter a judgment for 
violation of this Act, and the C o d  shall enter ajudgment of forfeiture ofthe property in favor of 
the Government, appointing the Secretary as receiver or conservator of all property ordered 
forfeited, and who shall act subject to the court's control and supervision. 
SECTION 10. Disposition of Fofeited Property. - (1) Following the seizure of the 
property and upon compliance with paragraph (3), Section 5 of this Act, the Secretary shall 
direct the disposition of the property by auction sale. Any property right or interest in exercisable 
by or transferable for value to the government shall expire and shall not revert to the defendant, 
nor shall the defendant or any person acting in his behalf be eligible to purchase said forfeited 
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property. 
SECTION 11. Restitution of .Property to Victims. - The court hearing the 
likewise hear petition of racketeering activity for restitution of property or compensation, 
ase' shall 
SECTION 12. Prohibition Against Intewention and Injunction. - (1) No party claiming 
an interest in property subject to forfeiture may commence an action nor intervene in a trial or 
appeal of a criminal case involving the forfeiture of such property. 
(2) No restraining order or injunction may issue against the Government concerning the 
validity of its interest in the property subject to forfeiture. 
SECTION 13. Rights of Third Parties. - Any person, other than the defendant asserting a 
legal interest in property ordered forfeited may, within thirty (30) days from publication by the 


Secretary of the judgment of forfeiture in two (2) national newspaper of general circula ion in the 
Philippines, petition the court for a hearing to adjudicate the validity of his alleged inte est in the 
property. While the petition is pending resolution, the Secretary of Justice shall 9 t sell or 
otherwise dispose of the property forfeited. If after hearing, the court determines that the 
petitioner has established by preponderance of evidence that - 
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(a) the petitioner has a legal right, or interest in the property; or 
(b) the petitioner is a bona fide purchaser for value of the right, title or interest in 
the property and was at the time of purchase reasonably without cause to believe that the 
property was acquired through a racketeering act or otherwise subject to forfeiture in accordance 
with such determination. 
SECTION 14. Civil Remedies. - (1) Where to file - Any of the Regional Trial Courts of 
the place where any element of any racketeering activity constituting a pattern o f  racketeering 
activity has been committed, shall have jurisdiction to prevent or restrain violations o f  Section 5 
irrespective of where the defendant resides or is found, or where the enterprise or property is 
located, by issuing appropriate orders, including but not limited to: 
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(a) ordering any person to divest himself of any interest, direct or indirect, in any 
enterprise; 
@) imposing reasonable restrictions on the hture activities or investments of any 
person including but not limited to, prohibiting any person from engaging in the s 
(c) ordering dissolution or reorganization of any enterprise, 
endeavor as the enterprise engaged in; or 
provision for the rights of innocent persons. 
(2) Who can file - 
(a) The Secretary of Justice, or his duly authorized representative, may institute 
proceedings under this Section in behalf of the Government; or 
(b) Any person injured in his person, business or property by reason of violation 
of Section 4 or his heirs, may sue therefore in the appropriate Regional Trial Court mentioned in 


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the preceding paragraph and shall recover threefold the damages he sustains and the cost of the 
suit, including a reasonable attorney’s fees. 
SECTION 15. Hearing Preference. - Notwithstanding any law 
civil action instituted under this Section, the Regional Trial Court shall 
case by giving it preference over all other civil cases. Trial once 
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day to day, as far as practicable until terminated. 
SECTION 16. Subpoena Powers. - (1) Wherever the Secretary has reason to believe that 
any person or enterprise may be in possession or control of any documentary materials relevant 
to a racketeering investigation, he may, prior to the institution of a criminal or civil proceeding 
thereon, shall in writing cause to be served upon such person or enterprise a subpoena duces 
tecum requiring such person to produce such material for examination. 
(2) The Secretary shall designate a racketeering investigator to serve as racketeer 
document custodian. 
(3) Any person or enterprise who has duly been served the subpoena, shall make 
available for inspection and copying or reproduction to the custodian designated therein at any 
place designated in the sabpoena, 
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or as agreed upon, and shall certify under oath that the copies 
shall be admissible in court as originals. 
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(4) While in the possession of the custodian, no material so reproduces shall be available 
for examination, without the consent of the person who produced such material, by any 
individual other than the Secretary. 
(5) Whenever any person or enterprise fails to comply with any subpoena, th 
of Justice may file in the appropriate Regional Trial Court having jurisdiction, a 
order of such court for the enforcement of the subpoena; Provided, that if the 
order of the court, he shall liable for contempt o f  court. 
SECTION 17. Rules and Procedures. - The Secretary of Justice shall adopt rules and 
procedures: 


(1) To govern its proceedings; 
(2) To provide for the security 0. iecords, documents, information, and other matei 
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its custody and of its proceedings; 
(3) To prevent unauthorized disclosure of information and materials disclosed to it in the 
course of its inquiry; 
(4) To provide the right counsel to all witnesses pursuant to subpoena; and 
(5) To accord the full protection of all rights guaranteed by the Constitution. 
SECTION 18. Statute oflimitations. - One of the predicate acts of rackete ring must 
have been committed within ten (10) years of the date of the information otherwise violations 
this Act shall be deemed to have prescribed. 
SECTION 19. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 20. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary t 0, or inconsistent 
with, the provision of this Act is hereby repealed, modified or amended accordingly. 
Seciim 21. Effectivity Clause. _- This Act shall take effect fifteen days (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved. 
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