FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENc..'W 
s. No. DJ62 
...... ,. 
;r=-
Introduced by Senator Miriam Defensor Santiago 
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. 
Hence, this bill seeks to prevent organized crime from infiltrating businesses, and 
other 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. l 
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,IJIIY" MIRIAM DE1'i\SsOR s...J\'TIAfO 
I This bill was originally filed during the Fourteenth Congress, Firs! Regular session. 
1 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENf~62 
s. No. 
nrr:t:f\!r:) p," ~. 
Introduced by Senator Miriam Defensor Santiago 
y 
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AN ACT 
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PENALIZING RACKETEERS AND CRIMINAL ENTERPRISES, PROHffiITING 
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SUCH CRIMINAL ENTERPRISES AND RACKETEER INFLUENCED AND 
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CORRUPT ORGANIZATIONS FROM INFILTRATING, CONTROLLING OR 
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OTHERWISE INFLUENCING PHILIPPINE COMMERCE 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Anti-Racketeer Influenced 
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and Corrupt Organizations Act." 
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SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to 
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eradicate any and all forms of criminal enterprises, and its corrupting influence and control over 
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legitimate entities engaged in lawful commerce, as well as prioritizing the enactment of laws 
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with stronger measures aimed at neutralizing the economic base of criminal enterprises. 
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SECTION 3. Definition o/Terms. -As used in this Act, the following terms shall mean: 
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(A) "Person" means any individual, association, partnership, corporation, entity or any 
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group of individuals, associations, corporations or entities, capable of holding a legal interest in 
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property. 
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(B) "Enterprise" includes any individual, association, partnership, corporation or other 
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lesal entity or any union or group of individuals associated in fact although not a legal entity. 
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(C) "Racketeering Activity" means any act involving kidnapping; murder, mutilation; 
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homicide; serious physical injuries; arson; robbery; theft; illegal possession of 
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fireann, ammunition or explosives; bribery and other graft and corrupt practices; illegal 
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gambling; ca;napping; fencing; gunruuning; illegal logging; white slavery or prostitution; illegal 
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recruitment; smuggling; piracy; illegal fishing; illegal importation; manufacture or sale of 
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dangerous dmgs and illegal maintenance of a dtug den; swindling (estafa); counterfeiting; 
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monopolies; and combinations in restraint of trade; falsification of land titles; securities fraud; 
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bank frauds; dealing in obscene matters and sexual and economic exploitation of the disabled 
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and mendicants as defined under existing criminal statutes. 
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(D) "Pattern of Racketeering Activity" requires at least two (2) acts of racketeering 
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activity one of which occurred after the effectivity date of this Act, and the other occurring 
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within ten (IO) years (excluding any period of imprisonment) after the commission of a prior act 
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of racketeering activity. 
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(E) "Racketeer Investigator" means any attorney or investigator so Secretary of Justice 
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and charged with the duty of enforcing or carrying this Act into effect. 
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(F) "Department" refers to the Department of Justice. 
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(G) "Secretary" refers to the Secretary of Justice. 
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SECTION 4. Prohibited Activities. -
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(A) It shall be unlawful for any person who has received any income or benefit, either 
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directly or indirectly, from a pattern of racketeering activity, to use or invest, directly indirectly, 
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any part of such income or benefit, or the proceeds of such income or benefit, in acquisition of 
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any interest in, or the establishment or operation of, any enterprise which is engaged in, or the 
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activities of which affect commerce. 
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(B) It shall be unlawful for any person through a pattern of racketeering activity to 
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acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is 
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engaged in, or the activities of which affect commerce. 
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(C) It shall be unlawful for any person employed by or associated with any enterprise 
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engaged in, 'or the activities of which affect commerce, to conduct or participate, directly or 
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indirectly, in the control of such enterprise's affairs though a pattern of racketeering activity. 
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SECTION 5. Criminal Penalties. -
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(A) Imprisonment or fine or both - Any person found guilty or convicted by final 
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judgment of violating any of the prohibited activities enumerated in Section 4 above, shall be 
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punished by imprisonment of not less than ten (10) years nor more than twenty (20) years, and if 
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the violation is based on a racketeering activity for which the maximum penalty includes life 
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imprisonment or death, the death penalty for violating any provision of Section 4 above, shall 
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likewise be life imprisonment or death, and a fine ranging from One Hnndred Thousand pesos 
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(plOO,OOO.OO) up to One Million pesos (Pl,OOO,OOO.OO); 
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(B) Forfeiture - In addition to imprisonment and fine, the defendant shall forfeit to the 
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Government: 
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(1) any interest the defendant has acquired or maintained in violation of 
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Section 4; 
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(2) any interest in, security of, claim against, or property or contractual right of 
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any kind affording a source of influence over any enterprise which the defendant bas 
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established, operated, controlled, conducted, or participated in the conduct of, in violation 
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of Section 4: and 
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(3) any property constituting or derived from any proceeds which the defendant 
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obtained, directly or indirectly, from racketeering activities in violation of Section 4. 
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If any of the properties described in Section 5(B), as a result or omission of the 
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defendant, cannot be located even with the exercise of due diligence; or has been transferred or 
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sold to, or deposited with a third party; or has been placed beyond the jurisdiction of the courts; 
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or has been substantially diminished in value; or has been commingled with other property which 
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cannot be divided without difficulty, the court shall order the forfeiture of any other property of 
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the defendant up to the value of any property described in Section 5(B). 
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SECTION 6. Jurisdiction. - The Regional Trial Court exercising jurisdiction over the 
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place where anyone of the elements constituting an act racketeering activity is committed, 
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resulting in a pattern of racketeering activity, shall exercise exclusive original jurisdiction over 
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criminal prosecutions for violation of any provisions of this Act, as well as over applications for 
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the issuance and grant of applicable provisional remedies under the Rules of Court filed in 
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relation to said criminal prosecutions, which provisional remedy may include attachment, and/or 
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injunctions with prayer for the issuance of a temporary restraining order, as well as the forfeiture 
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of property provided for under this Act, regardless pfthe 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 
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location of the enterprise of the defendant. 
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SECTION 7. Temporary Restraining Order (TRO). - For purposes of secunng a 
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temporary restraining order from the court, there must be clear and convincing evidence that the 
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properties of the defendant which are sought to be restrained, where involved in a violation of 
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this Act, that such properties would be subject to forfeiture under provisions 
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of this Act and that the government have reasonable grounds to believe that defendant was likely 
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to conceal or otherwise make the properties inaccessible to the Government prior to conclusion 
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of trial. 
IS 
A temporary restraining order effective for a period of thirty (30) days may be issued, 
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with or without notice and hearing, depending on the exigencies of each case, on or after the 
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filing of a sworn complaint with the Office of the Secretary of the Department of Justice, but 
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before the filing of the infonnation with the court. The TRO may direct the defendant, or any 
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person acting' on his behalf, to cease and desist from alienating, disposing, selling, assigning, 
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conveying; transferring, or otherwise concealing any interest or right of the defendant over his 
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property. The applicant for a TRO, without notice to the adverse party, must establish that (here 
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is probable cause to engender a well-founded belief that the property of the defendant would be 
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subject to forfeiture under the provisions of this Act, and the notice to the adverse party will 
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jeopardize the availability of the property for forfeiture. 
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SECTION 8. Preliminary Injunction. - Prior to the lapse of the Effectivity of a temporary 
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restraining order, the court shall immediately conduct a hearing with notice to all parties 
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concerned, to determine if there is sufficient and valid grounds for the issuance of a writ of 
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preliminary injunction in favor of the Government, and preponderance of evidence to support the 
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finding that: 
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(A) The Government will prevail on the issue offorfeiture of properties of the defendant; 
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(B) Failure to issue the writ will grossly prejudice public interest, or cause grave and 
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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 
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unavailable for forfeiture; and 
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(C) The need to preserve the availability of the property through the writ outweighs the 
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hardship on the adverse party against whom it is directed. 
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SECTION 9. Judgment of Forfeiture. -Upon conviction and a declaration of guilt of the 
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defendant by final judgment for violation of this Act, the Court shall enter a judgment for 
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violation of this Act, and the Court shall enter a judgment offorfeiture of the property in favor of 
12 
the Government, appointing the Secretary as receiver or conservator of all property ordered 
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forfeited, and who shall act subject to the court's control and supervision. 
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SECTION 10. Disposition of Forfeited Property. - Following the seizure of the property 
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and upon compliance with paragraph (3), Section 5 of this Act, the Secretary shall direct the 
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disposition of the property by auction sale. Any property right or interest in exercisable by or 
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transferable for value to the government shall expire and shall not revert to the defendant, nor 
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shall the defendant or any person acting in his behalf be eligible to purchase said forfeited 
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property. 
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SECTION 11. Restitution of Property to Victims. - The court hearing the case shall 
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likewise hear petition of racketeering activity for restitution of property or compensation. 
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SECTION 12. Prohibition Against Intervention and Injunction. - (A) No party claiming 
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an interest in property subject to forfeiture may commence an action nor intervene in a trial or 
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appeal of a criminal case involving the forfeiture of such property. 
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(B) No restraining order or injunction may issue against the Government concerning the 
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validity of its interest in the property subject to forfeiture. 
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SECTION 13. Rights of Third Parties. - Any person, other than the defendant asserting a 
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legal interest in property ordered forfeited may, within thirty (30) days from publication by the 
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Secretary of the judgment of forfeiture in two (2) national newspaper of general circulation in the 
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Philippines, petition the court for a hearing to adjudicate the validity of his alleged interest in the 
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property. While the petition is pending resolution, the Secretary of Justice shall not selI or 
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otherwise dispose of the property forfeited. If after hearing, the court determines that the 
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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 
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(B) the petitioner is a bona fide purchaser for value of the right, title or interest in the 
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property and was at the time of purchase reasonably without cause to believe that the property 
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was acquired through a racketeering act or otherwise subject to forfeiture in accordance with 
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such determination. 
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SECTION 14. Civil Remedies.-
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(A) Where to file - Any of the Regional Trial Courts of the place where any element of 
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any racket~ering activity constituting a pattern of racketeering activity has been committed, shall 
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have jurisdiction to prevent or restrain violations of Section 5 irrespective of where the defendant 
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resides or is found, or where the enterprise or property is located, by issuing appropriate orders, 
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including but not limited to: 
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(1) ordering any person to divest himself of any interest, direct or indirect, 
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in any enterprise; 
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(2) imposing reasonable restrictions on the future activities or investments 
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of any person including but not limited to, prohibiting any person from engaging 
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in the same type of endeavor as the enterprise engaged in; or 
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(3) ordering dissolution or reorganization of any enterprise, provision for 
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the rights of innocent persons. 
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(B) Who can file -
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(I) The Secretary of Justice, or his duly authorized representative, may 
institute proceedings under this Section in behalf of the Government; or 
(2) 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 the preceding paragraph and shall recover threefold the 
damages he sustains and the cost of the suit, including a reasonable attorney's 
fees. 
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SECTION 15. Hearing Preference. - Notwithstanding any law civil action instituted 
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under this Section, the Regional Trial Court shall expeditiously hear the case by giving it 
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preference over all other civil cases. Trial once commenced, shall continue from day to day, as 
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far as practicable until terminated. 
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SECTION 16. Subpoena Powers.-
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(A) Wherever the Secretary has reason to believe that any person or enterprise may be in 
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possession or control of any documentary materials relevant to a racketeering investigation, he 
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may, prior to the institution of a criminal or civil proceeding thereon, shall in writing cause to be 
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served upon such person or enterprise a subpoena duces tecum requiring such person to produce 
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such material for examination. 
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(B) The Secretary shall designate a racketeering investigator to serve as racketeer 
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document custodian. 
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(C) Any person or enterprise who has duly been served the subpoena, shall make 
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available for inspection and copying or reproduction to the custodian designated therein at any 
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place designated in the subpoena, or as agreed upon, and shall certify under oath that the copies 
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shall be admissible in court as originals. 
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(D) While in the possession of the custodian, no material so reproduced shall be available 
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for examination, without the consent of the person who produced such material, by any 
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individual other than the Secretary. 
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(E) Whenever any person or enterprise fails to comply with any subpoena, the Secretary 
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of Justice may file in the appropriate Regional Trial Court having jurisdiction, a petition for an 
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order of such court for the enforcement of the subpoena; Provided, that if the person disobeys the 
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order of the court, he shall liable for contempt of court. 
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SECTION 17. Rules and Procedures. - The Secretary of Justice shall adopt rules and 
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procedures: 
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(A) To govern its proceedings; 
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(B) To provide for the security of records, documents, information, and other materials its 
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custody and of its proceedings; 
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(C) To prevent unauthorized disclosure of information and materials disclosed to it in the 
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course of its inquiry; 
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(D) To provide the right counsel to all witnesses pursuant to subpoena; and 
• 
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(E) To accord the full protection of all rights guaranteed by the Constitution. 
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SECTION 18. Statute of Limitations. - One of the predicate acts of racketeering must 
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have been committed within ten (l0) years of the date of the information otherwise violations 
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this Act shall be deemed to have prescribed. 
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SECTION 19. Separability Clause. - If any provision or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 20. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
26 
with, the provision of this Act is hereby repealed, modified or anIended accordingly. 
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SECTION 21. Effectivity Clause. - This Act shall take effect fifteen days (15) days after 
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its publication in at least two (2) newspapers of general circulation. 
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• 
• 
Approved. 
, 
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