FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
8 ,inili 29 I)-' 
' ' . i i  
First Regular Session 
) 
SENATE 
J 
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 o f  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 
measms 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. 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
8 ,1414 29 
1) 5 ’. 4 
First Regular Session 
1 
SEN 
S. No. 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO PENALIZE RACKETEERS AND CRIMINAL ENTERPRISES, PROHIBITING 
SUCH CRIMINAL ENTERPRISES AND RACKETEER INFLUENCED AND 
CORRUPT ORGANIZATIONS FROM INFILTRATING, CONTROLLING OR 
OTHERWISE INFLUENCING PHILIPPINE COMMERCE 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Anti-Racketeer 
Influenced and Corrupt Organizations Act of 2008.” 
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 in lawful commerce, as well as prioritizing the 
enactment of 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: 
(A) “Person” means any individual, association, partnership, corporation, entity 
or any group of individuals, associations, corporations or entities, capable of holding a 
legal interest in property. 
(B) “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. 
(C) “Racketeering Activity” means any act involving kidnapping; murder, 
mutilation; homicide; serious physical injuries; arson; robbery; theft; illegal possession of 
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firearm, ammunition or explosives; bribery and other graft and compt practices; illegal 
gambling; carnapping; fencing; gunrunning; 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 fraud; bank frauds; dealing in obscene matters and sexual and economic 
exploitation of the disabled and mendicants as defined under existing criminal statutes. 
(D) “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 (IO) years (excluding any period of imprisonment) after the 
commission of a prior act of racketeering activity. 
(E) “Racketeer Investigator” means any attorney or investigator so Secretary of 
Justice and charged with the duty of enforcing or canying this Act into effect. 
(F) “Department” refers to the Department of Justice. 
(G) “Secretary” refers to the Secretary of Justice. 
SECTION 4. Prohibited Activities. - (A) It shall be unlawfid 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. 
(B) 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 of which affect commerce. 
(C) 
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 though a 
pattern of racketeering activity. 
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SECTION 5. Criminal Penalties. - (A) 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 (10) years nor more than twenty (20) years, and if the violation is based on a 
racketeering activity for which the 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 
(€‘lOO,OOO.OO) up to One Million pesos (Pl,OOO,OOO.OO); 
(B) Forfeiture - In addition to imprisonment and fine, the defendant shall forfeit to 
the Government: 
(1) any interest the defendant has acquired or maintained in violation of 
Section 4; 
(2) 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 
(3) any property constituting or derived from any proceeds which the 
defendant obtained, directly or indirectly, from racketeering activities in violation 
of Section 4. 
If any of the properties described in Section 5(B), as a result or omission of the 
defendant, cannot be located even with the exercise of due diligence; or has been 
trmsferred or sold to, or deposited with a third party; or has been placed beyond the 
jurisdiction of the courts; 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(B). 
SECTION 6. Jurisdiction. - The Regional Trial Court exercising jurisdiction over 
the place where any one of the elements constituting an act racketeering activity is 
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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 prosecutions, 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 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. Temporary 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.. 
A temporary 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 on his behalf, to cease and desist froin alienating, 
disposing, selling, assigning, conveying, transferring, or otherwise concealing any 
interest or right of the defendant over his property. The applicant for a TRO, without 
notice to the adverse party, must establish that there is probable cause to engender a well- 
founded belief that the property of the defendant 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. 
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SECTION 8. Prelimiiaary 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: 
(A) The Government will prevail on the issue of forfeiture of properties of the 
defendant; 
(B) 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 the property will not be concealed, place in hiding, destroyed, disposed or 
otherwise made unavailable for forfeiture; and 
(C) 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 of Forfeiture. -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 Court shall enter a judgment of forfeiture of 
the 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 ofForfeited Property. - 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 property. 
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SECTION 11. Restitution of Property to Victims. - The court hearing the case 
shall likewise hear petition of racketeering activity for restitution of property or 
compensation. 
SECTION 12. Prohibition Against Intervention and Injunction. - (A) 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. 
(B) 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 circulation in the Philippines, petition the court for a hearing to adjudicate the 
validity of his alleged interest in the property. While the petition is pending resolution, 
the Secretary of Justice shall not sell or otherwise dispose of the property forfeited. If 
after hearing, the court determines that the petitioner has established by preponderance of 
evidence that - 
(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. - (A) Where to file - Any of the Regional Trial 
Courts of the place where any element of any racketeering activity constituting a pattern 
of racketeering activity has been committed, shall have jurisdiction to prevent or restrain 
violations of 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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(1) ordering any person to divest himself of any interest, direct or indirect, 
in any enterprise; 
(2) imposing reasonable restrictions on the future activities or investments 
of any person including but not limited to, prohibiting any person from engaging 
in the same type of endeavor as the enterprise engaged in; or 
(3) ordering dissolution or reorganization of any enterprise, provision for 
the rights of innocent persons. 
(B) Who can file - 
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(1) 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. 
SECTION 15. Heaving Preference. - Notwithstanding any law civil action 
instituted under this Section, the Regional Trial Court shall expeditiously hear the case 
by giving it preference over all other civil cases. Trial once commenced, shall continue 
from day to day, as far as practicable until terminated. 
SECTION 16. Subpoena Powers. - (A) 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. 
(B) The Secretary shall designate a racketeering investigator to serve as racketeer 
document custodian. 
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(C) 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 subpoena, or as agreed upon, and shall certify under oath 
that the copies shall be admissible in court as originals. 
(D) While in the possession of the custodian, no material so reproduced shall be 
available for examination, without the consent of the person who produced such material, 
by any individual other than the Secretary. 
(E) Whenever any person or enterprise fails to comply with any subpoena, the 
Secretary of Justice may file in the appropriate Regional Trial Court having jurisdiction, 
a petition for an order of such court for the enforcement of the subpoena; Provided, that if 
the person disobeys the order of the court, he shall liable for contempt of court. 
SECTION 17. Rules and Procedures. - The Secretary of Justice shall adopt rules 
and procedures: 
(A) To govern its proceedings; 
(B) To provide for the security of records, documents, information, and other 
materials its custody and of its proceedings; 
(C) To prevent unauthorized disclosure of information and materials disclosed to 
it in the course of its inquiry; 
(D) To provide the right counsel to all witnesses pursuant to subpoena; and 
(E) To accord the hll protection of all rights guaranteed by the Constitution. 
SECTION 18. Statute oflimitutions. - One of the predicate acts of racketeering 
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. 
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4 accordingly. 
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 
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SECTION 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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