REPUBLIC OF THE PHILIPPINES 
FIFTEENTH CONGRESS 
First Regular Session 
) 
) 
} 
SENATE 
Senate Bill No. 1285 
'" 
O',::;:H:i.: (;.: . J 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
The unabated rise in organized and syndicated crimes has greatly 
hampered the development efforts of the government What is disheartening is 
the involvement of law enforcement officers and government officials in 
organized crimes. As a result, this new breed of criminals gave birth to a new 
upper class: the criminal aristocracy. Thus, the State gives priority in enacting 
and enforcing new and stronger measures against organized criminality to 
enhance the peace and order condition of the country. 
This proposed measure seeks to end the reign of crime lords --
kidnapping, car theft, drugs and organized gambling -- who have been laundering 
the proceeds of these crimes into legitimate business. "Racketeering activity," is 
defined, among others, as the attempt or act involving kidnapping, murder, 
homicide, illegal possession of firearm; robbery, bribery and other anti-graft and 
corrupt practices, gambling and betting, malversation of funds or property; 
engaging in monetary transactions improperly derived from unlawful activities 
specified ill the bill and blackmail. 
This bill penalizes new crimes, namely: direct or indirect participation in an 
enterprise conducting a pattern of racketeering activity; using or investing any 
money or property derived from a pattern of racketeering activity; acquiring or 
maintaining through a racketeering activity any interest or control of any business 
or enterprise and conspiring to perform any of the aforementioned acts. 
Anyone who violates the law faces the stiff penalty of imprisonment of ten 
years or twelve years. If the violation is based on a racketeering activity for which 
the maximum penalty shall be life imprisonment or death, the penalty shall be life 
imprisonment or death and a fine ranging from one hundred thousand pesos 
(P100,000,00) to one million pesos (P 1,000,000.00). As an additional deterrent, 
the violators likewise forfeit any. interest, security, claim, or property acquired ill 
violation of the law. 
In view of the foregoing, immediate passage of this bill is earnestly sought. 
MANNY \Ii LLAR 


REPUBLIC OF THE PHILIPPINES 
FIFTEENTH CONGRESS 
) 
) 
) 
First Regular Session 
,SENATE 
Senate Bill No. 12 B 5 
Introduced by Senator Manny Villar 
AN ACT 
" : 
IMPOSING HEAVY PENALTIES ON RACKETEERS AND ORGANIZED 
SYNDICATES IN THE PHILIPPINES 
Be it enacted by the Senate carrel the House of Representatives of the 
Philippines in Congress assembled. 
SECTION 1. Title of the Act. This Act shall be known as the "Anti-Racketeering 
and Organized Syndicates Act." . 
SEC. 2. Declaration of Policy. The unabated rise in organized and syndicated 
cringes and the increasing involvement of law enforcement officers and 
government officials in organized crime have seriously undermined the pursuit of 
the State to achieve the economic, social and political goals and vision of 
Philippines 2000. It is hereby declared as the policy of the State to give priority in 
enacting and enforcing new and stronger measures against organized criminality 
in order to enhance the peace and order condition of the country. 
SEC. 3. Liberal Construction. The provision of this Act shall be liberally construed 
to effectuate the policy declared under Sec. 2. 
SEC. 4. Definitions. As used in th,is Act, 
1. "Person" means any individual; association, partnership, corporation, 
entity or any group of individuals, associations, corporations or entities. 
2. "Enterprise" includes' any individual or association, partnership, 
corporation or other legal entity or any union or group of individuals 
associated in fact whether for legitimate or illegitimate purposes. 
3. "Racketeering activity" means any attempt or act involving kidnapping; 
murder; homicide; mutilation; serious physical injuries; threat; coercion; 
arson; destruction; robbery; thief; illegal possession of firearm; 
ammunition; or explosives; bribery; and other anti-graft and corrupt 
practices; 
gambling 
and 
betting; 
cock-fighting; 
transmission 
of 
gambling information; carnapping; fencing; gun running; illegal logging; 
white slavery; prostitution; illegal recruitment; smuggling; trafficking in 
contraband cigarettes; untaxed Dr fake IiquDr; piracy; illegal fishing; 
importation; manufacture, sale, administration, delivery, distribution, 
and transportation of prohibited drugs; maintenance of a drug den; 
squatting; swindling; film piracy; counterfeiting; violation of intellectual 
property rights; monopolies and combinations in restraint of trade; 
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interference with commerce; falsification of land titles; securities fraud; 
mail fraud; wire fraud; any offense involving fraud; bank frauds; 
fraudulent insolvency; dealing in obscene matters; exploitation of 
children as defined under existing criminal statutes; economic 
exploitation of children; child trafficking; economic exploitation of the 
disabled and the menpicants; violations of RA 4200 (relating to wire 
tapping); violation of PO No. 133 (relating to theft of materials or spare 
parts); malversation of funds or property; restriction on payment and 
loans to 
labor organizations; 
embezzlement 
of union 
funds; 
embezzlement from pension and welfare funds; extortionate credit 
transactions; 
embezzlement 
of 
union 
funds; 
incriminating 
machinations; obstruction of criminal investigation; obstruction of 
criminal justice; tampering with a witness, victim or information; 
obstruction of national law or local ordinance enforcement; failure of a 
police officer to enforce a law or ordinance which is his duty to enforce; 
laundering of monetary instrument; any act that is indictable under any 
currency or regulations or engaging in 
monetary transactions 
improperly derived from specified unlawful activity; blackmail; and 
illegal organizations such as organized crime families, as well as 
legitimate organization's which are engaged in any act of racketeering 
or the activities of which illegally affect domestic or foreign commerce 
or the honest and efficient management of the Government or the 
rendering of service to'the public; 
4. "Pattern" of racketeering activity requires at least two predicate acts of 
racketeering activity, one of which occurred after the effective date of 
this act and the other occurring either within ten years before the one 
occurring after the effectivity of the act or within ten years after the one 
occurring after the effectivity of this Act. 
SEC. 5. Prohibited Activities. 
1. It shall be unlawful for any person to participate, either directly or 
indirectly, with or in ail enterprise conducting a pattern of racketeering 
activity. 
2. It shall be unlawful for any person who has received any money or 
property derived directly or indirectly, from a pattern of racketeering 
activity, to use or invest directly or indirectly, any part of such money or 
property in any interest in or the establishment or operation of any 
business whether legitimate or illegitimate. 
3. It shall be unlawful for any person through a pattern of racketeering 
activity to acquire or' maintain directly or' indirectly any interest in 
control of any business, enterprise, whether legitimate or illegitimate by 
force. 
4. It shall be unlawful for any person to conspire to violate any of' the 
provisions of subsections (1), (2) and (3). 
SEC. 6. Criminal Penalties. 
A Imprisonment or fine o~' both. Whoever violates any provision of section 
shall be imprisoned for a period from ten years to twenty years and if 
the violation is based on a racketeering activity for which the maximum 
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penalty includes life imprisonment or death, the penalty shall be life 
imprisonment or death, and a fine from P1 00,000,00 to P1 ,000,000.00; 
B. Consolidation of cases. The trial for criminal liability for each predicate 
act of a racketeering activity shall be consolidated with the court hearing 
the RICO case ever if committed in different jurisdictions; 
C. Forfeiture. In addition to imprisonment and fine, the violator shall forfeit 
to the Philippine government: 
1. Any interest the person has acquired or maintained in violation of 
Section 5. 
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 person has established, operated, controlled, conducted, 
or participated in the conduct of, in violation of section 5; and 
3. Any property constituting, or derived from any proceeds which the 
person obtained directly or indirectly from- racketeering activities in 
violation of Section 5. 
D. Vesting of right in property. All rights, titles and interest in property 
described in preceding paragraph vests in the Philippine government 
upon the commission of the act giving rise to forfeiture under this 
section . 
. E. Jurisdiction. Any of the Regional Trial Courts of the place where any 
element of any of the racketeering activity constituting the pattern of 
racketeering activity has been committed shall have jurisdiction over 
the prosecution under this act and applications for forfeiture including 
petitions for temporary restraining order or injunction under the next 
succeeding section without regard to the location of any property to 
forfeiture or where the person resides or where the enterprise is 
located. 
. 
1) 
Temporary Restraining Order. A temporary restraining order 
effective for twenty days may be issued upon application by 
the Philippine Government without notice or opportunity for a 
hearing before, during or after the filing of the information 
directing the defendant or any person acting on his behalf to 
desist from disposing and to preserve the availability of 
property for 
forfeiture, 
if the 
Philippine 
government 
demonstrate that there is probable cause to believe that the 
property would be subject to forfeiture and that the provision 
of notice will jeopardize the availability of the property for 
forfeiture. 
. 
2) 
Preliminary Injunction. Within twenty days after the issuance 
of a temporary restraining order, the court shall conduct a 
hearing with notice to all parties concerned. A writ of 
preliminary injunction shall be issued if the court determines 
that: 
a. There 
is 
substantial-probability that the 
Philippine 
government will prevail on the issue of forfeiture and 
failure to issue the writ will result in the property being 
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destroyed, 
removed, 
disposed 
or otherwise 
made 
unavailable for forfeiture; and 
b. The need to preserve the availability of the property 
through the writ outweighs the hardship on any party 
against whom it is directed. 
3) Evidence Required. The Court may receive and conSider, at the 
hearing of the writ of preliminary injunction, evidence and 
information that would be inadmissible under the rules of 
evidence. In the. hearing for the prosecution of violations in this 
act the sole testimony of a participant or conspirator, if credible, 
can be the basis for conviction of the other defendants. 
F. Judgment of forfeiture. Upon conviction of a person under this section, 
the court shall enter Judgment of Forfeiture of the property to the 
Philippine government, and shall authorize the Secretary of Justice to 
seize all property ordered forfeited. 
G. Disposition of forfeited properly. 
a) 
Following the service of the property, the Secretary of 
Justice shall direct the disposition of the Property by sale or 
any other commercially feasible means. Any property right or 
interest not exercisable by or transferable for value to the 
Philippine government shall expire and shall not revert to the 
defendant, nor shall the defendant or any person acting on 
his behalf be eligible to purchase forfeited property at any 
sale held by'the Philippine government. 
b) 
The proceeds of any sale or other disposition of property 
shall, be deposited in the National Treasury under a special 
account and shall not be used until-the defendant's appeal, if 
any, has finally been decided. If the defendant's conviction is 
reversed the amount shall be returned to the defendant. 
H. Restitution of property to victims. The court entering the, judgment of 
correction and forfeiture, upon finality of the decision, shall hear 
petitions of property or compensation. The court may order portions of 
the proceeds of the sille of the forfeited property deposited with the 
National Treasury to be paid to the victims. 
I. 
Rights of Third Parties. 
1) No party claiming an interest in property subject to forfeiture may -
a) Intervene in a trial or appeal of a criminal case involving the 
forfeiture of such property: or 
b) Commence an action at law or equity nor may any court issue a 
restraining order or injunction against the Philippine Government 
concerning the validity of his alleged interest in the property subject to 
forfeiture. 
2) However, any person, other that the defendant asserting a legal interest 
in property ordered forfeited may, within thirty days from publication by the 
Secretary of Justice, of the ju1:igment of forfeiture in two national papers of 
general circulation in the Philippines, petition the court for a hearing to adjudicate 
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the validity of his interest in the property. If, after the hearing the court determines 
that the petitioner has established by preponderance of evidence that -
a) the petitioner has legal right, or interest in the property; or b) the 
petitioner is a bonafide 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 the court shall amend the order of forfeiture in accordance wily its 
determination. 
J. Substitution of other properties. If any of the properties described in 
Section 6 (c) as a result of any act or omission of the defendant: 
(1) Cannot be located upon tile exercise of due diligence: 
(2) Has been transferred or sold to, or deposited with, a third party; 
(3) Has been placed beyopd the jurisdiction of the courts; 
(4) Has been substantially diminished in value; or 
(5) 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 6 (c). 
SEC. 7. Civil Remedies. 
A. Who can bring civil suit -
1. The Philippine governme'nt. a) Any of the Regional Trial Courts of the 
place where any elemenl.of any racketeering activity constituting a pattern 
of racketeering has been' committed shall have jurisdiction to prevent or 
restrain violations of Secti'on 5 irrespective of where the person resides or 
is found where the enterprise or property is located by issuing appropriate 
orders, including but not li,mited to: 
(i) 
Ordering any person to divest himself of any interest, direct or 
indirect in any enterprise; 
(ii) 
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 engage in; or 
(iii) 
Ordering dissolution or reorganization of any enterprise, making 
due provision for the rights of innocent persons. 
a) The Secretary of Justice may institute proceedings under this section. 
b) A final judgment rendered in favor of the Philippine government in any 
criminal proceeding shall stop the defendant from denying the essential 
allegation of the criminal offense in any subsequent civil proceedings 
brought by the Philippine government. 
2. By private plaintiffs. Any person injured in his person, business or property 
by reason of violation of section 5 or his heirs, may sue therefor 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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, 
a. Expedited Action. In any civil action instituted under this section, the 
Regional Trial Court shall expeditiously hear the case by giving it preference over 
all other civil cases. 
b.Civillnvestigate Demand. 
(i) 
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, issue in writing and caused to be served upon such 
person, a civil investigative demand requiring such person to 
produce such material for examination. 
(ii) 
The Secretary of Justice shall designate a racketeering investigator 
to serve as racketeer document custodian. 
c. Any person who has du·ly been served by the civil investigative demand 
shall make available for inspection and copying or reproduction to the custodian 
designated therein at any place agreed upon shall certify under oath that the 
copies are true reproduction of the original, which certified 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 of Justice. 
e. Whenever any person fails to comply with any civil investigate demand, 
the Secretary of Justice may file in the appropriate Regional Tri!31 Court having 
jurisdiction a petition for an order of such court for the enforcement of the civil 
investigate demand; if the persons disobeys the order of the court, he shall be 
liable for contempt of court. 
SEC.8. Statute of Limitations. One of the predicate acts of racketeering must 
have been committed within ten years of the rate of the information; otherwise 
violations of this act shall be deemed to have prescribed. 
SEC. 9. Repealing Clause. All laws, presidential decrees, rules and regulations 
or parts thereof inconsistent with this act are deemed amended, repealed or 
modified accordingly. 
SEC. 10. Effectivity. This act shall take effect fifteen (15) days after its publication 
in at least two (2) newspapers of general circulation. 
APPROVED. 
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