THIRTEENTH CONGRESS OF THE REPUBLIC 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
EXPLANATORY NOTE 
With the events that tool place in the United States on September 
11, 200 1 the world was awakened to the stark reality that no country is 
safe from terrorist attack. Even the most powerful nation in the planet 
could not prevent the destruction of one of its most famous landmarks, 
nor the loss of a staggering number of human lives. 
As a result, 
countries worldwide have taken a closer look at the phenomenon of 
terrorism and at how they can protect their land and citizens against 
acts of terrorism. 
Soon after the tragedy in the United States, the Financial Action 
Task Force (FATF), an inter-governmental body formed by the Group of 
Seven, commenced an exercise to determine whether both memb r and 
non-member countries have the legislative and executive infras 
cture 
to counter terrorist activity within their respective jurisdiction. 
The 
purpose was not merely to ensure that each country would be ble to 
protect its own borders against terrorists, but that it would like ‘se be 
able to prevent cross-border terrorist activity that could threaten 1 
other 
countries. This was on the finding that the planning of terrorist activity 
and the performance of act preparatory to terrorist activity could take 
place in countries other than that in which they are to be carried out. 
Most significant among these preparatory acts are those acts relating to 
the financing of terrorism, Le., the raising of funds to finance terrorist 
acts and/or to support the terrorist organizations carry them out. 
As part of this exercise, the FATF formulated its Eight 
Recommendations, which constitute the basic framework for an anti- 
terrorism campaign that should be instituted within each country. At 
the top of these recommendations is the enactment of legislation 
criminilizing terrorism and instituting measures to detect and curtail the 
financing of terrorism. 
At present, the Philippines does not have legislation criminalizing 
terrorism per se or the financing of terrorist acts. 
The concept of 
terrorism, although certainly pervasive in recent events that have taken 
place in the country, is alien to its penal laws: while injury to persons 
and property are punishable as ordinary crimes under our legal system, 
there is no separate punishment for the commission or threat to commit 
such acts when the same are merely incidental to the true objectives of 
their perpetrators. Such punishment is indeed necessary. 
Terrorism 
must be punished, not merely because it constitutes an assault against 
property and lives, but because it constitutes an assault upon the very 
authoF‘i”ty of the State. Terrorists do not merely seek to kill or maim and 


destroy; they seek to do so for the purpose of intimidating or coercing a 
State and its citizens to follow a policy or course of action to suit their 
own beliefs. For this, they should be punished. 
The present bill seeks to institute such punishment. 
It 
criminalizes terrorism, the financing of terrorism, membership in a 
terrorist organization, and other related acts. It creates a system for 
detecting and investigating acts preparatory to terrorist activities. 
It 
provides law enforcement officials with the tools to prevent terrorists 
from obtaining access to their property and funds by granting the 
authority to freeze accounts suspected of housing funds constituting 
such terrorist property. 
Moreover, it allows government to use wire- 
tapping and similar means of surveillance and information gathering in 
order to identi@ and capture suspected terrorists. In accordance with 
the Eight Recommendations, it provides for the more stringent regulation 
and monitoring of entities that can be used and abused by terrorists to 
serve as fronts for their organizations, as well as of organizations that 
can be used informal networks for the transmission of terrorist funds 
without detection. Finally, it provides for a system that will support 
mutual legal assistance between the Philippine government and other 
States in efforts to investigate, track, capture and convict terrorists. 
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With such a law in place, the Philippines will be able to take its 
first step towards protecting itself against terrorism, and at the same 
time help the rest of the world rid itself of this serious threat. 
The Philippine Government, in its continuing campaign against 
graft and corruption, illegal gambling, smuggling, kidnapping, drug 
trafficking, illicit traffic of women and children, counterfeiting and other 
forms of criminality, must hit corrupt government officials, criminals and 
organized crime groups where they hurt most - their money. C rrupt 
government officials have been able to systematically diver public ssets 
to their personal use, and criminals and organized crime group have 
been able to convert their criminal profits into seemingly licit ass ts, by 
introducing them into the legitimate financial system through whic they 
are processed to suggest a legal source and kept under the con I 
rol of 
their true owners for financing their other criminal activities or for their 
own personal aggrandizement. This is the process of money laundering. 
Corrupt public officials, criminals and organized crime groups have 
taken advantage of the rapid developments, in financial, information and 
communications technology which allow proceeds of their crimes to be 
moved anywhere in the world with speed and ease by transferring illegal 
funds quickly across international borders and preventing law 
enforcement officials from tracking them down. 
As such, money 
laundering undermines the integrity of the international financial system 
of which our institutions are an integral part, exposes nations to the 
corrupting influence of ill-gotten gains, and undermines the growth of 
democratic political institutions and the development of stable aud 
vibrant economies worldwide. 
To effectively combat money laundering, nations of the world 
including the Philippines, as signatories tot he 1988 Vienna Convention 
Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and 
the 1998 United Nations Political Declaration and Action Plan Against 
Money Laundering, should all endeavor to punish money laundering as a 


crime; otherwise, tightening the laws in one jurisdiction will only esult 
in the transfer of money laundering activities to other jurisdictio .with 
less stringent laws. 
i 
The Financial Action Task Force (FATF), an inter-governmental 
body formed by the Group of Seven, the leading industrial countries in 
the world, at the Paris G7 Summit of 1989, has emphasized in its so- 
called Forty (40) Recommendations setting out the basic universal 
framework for anti-money laundering efforts, that all nations should 
criminalize money laundering itself and provide for sufficiently serious 
penalties; adopt measures enabling their competent authorities to 
identiQ, trace, freeze, seize and confiscate criminally derived proceeds or 
property of corresponding value; establish proper customer identification 
requirements, including a suspicious transaction reporting regime, 
eliminate excessive bank secrecy; and institutionalize strong multilateral 
cooperation and mutual legal assistance in cross-border money 
laundering investigations and prosecutions, as well as extradition of 
money launderers. 
A n  anti-money laundering legislation that meets internationally 
accepted 
standards 
such as 
those 
embodied 
in 
the 
Forty 
Recommendations of the FATF and is best practice compliant has, thus, 
now become imperative. 
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Acts of terrorism may be committed through any of the 
means: 
1. hijacking or threatening to hijack any kind of aircraft, 
fol:.owing 
ship, 


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1. 
3. causing or threatening to cause death or serious bodily harm 
to a person or persons, or to cause a serious risk to the health 
or safety of the public or any segment thereof; 
4. Killing of, or violent attack upon, an internationally protected 
person or upon the liberty of such person in violation of the 
Convention on the Protection and Punishment of Crimes 
Against Internationally Protected Persons, including Diplomatic 
Agents, and other international agreements; 
Causing serious interference with, or serious disruption of an 
essential service, vital facility, critical infrastructure, other 
thank as a result of advocacy, grievance, protest, di sent, 
strike, or an armed conflict provided the same is in acco ance 
I
d
 
the 
with international humanitarian law; 
6. Causing serious damage to property, the environment 
national patrimony; 
7. Causing or threatening to cause mass destruction through the 
use of biological or chemical agents, noxious, poisonous or 
radioactive 
substances 
or 
materials, 
nuclear 
devices, 
explosives, firearms, or any other kind of lethal weapon, 
material, or substance, or resorting to arson; 
8. Manufacture, possession, acquisition, transport, diversion, 
supply, use or sale of explosives, biological agent, chemical 
agent, 
nuclear 
weapon, 
materials or equipment 
and 
instruments in furtherance of terrorism. 
5. 
Any person who, directly or indirectly, commits any act of 
terrorism shall suffer the penalty of life imprisonment to death. If the 
penalty imposed is life imprisonment, a fine of ten million pesos 
(Php10,000,000.00) shall also be imposed. 
SEC. 4. Conspiracy to Commit Acts of Terrorism - There is a 
conspiracy to commit terrorism when two (2) or more persons come to an 
agreement to commit any act of terrorism as defined in Section 3 of this 
Act and decide to commit it. 
The conspiracy to commit any act of terrorism shall be punished 
by imprisonment from ten (10) years and one (1) day to fifteen (15) years 
with a fine of fivemillion pesos (Php5,000,000.00). 
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SEC. 5. Participation in any Act of Terrorism - Any person 
who, directly or indirectly, participates in any activity intended to 
facilitate or carry out acts of terrorism thru any of the following: 
1. establishing or maintaining, or in serving as, contact or link 
with any person or persons that are known to have pursued or 
are pursuing terrorist activities; 
2. procuring weapons, bombs, explosives, devices spare parts, 
more persons, knowing that the meeting i s  to supp t? 
rt Out or 
and other accessories thereof; 
3. providing training to any person or persons to c 
terrorist activities; or 
4. arranging or assisting in the conduct of a meeting of tw (2) or 
further the terrorist activities; 
shall suffer the penalty of imprisonment from fifteen (15) years and one 
(1) day to twenty (20) years with a fine of eight million pesos 
(Php8,000,000.00) 


SEC. 6. 
Financing or Materially Supporting Any Act of 
Terrorism - (a) It shall be unlawful for any person, group, organization 
or entity to knowingly provide properties or finances, or possess them for 
the commission of terrorism as herein defined or facilitate in any way the 
provision or possession of such properties or finances, and it shall carry 
with it-the pen&@ of life imprisonment and a fine of ten million pesos 
(Php 10,000,000.00). 
(b) It shall be unlawful for any reason to knowingly solicit or invite 
financial contribution or other support for the commission of terrorism 
as defined herein and shall carry with it the penalty of imprisonment for 
ten (10) years and one (1) day to fifteen (15) years and a fine of five 
million pesos (Php5,000,000.00). 
SEC. 7. Harboring or Concealing - Any person who harb rs or 
conceals any person whom he/she knows, or has probable ca se to 
believe, to be a person who has carried out or is likely to carry out a 
terrorist activity shall suffer the penalty of imprisonment of ten (10) years 
and one (1) day to fifieen (3) years and a fine of five million pesos 
(Php5,000,000.00) 
G 
SEC. 8. Making False Threats of Acts of Terrorism - It shall 
be unlawful for any person to: 
1. communicate or make available by any means, any information which 
he/she knows or believes to be false to another person with the 
intention of inducing in him/her any other person a false belief that a 
terrorist act has been, is being or will be c w e d  out; or 
2. place any article or substance in any place, or dispatch any article or 
substance by mail or by any other means for sending things from one 
place to another, with the intention of inducing in another person a 
false belief that - 
113 of the Rules of Court, may be detained for an inquest period 
more than fifteen (15) working days following his/her arrest. 
(i) 
the article or substance is likely to explode or ignite and 
thereby cause personal injury or damage to property; or 
(ii) 
the article contains or the substance consists of any 
dangerous, hazardous, radioactive or harmful substance; 
any toxic chemical; or any microbial or other biological 
agent, or toxin, that is likely to cause death, disease or 
persona3 injury or damage to property. 
For the purpose of subsections (1) and (2), a reference to a person 
inducing in another person a false belief does not require the first- 
mentioned pers5fi to have any particularly person in mind as the pergon 
in whom he/she intends to induce the false belief. 
of not 


The period of detention may be extended beyond fifteen (15) days if 
the person arrested without a warrant demands for a preliminary 
investigation and waives his or her right under the provisions of Article 
125 of the Revised Penal Code, as amended, in writing and in the 
presence of his or her counsel and shall be entitled to all the rights 
under the RA No. 7438, otherwise known as “An Act Defining Certain 
Rights or Persons Arrested, Detained, or Under Custodial Investigation”. 
SEC. 10. Witness Protection - 
Any person who provides 
material information, whether testimonial or documentary, necessary for 
the invzstigatiosxx prosecution of individuals suspected or accused of 
committing any of the offense under Sections 3,4,5, 6 and 7 herein shall 
be placed under the Witness Protection Program pursuant to Republic 
Act 6981. 
SEC. 11. Immunity from Prosecution - Any person who serves 
as a witness as a witness for the government or provides evidence in a 
criminal case involving any violation of this Act, or who voluntarily or by 
virtue of a subpoena testificandum or 
duces tecum, procedures, 
idenwies, or gives testimony on, but not limited to, books, p pers, 
documents, tapes containing words, sounds, pictures or images, p otos, 
maps, diagrams, sketches, recordings, dics, or any other form of 
’tten, 
recorded, or real evidence, shall be immune from any crminal 
prosecution, subject to the compliance with the provisions of PD 1732, 
Prosecution to Government Witnesses and the pertinent provisions of the 
Rules of Court. 
otherwise known as Decree Providing Immunity from C f 
mind 
SEe. 12. Prosecution, Judgment and/or Conviction - Any 
person may be charged with or convicted of acts of terrorism without 
prejudice to the prosecution of any other act or acts penalized under the 
Revised Penal Code which are not absorbed in the offense of terrorism. 
When there is a variance between the act of terrorism charged in 
the complaint or information, and that proved or established by the 
evidence, the accused shall be convicted of the offense proved included in 
the charge of terrorism if the intent to sow terror or intimidate or coerce 
the government of the public was not proven during the trial. No person, 
however, shall be mice put in jeopardy of punishment for the same 
offense. 
SEC. 13. Penalty for Juridical Person, Alien or Public Officer - 
If the offender is a corporation, association or partnership, the 
corresponding penalty provided in this Act or who knowingly permitted 
or failed to prevent its commission. If the offender is an alien, he or she 
shall, in addition to the penalties herein prescribed, be summarily 
deported after serving the sentence. If the offender is a public official or 
employee, he or she shall, in addition to the penalties prescribed herein, 
suffer perpetualm temporary absolute disqualification from office, as the 
case mTy be. 
SEC. 14. Applicability of Republic Act No. 9160, as Amended 
by Republic Act Bo. 9194. - Terrorism as defined and punished under 
this Act shalI be considered an unlawful activity under RA 9160, 
otherwise known as the Anti-Money Laundering Act of 2001, as amended 
by RA 9194. 
For this purpose, all matters involving monetary 
I . .  , 


instruments or property used or intended to be used for terrorist 
activities shall be subject to provisions of Sections 10 and 11 thereof. 
Provided, that deposits or investments with any banking institution or 
non-bank financial institution may be inquired into or examined without 
prior court order pursuant to ,RA 9 160, as amended. 
SEC. 15. 
Applicability of Republic Act No. 4200. - The 
provisions of RA 4200, otherwise known as the Anti-wire Tapping Act 
shall apply to include all offenses punishable under this Act. 
SEC. 16., Jurisdiction of Courts - The Regional Trial Courts 
shall have jurisdiction to try all cases for the prosecution of offenses 
punishable under this Act., Those committed by public officers and 
private persons who act in conspiracy with such public officers shall be 
under the jurisdiction: of the Sandiganbayan, subject to the provisions of 
Republic Act No. - 7975 and Republic Act No. 8249. 
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SEC. 17. 
Provisional Remedies - 
Upon the filing of the 
information for any violation, of this Act, the Regional Trial Court may, 
upon verified motion of any appropriate government agency, issue 
temporary restraining order, writ of injunction, writ of attachment or 
garnishment or other equitable provisional relief, or take other 
appropriate action, for the ' 
~ tracking, seizure, preservation, disabling, 
disposal, disarmament or destruction of the property, found to be utilized 
in terrorist activity to, prevent the same from being removed, concealed, 
dissipated, destroyed, disseminated, activated, transferred, ass'gned, 
otherwise disposed or :during the pendency of the criminal proceedi gs. 
SEC. 18. 
, Mutual Assistance and Cooperation betwee 
the 
Philippines and, other, States or International Organizations - i, 
Wgen 
a foreign State or International Organization makes a request for 
assistance concerning any matter related to any act of terrorism, the 
Council as created under Section 22 of this Act shall take the 
appropriate action on the matter, provided that such request does not 
contravene the Constitution or any existing law. Any request of the 
Philippine government to a foreign State or International Organization 
shall be coursed through the Council. 
SEC. 19. ~ Anti-Terrorism Council - There is hereby created an 
Anti-Terrorism Council, hereinafter referred to a@ the ' "Council" which 
shall be under the supervision and control of the President, who shall 
serve as its chairperson, with the Secretary of Justice and the Secretary 
of the Interior and Local Government as its vice-chairpersons, and with 
the following members: Secretary of National Defense; 
Secretary of 
Foreign Affairs;, Secretary of Transportation and Communications; the 
National SecurityAdvisor; the Chairperson of the Commission on Human 
Rights; and such other members that may be appointed by the President. 
The Council shall serve as the central policy-making, , supervising, 
coordinating and monitoring body of the government on all matters of 
domestic and international terrorism. The Council shall keep records of 
its proceedings and decisions, and such records shall be subject to such 
security classifications as the Council may, in its sound #discretion, direct 
to safeguard the national interest. 
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The President shall designate a secretariat for the Council from the 
existing government agencies involved on anti-terrorism efforts without 
any additional salary, compensation, allowance, or any other form of 
emoluments for such personnel to be assigned to the Council’s 
secretariat. The President may likewise designate a primary agency 
which shall carry out and implement policies of the Council. 
In addition to their normal functions, the National Intelligence 
Coordinating Agency shall be the technical adviser to the Council and 
with the following support agencies to the Council: National Bureau of 
Investigation, Bureau of Immigration, Office of Civil Defense, Intelligence 
Service of the Armed ,Forces of the Philippines, Anti-Money Laundering 
Council, Philippine Center on Transnational Crime, and the intelligence 
and investigate elements of the Philippine National Police shall serve as 
support agencies for the Council. 
The Council shall, not later than one hundred eighty (180) days 
after the effectivity of the Implementing Rules and Regulations, formulate 
and come up with a comprehensive and effective anti-terrorism plan and 
program to deter and prevent acts of terrorism to include, among others, 
exhaustive preparations necessary for the government and the country to 
cope with 
-- 
- all foms of terrorist attacks such as, but not limited to, the 
use of biological, chemical or nuclear weapons, or other weapons of mass 
destruction. 
SEC. 20. Functions of the Council - In pursuit of its mandate 
under Section 19, the Council shall have the following functions: 
a. 
b. 
C. 
d. 
e. 
f. 
g. 
h. 
i. 
Formulate and conduct policy researches and studies in 
addressing terrorism; 
Direct the conduct of anti-terrorism and counter-te orism 
measures and post-conflict to address the effects of terr rism; 
Cause or direct the immediate investigation and 
peedy 
prosecution of cases involving acts of terrorism and 
onitor 
the progress of such cases; 
Transfer the conduct of investigation of specific case , from 
one law enforcement agency to another; 
Establish a comprehensive data-base systems on anti- 
terrorism and counter-terrorism operations and post-conflict 
actions; 
Grant monetary rewards and incentives to informants who are 
willing to give vital information to build up cases for the 
prosecution of those who committed acts of terrorism; 
Recommend the inclusion of vital witnesses under the Witness 
Protection, Security and Benefits Program; 
Call upon any department, bureau, office or other executive 
agency for assistance; and 
Exercise such other functions as may be assigned by the 
President. 
4 
SEC. 21. , Implementing Rules and Regulations - Within sixty 
(60) days from the effectivity of this Act, the Anti-Terrorism Council shall 
promulgate and Implementing Rules and Regulations as may be 
necessary to ensure the efficient and effective implementation of the 
provisions of this Act. 


SEC. 22. Appropriations - The amount of twenty five 
pesos (Php25,000,000.00) is hereby authorized to be 
Council as initial funding chargeable against the 
Office of the President. 
Thereafter, the amount needed by the Council to effectively carry 
out the purpose of this Act shall be included in the annual General 
Appropriations Act. 
SEC. 23. Extra-Territorial Application of this Act - Except as 
provided in the treaties and laws of preferential application, the 
provisions of this Act shall be enforced not only within the Philippine 
archipelago, including its atmosphere, its interior waters and maritime 
zone but also outside of its jurisdiction against those who should commit 
any offense covered by this Act while on a Philippine ship, airship, 
Philippine embassies and consulates, or other diplomatic premises. 
SEC. 24. Separability Clause - If any provision or portion of this 
Act or the application thereof to any person or circumstance is declared 
to be unconstitutional or invalid, the other provisions or portions of this 
Act, and the application of such provision or section to other persons or 
circumstances, shall not be affected thereby. 
SEC. 25. 
Amendatory Clause - Republic Act No. 9160, as 
amended by Republic Act No. 9194 and Republic Act No. 4200 are 
hereby amended or modified accordingly. 
SEC. 26.--Repealing Clause 
- All laws, decrees, executive 
orders, rules and regulations or parts thereof, inconsistent with the 
provisions of this Act are hereby repealed, amended or modified 
accordingly. 
SEC. 27. Suppletory Effect of the Revised Penal Code - The 
provisions of the Revised Penal Code shall have a suppletory effect to the 
provisions of this Act. 
SEC. 28. Effectivity - This Act shall take effect fifteen (1 
after its complete publication in the Official Gazethe or in at least 
national newspapers of general circulation. 
Approved,