SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
Second Regu/ar Session 
) 
SENATE 
S.B. No. 2452 
Introduced by Senator Sergio Osmei'ia III 
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'14 
NOV17 A9:06 
AN ACT PENALIZING THE HOARDING OF LEGAL TENDER COINS OF THE 
PHILIPPINE CURRENCY 
EXPLANATORY NOTE 
The Bangko Sentral ng Pilipinas (BSP) has documented cases of unscrupulous 
hoarding and exportation of coins by syndicates, which smelt and convert coins for their 
metallic value for use as raw materials for mobile phones, computers or other industrial 
applications. 
All current coins in circulation are made from various alloys of copper, brass, 
nickel, aluminum or steel. The skyrocketing of prices for these metals has led to 
"seigniorage" or the debasement of the currency, when the intrinsic value of the metal in 
coins exceeds their face value. It would cost the Government a substantial outlay of 
funds to replace the coins in circulation. 
An investigation by the BSP also revealed an increasing demand for one peso 
coins due to "Automatic Tubig Machines", vending machines and video karera 
machines. The increased number of amusement machines like video or coin games, 
"Piso-piso internet", 
and the Filipinos' habit of stQring coins in their piggy banks, 
drawers, wallets or jars instead of using them as payment, " also contribute to the 
inefficient coin recirculation and the shortage of coins. 
As early as 2004, the BSP launched the Revised Reward System giving financial 
rewards to informers of counterfeiting activities leading to the arrest of suspects, 
seizure/confiscation of counterfeit currencies and paraphernalia and the filing of 
appropriate charges in court to counterfeiters. This Reward System was further' 
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expanded in February 12, 2009 by virtue of Memorandum Circular No. 266 to include 
the reward to informers on cases of hoarding and mutilation/destruction of Philippine 
coins. 
The BSP also conducted information and awareness campaigns to stress the 
importance of coins, encourage their use as payment for goods and services and in 
giving exact change. It also launched the coin-recirculation program to promote regular 
use of coins and to raise funds to benefit public elementary schools through "Tulong 
Barya para sa Eskuwela" campaign and the "Tulong Barya Para sa Gawad Kalinga" for 
the shelter needs of the less fortunate. 
Despite these BSP measures, the coin shortage continues, which if unabated, 
may result in a wider-reaching negative impact on the economy. To curb the hoarding of 
Philippine legal tender coins, this bill proposes to criminalize coin hoarding or the 
keeping or possession of coins of any denomination beyond the aggregate value, 
number of pieces and weight to be determined by the BSP committed by any person, 
corporation, partnership, association or any other form of juridical personality. 
Exempted from the bill's coverage are charitable institutions, private banks, 
banking and financial institutions of the government, and government agencies and 
instrUmentalities when they hold or keep such coins in connection with their business 
functions or official duties. Persons engaged in retail business may also be exempted 
by the BSP, provided that said persons must not keep or hold such coins beyond the. 
reasonable needs of the business based on its average utility gross sales. 
The BSP is given the power to review and change, if needed, the aggregate 
amounts every three (3) years based on the prevailing value, supply of and demand for 
legal tender coins. 
In order to achieve the BSP's objective to promote and maintain price stability 
of the Philippine currency, the approval of this bill penalizing coin hoarding is earnestly 
sought. 
2 
iI f.uHl ~ 
~~GIO OSMENA III 
Senator 


SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session 
) 
SENATE 
S.B. No. 2452 
Introduced by Senator Sergio Osmefia III 
'14 
NOV17 A9:06 
AN ACT PENALIZING THE HOARDING OF LEGAL TENDER COINS OF THE 
PHILIPPINE CURRENCY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1, Shori Title. - This Act shall be known as the "Anti-Hoarding of 
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Philippine Legal Tender Coins Acf'. 
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SEC. 2. Declaration of Policy. - It is the policy of the State to protect and 
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maintain the integrity of the Philippine currency. The State is committed to prevent coin 
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shortage and economic sabotage in order to maintain the stability of the countty's 
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currency. 
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SEC. 3, Definition of Terms. -
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(a) Hoarding of coins refers to the keeping or possession by any person not 
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engaged in business of legal tender coins of the Philippine currency beyond the 
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aggregate value, number of pieces and weight to be determined by the 8angko Sentral 
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ng Pilipinas (8SP), or the keeping or possession by any person engaged in the 
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business of such coins beyond the aggregate value, number of pieces and weight to be 
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determined by the 8SP; 
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(b) Person refers to either natural or juridical persons and shall include 
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organiz;ations, corporations or partnerships; 
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(C) Aggregate value refers to the total aggregate amount in Philippine pesos of 
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the coins kept or possessed by a person; 
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(d) Aggregate number of pieces refers to the physical count of the total number 
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of pieces of coins kept or possessed by a person; and 
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(e) Aggregate weight refers to the total weight in kilograms of the coins kept or 
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possessed by a person. 
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SEC. 4. Hoarding of Legal Tender COins. - The penalty of eight (8) years of 
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imprisonment and a fine of not less than the face value or intrinsic value of the coins, 
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whichever is higher, but not exceeding three hundred thousand pesos (P300,OOO.OO) 
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shall be imposed on any person who shall hoard coins of the Philippine currency. 
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If the offender is a corporation, partnership, association or any juridical person, the 
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penalty shall be imposed upon its responsible officers, as the case may be, who 
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participated in, or allowed by their gross negligence, the commission of the crime. If the 
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offender is a juridical person, the court may suspend or revoke its license. 
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SEC. 5. Exceptions. This Act shall not apply to charitable institutions, private. 
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banks, banking and financial institutions of the government and government agencies 
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and instrumentalities when they hold or keep such coins in connection with their official 
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duties. The SSP may also exempt persons engaged in retail business: Provided, That 
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persons engaged in retail business must not keep or hold such coins beyond the 
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reasonable needs of the business based on its average daily gross sales. 
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SEC. 
6. 
Determination of Aggregate Amounts and Issuance 
of 
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Implementing Rules and Regulations. - To implement the provisions of this Act, the 
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SSP shall have the authority to formulate the implementing rules and regulations and 
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shall determine the aggregate value, number of pieces and weight which would 
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constitute as hoarding of legal tender coins. Separate sets of aggregate amounts shall 
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be determined for persons engaged in a business and for persons not engaged in a 
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business. The SSP is empowered to review and change, if needed, the aggregate 
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amounts every three (3) years on the prevailing value, supply and demand of legal 
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tender coins. 
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SEC. 7. Separability Clause. - If any provision or part hereof is held invalid, or 
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unconstitutional, the remainder of the law or the provisions not otherwise affected shall 
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remain valid and subsisting. 
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SEC. 8. Repealillg C/~use. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or 
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inconsistent with the provisions of this Act is hereby repealed, modified or amended 
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accordingly. 
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SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days following its 
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publication in the Official Gazette or in a newspaper of general circulation. 
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Approved, 
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