I 
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C I I . 9  
THIRTEENTH CONGRESS OF THE 
First Regular Session 
REPUBLIC OF THE PHILIPPINES 
"04 JQN 30 P\O :Q2 
SENATE 
S. No. 
C"9 
INTRODUCED BY HON. MANUEL B. VILLAR. JR. 
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 oh tell 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 
(P 100,000.00) 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. 


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THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
~5 
s. Iko. 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
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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 of 2004." 
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 this 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 or fake liquor; 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; 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; sexual exploitation of children as defined 
under existing criminal statutes; economic exploitation of children; child trafficking; 
economic exploitation of the disabled and the mendicants; violations of RA 4200 
(relating to wire tapping); violation of PD 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 organizations 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 Penulties. 
a. Imprisonment or fine or both. Whoever violates any provision of section 5 
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 penalty includes life 
imprisonment or death, the penalty shall be life imprisonment or death, and a fine 
from P100,OOO.OO 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 
a. Interest in; 
b. Security of; 
c. Claim against; or 
d. Property or contractual right of any kind affording a source of influence over; 
Any enterprise which tile 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 udder 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 
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. 
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. 
b) The proceeds of any sale or other disposition of property shall, be 
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 sale 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 o equity nor may any mrt 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 judgment of forfeiture in two national papers of general circulation in the 
Philippines, petition the court for a hearing to adjudicate 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 bondide purchaser for value of the right, title or interest in the property and was 
at the time of purchase reasqnably 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 clue diligence; 
(2) Has been transferred or sold to, or deposited with, a third party; 
(3) Has been placed beyond 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 government. a) Any of the Regional Trial Courts of the place where 
any element of any racketeering activity constituting a pattern of racketeering has 
been committed shall have jurisdiction to prevent or restrain violations of Section 5 
irrespective of where the person resides or is found where the enterprise or property is 
located by issuing appropriate orders, including but not limited to: 
(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 engage in; or 
(3) Ordering dissolution or reorganization of any enterprise, making due provision for 
the rights of innocent persons. 
b) The Secretary of Justice may institute proceedings under this section. 
c) 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 lie sustains and the to cost of the suit, including a reasonable attorney's 
fees. 
b. 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. 
c. Civil Investigate Demand. 
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 pet-son to produce such 
material for examination. 
2. The Secretary of Justice shall designate a racketeering investigator to serve 
as racketeer document custodian. 
1. Wherever the Secretary of Justice has reason to believe 
c. Any person who has duly 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 Secretes 
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 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 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.