FIJ<TEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
) 
SENATE 
S.B. No. 26'7'S 
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Introduced by Senator EDGARDO J. ANGARA 
EXPLANATORY NOTE 
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'11 
FEB -7 A11:0 1 
More than three (3) years since the enactment of the Human Security Act 
(HSA) of 2007, a Bloomberg article which appeared in its website on 11 January 
2011, headlined that the "Philippines is Southeast Asia Terror Hotspot". Citing 
an FTI-International Risk, the article went on further to state that the "Philippines 
has ovet1aken Indonesia and Thailand as tho country facing the greatest threat 
from terrorism". 
Palace officials have already dismissed the latter as "a matter of 
perception", However, the recent bus bombing 810ng Metro Manila's main 
transport artery resulting in death to innocent civilians has drastically transformed 
this "perception" into a frightening reality as it paints a grim picture of the 
Philippines. The situation must be immediately addressed. 
One sure way of addressing this concern is to enact a law criminalizing the 
financing of terrorism as an offense separate and distinct from that of terrorism as 
required by the 1999 International Convention for the Suppression of the 
Financing of Terrorism. 
Much has been written and said about the need to comply with the 
international standards set by the United Nations and international bodies such as 
the Financial Action Task Force (FATF). But more than complying with these 
standards, legislation on terrorist financing suppression is necessary because the 
Philippines, whether we like it or not, has had its own share of terrorism-related 
experiences and is now, rightly or wrongly, perceived to be a "terror hotspot". 
It is a known fact that terrorism is mainly dependent on funding. Part of the 
reasons terrorist elements commit common crir;nes is to obtain funding to finance 
their activities. Authorities must be able to prevent terrorists from having access to 
funds; 
penalize them and their financiers.' Terrorist financing should be 
criminalized even without an actual terrorist ad taking place. Otherwise, it would 
be too late. 
The proposed bill is designed to proVide duly constituted authorities with 
ample powers allowing them to inquire into bank accounts sans a court order and 
freeze terrorist funds without delay while prov,iding safeguards to the rights of 
innocent third parties. Realizing the transnational nature of terrorism and its 
financing, the proposed bill will allow local authorities to take pre-emptive and 


remedial action, request foreign assistance, including extradition of suspects, 
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whenever the intended victims of a terrorist attack are Filipinos, its government or 
institutions. 
We cannot afford another bombing incident. Let us cut, if not eliminate, the 
funding sources to prevent terrorism from happening. Enacting a stand-alone 
anti-terrorist financing law will show how serious the Philippines is in weeding out 
this evil. 
In view of the foregoing, the urgent passage of the proposed measure is 
requested, 
2 


rlFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PIIILlPPINES 
ViI's! Regular SessIOn 
SENATE 
Senate Bill No._ 267J) 
'11 
FEB -7 All:O 1 
".'h"fl. '''i'i . 
" .• L't.}l. 
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Introduced by: Senator EDGARDO 1. ANGARA 
AN ACT DEFINING TERRORIST FINANCING AS A CRIME AND 
PROVIDING PENALTIES THEREFOR 
Be it enacted in the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION I. 
Short Title -
This Act '. shall be known as the "Terrorist 
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Financing Suppression Act of 20ll". 
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SEC. 2. Declaratioll of Policy - It is a declared policy of the State to protcct 
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life, liberty, and property from acts of terrorism. and to condemn terrorists and those 
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who provide support in any manner, financial or otherwise, to terrorists as inimical and 
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dangerous to the national security of the country and to the welfare of the people. 
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Toward this end, the State shall reinforce ils fight against terrorism by defining 
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terrorist financing as a crime and providing penalties for the commission thereof. 
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SEC. 3. Defillition (~f Terms. - As used in: this Act: 
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a) F0l1eiture refers to an act where, after due process, a court orders the 
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lransier in favor of the government ownership of property or funds 
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representing, involving, or relating to fcts of terrorism or terrorist financing 
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as hereinafter defined 
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b) Freeze refers to the act of blocking or restraining specific property or funds 
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from being transacted, converted, concealed, mo?ed or disposed. The owner of said 
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frozen property or funds shall retain ownership thereof although the government 
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possesses, administers or manages the property or funds. 
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c) Property or fimds refers to assets of every kind, whether real or personal, 
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tangible or intangible, movable or immovable, however acquired or regardless of its 
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source, including legal documents or instrumenls in any 10rm, including electronic or 
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digital, evidencing title to, or interest in, such assets, including but not limited to cash, 
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bank accounts and rclated web of accounts, bank credits, travelers cheques, bank 
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cheques, money orders, shares, securities, bonds, drafts, letters of credit and other 
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monetary instruments. 
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For purposes of this Act, the term "related web of accounts" refers to those accounts, 
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the funds and sources of which originated from and/or are materially linked to the property or 
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funds subject of the bank inquiry or examination or t1ceze order as hereinafter provided. 
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d) Terrorist refers to any natural person who: (i) commits, or attempts, or conspires 
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to commit acts of terrorism by any means, directly or indirectly, willfully and unlawfully; (ii) 
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participates, as a principal or as an accomplice, in the commission of acts of terrorism; (iii) 
, 
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organizes or directs others to commit acts of terrorisl;ll; or (iv) contributes to the commission 
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of acts of terrorism by a person or group of persons acting with common purpose where the 
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contribution is made intentionally and with the aim of furthering the acts of terrorism or with 
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the knowledge of the intention of the group to commit acts of terrorism~ 
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e) Acts a/Terrorism shall refer to the following: 
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I. Any act or combination of acts punishable under any ofthc following provisions of 
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the Revised Penal Code (RPC) and other special laws; 
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i) Articlc 122 (RPC) on piracy in gcneral and mutiny in the high seas or in 
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the Philippine waters; 
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ii) Article 134 (RPC) on rebellion or insurrection; 
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iii) Article 134-a (RPC) on Coup de 'etat, including acts committed by 
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private persons; 
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iv) Article 248 (RPC) on murder; 
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v) Article 267 (RPC) on kidnapping and serious illegal detention; 
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vi) Article 324 (RPC) on crimes invoh:ing destruction; 
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vii) 
Presidential Decree No. 1613, the Law on Arson; 
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viii) 
Republic Act No. 6969, otherwise known as the "Toxic 
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Substances and Hazardous and NuClear Waste Control Act of 1990"; 
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ix) Republic Act No. 5207, otherwise known as the "Atomic Energy 
, 
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Regu1atory and Liability Act of 1968"; 
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x) Republic Act No. 6235 entitled, "An Act Prohibiting Certain Acts 
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Inimical to Civil Aviation and for other purposes"; 
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xi) Presidential Decree No. 532, entitled, "Anti-Piracy and Anti-Highway 
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Robbery Law of 1974"; 
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xii) 
Presidential Decree No. 1866, as amended by RA 8294 and 
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further amended by RA 9516 (Sections 3 & 4), entitled "CodifYing the 
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Laws on Illegal and Unlawful Possession, Manufacture, Dealing in, 
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Acquisition or Disposition oj' Firearms, Ammunition or Explosives or 
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Instruments Used in the Manufi:l~ture of Firearms, Ammunition or 
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Explosives, and Imposing Stiffer Penalties for Certain Violations 
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Thereof and for Relevant Purposes"; 
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thereby sowing and creating a condition of w iclcspread and extraordinary fear and 
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panic among the populace, in order to coerce the government to give in to an unlawful 
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demand. 
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j) Terrorist entity or organization refers ~o any entity owned or controlled by 
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any terrorist or group of terrorists that: (i) commits, or attempts to commit, acts of 
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terrorism by any means, directly or indirectly, unlawfully and willfully; (ii) 
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participates as an accomplice in acts of terrorism; (iii) organizes or directs others to 
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commit acts oflerrorism; or (iv) contributes to the commission of acts of terrorism by 
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a group of persons acting with common purpose of fiIrthering the acts of terrorism 
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where the contribution is made intentionally and -with the aim of furthering the acts of 
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terrorism or with the knowledge of the intention of the group to commit acts of 
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terrorism. 
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g) "Covered institution" refers to or shaw'have the same meaning as defined 
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under the AMLA, as amended. 
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h) Anti-Terrorism Council (ATe) - refers to the agency created by virtue of 
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Republic Act No. 9372, otherwise known as the Human Security Act of2007. 
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i) Anti-Money Laundering Council (ANlLC) - refers to the agency created by 
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virtue of Republic Act No. 9160, as amended, otherwise known as the "Anti-Money 
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Laundering Act of200 1, as amended". 
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SEC 4. Terrorist Financing. - Any person who. directly or indirectly, willfully 
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and unlawfully, provides, collects or uses property or funds or makes available 
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property, funds, financial service or other related services, by any means, with the 
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intention that these should be used or in the knowledge that these will be used, in full 
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or in part: (a) to carry out acts of terrorism; (b) by a terrorist entity or organization; or 
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(c) by an individual terrorist; shall be guilty of the crime of terrorist financing and 
II 
shall suffer the penalty of reclusion temporal in its maximum period to reclusion 
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perpetua and a fine of not less than Five Hundred Thousand Pesos (J4 500,000.00) nor 
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more than One Million Pesos (J4 1,000,000.00). 
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For purposes of this Act, knowledge may. be established by direct evidence or 
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inferred tl'om the attendant circumstances. 
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SEC. 5. Conspiracy to Commit Terrorist,Fillancing._Persons who conspire to 
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commit the crime of terrorist financing shall suffer the penalty ofrec1usion temporal 
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in its maximum period to reclusion perpetua and a fine of not less than Five 
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Hundred Thousand Pesos (J4 500,000.00) nor more than One Million Pesos (J4 
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1,000,000.00). 
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There is conspiracy when two or more persons come to an agreement to commit 
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terrorist financing as herein detined and decide to commit the same. 
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SEC. 6. Accomplice. - Any person who, not being a principal under 
Article 17 of the Revised Penal Code or a conspirator as defined in Section 5 
hereof, cooperates in the execution of either the crime of terrorist financing or 
conspiracy to commit terrorist financing by previous or simultaneous acts 
shall suffer the penalty one degree lower than that prescribed for the 
conspirator. 
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SEC. 7. AccessOIY. Persons who having knowledge of the commission of the 
crime of terrorist financing but without having participated therein as a principal take 
part, subsequent to its commission, by profiting themselves or assisting the principal 
or principals to profit by the effects of thc crime, or by concealing or destroying the 
effects of the crime in order to prevent its discovery, or hy harboring, concealing or 
assisting in the escape of the principal of the Cril!le shall be guilty as an accessory to 
the crime of terrorist financing and shall suffer the penalty two degrees lower .than 
that prescribed for principals in the crime of terrorist financing. 
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SEC. 8. Prohibition Agail1st Use or Possession of Property or Funds for 
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Terrorism Pwposes. - Every person who (a) uses property or funds, directly or 
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indirectly, in whole or in part, for the purpose of facilitating or carrying acts of 
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terrorism~ or (b) possesses property or funds intending that it be used or knowing or 
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having reasonable ground to believe that it will be used, directly or indirectly, in whole 
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or in part, for the purpose of facilitating or carrying out acts of terrorism shall be 
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guilty as a principal in the crime of terrorist financing. 
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SEC. 9. Prohibition Against Dealing witl,; Property 01' Funds of Terrorists. -
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It shall be unlawful for any person to (a) deal directly or indirectly, with any property 
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or funds that he knows or has reasonable ground to believe is owned or controlled by 
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or on behalf of any terrorist, terrorist entity or organization, including funds derived or 
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gcnerated fi-om property or funds owned or con}rolled, directly or indirectly, by any 
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terrorist, terrorist entity or organization; (b) enter into or facilitate, directly or 
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indirectly, any financial transaction related to a dealing in property or funds owncd or 
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controlled by or on behalf of any terrorist, terrorist entity or organization; or (c) 
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provide any financial service or any other related services with respect to any property 
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or flmds owned or controlled by, or on behalf or 'for the benefit of, or on the direction 
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or order ol~ any terrorist, terrorist entity or organization. 
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Any person who violates this section shall be guilty as a principal in the crime 
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ofterrorist financing. 
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SEC. 10. Offense by a Juridical Person or Corporate Body. If the offender is a 
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corporation, association. partnership or any juridical pcrson, the penalty shall be 
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imposed upon the responsible officers, as the case may be, who participated in, or 
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allowed by their gross negligence, the commission of the crime. If the offender is a 
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juridical person, the court may suspend or revoke· its license. If the offender is an alien, 
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he shall, in addition to the penalties herein prescribed, be deported without further 
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proceedings after serving the penalties herein prcscribed. If the olIender is a public 
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onicial or employee, he shall, in addition to tl;te penalties prescribed herein, suffer 
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perpetual or temporary absolute disqualification as the case may be. 
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SEC. II. Jurisdiction over Terrorist Financing and Related Cases. - The 
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Regional Trial Court shall have original jurisdiction over all cases of terrorist 
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financing and othcr violations of this Act. 
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SEC. 12 Authority to Freeze. -
The Court of Appeals, upon ex parte 
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application by the AMLC and alter determination that probable cause exists that any 
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property or funds are in any way related to terrorist financing as defined in Section 4 
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hererof, may issue a t!'eeze order which shall be 9ffective immediately. 
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The freeze order shall be effective for a period not exceeding thirty (30) days. 
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Upon a petition filed by the AMLC before the expiration of the period. the effectivity 
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or the t!'eeze order may be extended for a perio.C! not exceeding six (6) months upon 
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order of the Court of Appeals, provided that thc'thirty (30)-day period shall be tolled 
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upon tiling of a petition to extend the effectivity of the freeze order. 
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Notwithstanding the provisions of the preceding paragraphs, the AMLC may 
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issue a freeze order, which shall be effective immediately, to implemenUhe binding 
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conventions, directives or resolutions of the United Nations, its Security Council and 
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other relevant UN oftkes and committees against terrorism and terrorist financing. 
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The freeze order shall be effective until the basis for the issuance thereof shall have 
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been lifted. During the effectivity of the freeze, an aggrieved party may, within thirty 
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(30) days from issuance, file with the Court of Appeals a petition to determine the 
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basis of the t!'eeze order. 
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SEC. 13. Predicate offellse to mOlley laundering. Terrorism financing and 
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other violations under this Act shall be a predicate offense to money laundering as 
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delined in the Anti-Money Laundering Act of20PI, as amended. 
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SEC. 14. Cil'iIIOl:feiture= The procedure for the civil forfeiture of property or 
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funds {aund to bc in any way related to terrorist, financing or other violations of this 
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Act shall be made in accordance with the AMLA, as amended, its Revised 
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Implementing Rules and Regulations and the Rllies of Procedure promulgated by the 
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Supreme Court. 
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SEC. 15. Extra-Territorial Application (Jlthis Act. Subject to the provisions of 
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existing treaties, including the 1999 International Convention for the Suppression of 
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the Financing of Tcrrorism, to which the Philippines is a State Party, and to any 
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contrmy provision of any law of preferential application, the provisions of this Act 
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shall apply: (a) to individuals who commit any of the crimes defined and punished in 
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this Act within the terrestrial domain, interior waters, maritime zone, and airspace of 
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the Philippines; (b) to individuals who, although physically outside the territorial limits 
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of the Philippines, commit, conspire or plot to commit any of the crimes defined and 
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punished in this Act inside the territorial limits of the Philippines; (c) to individuals 
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who, although physically outside the tcrritorial lilTlits of the Philippines, commit any of 
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the said crimes on board a Philippine ship or Philippine airship; (d) to individuals who 
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commit any of said crimes within any embassy, consulate, or diplomatic premises 
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belonging to or occupied by the Philippine government in an official capacity; (e) to 
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individuals who, aUhough physically outside th"i territorial limits of the Philippines, 
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commit said crimes against Philippine citizens or persons of Philippine descent, where 
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their citizenship or ethnicity was a factor in the ,commission of the crime; and (f) to 
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individuals who, although physically outside the territorial limits of the Philippines, 
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commit said crimes directly against the Philippine government. 
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The provisions of this Act shall likewise apply to a Filipino national who, 
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although outsidc thc territorial jurisdiction or ,he Philippincs, commits, conspires or 
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plots to commit any of the crimes defined and punished in this Act. 
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SEC 16. Extradition. The Philippines ,hall negotiate thc inclusion of terrorist 
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financing as herein defined among extraditable offenses in all future treaties_which it 
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may enter into after the etfectivity ofthis Act. 
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SEC. 17. Applicability of the Revised Pelwl Code. - The provisions of Book I 
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of the Revised Penal Code shall be applicable to this Act. 
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SEC 18. Separability Clause. - If, for any reason, any provision of this Act is 
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declared invalid or unconstitutional, the remaining provisions not affected thereby 
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shall continue to be in force and effect. 
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SEC 
19~ Repealing Clause. -
All laws, decrees, executive orders, 
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proclamations, rules and regulations, and other issuances, or parts thereof, which are 
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inconsistent with the provisions of this Ace are hereby repealed or modified 
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accordingly. 
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SEC 20,- Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its publication in the Official Gazette or in af least two (2) newspapers of general 
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circulation, whichever is earlier. 
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Approved, 
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