Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

‘ 926
House Bill No.

Introduced by Honorable Czarina D. Umali

EXPLANATORY NOTE

The recent spate of bank robberies which appears to be the handiwork of highly
professional criminal syndicates has installed serious apprehension in the hearts of bank
depositors. This is aggravated by the fact that the police authorities appear ineffective, if
not helpless, in dealing with these criminal incursions.

It is no argument to say that the deposits are insured by the government to a
limited extent. What is at stake here is the eroding confidence of the public in deposi
taking banks, which, if unchecked, may be serious enough to undermine the banking
system, There is therefore the imperative need to assure bank depositors that their funds
are safe, beyond the reach of criminal syndicates.

The attached bill seeks to help ensure the safety of bank deposits and funds
thereby strengthening the operations of banking institutions. IT intends to do this by
authorizing all banking institutions recognized and accredited by the Bangko Sentral ng,
Pilipinas (BSP) to provide special security services of their banking activities and
operations and to procure and possess firearms for security purposes.

The necessary rules and regulations shall be implemented by the Philippine
National Police, having in mind the reason for the law.

In this light, approval of the bill is strongly urged.

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Ay ma

Hon{)CZARINA D. UMALL

Representative

3“ District, Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No. $2.5

Introduced by Honorable Czarina D. Umali

AN ACT
TO HELP INSURE THE SAFETY OF BANK DEPOSITS AND FUNDS
THEREBY STRENGTHENING THE OPERATIONS OF BANKING
INSTITUTIONS AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives in Congress assembled:

Sec. 1. . > Itis the policy of the State to provide fullest
protection to bu: in the pursuit of their legitimate concerns. Towards this
end, the government shall strive to ensure the safety of business transactions that
particularly relate to the handling and transfer of deposits and funds of banking
institutions in the country.

Sec. 2. Right to Secure Bank Premises and Possess Firearms, - All banking
institutions recognized and accredited by the Bangko Sentral ng Pilipinas (BSP) shall
have the right to provide special security services for their banking activities and
safeguard such activities and operations.

‘The term “firearms” shall mean a gun of any caliber designed and intended to be
aimed and fired from one hand, which may either be revolvers or automatic or semi-
automatic magazine pistols or any shotgun, rifle of any caliber or any high-powered gun,
semi-automatic, most suitable for bank security purposes,

Sec. 3. Limitations and Conditions. - A bank head office or any of its branches
shall be allowed to carry or use a maximum of five (5) high powered firearms only, such
as armalite rifles or machine pistols. The others shall be allowed to use lower caliber
firearms only.

The Philippine National Police (PNP) shall have the sole authority of issuing the
necessary licenses and permits to carry such high powered firearms.


No bank security personnel shall be authorized to carry firearms under this Act
unless he is shown to possess the following qualifications:

a. He must be a college graduate with appropriate security training of its
equivalent;

b. He must belong to a licensed security agency;

c. He must have passed a medical psychiatric examination

Sec. 4. Authorized Places. - ‘The right to carry firearm shall be strictly limited to
the premises of the bank being secured which shall include the carrying of the firearms
in going to and returning from one bank branch or office to another as may be necessary
in the carrying out of bank activities or operations. In all cases, the bank security
personnel shall exercise the highest degree of care in the carrying of firearms,

Sec. 5. Fees. - On the registration and thereafter on or before the first day of June
of each year, every holder or possessor of a high powered firearm under this Act shall
pay to the Philippine National Police a gun license, including permit to carry such
firearms, fee of Two Thousand Pesos (P2,000.00) for each high-powered gun or machine
pistols.

Sec. 6. Firearms Regulation. - The bank shall maintain a central registry of all
firearms and security personnel in its employ covered by this Act and shall submit a
periodic annual report thereon to the Philippine National Police, including the
procurement, issuance or distribution, loss or transfer of the said firearm.

Sec. 7. Implementing Rules and Regulations. - The Philippine National Police
shall promulgate the necessary rules and regulations governing the use and registration of
firearms and such matters necessary for the effective implementation of this Act.

Sec. 8. Penalty, ~ The maximum penalty of imprisonment for twelve (12) years
and a fine not exceeding One Hundred Thousand Pesos (P100,000.00) shall be imposed
upon the President or branch manager of the banking institution for violation of any
provisions of this Act or any rule or regulation promulgated herewith shall be forfeited in
favor of the Philippine National Police.

Sec. 9. Repealing Clause, ~ All laws, decrees, orders, letters of instruction, rules
and regulations and other issuances or parts thereof, inconsistent herewith are hereby
repealed or modified accordingly.

Sec. 10. Effectivity. ~ This Act shall take effect fifteen (15) days after
publication in at least two (2) newspapers of general circulation.

Approved.