Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
+. Second Regular Session

HOUSE BILL 8076

Introduced by REP. Michael L. Romero.

EXPLANATORY NOTE

In the Republic of the Philippines, it shall be a policy thal, Any person, natural
or juridical, may, in accordance with the provisions of this Act, deposit with
such Philippine banks in good standing, as may, upon application, be
designated by the Central Bank for the purpose, foreign currencies which are
acceptable as part of the international reserve, except those which are
required by the Central Bank to be surrendered in accordance with the
provisions of Republic Act 265

This House Bill seeks to foster the Security, Withdrawability and Transferability of
Foreign Deposits, and to provide stiffer penalties and sanctions for violations.

Thus, the early passage of this bill is eamesily requested,



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
Second Regular Session

6076

HOUSE BILL NO.

Introduced by REP. Michael L. Romero

AN ACT

AMENDING REPUBLIC ACT NO.6426 OTHERWISE KNOWN AS THE
“FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES”, TO
FOSTER A MORE EFFICIENT FOREIGN DEPOSIT POLICY THAT
WILL ENABLE FINANCIAL INSTITUTIONS TO REDUCE THEIR OVER-
ALL SECURITY RISK, TO CONTRIBUTE TO A HEALTHIER AND
MORE STABLE FINANCIAL SYSTEM, AND FOR OTHER PURPOSES.

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

SECTION 1. DECLARATION OF POLICY ~ it shall hereby be a policy

of the state to:
(1) To accept deposits and to accept foreign currencies in trust:

Provided, That numbered accounts for recording and servicing of

said deposits shall be allowed;
(2) To issue certificates to evidence such deposits;

(3) To discount said certificates;


(4) To accept said deposits as collateral for loans subject to such rules
and regulations as may be promulgated by the Central Bank from time.
to time; and

(5) To pay interest in foreign currency on such deposits.

SECTION 2.

Section 10 of Republic Act No. 6426, is hereby amended to read as follows:

SECTION 10. Penal Provisions — Any willful violation of this Act or any
regulation duly promulgated by the Monetary Board pursuant hereto
shall subject the offender upon conviction to an imprisonment of not
less than three (3) years nor more than six (6) years or a fine of not less
than One hundred thousand pesos (P100,000.00) nor more than three
hundred thousand pesos (P300,000.00) or both such fine and

imprisonment at the discretion of the court.

SECTION 3. TRANSITORY PROVISION ~ Existing indusiries, businesses
and offices affected by the implementation of this Act shall be given
six (6) months transitory period from the effectivity of the IRR or such
other period as may be determined, to comply with the requirements
of this Act.

SECTION 4, IMPLEMENTING RULES AND REGULATIONS. - The
departments and agencies charged with carrying out the provisions of
this Act shall, within sixty (60) days after the effectivity of this Act,
formulate the necessary rules and regulations for its effective
implementation.


SECTION 5. REPEALING CLAUSE. - All laws, decrees, executive
orders, rules and regulations, or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SECTION 6. SEPARABILITY CLAUSE. ~ |i, for any reason, any section
‘or provision of this Act is held unconstitutional or invalid, the other
sections or provisions hereof shall not be affected thereby.

SECTION 7. EFFECTIVITY CLAUSE. - This Act shall take effect after
fifteen (15) days from its publication in the Official Gazette or in at least
two (2) national newspapers of general circulation whichever comes
earlier.

Approved,