Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL No. 1628

Introduced by Representatives
DAVID “JAY-JAY” C. SUAREZ, BEINVENIDO M. ABANTE JR. ROMEO M. ACOP,
FRANCISCO PAOLO C. ORTEGA, ZIA ALONTO ADIONG, JEFFERSON F. KHONGHUN
ERNESTO M. DIONISIO, JR., RAMON RODRIGO L. GUTIERREZ, LORDAN G. SUAN,
GERVILLE “JINKY BITRICS” R. LUISTRO, FLORES, JONATHAN KEITH T.

EXPLANATORY NOTE

This proposed measure seeks to authorize the civil forfeiture of real property
unlawfully acquired by foreign nationals, ensuring that such assets are transferred in
favor of the State.

The Philippine Constitution clearly prohibits land ownership by foreigners, a
longstanding policy rooted in the national interest. Article XII, Sections 7 and 8 of the
1987 Constitution reaffirm this restriction by stating that, except in cases of hereditary
succession, the ownership and transfer of private lands are limited only to individuals
or entities qualified to hold land of the public domain. An exception exists for natural
born Filipinos who have lost their citizenship, allowing them to acquire land within the
limitations set by law.

This constitutional safeguard has existed since the 1935 Constitution and
highlights the importance of reserving the country’s most finite and valuable resource
—its land—for the benefit of Filipinos.

In recent years, however, the spread of Philippine Offshore Gaming Operators
(POGOs), many operated by foreign nationals, has exposed major loopholes in the
enforcement of this constitutional protection. Investigations have revealed that certain
foreign individuals involved in POGO operations have used fraudulent schemes to
bypass the land ownership restriction. These include acquiring fake birth certificates,
passports, and driver's licenses, often with the assistance of corrupt officials from local
civil registry offices, the Department of Foreign Affairs, and the Land Transportation
Office.

Using these falsified documents, foreign nationals have posed as Filipinos and
acquired land illegally. This misuse of public records not only violates the Constitution
but also weakens the credibility of state institutions and the legal framework meant to
protect national interests.


The issue is even more pressing given that many of these violators have ties to
the POGO industry, which has already been ordered to cease operations by President
Ferdinand R. Marcos Jr. due to its link to various forms of criminal activity, including
human trafficking and drug-related offenses.

This measure seeks to reinforce existing constitutional provisions, provide for
the forfeiture of real property acquired through illegal means, and allocate these
properties for public benefit. It also proposes to strengthen coordination among
government agencies to ensure stricter enforcement and to prevent future abuse.

During the 19t Congress, several lawmakers called for the forfeiture of assets
connected to illegal POGO operations. This bill establishes the legal basis for such
action and ensures that violators are held accountable.

This proposed legislation was deliberated on by the House Committee on Justice
during the 19th Congress in two separate meetings, reflecting the urgency of the issue
and the need for clear legislative action.

In view of the foregoing, the immediate approval of this bill is respectfully and
strongly recommended.

NVEI 7 ABANTE JR

FRANCI PAOLO C. ORTEGA

RAMON RODRIGO L. GUTIERREZ

FLORES, JONATHAN\KEITH T.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NO. 162 8

Introduced by Representatives

DAVID “JAY-JAY” C. SUAREZ, BEINVENIDO M. ABANTE JR. ROMEO M. ACOP,
FRANCISCO PAOLO C. ORTEGA, ZIA ALONTO ADIONG, JEFFERSON F. KHONGHUN
ERNESTO M. DIONISIO, JR., RAMON RODRIGO L. GUTIERREZ, LORDAN G. SUAN,

GERVILLE “JINKY BITRICS” R. LUISTRO, FLORES, JONATHAN KEITH T.

AN ACT
PROVIDING FOR CIVIL FORFEITURE IN FAVOR OF THE STATE ANY
UNLAWFULLY ACQUIRED REAL ESTATE PROPERTIES BY ANY FOREIGN
NATIONAL

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

SEC. 1. Short Title.- This Act shall be known as the “Civil Forfeiture Act.”

SEC. 2. Declaration of Policy. - It is the policy of the State to preserve the
ownership of land for Filipinos. Save in cases of hereditary succession, no private
lands shall be transferred or conveyed except to individuals, corporations, or
associations qualified to acquire or hold lands of the public domain. Toward this
end, the State shall adopt measures to monitor the transfer of ownership of lands
and institute civil forfeiture proceedings if any land is transferred to unqualified
foreign national.

SEC 3. Civil Forfeiture.- Any real estate property transferred or conveyed to
unqualified foreign national, natural or juridical, in violation of the Constitutional
prohibition is null and void and vests no rights and creates no obligations.

On behalf of the Republic of the Philippines, the Solicitor General shall
institute the civil forfeiture proceedings and may delegate the same to the National
Prosecution Service of the Department of Justice.

SEC. 4. Presumption. - Except as otherwise allowed by law, any real estate
property acquired by any foreign national in the Philippines shall be presumed
prima facie to have been unlawfully acquired.


SEC. 5. Filing and venue of the petition. - Any taxpayer may file a complaint
before the City or Provincial Prosecutor who shall conduct a preliminary
investigation and certify to the Solicitor General that there is a reasonable ground
to believe that a violation of the prohibition on foreign land ownership was
committed and respondent foreign national is probably guilty thereof.

Upon proper determination, the Solicitor General shall, file a petition for
civil forfeiture before the regional trial court of the judicial region where the real
estate property is located.

SEC. 6. Contents of the petition for civil forfeiture.- The petition shall contain
the following information:

a. The name and address of the respondent foreign national;

b. A description with reasonable particularly of the real estate property;
and

c. Such other information as may enable the court to determine whether
or not the respondent foreign national has unlawfully acquired real
estate property.

SEC. 7. Period for the answer.- The responded foreign national shall have a
period of fifteen (15) days to answer the complaint or petition from the receipt
thereof from the city or provincial or prosecutor or the regional trial court.

SEC. 8. Immunity. - The Solicitor General may grant immunity from criminal
prosecution to any person who testifies to the unlawful manner by which an
unqualified foreign national has acquired the real estate property in question in
cases where such testimony is necessary to probe that the subject real estate
property was unlawfully acquired.

SEC. 9. Effect of record of title.- The fact that the real estate property has been
recorded in the Registry of Property or office of the Register of Deeds in the name
of the foreign national or of any person in collusion with the former shall not
preclude the institution of civil forfeiture proceedings.

SEC. 10. Disposal.- The real estate property successfully acquired through the
civil forfeiture proceedings shall be disposed in the following manner:

a. If the real estate property is agricultural land, the land shall be
distributed to qualified farmers in coordination with the Department of
Agrarian Reform; and

b. If the real estate property is non-agricultural land:

1. The land shall be used for the establishment of schools, hospitals
and other establishments for socialized services; or

2. The land may be donated to the local government ul
land is located and shall be used for social services fac

where the
ies.

The President of the Philippines, however, may order that the non-
agricultural land, after determining that the establishment of social service
facilities, such as schools and hospitals, is no longer necessary, be turned-over to


the Privatization and Management Office of the Department of Finance for its
disposal.

SEC. 11. Monitoring and Reporting. - The Land Registration Authority shall
monitor any transfer or conveyance of lands and immediately report to the Solicitor
General any suspicious transfer or conveyance to any foreign national, taking into
account Commonwealth Act No. 108, as amended, commonly known as the “Anti-
Dummy Law.”

SEC. 12. Role of Local Government Units. - The local government units (LGUs)
shall, likewise, monitor any transfer of real estate properties within their territorial
jurisdiction and immediately report to the Solicitor General any suspicious transfer
to any foreign national. Further, the LGUs shall monitor and ensure that the real
estate properties in their territorial jurisdiction are utilized for the purpose as
appearing in the tax declaration.

SEC. 13. Implementing Rules and Regulations. - Within ninety (90) days from
the approval of this Act, the Solicitor General shall, in coordination with the
Secretaries of Finance, Justice, Agrarian Reform, and the Chairperson of the Anti-
Money Laundering Council, promulgate the pertinent rules and regulations for the
effective implementation of this Act.

SEC 14. Separability Clause. - If any provision or part of this Act is declared
unconstitutional, the remaining parts provisions not affected shall remain force and
effect.

SEC. 15. Repealing Clause.- A\| other laws, decrees, orders, rules and regulations
or other issuances or parts thereof inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 16. Effectivity.- This Act shall take effect fifteen (15 days) after its
publication in the Official Gazette or in newspaper of general circulation.

Approved,