~, .. 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
Second Regular Session 
'14 
AUG -4 P 4 :06 
SENA.TE 
S. No. 
~340 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PENALIZING RACKETEERS AND CRIMINAL ENTERPRISES, PROHIBITING 
SUCH CRIMINAL ENTERPRISES AND RACKETEER INFLUENCED AND 
CORRUPT ORGANIZATIONS FROM INFILTRATING, CONTROLLING OR 
OTHERWISE INFLUENCING PHILIPPINE COMMERCE 
EXPLANATORY NOTE 
The Constitution, Article II, Section 5 provides: 
The maintenance of peace and order, the protection of 
life, liberty and property, and the promotion of the general 
welfare are essential for the enjoyment by all the people of 
the blessings of democracy. 
Our country has gained notoriety as the regional headquarters of the criminal 
underworld in Asia due to the increasing incidence of syndicated and organized 
crimes. This situation is turther exacerbated by the fact that organized crimes are now 
infiltrating legitimate businesses to expand their empire and strengthen their 
operations. 
As it is the policy of the State to eradicate all forms of criminal enterprises, 
and their corrupting influence and control over legitimate entities engaged in lawful 
commerce, the government must expend efforts in adopting and implementing 
stronger measures aimed at neutralizing the economic base of criminal enterprises. 
Hence, this bill seeks to prevent organized crime from infiltrating businesses, 
and other economic entities by prohibiting syndicated gambling, racketeering and 


similar and halting pattern of infiltration of businesses by organized crimes through 
penalties and forfeiture ofthe proceeds of these racketeering activities.! 
I This bill was originally med during the Fourteenth Congress, First Regular session. 
2 


, . 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 
2340 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
'14 
AUG -4 P 4 :06 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
1 
AN ACT 
2 
PENALIZING RACKETEERS AND CRIMINAL ENTERPRISES, PROHIBITING 
3 
SUCH CRIMINAL ENTERPRISES AND RACKETEER INFLUENCED AND 
4 
CORRUPT ORGANIZATIONS FROM INFILTRATING, CONTROLLING OR 
5 
OTHERWISE INFLUENCING PHILIPPINE COMMERCE 
6 
7 
8 
SECTION 1. Short Title. - This Act shall be known as the "Anti-Racketeer 
9 
Influenced and Corrupt Organizations Act." 
10 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
11 
State to eradicate any and all forms of criminal enterprises, and its corrupting 
12 
influence and control over legitimate entities engaged in lawful commerce, as well as 
13 
prioritizing the enactment of laws with stronger measures aimed at neutralizing the 
14 
economic base of criminal enterprises. 
15 
SECTION 3. Definition of Terms. -As used in this Act, the following terms 
16 
shall mean: 
17 
(A) "Person" means any individual, association, partnership, corporation, 
18 
entity or any group of individuals, associations, corporations or entities, capable of 
19 
holding a legal interest in property. 
20 
(B) "Enterprise" includes any individual, association, partnership, corporation 
21 
or other legal entity or any union or group of individuals associated in fact although 
22 
not a legal entity. 
1 


" 
1 
(C) "Racketeering Activity" means any act involving kidnapping; murder, 
2 
mutilation; homicide; 8erious physical injuries; arson; robbery; theft; illegal 
3 
possession of firearm, ammunition or explosives; bribery and other graft and corrupt 
4 
practices; illegal gambling; carnapping; fencing; gunrunning; illegal logging; white 
5 
slavery or prostitution; illegal recruitment; smuggling; piracy; illegal fishing; illegal 
6 
importation; manufacture or sale of dangerous drugs and illegal maintenance of a 
7 
drug den; swindling «(:stafa); counterfeiting; monopolies; and combinations in 
8 
restraint of trade; falsification of land titles; securities fraud; bank frauds; dealing in 
9 
obscene matters and sexual and economic exploitation of the disabled and 
10 
mendicants as defined under existing criminal statutes. 
11 
(D) "Pattern of Racketeering Activity" requires at least two (2) acts of 
12 
racketeering activity one of which occurred after the effectivity date of this Act, and 
13 
the other occurring within ten (IO) years (excluding any period of imprisonment) 
14 
after the commission of a prior act of racketeering activity. 
15 
(E) "Racketeer Investigator" means any attorney or investigator or Secretary 
16 
of Justice and charged with the duty of enforcing or carrying this Act into effect. 
17 
(F) "Department" refers to the Department of Justice. 
18 
(0) "Secretary" refers to the Secretary of Justice. 
19 
SECTION 4. Prohibited Activities. -
20 
(A) It shall be unlawful for any person who has received any income or 
21 
benefit, either directly or indirectly, from a pattern of racketeering activity, to use or 
22 
invest, directly indirectly, any part of such income or benefit, or the proceeds of such 
23 
income or benefit, in acquisition of any interest in, or the establishment or operation 
24 
of, any enterprise which is engaged in, or the activities of which affect commerce. 
2 


1 
(B) It shall be unlawful for any person through a pattern of racketeering 
2 
activity to acquire or mai.ntain, directly or indirectly, any interest in or control of any 
3 
enterprise which is engaged in, or the activities of which affect commerce. 
4 
(C) It shall be unlawful for any person employed by or associated with any 
5 
enterprise engaged in, or the activities of which affect commerce, to conduct or 
6 
participate, directly or indirectly, in the control of such enterprise's affairs though a 
7 
pattern of racketeering activity. 
8 
SECTION 5. Criminal Penalties.-
9 
(A) Imprisonment or fine or both - Any person found guilty or convicted by 
10 
final judgment of violating any of the prohibited activities enumerated in Section 4 
11 
above, shall be punished by imprisonment of not less than ten (10) years nor more 
12 
than twenty (20) years, and if the violation is based on a racketeering activity for 
13 
which the maximum penalty includes life imprisonment or death, the death penalty 
14 
for violating any provision of Section 4 above, shall likewise be life imprisonment or 
15 
death, and a fine ranging from One Hundred Thousand pesos (PI00,000.00) up to 
16 
One Million pesos (PI,OOO,OOO.OO); 
17 
(B) Forfeiture - In addition to imprisonment and fine, the defendant shall 
18 
forfeit to the Government: 
19 
(1) any interest the defendant has acquired or maintained in violation of 
20 
Section 4; 
21 
(2) any interest in, security of, claim against, or property or contractual 
22 
right of any kind affording a source of influence over any enterprise which the 
23 
defendant has established, operated, controlled, conducted, or participated in 
24 
the conduct of, in violation of Section 4: and 
3 


, , 
1 
(3) any property constituting or derived from any proceeds which the 
2 
defendant obtained, directly or indirectly, from racketeering activities in 
3 
violation of Section 4, 
4 
If any of the properties described in Section 5(B), as a result or omission of 
5 
the defendant, cannot be located even with the exercise of due diligence; or has been 
6 
transferred or sold to, or deposited with a third party; or has been placed beyond the 
7 
jurisdiction of the courts; or has been substantially diminished in value; or has been 
8 
commingled with other property which cannot be divided without difficulty, the court 
9 
shall order the forfeiture of any other property of the defendant up to the value of any 
10 
property described in Section 5(B), 
11 
SECTION 6, Jurisdiction, - The Regional Trial Court exercising jurisdiction 
12 
over the place where anyone of the elements constituting an act of racketeering 
13 
activity is committed, resulting in a pattern of racketeering activity, shall exercise 
14 
exclusive original jurisdiction over criminal prosecutions for violation of any 
15 
provisions of this Act, as well as over applications for the issuance and grant of 
16 
applicable provisional remedies under the Rules of Court filed in relation to said 
17 
criminal prosecutions, which provisional remedy may include attachment, and/or 
18 
injunctions with prayer for the issuance of a temporary restraining order, as well as 
19 
the forfeiture of property provided for under this Act, regardless pf the place or 
20 
location of any property object of the provisional remedy sought or subject of 
21 
forfeiture, the residence of the defendants, or the location of the enterprise of the 
22 
defendant. 
23 
SECTION 7. Temporary Restraining Order (TRO). - For purposes of securing 
24 
a temporary restraining order from the court, there must be clear and convincing 
25 
evidence that the properties of the defendant which are sought to be restrained, where 
26 
involved in a violation of this Act, that such properties would be subject to forfeiture 
4 


I 
under provisions of this Act and that the government have reasonable grounds to 
2 
believe that defendant was likely to conceal or otherwise make the properties 
3 
inaccessible to the Government prior to conclusion of trial. 
4 
A temporary restraining order effective for a period of thirty (30) days may be 
5 
issued, with or without notice and hearing, depending on the exigencies of each case, 
6 
on or after the tiling of a sworn complaint with the Office of the Secretary of the 
7 
Department of Justice, but before the filing of the infonnation with the court. The 
8 
TRO may direct the defendant, or any person acting on his behalf, to cease and desist 
9 
from alienating, disposing, selling, assigning, conveying, transferring, or otherwise 
10 
concealing any interest or right of the defendant over his property. The applicant for 
11 
a TRO, without notice to the adverse party, must establish that there is probable 
12 
cause to engender a well-founded belief that the property of the defendant would be 
13 
subject to forfeiture under the provisions of this Act, and the notice to the adverse 
14 
party will jeopardize the availability of the property for forfeiture. 
15 
SECTION 8. Preliminary injunction. - Prior to the lapse of the effectivity of a 
16 
temporary restraining order, the court shall immediately conduct a hearing with 
17 
notice to all parties concerned, to determine if there is sufficient and valid grounds 
18 
for the issuance of a writ of preliminary injunction in favor of the Government, and 
19 
preponderance of evidence to support the finding that: 
20 
(A) The Government will prevail on the issue of forfeiture of properties of the 
21 
defendant; 
22 
(B) Failure to issue the writ will grossly prejudice public interest, or cause 
23 
grave and irreparable damage to the interests of the Government by undermining the 
24 
efforts to ensure that the, property will not be concealed, place in hiding, destroyed, 
25 
disposed or otherwise made unavailable for forfeiture; and 
5 


, . 
1 
(C) The need to preserve the availability of the property through the writ 
2 
outweighs the hardship on the adverse party against whom it is directed. 
3 
SECTION 9. Judgment of Forfeiture. -Upon conviction and a declaration of 
4 
guilt of the defendant by final judgment for violation of this Act, the Court shall enter 
5 
a judgment for violation of this Act, and the Court shall enter a judgment of forfeiture 
6 
of the property in favor of the Government, appointing the Secretary as receiver or 
7 
conservator of all property ordered forfeited, and who shall act subject to the court's 
8 
control and supervision. 
9 
SECTION 10. Disposition of Forfeited Property. - Following the seizure of 
10 
the property and upon compliance with paragraph (3), Section 5 of this Act, the 
11 
Secretary shall direct the disposition of the property by auction sale. Any property 
12 
right or interest is exercisable by or transferable for value to the government shall 
13 
expire and shall not revert to the defendant, nor shall the defendant or any person 
14 
acting in his behalf be eligible to purchase said forfeited property. 
15 
SECTION 11. Restitution of Property to Victims. - The court hearing the case 
16 
shall likewise hear petition of racketeering activity for restitution of property or 
17 
compensation. 
18 
SELECTION 12. Prohibition Against Intervention and Injunction. - (A) No 
19 
party claiming an interest in property subject to forfeiture may commence an action 
20 
nor intervene in a trial or appeal of a criminal case involving the forfeiture of such 
21 
property. 
22 
(B) No restraining order or injunction may issue against the Government 
23 
concerning the validity of its interest in the property subject to forfeiture. 
24 
25 
SECTION 13. Rights of Third Parties. - Any person, other than the defendant 
26 
asserting a legal interest in property ordered forfeited may, within thirty (30) days 
6 


• 
1 
from publication by the Secretary of the judgment of forfeiture in two (2) national 
2 
newspaper of general circulation in the Philippines, petition the court for a hearing to 
3 
adjudicate the validity of his alleged interest in the property. While the petition is 
4 
pending resolution, the Secretary of Justice shall not sell or otherwise dispose of the 
5 
property forfeited. If after hearing, the court determines that the petitioner has 
6 
established by preponderance of evidence that -
7 
(A) the petitioner has a legal right, or interest in the property; or 
8 
(B) the petitioner is a bona fide purchaser for value ofthe right, title or interest 
9 
in the property and was at the time of purchase reasonably without cause to believe 
10 
that the properly was acquired through a racketeering act or otherwise subject to 
11 
forfeiture in accordance with such determination. 
12 
SECTION 14. Civil Remedies.-
13 
(A) Where to file - Any of the Regional Trial Courts of the place where any 
14 
element of any racketeering activity constituting a pattern of racketeering activity has 
15 
been committed, shall have jurisdiction to prevent or restrain violations of Section 5 
16 
irrespective of where the defendant resides or is found, or where the enterprise or 
17 
property is located, by issuing appropriate orders, including but not limited to: 
18 
(1) ordering any person to divest himself of any interest, direct or 
19 
indirect, in any enterprise; 
20 
(2) imposing reasonable restrictions on the future activities or 
21 
investments of any person including but not limited to, prohibiting any person 
22 
from engaging in the same type of endeavor as the enterprise engaged in; or 
23 
(3) ordering dissolution or reorganization of any enterprise, provision 
24 
for the rights of innocent persons. 
25 
(B) Who can file·· 
7 


1 
(1) The Secretary of Justice, or his duly authorized representative, may 
2 
institute proceedings under this Section in behalf of the Government; or 
3 
(2) Any person injured in his person, business or property by reason of 
4 
violation of Section 4 or his heirs, may sue therefore in the appropriate 
5 
Regional Trial Court mentioned in the preceding paragraph and shall recover 
6 
threefold the damages he sustains and the cost of the suit, including a 
7 
reasonable attorney's fees. 
8 
SECTION 15. Hearing Preference. - Notwithstanding any law civil action 
9 
instituted under this Section, the Regional Trial Court shall expeditiously hear the 
10 
case by giving it preference over all other civil cases. Trial once commenced, shall 
11 
continue from day to day, as far as practicable until terminated. 
12 
SECTION 16. Subpoena Powers. -
13 
(A) Wherever the Secretary has reason to believe that any person or enterprise 
14 
may be in possession or control of any documentary materials relevant to a 
15 
racketeering investigation, he may, prior to the institution of a criminal or civil 
16 
proceeding thereon, shall. in writing cause to be served upon such person or enterprise 
17 
a subpoena duces tecum requiring such person to produce such material for 
18 
examination. 
19 
(B) The Secretary shall designate a racketeering investigator to serve as 
20 
racketeer document custodian. 
21 
(C) Any person or enterprise who has duly been served the subpoena, shall 
22 
make available for inspection and copying or reproduction to the custodian 
23 
designated therein at any place designated in the subpoena, or as agreed upon, and 
24 
shall certify under oath that the copies shall be admissible in court as originals. 
8 


1 
(D) While in the possession of the custodian, no material so reproduced shall 
2 
be available for examination, without the consent of the person who produced such 
3 
material, by any individual other than the Secretary. 
4 
(E) Whenever any person or enterprise fails to comply with any subpoena, the 
5 
Secretary of Justice may file in the appropriate Regional Trial Court having 
6 
jurisdiction, a petition for an order of such cOUli for the enforcement of the subpoena; 
7 
Provided, that if the person disobeys the order of the court, he shall liable for 
8 
contempt of court. 
9 
SECTION 17. Rules and Procedures. - The Secretary of Justice shall adopt 
10 
rules and procedures: 
11 
(A) To govern its proceedings; 
12 
(B) To provide for the security of records, documents, information, and other 
13 
materials its custody and of its proceedings; 
14 
(C) To prevent unauthorized disclosure of information and materials disclosed 
15 
to it in the course of its inquiry; 
16 
(D) To provide the right counsel to all witnesses pursuant to subpoena; and 
17 
(E) To accord the full protection of all rights guaranteed by the Constitution. 
18 
SECTION 18. Statute of Limitations. - One of the predicate acts of 
19 
racketeering must have been committed within ten (10) years of the date of the 
20 
information otherwise violations this Act shall be deemed to have prescribed. 
21 
SECTION 19. Separability Clause. - If any provision or part hereof is held 
22 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
23 
affected shall remain valid and subsisting. 
24 
SECTION 20. Repealing Clause. - Any law, presidential decree or issuance, 
25 
executive order, letter of instruction, administrative order, rule or regulation contrary 
9 


1 
to, or inconsistent with, the provision of this Act is hereby repealed, modified or 
2 
~mended accordingly. 
3 
SECTION 21. Effectivity Clause. - This Act shall take effect fifteen days (15) 
4 
days after its publication in at least two (2) newspapers of general circulation. 
S 
6 
Approved. 
7 
8 
/dpm 
10