Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

FIFTEENTH CONGRESS
First Regular Session

2158

HOUSE BILL NO.

Introduced by: Representative Karlo A. B. Nograles

EXPLANATORY NOTE

The brazen and brutal terrorist attacks in the United States on September 11,
2001 have forever change the face of terrorism as it exposed the other half thereof
which is terrorism financing. Following the tragic events we now dreadfully remember
as 9/11, the Financial Action Task Force, the financial watchdog created by the Group of
Seven (G-7) Nations, developed the international standards to combat and suppress
terrorism financing.

In October 2001, the FATF issued the Eight Special Recommendations to deal
with the issue of terrorism financing. Three years later, the FATF published a Ninth
Special Recommendation further strengthening the agreed international standards
against terrorism financing thereby completing the FATF 40-plus 9 Special
Recommendations.

On 16 November 2001, following the enactment of the AMLA, the Philippines
signed the 1999 United Nations Convention for the Suppression of the Financing of
Terrorism. The UN Convention was ratified by the Senate on 14 October 2003 and
requires all States to criminalize the financing of terrorism separately from the act of
terrorism. In other words, terrorism financing should be criminalized as a stand-alone
offense.


The need to separately criminalized terrorist financing is one of the specific
requirements set by FATF, particularly under Special Recommendation NO. 11 which
provides that:

Each country should criminalize the financing of terrorism, terrorist acts
and terrorist organizations. Countries should ensure that such offenses
are designated as money predicate offences.

In the 2008 Detailed Assessment of the Philippine jointly conducted by the World
Bank and the Asia/Pacific Group on Money Laundering, the Philippines was not only
rated non-compliant with Special Recommendation No. 11 but was also adjudged non-
compliant with Special Recommendation No. 1 for its failure to fully related Resolutions
issued by the United Nations Security Council.

The Philippines has been rated non-compliant by our peers in the Asia/Pacific
Group as well as by the FATF-member nations for its to fully implement the UN
Conventions and other international instruments against terrorism financing it signed
and ratified. It has failed to criminalize terrorism financing it signed and ratified. It has
failed to criminalize terrorism financing as a stand-alone offense separate and distinct
from the crime of terrorism.

The Philippines has been a victim of terrorism. There is no argument that
terrorism cannot be perpetrated without the actors. The actors cannot mobilize
without equipment and tools. Equipment and tools can only be acquired with funds
however and wherever acquired. Training for new terrorist recruits also requires
funding. Hence, terrorism can be effectively prevented by targeting and bringing to
justice its financiers.

Consequently, the Philippines just equip its authorities with the necessary tools
that directly impact on the funding sources of terrorist individuals and organizations
empowering them to freeze without delay and if needed, to interdict and promptly
forfeit funds intended to finance the commission of act of terrorism.


This bill is intended not only to comply and honor our international commitments
under the various international instruments against terrorism financing but also and
more importantly to ensure the safety and security of our country and its people from
the horrors of terrorism.

The early passage of this bill is strongly recommended.

KARLO A.B. NOGRALES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.___ 2.158

Introduced by: Representative Karlo A. B. Nograles

AN ACT CRIMINALIZING THE FINANCING OF TERRORISM AND
FOR OTHER PURPOSES

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

Section 1. Short Title. — This Act shall be known as the “Suppression of the
Financing of Terrorism Act of 2010”.

Section 2. Declaration of Policy. — It is the declared policy of the State to
protect life, liberty and property from all acts of terrorism and the financing
thereof. Consisting with its foreign policy, the State shall extend cooperation in
the transnational investigation and prosecutions of persons involved in terrorism
financing activities wherever committed.

Section 3. Definitions. — For purposes of this Act, the following terms are
hereby defined as follows:

(a.)“Terrorism” shall refer to the crime penalized under Section 3
of Republic Act No. 9372, otherwise known as the “Human
Security Act of 2007”,

(b.)“Funds” shall mean assets of every kind, whether real or
personal, tangible or intangible, movable or immovable,
however acquired or regardless of its sources and legal
documents or instruments in any form, including electronic or
digital, evidencing title to, or interest in, such assets, including


but not limited to, cash, bank credit, travellers cheques,
money orders, shares, securities, bonds, drafts, letter of
credit and other monetary instruments.

Section 4. Terrorism financing; how committed, The crime of terrorism
financing is committed by:

a.) Any person who, by any means, directly or indirectly,
unlawfully and wilfully, provides, contributes or collect
funds with the intention that such funds are to be used or
with the knowledge that they are to be used, in full or in
Part to carry out terrorism;

b.) Any person who organizes or direct others to commit the
offense under Section 4 (a);

c.) Any person who participates as an accomplice or accessory
in the offense set forth in Section 4 (a) aforementioned;

For purposes of Section 4, it shall not be necessary that the crime of
terrorism be actually committed or that the funds were actually used to
carry out terrorism.

Section 5. Conspiracy to commit terrorism financing. — It shall be unlawful
for any person to conspire to commit terrorism financing. There is conspiracy
when two or more persons come to an agreement to commit the crime of
terrorism financing as defined under Section 4 hereof and decide to commit it.

Section 6. Predicate offense to money laundering. - Terrorism financing
shall be a predicate offense to money laundering as defined and penalized under
Republic Act no. 9160, as amended.

Section 7. Extradition. - The Philippines shall negotiate for the inclusion of
‘terrorism financing as among the extraditable offenses in all future treaties.


Section 8. Penal Provisions. a.) Terrorism financing under Section 4 (a)
and (b) and conspiracy to commit terrorism financing under Section 5 shall be
penalized with forty (40) years imprisonment without the benefit of parole.

b.) An accomplice or accessory to the crime of terrorism financing under
Section 4 (c) shall be penalized with imprisonment ranging from seventeen (17)
years, four (4) months and one (1) day to twenty (20) years.

Section 9. Effectivity. — This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) national

newspapers of general circulation.

Approved.