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3
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SIXTEENTH CONGRESS OF THE) i
REPUBLIC OF THE PHILIPPINES) DALE:
First Regular Session ) Tint.

s cs, BY:
House BiLLNo.__164 <

Introduced by HON. LEOPOLDO N. BATAOIL

EXPLANATORY NOTE

Since the enactment of the Revised Penal Code which defines and punish Robbery
and other crimes committed against bank and/or bank depositors, through the use of the
banking system or force and intimidation; efforts of the government to suppress its
commission have been insufficient. In the last five (5) years bank robberies had resulted to
staggering losses of more or less P252, 785, 943.78 and the death of numerous bank
employees and clients. Likewise, in other bank crimes such as Estafa, Swindling, Theft,
violation of Access Device Act, etc; the total losses amounted to more or less
P5,013,766,955.19. This amount does not include the losses on foreign currency
denomination

These types of criminal elements and fraudsters, if not decisively addressed, will
certainly erode public trust to the duly constituted authorities and undermines the stability of
the banking system. They steadily improve their organization and are going strong in number
and becoming more aggressive, daring and sophisticated in their nefarious activities in view
of the following factors:

a. Itis a lucrative endeavor for criminal elements;
b. Organizational and operational police problem resulting to insufficient/ineffective
solution to suppress the particular type of crime:

c. Absence of holistic legislation designed to discourage criminal elements by
increasing penalties, improved the police effort to maximize protection to the banking
system

In view of the foregoing, there is therefore a need for the immediate passage of a
holistic legislation designed to discourage criminal elements by: Strengthening the present
efforts of BSP, BAP and BSMA in proactively protecting the banking industry and increasing
the penalties for bank crimes and facilitating the recovery of the fruits of the crimes; and
creating a dedicated police unit to ensure a continuing integrated and coordinated national
campaign against bank robberies and other bank crimes.

Represfntative, 2” Diefrict of Pangasinan


SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

HOUSE BILL NO. i64

Introduced by HON. LEOPOLDO N. BATAOIL

3 EXPLANATORY NOTE

7 Since the enactment of the Revised Penal Code which defines and punish Robbery
8 and other crimes committed against bank and/or bank depositors, through the use of the
9 banking system or force and intimidation; efforts of the government to suppress its
10 commission have been insufficient. In the last five (5) years bank robberies had resulted to
11 staggering losses of more or less P252, 785, 943.78 and the death of numerous bank
12 employees and clients. Likewise, in other bank crimes such as Estafa, Swindling, Theft,
13. violation of Access Device Act, etc; the total losses amounted to more or less
14 P5,013,766,955.19. This amount does not include the losses on foreign currency
is denomination

Ty These types of criminal elements and fraudsters, if not decisively addressed, will
is certainly erode public trust to the duly constituted authorities and undermines the stability of
19 the banking system. They steadily improve their organization and are going strong in number
20 and becoming more aggressive. daring and sophisticated in their nefarious activities in view
21 _ of the following factors:

2 a. Itis a lucrative endeavor for criminal elements;

24 b. Organizational and operational police problem resulting to insufficient/ineffective
25 solution to suppress the particular type of crime;

26 c. Absence of holistic legislation designed to discourage criminal elements by
27 increasing penalties, improved the police effort to maximize protection to the banking
28 system

20

30 In view of the foregoing, there is therefore a need for the immediate passage of a

31 holistic legislation designed to discourage criminal elements by: Strengthening the present
efforts of BSP, BAP and BSMA in proactively protecting the banking industry and increasing
the penalties for bank crimes and facilitating the recovery of the fruits of the crimes; and
creating a dedicated police unit to ensure a continuing integrated and coordinated national
campaign against bank robberies and other bank crimes.

Represfntative, 2” Diefrict of Pangasinan


1

38

SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

House BiLLNo. 164

Introduced by HON. LEOPOLDO N. BATAOIL

EXPLANATORY NOTE

Since the enactment of the Revised Penal Code which defines and punish Robbery
and other crimes committed against bank and/or bank depositors, through the use of the
banking system or force and intimidation; efforts of the government to suppress its
commission have been insufficient. In the last five (5) years bank robberies had resulted to
staggering losses of more or less P252, 785, 943.78 and the death of numerous bank
employees and clients. Likewise, in other bank crimes such as Estafa, Swindling, Theft,
violation of Access Device Act, etc; the total losses amounted to more or less
P5,013,766,955.19. This amount does not include the losses on foreign currency
denomination

These types of criminal elements and fraudsters, if not decisively addressed, will
certainly erode public trust to the duly constituted authorities and undermines the stability of
the banking system. They steadily improve their organization and are going strong in number
and becoming more aggressive, daring and sophisticated in their nefarious activities in view
of the following factors

a. Itis a lucrative endeavor for criminal elements;

b. Organizational and operational police problem resulting to insufficient/ineffective
solution to suppress the particular type of crime;

c. Absence of holistic legislation designed to discourage criminal elements by
increasing penalties, improved the police effort to maximize protection to the banking
system

In view of the foregoing, there is therefore a need for the immediate passage of a
holistic legislation designed to discourage criminal elements by: Strengthening the present
efforts of BSP, BAP and BSMA in proactively protecting the banking industry and increasing
the penalties for bank crimes and facilitating the recovery of the fruits of the crimes; and
creating a dedicated police unit to ensure a continuing integrated and coordinated national
campaign against bank robberies and other bank crimes.

Represfntative, 2™ Djefrict of Pangasinan


SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

House sino. 14

Introduced by HON. LEOPOLDO N. BATAOIL _

BANK PROTECTION ACT OF 2013
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Policy. — It is the policy of the State to protect the integrity and stability of
the banking system from depredations of bank robbers and fraudster. The security of
investments and the availability of credit are permanent interests of the State.

SEC. 2. Objectives. — This Act is designed to:

(a) Ensure maximum protection of lives and property against bank robberies and other
bank crimes;

(b) Prevent bank crimes by making it difficult for or discouraging would-be robbers to
carry out their nefarious plans; and

(c) See to it that if robberies and fraudulent acts are indeed committed, bank
employees and other witnesses can effectively help law enforcement authorities in the
identification, eventual apprehension and successful prosecution of the perpetrators thereof.

SEC. 3. Definition of Terms. — For purposes of this Act, the following definition of
terms is hereby adopted unless the context clearly indicates otherwise:

(a) "Banking office" shall mean the main office of the bank or a branch and includes
an extension office, sub office, agencies or a money shop.

(b) "Banking hours" shall mean the time during which a banking office is open for the
normal transaction of business with the public.

(c) "Teller's station" or "window" shall mean a location in a banking office at which
bank customers routinely conduct transaction with the bank including a walk-up or drive-in
teller's station or window.

(4) "ATM" shall mean a machine that provides cash and performs other banking
services on insertion of a special card.

(e) "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, automatic or
semi-automatic, most suitable for bank security purposes

(f) “Bank Fraud" shall mean the use of fraudulent means to obtain money, assets, or
other property owned or held by a financial institution, or to obtain money from depositors by
fraudulently representing to be a bank of financial institutions.

(g) “Other bank crimes" means any of the acts defined under Articles 166, 167, 168,
169, 172, 315, and 316 of the Revised Penal Code, and Sec. 9 of RA # 8484 where the
banking system is used as a means of perpetrating the offense, including but not limited to,
unauthorized transfer of funds from one account to another or from one bank to another.


3

1 SEC. 4. Appointment of Chief Security Officer. — within sixty (60) days from the
2 effectivity of this Act, the board of directors of each bank shall appoint or designate a
3 qualified Chief Security Officer with adequate office staff, who shall be under the direct
4 supervision of the president and shall be responsible for the development and administration
5 of a security program and installation, maintenance and operation of security devices in
6 accordance with the standards to prescribed by the Banko Sentral ng Pilipinas (BSP) in
7 separate rules and regulations. In banks with twenty (20) or more branches, Chief security
8 _ officers shall be full time.

10 The chief security officer must be a least thirty five (35) years of age, a college degree
11 holder, with a least five (5) years of managerial/supervisory experience in either field of law
12 enforcement or security operations, of unquestionable integrity, of good moral character and
13 has not been convicted on any criminal offense: Provided, that a criminology graduate shall
14 be given credit equivalent in experience in view of his educational background

6 The Chief Security Officer shall be responsible for:
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8 a. The development and administration of a security program acceptable to BSP;

19

20 b. The conduct of continuing security awareness program among all bank employees
21 to highlight that security is a common concern;

2 c. Investigation of bank robberies/hold-ups, recommending the filing of appropriate
24 charges in court as the evidence may warrant and assisting in the prosecution of the
25 perpetrator(s) thereof,

26

2 d. The establishment of an effective working relationship with the BSP, Philippine

National Police (PNP) and other law enforcement agencies in the prevention of bank
crimes and other natural and manmade hazards; and

e. The conduct of continuing research and studies on new techniques, methods and
equipment to enhance bank protection measures.

For the purposes of the foregoing, a security management team headed by the Chief
35 Security Officer maybe constituted if warranted

37 SEC. 5. Security Program. — The security program of each bank shall be treated
38 with utmost confidentiality, approved by its board or directors and retain such forms as will
39 readily permit determination of its adequacy and effectiveness by the BSP. The security
40 program shalll include training in protection against robbery and violent crimes and training in
41 fraud and property crime. The security program shall likewise include measures against
42 fraud in accounts, measures to protect bank officials and personnel from kidnapping, and
43 measures to be undertaken during calamities.

45 SEC. 6. Security Devices. — Within sixty (60) days from the designation of the chief
46 security officer in the case of bank with less than ten (10) branches; eighty (80) days in the
47 case of a bank with ten (10) or more but less than twenty (20) branches; and one hundred
48 ninety (190) days in the case of a bank with twenty (20) or more branches, the chief security
49 officer shall, under the direction of the bank's president, conduct a security survey, and
so submit a report on the needed security devices in each bank's banking offices.

52 Within one (1) year from the effectivity of this Act, banks shall effect the installation,
53 maintenance and operation, as individually appropriate in its banking offices of

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35 (a) A lighting system for illuminating during the hours of darkness, the areas around
56 the vault, if the vault is visible from outside the banking office;

37

58 (b) Tamper-resistant locks on exterior doors and windows designed to be opened;

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(c) An. alarm system or other appropriate devices or an intermediary for promptly
notifying the nearest law enforcement team of an attempted or perpetrated
robbery; and

(@) Video cameras and such other devices as the chief security officer shall determine
to be appropriate for discouraging robberies and for assisting in the identification
and apprehension of persons who commit such acts: Provided, that the chief
security officer shall consider, among other things, the following

(1) The incidence of crime against the particular banking office and other business
establishment in the area in which the banking office is located;

(2) The amount of currency or other valuables exposed to robbery;

(3) The distance of the banking office from the nearest law enforcement officer and
the time ordinarily required for such law enforcement officers to arrive at the
banking office;

(4) The cost of the security devices;
(5) Other existing security measures in effect at the banking office; and
(6)The physical characteristics of the banking office structure and its surroundings

Each bank shall install, maintain and operate security devices which are expected to
give a general level of bank protection equivalent at least to the standards to be prescribed
by the BSP in separate rules and regulations, in consultation with the Bank Security
Management Association (BSMA)

SEC. 7. High-Powered Firearms. — In the protection of the bank premises and
their armored vehicles, a reasonable number of high-powered firearms shall be used upon
the recommendation of the bank chief security officer. In all cases, the bank chief security
shall ensure that bank security personnel exercise the highest degree of care in the carrying
of firearms

SEC. 8. Armored Vans. — The BSP shall, within six (6) months from the effectivity of
this Act, establish minimum standards for armored vehicles, including the types of and
standards for security devices contained inside such vehicles. No vehicle can be sold/utilized
as an armored vehicle without such certification.

SEC. 9. Training of Security Personnel. — No security guard shall be eligible to be
hired or assigned as bank security personnel unless he has successfully completed the
BSMA Security Training Course.

SEC. 10. _ Right to Secure Bank Employees / Premises and Possess Firearms.
— all banking institutions recognized and accredited by the Bangko Central ang Pilipinas
shall have the right to provide special security services for their VIPs against kidnapping and
for their employees and valuables during their banking activities and operations, and for this
purpose, to produce and possess firearms to secure and safeguard such persons, activities
and operations.

SEC. 11. Reports. — Within fourteen (14) months after the effectivity of this Act
and as of the last business day of December of every year thereafter, each bank shall file
with the appropriate supervising and examining departments of the BSP a statement
certifying to its compliance with the requirements of the BSP rules and regulations on bank
protection.


s

SEC. 12. Corrective Action. — The governor of the BSP shall designate a
representative or representatives who shall be acknowledgeable in bank protection to
personally determine if the security measures, devices, training methods or procedures used
or adopted by a bank meet the requirements of this Act and its suppletory regulations. If,
based on the report of the representative/s, the bank fails to meet the standards herein
setforth, the governor may direct or require the bank to take necessary corrective action.

SEC. 13. Administrative Penalties. — Violations of or failure to comply with any of the
provisions of this Act or such other rules and directives that may be issued by the Bangko
Sentral ng Pilipinas in the implementation hereof shall subject the offender to administrative
sanctions including at least the payment of a penalty of One hundred thousand pesos
(P100,000.00) to as much as the suspension or permanent forfeiture of the bank's license to
operate which may be impose by the BSP.

SEC. 14. Penalties for Bank Crimes. — A bank robbery, bank fraud and other
bank crimes committed by or in conspiracy with the bank officials or employees or with their
knowledge or in connivance with other persons or by active or formerly active military or
police personnel shall be punishable with reclusion perpetua and shall not be bailable. A
bank robbery, bank fraud and other bank crimes by any other person shall be punishable
with reclusion temporal to reclusion perpetua.

SEC.15. Qualified Accessories. — The provisions of the Revised Penal Code on
accessories notwithoutstanding, any person in authority or any of his agents who shall
harbor, conceal, assist or intercede for the suspect/s or threaten, intimidate, harass or exert
undue influence on the witness/es or victim/s or in any manner shall impede or obstruct the
prosecution and trial of the case shalll be liable as accessory to the crime of bank robbery,
bank fraud and other bank crimes

SEC. 16. Separability Clause. — If any part or parts of this Act should for any
reason be held to be invalid or unconstitutional, the remaining parts thereof shall remain in
full force and effect.

SEC.17. Repealing Clause. — All laws, presidential decrees, executive orders,
rules and regulations which are contrary to or inconsistent with the provisions of this Act are
herby repealed, amended and modified accordingly

SEC. 18. Effectivity. — This Act shalll take effect immediately

Approved,