WHEREAS,
there is a need to further strengthen the government's efforts to stop
blackmarketing and salting abroad of foreign exchange;chanroblesvirtualawlibrary
WHEREAS, there are acts and activities constituting blackmarketing or
salting abroad of foreign exchange which have not been clearly defined
by existing laws, rules and regulations;chanroblesvirtualawlibrary
WHEREAS, the prevailing economic conditions and developments as well as
the economic crisis require that the authority, powers, functions and
prerogatives of the Presidential Anti-Dollar Salting Task Force created
under Executive Order No. 934, as amended by Presidential Decree No.
1936 be extended to enhance its effectiveness against black marketeers,
the salters of foreign exchange abroad, and other economic saboteurs;chanroblesvirtualawlibrary
WHEREAS, it is also necessary to reinforce, harmonize and realign the
various laws, rules and regulations against blackmarketing and salting
abroad of foreign exchange such as the reward system for informers
under Letter of Instruction Nos. 1356 and 1445 and Central Bank
Monetary Board Resolution dated February 9, 1981.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the following:cralaw:red
Section 1. Sections 1 and 2 of Presidential Decree
No. 1883 are hereby amended to read as follows: chanroblesvirtualawlibrary
"Sec. 1. Blackmarketing of, and other illegal acts
involving foreign exchange. — The trading, purchase or sale of foreign
exchange without any lawful authority shall constitute blackmarketing
of foreign exchange under this Section and any person found committing
such acts shall upon conviction suffer the penalty of reclusion
temporal (minimum of 12 years and one day and maximum of 20 years)
and/or a fine of not less than Fifty Thousand (P50,000.00) Pesos.
Failure or refusal by any authorized foreign exchange traders or dealer
to issue Official Central Bank Receipts for the purchase or sale of
foreign exchange, or failure to remit and/or declare foreign exchange
purchased in accordance with the existing rules and regulations on
foreign exchange shall likewise constitute blackmarketing and any
person found committing such acts shall, upon conviction, suffer the
penalty prescribed above.
The possession of foreign exchange equivalent to not less than Ten
Thousand US Dollars (US$10, 000.00) by any person who does not have
legitimate source of or lawful authority to possess foreign exchange
shall be prima facie evidence of blackmarketing. chanroblesvirtualawlibrary
"Sec. 2. Salting abroad of foreign exchange. — The
following acts shall constitute salting abroad of foreign exchange and
any person found committing such acts shall upon conviction suffer the
penalty prescribed in Section 1 above:cralaw:red
"a) The retention abroad by any person engaged in the
business of exportation, of his export proceeds earnings or part
thereof, beyond the period prescribed by laws, rules and regulations,
or the retention abroad by any person of the proceeds or earnings from
his undeclared exports. The term "exports" includes both products and
services.
The undervaluation, underdeclaration, misdeclaration or nondeclaration,
either as to price or quantity, of exports, shall constitute prima
facie evidence of salting abroad of foreign exchange as defined in this
paragraph.
b) The remittance and retention abroad by any person
engaged in the business of importation, of foreign exchange by
overvaluing or overdeclaring his imports either to price or
quantity. chanroblesvirtualawlibrary
c) Any activity or transaction resulting in, or
involving the unauthorized remittance, transfer and/or retention abroad
of foreign exchange by any person through misdeclaration,
misrepresentation, falsification and/or illegal or fraudulent means."
Section 2. Section 1 of Presidential Decree No. 1936
which defines the powers and functions of the Presidential Anti-Dollar
Salting Task Force is hereby amended to include the following
paragraphs: chanroblesvirtualawlibrary
"f. After due investigation but prior to the filing
of the appropriate criminal charges with the fiscal's office or the
courts as the case may be, to impose a fine and/or administrative
sanctions as the circumstances warrant, upon any person found
committing or to have committed acts constituting blackmarketing or
salting abroad of foreign exchange, provided said person voluntarily
admits the facts and circumstances constituting the offense and
presents proof that the foreign exchange retained abroad has already
been brought into the country.
Thereafter, no further civil or criminal action may be instituted
against said person before any other judicial regulatory or
administrative body for violation of Presidential Decree No.
1883. chanroblesvirtualawlibrary
The amount of the fine shall be determined by the Chairman of the
Presidential Anti-Dollar Salting Task Force and paid in Pesos taking
into consideration the amount of foreign exchange retained abroad, the
exchange rate differential, uncollected taxes and duties thereon,
undeclared profits, interest rates and such other relevant factors.
The fine shall be paid to the Task Force which shall retain Twenty
percent (20%) thereof. The informer, if any, shall be entitled to
Twenty percent (20%) of the fine. Should there be no informer, the Task
Force shall be entitled to retain Forty percent (40%) of the fine and
the balance shall accrue to the general funds of the National
government. The amount of the fine to be retained by the Task Force
shall form part of its Confidential Fund and be utilized for the
operation of the Task Force."
Section 3. The effectivity of Presidential Decree
No. 1936 as amended, is hereby extended up to December 31, 1983.
Section 4. All the provisions of Letters of
Instructions Nos. 1356 and 1445 are hereby incorporated and made
integral parts of this Decree subject to the following amendments:cralaw:red
Section 2 and 3 of Letter of Instructions No. 1356 shall read as
follows:cralaw:red
"Sec. 2. The amount of reward shall be 20% of the
proceeds of the foreign exchange and Philippine currency actually
forfeited to the National Government.
"Sec. 3. The Central Bank of the Philippines is
hereby authorized to pay the informer's reward out of the proceeds of
the imported and exported goods, foreign exchange and Philippine
currency forfeited to the National Government."
Section 5. All laws, decrees, orders, instructions,
rules and regulations inconsistent herewith are hereby repealed,
amended and modified accordingly. chanroblesvirtualawlibrary
Section 6. This Decree shall take effect immediately.
DONE in the City of Manila,
this 16th day of December, in the year of Our Lord, Nineteen Hundred
and Eighty-Five.
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