DEFINING THE CRIMES OF BLACKMARKETING AND SALTING OF FOREIGN EXCHANGE AND IMPOSING INCREASED PENALTIES THEREON

• Number: Presidential Decree No. 1883
• Sections: 6

Preamble

WHEREAS, the President of the Philippines, taking cognizance

of the balance of payments deficits, issued Letter of Instructions No. 1307

dated April 11, 1983 and Letter of Instructions No. 1329 dated May 31, 1983,

directing all agencies of the government to adopt all possible measures to

maximize foreign exchange receipts and minimize their outflow;

WHEREAS, notwithstanding efforts of the government to

prevent and minimize the outflow of foreign exchange through means and methods

contrary to existing laws and Central Bank rules and regulations, the outflow of

foreign exchange continues unabated;

WHEREAS, this situation calls for a clearer definition of

what constitutes blackmarketing and salting of foreign exchange and for the

imposition of heavier penalties on those who are engaging in these practices

which are pernicious to the national economy;

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:

Section 1

SECTION 1. Blackmarketing of Foreign Exchange. That any

person who shall engage in the trading or purchase and sale of foreign currency

in violation of existing laws or rules and regulations of the Central Bank shall

be guilty of the crime of blackmarketing of foreign exchange, and shall suffer

the penalty of recluslon temporal, (minimum of 12 years and one day and maximum

of 20 years) and a fine of not less than Fifty Thousand (P50.000.00) Pesos.

Section 2

SEC. 2. Salting of Foreign Exchange. That any person engaged

in the business of exporting who shall under-declare or undervalue his exports,

either as to price or quantity, or any person engaged in the business of

importation who shall overvalue or overdeclare his importations, either as to

price or quantity, for the purpose of salting and retaining foreign exchange

abroad in violation of existing laws and Central Bank rules and regulations,

shall be liable for the crime of illegal salting of foreign exchange and shall

suffer the penalty of reclusion temporal and a fine of not less than Fifty

Thousand (P50,000.00) Pesos.

Section 3

SEC. 3. Definition of Terms. The term "foreign exchange"

shall refer to foreign currency notes, coins, checks, letters of credits,

drafts, bills of exchange or other instruments customarily employed for

international transfer.

Section 4

SEC. 4. Other Penalties. If the offender shall be a

naturalized citizen of the Philippines, conviction of any of the above offenses

shall carry with it the automatic cancellation of his naturalization as a

citizen of the Philippines and shall, upon service of his sentence, be

immediately deported. A foreigner who is convicted of any of the above offenses

shall, upon service of his sentence, be immediately deported.

Section 6

SEC. 6. This Decree shall take effect immediately.

Done in the City of Manila this 24th day of September, in the year of Our

Lord, nineteen hundred and eighty-three.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Executive

Assistant