STRENGTHENING THE PRESIDENTIAL ANTI-DOLLAR SALTING TASK FORCE.

• Number: Presidential Decree No. 2002
• Sections: 8

Preamble

WHEREAS, there is a need to further strengthen the

government's efforts to stop blackmarketing and salting abroad of foreign

exchange;

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;

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 blackmarketeers, the salters of foreign

exchange abroad, and other economic saboteurs;

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:

Section 1

SECTION 1. Sections 1 and 2 of Presidential Decree No. 1883

are hereby amended to read as follows:

"Section 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 trader 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.

Section 2 Salting abroad of foreign exchange.

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:

The retention abroad by any person engaged in the business of exportation,

of his export proceeds of 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 undervaluable, underdclaration, 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.

The remittance and retention abroad by any person engaged in the business of

importation, of foreign exchange by overvaluing or over declaring his imports

either as to price or quantity.

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 3

SEC. 3. The effectivity of Presidential Decree No. 1936 as

amended, is hereby extended up to December 31, 1983.

Section 4

SEC. 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:

Sections 2 and 3 of Letter of Instructions No. 1356 shall read as

follows:

'' Section 2. — The amount of reward shall be 20 % of the

proceeds of the foreign exchange and Philippine currency actually forfeited to

the National Government.

" Section 3.—The Central Bank of the Philippines is hereby

authorized to pay the informer's rewards out of the proceeds of the imported and

exported goods, foreign exchange and Philippine currency forfeited to the

National Government.''

Section 5

SEC. 5. All laws, decrees, orders, instructions, rules and

regulations inconsistent herewith are hereby repealed, amended and modified

accordingly.

Section 6

SEC. 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.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Executive

Assistant

Section 2

SEC. 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:

“f. After due investigation but prior to the filing of 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.

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

differentials, 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 operations of the Task Force.''