Legal Research (Midterm)

LEGAL RESEARCH
A.Y. 2020–2021, First Semester

Arellano University School of Law
Submitted to:
DR. JOSE TEODORICO V. MOLINA
CPA-Economist-Legal Practitioner
Professorial Lecturer
Prepared and Submitted by:

MARIA WESTPHALIA B. GOZON
2019-0518
LEGAL RESEARCH ARELLANO UNIVERSITY
Prepared and submitted by Maria Westphalia B. Gozon SCHOOL OF LAW
“The man of action has the present, but the thinker

controls the future.”
— OLIVER WENDELL HOLMES JR.
Former Associate Justice of the U.S. Supreme Court
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TABLE OF CONTENTS
BANGKO SENTRAL NG PILIPINAS (BSP)............................................................................. 3
I. Introduction......................................................................................................................... 3
II. Objective............................................................................................................................. 3
III. Bibliographical Review...................................................................................................... 3
IV. Laws and Jurisprudence................................................................................................... 13
V. Conclusion.......................................................................................................................... 19
ANTI-MONEY LAUNDERING COUNCIL (AMLC)................................................................... 20
I. Introduction........................................................................................................................ 20
II. Objective........................................................................................................................... 20
III. Bibliographical Review..................................................................................................... 20
III. Laws................................................................................................................................. 35
IV. Conclusion........................................................................................................................ 36
RE-IMPOSITION OF DEATH PENALTY IN THE PHILIPPINE REVISED PENAL CODE.......... 37
I. Introduction........................................................................................................................ 37
II. Objective............................................................................................................................ 37
III. Bibliographical Review...................................................................................................... 37
IV. Laws and Jurisprudence.................................................................................................... 44
V. Conclusion.......................................................................................................................... 51
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BANGKO SENTRAL NG PILIPINAS (BSP)
I. Introduction
Established in 1993 pursuant to the provisions of the 1987 Constitution and the New Central
Bank Act of 19931, Bangko Sentral ng Pilipinas (BSP) is the central bank of the Philippines which
enjoys fiscal and administrative autonomy from the National Government to pursue its
mandated functions and duties. It is composed of the Monetary Board, Monetary Stability
Sector, Supervision and Examination Sector, and Resource Management Sector.
II. Objective
Almost one score ago, controversy arose when the Usury Law2 was arguably repealed by the
Central Bank (CB) Circular No. 905 which removed the ceiling on interest rates for both secured
and unsecured loans. To settle this issue, this research will peruse the Philippine laws and
jurisprudence to determine whether BSP has the authority to lift the ceiling on interest rates
imposed by financial institutions.
III. Bibliographical Review
To give us a better understanding of usury, it is necessary to discuss it by tracing its history

back to the earliest times, the rationale behind its proscription by many, and measures resorted
to by the National Government to regulate transactions which are extortionate.
ETYMOLOGY OF USURY | The word usury is said to derive its etymology from usu and
æra, the use of money. It must not, however, be understood that usury can exist only in
pecuniary transactions; the taking of use for other things, as well as money, comes within the
1
RA 7653
2
Usury Law (Act No. 2655), amended by P.D. No. 116
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notion of usury.3 Simply put, usury may be defined as the act of contracting for or receiving
something in excess of the amount allowed by law for the loan or forbearance of money, goods,
or chattels.4
HISTORY OF USURY | The taking of excessive interest for the loan of money has been
regarded with abhorrence from the earliest times. Usury, as such unlawful profits were known,
was prohibited by the ancient laws of the Chinese and the Hindus, by the Mosaic Law of the
Jews, by the Koran, by the Athenians, and by the Romans and has been frowned upon by
distinguished publicists throughout all the ages.5
USURY IN THE PHILIPPINES | RA 265 creating the Central Bank (CB) empowered the
Central Bank-Monetary Board (CB-MB) to, among others, set the maximum interest rates which
banks may charge for all types of loans and other credit operations, within limits prescribed by
the Usury Law. To avoid possible evasion of maximum interest rates set by the Monetary Board,
the Board may also fix the maximum rates that banks may pay to or collect from their
customers in the form of commissions, discounts, charges, fees, or payments of any sort. The
Usury Law was amended by PD 16846, giving the CB-MB authority to prescribe different
maximum rates of interest which may be imposed for a loan or renewal thereof or the
forbearance of any money, goods or credits, provided that the changes are effected gradually
and announced in advance. In a resolution the CB-MB issued CB Circular No. 905 which
removed the ceilings on interest rates on loans or forbearance of any money, goods or credits.
Subsequently, President Fidel V. Ramos signed into law RA 7653 establishing the Bangko
Sentral ng Pilipinas (BSP) to replace the CB.7
In fine, the Usury Law already ceased to have effect because of CB Circular No. 905 issued by
the Central Bank. The said circular was issued for the purpose of giving the parties to a contract
3
Ord, An Essay on the Law of Usury, p. 3 (1809, digitized in 2010)
4
Jurado, Comments and Jurisprudence on Obligations and Contracts, p. 101 (2010)
5
US v. Francisco Constantino, G.R. No. L-13708, January 29, 1919, citing Chancellor Kent’s opinion in Dunham vs. Gould (1819)
6
Amending further the Usury Law (Act No. 2655) as amended
7
Advocates for Truth in Lending, Inc. v. Bangko Sentral Monetary Board, et al., G.R. No. 192986, January 15, 2013
Page 4 of 51
the liberty to stipulate their desired amount of interest rate; notwithstanding, the parties are
without any restraint. The contracting parties may establish such stipulations, clauses, terms
and conditions as they may deem convenient, provided they are not contrary to law, morals,
good customs, public order, or public policy.8 It is worth noting, however, that the circular did
not repeal nor in any way amend the Usury Law but simply suspended the latter’s effectivity.
The legislation of usury is wholly the creature of legislation. A CB Circular cannot repeal a law.
Only a law can repeal another law.9
BANGKO SENTRAL NG PILIPINAS (BSP) | The Bangko Sentral ng Pilipinas, established

on July 3, 1993 in accordance with the provision of RA 7653, is the central bank of the
Philippines.
HISTORY OF BANGKO SENTRAL NG PILIPINAS (BSP) | In 1900, the First Philippine

Commission passed Act No. 52, which placed all banks under the Bureau of the Treasury and
authorized the Insular Treasurer to supervise and examine banks and all banking activity. In
1929, the Department of Finance, through the Bureau of Banking, took over bank supervision.
By 1933, a group of Filipinos had conceptualized a central bank for the Philippine Islands.10 It
came up with the rudiments of a bill for the establishment of a central bank after a careful study
of the economic provisions of the Hare–Hawes–Cutting Act, which would grant Philippine
independence after 12 years, but reserving military and naval bases for the United States and
imposing tariffs and quotas on Philippine exports. However, the Hare–Hawes–Cutting Act would
be rejected by the Senate of the Philippines at the urging of Commonwealth President Manuel
L. Quezon. This Senate then advocated a new bill that won United States President Franklin D.
Roosevelt's support, this would be the Tydings–McDuffie Act, which would grant Philippine
independence on July 4, 1946.11
8
Art. 1306, NCC
9
Development Bank of the Philippines v. Perez, G.R. No. 148541, November 11, 2004
10
Bangko Sentral ng Pilipinas, 50 Years of Central Banking in the Philippines (1998)
11
Bangko Sentral ng Pilipinas. http://everything.explained.today/Bangko_Sentral_ng_Pilipinas/#Ref-4.
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Under the Commonwealth, discussions continued regarding the idea of a Philippine central
bank that would promote price stability and economic growth. The country's monetary system
then was administered by the Department of Finance and the National Treasury, and the
Philippine peso was on the exchange standard using the United States dollar, which was backed
by 100 percent gold reserve, as the standard currency.12
As required by the Tydings–McDuffie Act, the National Assembly of the Philippines in 1939
passed a law establishing a central bank. As it was a monetary law, it required the approval of
the President of the United States; Franklin D. Roosevelt did not give his. A second law was
passed in 1944 under the Japanese-controlled Second Republic during the Second World War,
but the 1945 arrival of American liberation forces, aided by Philippine Commonwealth troops
and recognised guerrillas, aborted its implementation.13
Shortly after President Manuel A. Roxas assumed office in 1946, he instructed then-Finance
Secretary Miguel Cuaderno, Sr. to draw up a charter for a central bank.14 The establishment of a
monetary authority became imperative a year later as a result of the findings of the Joint
Philippine-American Finance Commission chaired by Cuaderno. The Commission, which
studied Philippine financial, monetary, and fiscal problems in 1947, recommended a shift from
the dollar exchange standard to a managed currency system. A central bank was necessary to
implement the proposed shift to the new system.15
President Roxas then created the Central Bank Council to prepare the charter of a proposed
monetary authority. It was submitted to Congress in February 1948. By June of the same year,
the newly proclaimed President Elpidio R. Quirino, who succeeded President Roxas, affixed his
signature on RA 265 (Central Bank Act of 1948). On January 3, 1949, the Central Bank of the
12
Supra footnote 11.
13
Supra footnote 11.
14
Manuel Roxas’s Second State of the Nation Address on January 27, 1947
15
Bangko Sentral ng Pilipinas. The BSP Vision and Mission. https://www.bsp.gov.ph.
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Philippines was formally inaugurated with Miguel Cuaderno, Sr. as the first governor.16 The main
duties and responsibilities of the Central Bank were to promote economic development and
maintain internal and external monetary stability.17
Over the years, changes were introduced to make the charter more responsive to the needs of
the economy. On November 29, 1972, President Ferdinand E. Marcos's PD 72 amended RA 265,
emphasizing the maintenance of domestic and international monetary stability as the primary
objective of the Central Bank. The Bank's authority was also expanded to include regulation of
the entire financial system of the Philippines and not just supervision of the banking system. In
1981, RA 265, as amended, was further improved to strengthen the financial system, among the
changes was the increase in the capitalization of the Central Bank from PhP10 million to PhP10
billion. By 2019, President Rodrigo R. Duterte signs RA 1121118 further increasing the
capitalization to PhP200 billion.19
In the 1973 Constitution, the interim Batasang Pambansa (National Assembly) was mandated to
establish an independent central monetary authority. PD 180120 designated the Central Bank of
the Philippines as the central monetary authority (CMA). According to a confidential October
19, 1984 Monetary Board report, the Central Bank overstated the country's dollar reserves
$600 million.21
The 1987 Constitution adopted the CMA provisions from the 1973 Constitution that were aimed
essentially at establishing an independent monetary authority through increased capitalization
and greater private sector representation in the Monetary Board.22
16
Supra footnote 10.
17
Supra footnote 11.
18
An Act Amending Republic Act Number 7653, otherwise known as “The New Central Bank Act”, and for other purposes
19
Supra footnote 11.
20
Establishing the Central Bank of the Philippines as the Central Monetary Authority
21
Supra footnote 11.
22
Supra footnote 11.
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In accordance with a provision in the 1987 Constitution, President Fidel V. Ramos signed RA
765323 into law on June 14, 1993. The law provides for the establishment of an independent
monetary authority to be known as the Bangko Sentral ng Pilipinas, its primary objective being
the maintenance of price stability. This objective was only implied in the old Central Bank
charter. The law also gives the Bangko Sentral fiscal and administrative autonomy which the old
Central Bank did not have. On July 3, 1993, the New Central Bank Act took effect.
On the evening of September 26, 2012, a Wednesday, the BSP website was hacked by a group
named Anonymous Philippines in a protest against the recently passed Cybercrime Prevention
Act of 201224.25 The website was promptly restored in the early hours of the following day.26
On April 23, 2013, The Asian Banker named the BSP as the Best Macroeconomic Regulator in
the Asia-Pacific Region for 2013 in The Asian Banker Leadership Achievement Awards in Jakarta,
Indonesia.27 The BSP was cited as a “good, strong, and fair-minded regulator.” About a month
later, the BSP was given the country award by the Child and Youth Finance International in its
2013 International Summit in Istanbul, Turkey, in recognition of its initiative to integrate
financial education in the Philippine elementary school curriculum.28
ORGANIZATION OF THE BSP | The basic structure of the Bangko Sentral includes:
● The Monetary Board, which exercises the powers and functions of the BSP, such as the
conduct of monetary policy and supervision of the financial system;
● The Monetary Stability Sector, which takes charge of the formulation and
implementation of the BSP's monetary policy, including serving the banking needs of all
banks through accepting deposits, servicing withdrawals and extending credit through
the rediscounting facility;
23
New Central Bank Act
24
RA 10175
25
Doris Dumlao. BSP, MWSS websites hacked by anti-cybercrime law protester. The Philippine Daily Inquirer.
26
Cathy Rose Garcia. BSP website restored after being hacked. http://www.abs-cbnnews.com/.
27
Malaya Business News Online. BSP named ‘Best Regulator’ in Asia. http://www.malaya.com.ph/.
28
Bangko Sentral ng Pilipinas. BSP Wins Top Global Award for Child Finance Education Program. http://www.bsp.gov.ph/.
Page 8 of 51
● The Supervision and Examination Sector, which enforces and monitors compliance to
banking laws to promote a sound and healthy banking system; and
● The Resource Management Sector, which serves the human, financial and physical
resource needs of the BSP.29
The powers and function of Bangko Sentral are exercised by its Monetary Board, whose seven
members are appointed by the President of the Philippines. As provided for by RA 7653, one of
the government sector members of the Monetary Board must also be a member of the Cabinet.
Members of the Monetary Board are prohibited from holding certain positions in other
government agencies and private institutions that may give rise to conflicts of interest. The
members have fixed and overlapping terms, except for the Cabinet Secretary representing the
incumbent administration.30
MAIN FUNCTIONS OF THE BSP | The following are the main functions of the BSP:
● Liquidity management, by formulating and implementing monetary policy aimed at
influencing money supply, consistent with its primary objective to maintain price
stability;
● Currency issue, the BSP has the exclusive power to issue the national currency. All
notes and coins issued by the BSP are fully guaranteed by the Government and are
considered legal tender for all private and public debts;
● Lender of last resort, by extending discounts, loans and advances to banking
institutions for liquidity purposes;
● Financial supervision, by supervising banks and exercising regulatory powers over
non-bank institutions performing quasi-banking functions;
● Management of foreign currency reserves, by maintaining sufficient international
reserves to meet any foreseeable net demands for foreign currencies in order to
preserve the international stability and convertibility of the Philippine peso;
29
Bangko Sentral ng Pilipinas. Governance of the Bank. http://www.bsp.gov.ph/about/governance.asp./.
30
Bangko Sentral ng Pilipinas. The Monetary Board. http://www.bsp.gov.ph/about/governance_mon.asp.
Page 9 of 51
● Determination of exchange rate policy, by determining the exchange rate policy of the
Philippines. Currently, the BSP adheres to a market-oriented foreign exchange rate
policy, and
● Financial advisor and official depository of the Government, its political
subdivisions and instrumentalities and GOCCs.31
The images above are the seals of the Bangko Sentral ng Pilipinas. L-R: 1949, 1993, 2010
BSP SEAL | Adopted in 1993, the original seal consisted of a stylized representation of the
sun hovering over mountain ranges and above the Philippine flag which was framed by a wheel.
Former Prime Minister Cesar E. A. Virata, however, noted that the Philippine flag was
incorrectly displayed as it was depicted below the sun and the mountain ranges. It violated the
provisions of the Flag and Heraldic Code of the Philippines, which states that the Philippine flag
should never be displayed under any picture and shall always be hoisted aloft. The BSP
Numismatic Committee concurred with PM Virata’s view and agreed to recommend switching
to another seal which is legally compliant, eventually paving way for the new seal we see
today.32
31
Bangko Sentral ng Pilipinas. About the Bank - Charter. www.bsp.gov.ph.
32
Pinoynumnet. A Closer Look at BSP’s New Seal. https://pinoynumismatistnetwork.wordpress.com/2011/12/21/bsp2010seal/.
Page 10 of 51
Launched in the middle of 2010, the new BSP logo is a perfect round shape in blue that features
three gold stars and a stylized Philippine eagle rendered in white strokes. These main elements
are framed on the left side with the text inscription “Bangko Sentral ng Pilipinas” underscored
by a gold line drawn in half circle. The right side remains open, signifying freedom, openness,
and readiness of the BSP, as represented by the Philippine eagle, to soar and fly toward its goal.
Putting all these elements together is a solid blue background to signify stability.33
ELEMENTS OF THE SEAL | The Philippine Eagle is a symbol of strength, clear vision and
freedom, the qualities we aspire for as a central bank, and the three stars represent the three
pillars of central banking: price stability, stable banking system and a safe and reliable
payments system. It may also be interpreted as a geographical representation of BSP’s equal
concern for the impact of its policies and programs on all Filipinos, whether they are in Luzon,
Visayas or Mindanao.34
COLORS OF THE SEAL | Blue signifies stability. Gold symbolizes wisdom, wealth, idealism,
and high quality. White represents purity, neutrality, and mental clarity.35
FONT IN THE SEAL | The use of non-serif bold fonts for the text “BANGKO SENTRAL NG
PILIPINAS” suggests solidity, strength, and stability. The use of non-serif fonts characterized by
clean lines portrays the no-nonsense professional manner of doing business at the BSP.36
SHAPE OF THE SEAL | Its round shape symbolizes BSP’s continuing and unending quest to
become a world- class monetary authority committed to improving the quality of life of
Filipinos. This round shape is also reminiscent of Philippine coins, the basic units of our
currency.37
33
Supra footnote 32.
34
Supra footnote 32.
35
Supra footnote 32.
36
Supra footnote 32.
37
Supra footnote 32.
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The shift embodies the BSP’s continuing transformation to adapt to a changing environment. It
now appears in the New Generation Currency money, and is expected on coins by 2013.
HISTORY OF THE SEAL | The very first seal of the Central Bank of the Philippines (CBP)
was originally designed by Dan Zamora of Crispulo Zamora & Sons based on the suggested
ideas of Governor Miguel Cuaderno, Sr. According to Mr. Rufo Buenviaje of the Department of
Economic Research, each feature represents a symbolism. The seal of the CBP shows a man in
the foreground, symbolizing the Filipino Nation pushing the Wheel of Progress. The rays of the
rising sun at the background, denotes the Dawn of Prosperity and reveals the country’s
traditional agricultural products as the basic ingredients for industrial production and
commerce. The arms proper is a circle, represents perpetuity, and around it the text CENTRAL
BANK OF THE PHILIPPINES to suggest that the bank provides the necessary fiscal, commercial,
and monetary policies.38
CONVERTIBLE CURRENCIES | The Bangko Sentral has 19 currencies directly convertible

with the Philippine peso, which serves as a benchmark for all Philippine banks.39
● Australian dollar (AUD)
● Bahraini dinar (BHD)
● British pound (GBP)
● Brunei dollar (BND)
● Canadian dollar (CAD)
● Dominican peso (DOP)
● Chinese yuan (CNY)
● Euro (EUR)
● Hong Kong dollar (HKD)
● Indonesian rupiah (IDR)
38
Supra footnote 32.
39
Bangko Sentral Buying Rates for Foreign Currency Notes. http://www.bsp.gov.ph/statistics/sdds/ExchRate.pdf.
Page 12 of 51
● Japanese yen (JPY)

● Mexican peso (MXN)
● South Korean won (KRW)
● Kuwaiti dinar (KWD)
● Saudi riyal (SAR)
● Singapore dollar (SGD)
● Swiss franc (CHF)
● Thai baht (THB)
● New Taiwan dollar (TWD)
● United Arab Emirates dirham (AED)
● United States dollar (USD)
IV. Laws and Jurisprudence
Several laws had been passed by the legislatorial body of the Philippines to regulate
transactions which are extortionate or usurious. By the same token, there are Supreme Court
decisions which sustained that CB-MB is authorized to remove the interest ceilings prescribed
by the Usury Law. Although the judiciary is not empowered to create laws, its decisions are part
of the Philippine legal system because judicial decisions applying or interpreting the laws or the
Constitution shall form a part of the legal system of the Philippines.40 For the purpose of
determining whether CB-MB is authorized to lift the ceiling on interest rates imposed by
financial institutions, relevant laws and jurisprudence which upheld the validity of CB Circular
No. 905 are herein cited.
LAWS | Laid down herein are the legal development of the Usury Law and the laws which
created the Central Bank and BSP. Nonetheless, the issuance of CB Circular No. 905, pursuant
to PD 1684, rendered the effectivity of the Usury Law a matter of legal fiction.
40
Art. 8, NCC
Page 13 of 51
TITLE AUTHOR DATE OF EFFECTIVITY
AN ACT FIXING RATES OF INTEREST UPON Philippine Legislature May 1, 1916

LOANS AND DECLARING THE EFFECT OF
RECEIVING OR TAKING USURIOUS RATES AND
FOR OTHER PURPOSES (ACT NO. 2655)
AN ACT ESTABLISHING THE CENTRAL BANK OF Philippine Congress June 15, 1948
THE PHILIPPINES, DEFINING ITS POWERS IN THE
ADMINISTRATION OF THE MONETARY AND
BANKING SYSTEM, AMENDING THE PERTINENT
PROVISIONS OF THE ADMINISTRATIVE CODE
WITH RESPECT TO THE CURRENCY AND THE
BUREAU OF BANKING, AND FOR OTHER
PURPOSES (RA 265)
AMENDING REPUBLIC ACT NUMBERED TWO President Ferdinand E. November 29, 1972
HUNDRED AND SIXTY-FIVE, ENTITLED “THE Marcos
CENTRAL BANK ACT” (PD 72)
AMENDING FURTHER CERTAIN SECTIONS OF President Ferdinand E. January 29, 1973

ACT NUMBERED TWO THOUSAND SIX HUNDRED Marcos
FIFTY-FIVE, AS AMENDED, OTHERWISE KNOWN
AS "THE USURY LAW" (PD 116)
AMENDING FURTHER ACT NUMBERED TWO President Ferdinand E. March 17, 1980
THOUSAND SIX HUNDRED FIFTY-FIVE, AS Marcos
AMENDED, OTHERWISE KNOWN AS “THE USURY
LAW” (PD 1684)
ESTABLISHING THE CENTRAL BANK OF THE President Ferdinand E. January 16, 1981
PHILIPPINES AS THE CENTRAL MONETARY Marcos
AUTHORITY (PD 1801)
THE NEW CENTRAL BANK ACT (RA 7653) Philippine Congress July 3, 1993
AN ACT AMENDING REPUBLIC ACT NUMBER Philippine Congress March 2, 2019

7653, OTHERWISE KNOWN AS “THE NEW
CENTRAL BANK ACT”, AND FOR OTHER
PURPOSES (RA 11211)
Page 14 of 51
SUPREME COURT DECISIONS | The following are case briefs of several Supreme Court
rulings which upheld the validity of CB Circular No. 905.
SECURITY BANK AND TRUST COMPANY v. RTC MAKATI, ET AL.

G.R. No. 113926, October 2, 1996 (FIRST DIVISION)
HERMOSISIMA, JR., J.
FACTS: Eusebio executed three promissory notes in favor of Security Bank and Trust Co.
(SBTC). On all the promissory notes, Ventura signed as co-maker. Upon the failure and refusal
of Eusebio to pay the balance payable, a collection case was filed in court by SBTC. The court a
quo rendered a judgment in favor of SBTC. Subsequently, SBTC filed this instant petition,
assailing the RTC decision which found Eusebio liable to SBTC for a sum of money; interest was
lowered by the court a quo from 23% per annum as agreed upon by the parties to 12% per
annum.
ISSUE: Whether the rate of interest on a loan as stipulated in a contract far in excess of the
ceiling prescribed under the Usury Law should prevail over CB Circular No. 905.
HELD: NO. All the promissory notes were signed in 1983 and, therefore, were already covered
by CB Circular No. 905. The circular did not repeal nor in any way amend the Usury Law but
simply suspended the latter’s effectivity. Here, the rate of interest was agreed upon by the
parties freely, and Eusebio did not question that rate. It is not for the court a quo to change the
stipulations in the contract where it is not illegal. Under the New Civil Code, contracting parties
may establish such stipulations, clauses, terms and conditions as they may deem convenient,
provided they are not contrary to law, morals, good customs, public order, or public policy. In a loan
or forbearance of money, the interest due should be stipulated in writing, and in the absence
thereof, the rate shall be 12% per annum.
Page 15 of 51
LETICIA MEDEL, ET AL. v. COURT OF APPEALS, ET AL.

G.R. 131622, November 27, 1998 (THIRD DIVISION)
PARDO, J.
FACTS: Servando and Leticia executed two promissory notes to evidence the loan they
obtained from Veronica who was engaged in the money lending business. On maturity of the
promissory notes, Servando and Leticia failed to pay the indebtedness. Again, Servando and
Leticia secured from Veronica another loan and executed a promissory note but failed to pay
the third loan on maturity. Servando and Sps. Medel consolidated their unpaid loans and sought
from Veronica another loan. They executed a promissory note but failed to pay the
indebtedness, plus interests and penalties. Sps. Gonzales filed with the RTC a complaint for
collection of the full amount of the loan including interests and other charges. The court held
that the interest charged by the Sps. Gonzales on the loans was unconscionable. Hence, it
applied the provision of the Civil Code that the legal rate of interest for loan or forbearance of
money, goods or credit is 12% per annum. The case was brought to the CA which ruled in favor
of Sps. Gonzales and reversed the RTC decision. A motion for reconsideration was filed by Sps.
Medel but was denied. Hence, this present recourse.
ISSUE: Whether the Usury Law has been repealed by CB Circular No. 905.
HELD: NO. The stipulated rate of interest at 5.5% per month on the PhP500,000 loan is
excessive, iniquitous, unconscionable and exorbitant. However, the rate cannot be considered
usurious by this Court because it has consistently held that CB Circular No. 905 has expressly
removed the interest ceilings prescribed by the Usury Law and that the Usury Law is now
legally inexistent. Nevertheless, the interest at 5.5% per month, or 66% per annum, stipulated
upon by the parties in the promissory note iniquitous or unconscionable, and, hence, contrary
to morals (contra bonos mores), if not against the law. The stipulation is void. The courts shall
reduce equitably liquidated damages, whether intended as an indemnity or a penalty if they are
iniquitous or unconscionable.
Page 16 of 51
SPS. CASTRO v. ANGELINA DE LEON TAN

G.R. No. 148541, November 11, 2004 (SECOND DIVISION)
DEL CASTILLO, J.
FACTS: Tan and her husband were the former registered owners of a residential lot. They
entered into an agreement with Sps. Castro to secure a loan. When her husband died, Tan was
left with the responsibility of paying the loan but failed to pay the same upon maturity.
Thereafter, she offered to pay Sps. Castro the principal amount plus a portion of the interest,
but Sps. Castro refused and demanded payment of the total accumulated sum. Subsequently,
Sps. Castro caused the extrajudicial foreclosure of the real estate mortgage; the redemption
period expired without Tan having redeemed the property. Tan filed a complaint for the
nullification of mortgage and foreclosure before the RTC. The RTC held in favor of Tan. Sps.
Castro appealed to the CA which affirmed the RTC’s finding that the interest rate stipulated in
the Kasulatan is unconscionable, and hence, the equitable reduction to the legal rate of 12% per
annum and that Tan may redeem the mortgaged property notwithstanding the expiration
redemption period. Sps. Castro filed a Motion for Reconsideration but was denied by the CA.
ISSUE: Whether the CA erred in nullifying the interest rate voluntarily agreed upon by Sps.
Castro and Tan.
HELD: NO. The Court of Appeals correctly found that the 5% monthly interest, compounded
monthly, is unconscionable and should be equitably reduced to the legal rate of 12% per
annum. While the Sps. Castro is correct that parties to a loan agreement have wide latitude to
stipulate on any interest rate in view of the CB Circular No. 905 which suspended the Usury
Law ceiling on interest, it is also worth stressing that interest rates whenever unconscionable
may still be declared illegal. There is certainly nothing in said circular which grants lenders
carte blanche authority to raise interest rates to levels which will either enslave their borrowers
Page 17 of 51
or lead to a hemorrhaging of their assets. Moreover, the subsequent registration of the

foreclosure sale cannot transfer any rights over the mortgaged property to the Sps. Espiritu.
ADVOCATES FOR TRUTH IN LENDING v. BANGKO SENTRAL MONETARY BOARD, ET AL.

G.R. No. 192986, January 15, 2013 (EN BANC)
REYES, J.
FACTS: The Advocates for Truth in Lending, Inc. (AFTIL), a non-profit, non-stock corporation
organized to engage in pro bono concerns and activities relating to money lending issues, filed
this instant petition. According to AFTIL, CB Circular No. 905 is void for the following reasons:
(1) it violated Art. 5, NCC, which provides that acts executed against the provisions of
mandatory or prohibitory laws shall be void, except when the law itself authorizes their validity;
(2) it is unconstitutional in light of Sec. 1 of the Bill of Rights, which commands that no person
shall be deprived of life, liberty or property without due process of law, nor shall any person be
denied the equal protection of the laws; and (3) the BSP-MB has been stripped of the power
either to prescribe the maximum rates of interest which banks may charge for different kinds of
loans and credit transactions or to suspend Act No. 2655 and continue enforcing CB Circular
No. 905.
ISSUE: Whether the CB-MB had the authority to prescribe the maximum rates of interest for all
kinds of credit transactions and forbearance of money, goods or credit beyond the limits
prescribed in the Usury Law under RA 265/PD 1684.
HELD: YES. RA 265 covered only loans extended by banks, whereas under the Usury Law, as
amended, the BSP-MB may prescribe the maximum rate/s of interest for all loans or
renewals thereof or the forbearance of any money, goods or credits, including those for
loans of low priority such as consumer loans, as well as such loans made by pawnshops,
finance companies and similar credit institutions. Likewise, the BSP-MB is authorized to
prescribe different maximum rate/s for different types of borrowings, including deposits
Page 18 of 51
and deposit substitutes, or loans of financial intermediaries. In addition, nothing in CB

Circular No. 905 grants lenders a carte blanche authority to raise interest rates to levels
which will either enslave their borrowers or lead to a hemorrhaging of their assets.
Stipulations authorizing iniquitous or unconscionable interests have been invariably struck
down for being contrary to morals, if not against the law. Under the Civil Code, these contracts
are deemed inexistent and void ab initio, and therefore cannot be ratified, nor may the right to
set up their illegality as a defense be waived.41
V. Conclusion
It can be deduced from the above-cited laws and Supreme Court decisions that, indeed, the
BSP has the authority to lift the ceiling on interest rates imposed by financial institutions.
CB Circular No. 905 does not give the contracting parties the license to circumvent the
prohibition of iniquitous and unconscionable interest rates under the Civil Code.
41
Art. 1409, NCC
Page 19 of 51
ANTI-MONEY LAUNDERING COUNCIL (AMLC)
I. Introduction
The prevalence of money laundering and terrorism is among the predicaments of the
international community. Countries, through their respective agencies, work hand in hand to
counter the widespread presence of money laundering and terrorism. In the Philippines, there
is the Anti-Money Laundering Council (AMLC) to investigate money laundering and other
violations of the Anti-Money Laundering Act (AMLA)42 in order to protect the integrity and
confidentiality of bank accounts and to ensure that the Philippines shall not be used as a
money laundering site for the proceeds of any unlawful activity.43
II. Objective
The Anti-Money Laundering Council (AMLC) is the Financial Intelligence Unit (FIU) of the
Philippines. It is mandated to implement the provisions of Anti-Money Laundering Act of 2001
(RA 9160) and Terrorism Financing Prevention and Suppression Act of 2012 (RA 10168). The
State’s intention to prevent money laundering and suppress terrorism is creditable, but money
laundering and terrorism are not merely an internal pitfall. Rather, it is condemned by the
international community. The question now arises: Can the mandates of the AMLC be imposed
extraterritorially? This research will resolve the issue of whether the AMLC has the authority to
impose its mandates on other countries regarding money transfer.
The crimes of money laundering and terrorism will be briefly discussed alongside with the
functions of the Anti-Money Laundering Council (AMLC) in this part.
42
RA 9160
43
Anti-Money Laundering Council (AMLC). Mandate. http://www.amlc.gov.ph/images/PDFs/archive/mandates.pdf
Page 20 of 51
TERRORISM | Terrorism has been given different definitions by different states and
international organizations. Written below are the various definitions of terrorism.
In Canada, section 83.01 of the Criminal Code defines terrorism as an act committed "in whole
or in part for a political, religious or ideological purpose, objective or cause" with the
intention of intimidating the public with regard to its security, including its economic
security, or compelling a person, a government or a domestic or an international
organization to do or to refrain from doing any act”.44
According to the British Terrorism Act (2006), terrorism refers to the use and threat of action
"designed to influence the government or to intimidate the public or a section of the
public" and "made for the purpose of advancing a political, religious or ideological cause”.45
In the United States, terrorism is defined as consisting of activities that "involve acts
dangerous to human life that are a violation of the criminal laws of the United States or of
any State intended to intimidate or coerce a civilian population; influence the policy of a
government by intimidation; or affect the conduct of a government by mass destruction,
assassination, or kidnapping”.46
Finally, the legal definition of terrorism in the European Union can be found in the EU Framework
Decision on Combating Terrorism (2002) which identifies terrorism as activities with the aim of
"seriously intimidating a population, or; unduly compelling a government or international
organisation to perform or abstain from performing any act, or; seriously destabilising or
destroying the fundamental political, constitutional, economic or social structures of a
country or an international organisation".47
44
Criminal Code, R.S.C. 1985, c. C-46, s. 83.01.
45
Department of Justice of Canada. Definition of Terrorism and the Canadian Context. https://www.justice.gc.ca/
46
Department of Justice of Canada, supra footnote 45.
47
Department of Justice of Canada, supra footnote 45.
Page 21 of 51
In the Philippines, terrorism is defined as committed by any person who, within or outside the
Philippines, regardless of the stage of execution:
(a) Engages in acts intended to cause death or serious bodily injury to any person or
endangers a person's life;
(b) Engages in acts intended to cause extensive damage or destruction to a government or
public facility, public place, or private property;
(c) Engages in acts intended to cause extensive interference with, damage, or destruction
to critical infrastructure;
(d) Developing, manufacturing, possessing, acquiring, transporting, supplying, or using
weapons; and
(e) Releasing dangerous substances or causing fire, floods or explosions when the purpose
is to intimidate the general public, create an atmosphere to spread a message of fear,
provoke or influence by intimidation the government or any international organization,
seriously destabilize or destroy the fundamental political, economic, or social structures
in the country, or create a public emergency or seriously undermine public safety.
When the purpose of such act, by its nature and context, is to intimidate the general public or a
segment thereof, create an atmosphere or spread a message of fear, to provoke or influence by
intimidation the government or any international organization, or seriously destabilize or
destroy the fundamental political, economic, or social structures of the country, or create a
public emergency or seriously undermine public safety, shall be guilty of committing terrorism
and shall suffer the penalty of life imprisonment without the benefit of parole and the benefits
of Republic Act No. 10592, otherwise known as “An Act Amending Articles 29, 94, 97, 98 and 99
of Act No. 3815, as amended, otherwise known as the Revised Penal Code”: Provided, That,
terrorism as defined in this section shall not include advocacy, protest, dissent, stoppage of
work, industrial or mass action, and other similar exercises of civil and political rights, which are
not intended to cause death or serious physical harm to a person, to endanger a person’s life, or
to create a serious risk to public safety.48
48
Sec. 4, RA 11479
Page 22 of 51
ETYMOLOGY OF TERRORISM | The words terrorism and terrorist came to English as

translations of words used in French during the period known as the Reign of Terror (1793-94),
when the new government punished—usually by death—those people thought to be against the
ongoing French Revolution. It was a gruesome and protracted period of official state-sponsored
violence that set the political tone for much of the use of these words ever since.49
Etymologically, the word “terror” is derived from the Latin verb tersere, which later becomes
terrere. The latter form appears in European languages as early as the 12th century; its first
known use in French is the word terrible in 1160. By 1356, the word terreur was in use. Terreur is
the origin of the Middle English term terrour, which later became the modern word "terror".50
BRIEF HISTORY OF TERRORISM | The history of modern terrorism began with the
French revolution and has evolved ever since. The most common causes or roots of terrorism
include civilizations or culture clashes, globalization, religion, Israeli-Palestinian conflict, or the
Russian invasion of Afghanistan. More personal or individual-based reasons for terrorism are
frustration, deprivation, negative identity, narcissistic rage, and/or moral disengagement.51
TYPES OF TERRORISM | There are five types of terrorism:

(1) State-Sponsored terrorism, which consists of terrorist acts on a state or government by
a state or government;
(2) Dissent terrorism, which are terrorist groups which have rebelled against their
government;
(3) Terrorists and the Left and Right, which are groups rooted in political ideology;
(4) Religious terrorism, which are terrorist groups which are extremely religiously
motivated; and
49
Merriam-Webster. History of the Word “Terrorism”. https://www.merriam-webster.com/.
50
Fine, Jonathan (2010). "Political and Philological Origins of the Term 'Terrorism' from the Ancient Near East to Our Times". Middle
Eastern Studies. 46 (2): 271–288.
51
Eastern Kentucky University. Definition, History, and Types of Terrorism. https://ekuonline.eku.edu/.
Page 23 of 51
(5) Criminal Terrorism, which are terrorists acts used to aid in crime and criminal profit.52
MONEY LAUNDERING | Money laundering is the process of making illegally-gained

proceeds (i.e. "dirty money") appear legal (i.e. "clean"). Money laundering can facilitate crimes
such as drug trafficking and terrorism and can adversely impact the global economy.53
In the Philippines, money laundering is a crime whereby the proceeds of an unlawful activity
are transacted, thereby making them appear to have originated from legitimate sources. It is
committed by the following:
(a) Any person knowing that any monetary instrument or property represents, involves, or
relates to, the proceeds of any unlawful activity, transacts or attempts to transact said
monetary instrument or property;
(b) Any person knowing that any monetary instrument or property involves the proceeds of
any unlawful activity, performs or fails to perform any act as a result of which he
facilitates the offense of money laundering referred to in paragraph (a) above; and
(c) Any person knowing that any monetary instrument or property is required under this
Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do
so.54
HISTORY OF MONEY LAUNDERING | Historically, money laundering has been around in

some form for 2,000 years, when Chinese merchants cycled money through various businesses
and complex financial transactions to hide the income from government bureaucrats, who
sought to garnish the income.55
Some historians tie the term "money laundering" more prominently to the early 1900's and
gangsters like Al Capone, who is said to have to bought up laundromats to funnel dirty money
52
Supra footnote 51.
53
U.S. Treasury Financial Crimes Enforcement Network. History of Anti-Money Laundering Laws. https://www.fincen.gov/.
54
Sec. 4, RA 9160
55
Brian D’Connell. What is Money Laundering and What Is Its History?. https://www.thestreet.com/.
Page 24 of 51
(from activities like bootlegging and prostitution) through the laundromats and mix the cash
with legitimate business income. In that way, Capone and other gangsters were able to hide the
money from law authorities.56
It was not until later in the 20th century when law enforcement tied the terms "money" and
"laundering" together - partly to identify gang members, drug dealers, Mafia kingpins and other
criminal elements who disguised the source of cash earned illegally, and laundered that cash
into legitimate and legal funds.57
THREE STAGES OF MONEY LAUNDERING | Money laundering evolves through three

stages: placement, layering, and integration.
Placement. In this, the first stage of money laundering, the goal is to run illegally-earned
money through the financial system. Money launderers do so in several ways, including:
● Disbursing money through multiple bank or brokerage accounts, at smaller amounts;
● Buying multiple money orders, and using the money orders as legitimate cash;
● Slicing the entire cash amount into smaller amounts, and funneling it through the
financial system in creative ways. For example, a money launderer can take $25,000
into a casino, exchange it at various cashier windows for chips, place a few hands of
poker for an hour, and turn in the chips for cash, and leave the casino with untraceable
cash;
● Buying up real estate with illegal cash, then selling the property quickly to obtain a
legitimate source of cash; and
● Setting up shell companies to hide illegally-gained assets.
Layering. At this, the second stage of money laundering, the money launderer begins moving
money around aggressively, either directly or indirectly, into various financial accounts like a
56
Supra footnote 55.
57
Supra footnote 55.
Page 25 of 51
bank account or a business. This is designed to make the original source of the cash
impenetrable to investigators. At this point in the scheme, money launderers may exchange
cash in larger or smaller amounts, to better avoid detection. Often, criminals use the layering
stage to wire money through multiple global financial accounts to "rinse" the cash completely.
Integration. At this, the third stage of money laundering, the goal is to withdraw cash from the
layering stage and use it as legal currency, far away from any prying eyes in law enforcement.
At this point, the entire money laundering staging process has made it substantially difficult to
trace the flow of the money, and the perpetrator is free to use the money as he or she pleases.
Unfortunately for law enforcement investigators, money laundering, especially for larger
amounts, is not so cut-and-dried on a step-by-step basis. Often, the layers listed above overlap,
or the placement stage is avoided altogether.58
UNLAWFUL ACTIVITY UNDER RA 9160 | Unlawful activity refers to any act or omission
or series or combination thereof involving or having relation to the following:
(a) Kidnapping for ransom under Article 267 of the Revised Penal Code, as amended;
(b) Sections 3, 4, 5, 7, 8 and 9 of Article Two of RA 642559;
(c) Section 3 paragraphs B, C, E, G, H and I of RA 301960;
(d) Plunder under RA 708061, as amended;
(e) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the
Revised Penal Code, as amended;
(f) Jueteng and Masiao punished as illegal gambling under PD 160262;
(g) Piracy on the high seas under the Revised Penal Code, as amended and PD 53263;
(h) Qualified theft under Article 310 of the Revised Penal Code, as amended;
(i) Swindling under Article 315 of the Revised Penal Code, as amended;
58
Supra footnote 55.
59
Dangerous Drugs Act of 1972
60
Anti-Graft and Corrupt Practices Act
61
Anti-Plunder Law
62
Prescribing Stiffer Penalties on Illegal Gambling
63
Anti-Piracy and Anti-Highway Robbery Law of 1974
Page 26 of 51
(j) Smuggling under RAs 45564 and 193765;

(k) Violations under RA 879266;
(l) Hijacking and other violations under RA 6235; destructive arson and murder, as defined
under the Revised Penal Code, as amended, including those perpetrated by terrorists
against non-combatant persons and similar targets;
(m) Fraudulent practices and other violations under RA 879967; and
(n) Felonies or offenses of a similar nature that are punishable under the penal laws of other
countries.
ANTI-MONEY LAUNDERING COUNCIL (AMLC) | The Anti-Money Laundering Council

(AMLC) was created pursuant to RA 9160, otherwise known as the “Anti-Money Laundering Act
of 2001” (AMLA), to protect the integrity and confidentiality of bank accounts and to ensure
that the Philippines shall not be used as a money laundering site for the proceeds of any
unlawful activity. The AMLC is the Philippines’ Financial Intelligence Unit (FIU) tasked to
implement the AMLA, as amended by RAs 9194, 10167, and 10365, as well RA 10168, otherwise
known as the “Terrorism Financing Prevention and Suppression Act of 2012”.68
The images above are the seals of the Anti-Money Laundering Council (AMLC). L-R: 2001, 2010
64
An Act to Amend Sections 2702 and 2703 of the Revised Administrative Code
65
Tariff and Customs Code of the Philippines
66
Electronic Commerce Act of 2000
67
Securities Regulation Code of 2000
68
Anti-Money Laundering Council (AMLC). About Us. http://www.amlc.gov.ph/about-us
Page 27 of 51
AMLC SEAL | The latest AMLC Official Seal was adopted on October 16, 2015 and was
officially used on January 1, 2016. The new seal features the following elements:
(1) Eagle symbolizes strength, courage, and determination in the pursuit of mandate;
independence from outside forces/pressure; honesty in public service; guardianship
against attempts to make the Philippines a money-laundering site; and the eagle eye for
clarity of vision;
(2) Three feathers represents the three pillars or virtues of the AMLC – independence,
integrity, and cooperation;
(3) Colors light blue, gold, and red are the dominant colors of the official seals of the
Bangko Sentral ng Pilipinas, Securities and Exchange Commission and Insurance
Commission representing the members of the AMLC; and
(4) Council’s acronym, “AMLC” is given prominence to make the agency more familiar to
the public.69
COMPOSITION OF THE AMLC | The AMLC is composed of the following: (a) the Governor
of the Bangko Sentral ng Pilipinas (BSP), as Chairman; (b) the Commissioner of the
Insurance Commission (IC); and (c) the Chairman of the Securities and Exchange
Commission (SEC), as Members. Pursuant to Section 8 of RA 9160, the AMLC is assisted by a
Secretariat headed by an Executive Director and consists of three major operational units:
(1) Office of the Executive Director (OED)
(a) Administrative, Financial and Information Technology Group (AFITSG)
(b) Commitments and Policy Group (CPG)
(c) Counseling, Adjudication and Mutual Legal Assistance (CAM) Group
(d) Enterprise Security Staff (ESS)
(2) Detection and Prevention Department (DPD)
(a) Financial Intelligence and Analysis Group (FIAG)
(b) Compliance and Supervision Group (CSG)
(3) Investigation and Enforcement Department (IED)
69
Anti-Money Laundering Council. AMLC adopts a new seal. http://www.amlc.gov.ph/.
Page 28 of 51
(a) Financial Crimes Investigation Group (FCIG)

(b) Litigation and Evaluation Group (LEG)
BSP GOVERNOR
Chairman
SEC CHAIRMAN INSURANCE COMMISSIONER

Member Member
FUNCTIONS OF THE AMLC | The AMLC shall act unanimously in the discharge of its
functions as defined hereunder:
(a) to require and receive covered transaction reports from covered institutions;
(b) to issue orders addressed to the appropriate Supervising Authority or the covered
institution to determine the true identity of the owner of any monetary instrument or
property subject of a covered transaction report or request for assistance from a foreign
State, or believed by the Council, on the basis of substantial evidence, to be, in whole or
in part, wherever located, representing, involving, or related to, directly or indirectly, in
any manner or by any means, the proceeds of an unlawful activity;
(c) to institute civil forfeiture proceedings and all other remedial proceedings through the
Office of the Solicitor General;
(d) to cause the filing of complaints with the Department of Justice or the Ombudsman for
the prosecution of money laundering offenses;
(e) to initiate investigations of covered transactions, money laundering activities and other
violations of this Act;
(f) to freeze any monetary instrument or property alleged to be proceeds of any unlawful
activity;
(g) to implement such measures as may be necessary and justified under this Act to
counteract money laundering;
(h) to receive and take action in respect of, any request from foreign states for
assistance in their own anti-money laundering operations provided in this Act;
Page 29 of 51
(i) to develop educational programs on the pernicious effects of money laundering, the
methods and techniques used in money laundering, the viable means of preventing
money laundering and the effective ways of prosecuting and punishing offenders; and
(j) to enlist the assistance of any branch, department, bureau, office, agency or
instrumentality of the government, including government-owned and -controlled
corporations, in undertaking any and all anti-money laundering operations, which may
include the use of its personnel, facilities and resources for the more resolute
prevention, detection and investigation of money laundering offenses and prosecution
of offenders.70
SECTION 7(A), RA 9160 | One of the functions of AMLC is to require and receive covered
suspicious transaction71 reports from covered institutions. Transaction refers to any act
establishing any right or obligation or giving rise to any contractual or legal relationship
between the parties thereto. It also includes any movement of funds by any means with a
covered institution.72
Covered institutions shall report to the AMLC all covered and suspicious transactions within
five (5) working days from occurrence thereof, unless the Supervising Authority concerned
prescribes a longer period not exceeding ten (10) days. Should a transaction be determined to
70
Sec. 7, RA 9160
71
Suspicious transactions are transactions with covered institutions, regardless of the amounts involved, where any of the following
circumstances exist:
(1) No underlying legal or trade obligation, purpose or economic justification;
(2) The client is not properly identified;
(3) The amount involved is not commensurate with the business or financial capacity of the client;
(4) Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to
avoid being the subject of reporting requirements;
(5) Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s
past transactions from the covered institution;
(6) The transaction is in any way related to an unlawful activity or offense under this Act that is about to be, is being or has
been committed; and
(7) Any transaction that is similar or analogous to any of the foregoing.
72
Anti-Money Laundering Council (AMLC) and Anti-Corruption: The Philippine Experience. http://mddb.apec.org/.
Page 30 of 51
be both a covered transaction and a suspicious transaction, the covered institution shall be
required to report the same as a suspicious transaction.73
Any person knowing that any monetary instrument or property is required under this Act to be
disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so. The penalty
for those who shall not report to the AMLC shall be imprisonment of six (6) months to four (4)
years or a fine of not less than One Hundred Thousand pesos (PhP100,000.00) to Five Hundred
Thousand pesos (PhP500,000.00) or both.74
Any person who with malice, or in bad faith, reports or files a completely unwarranted or false
information relative to a money laundering transaction against any person shall be a subject to
a penalty of six (6) months to four (4) years imprisonment and a fine of not less than One
Hundred Thousand pesos (PhP100,000.00) but not more than Five Hundred Thousand pesos
(PhP500,000.00), at the discretion of the court: Provided, That the offender is not entitled to
avail the benefits of the Probation Law.75
In case of breach of confidentiality, the punishment of imprisonment ranging from three (3) to
eight (8) years and a fine of not less than Five hundred thousand Philippine pesos
(PhP500,000.00) but not more than One million Philippine pesos (PhP1,000,000.00), shall be
imposed on a person convicted for a violation under Section 9(c).76
PROHIBITED ACCOUNTS UNDER RA 9160 | The following are the prohibited accounts
under the law: (a) anonymous accounts; (b) accounts under fictitious names; and (c) all other
similar accounts shall be absolutely prohibited.77
73
Supra footnote 71.
74
Sec. 14(a)(3), RA 9160
75
Sec. 14(c), RA 9160
76
Sec. 14(d), RA 9160
77
Sec. 9(a), RA 9160
Page 31 of 51
Peso and foreign currency non-checking numbered accounts are allowed: Provided that the
true identity of the customers of all peso and foreign currency non-checking numbered
accounts are satisfactorily established based on official and other reliable documents and
records and that the information and documents required under these rules are obtained and
recorded by the covered institution.78
SECTION 7(H), RA 9160 | Another function of the AMLC is to receive and take action in
respect of any request from foreign states for assistance in their own anti-money laundering
operations provided in RA 9160.79
REQUESTS FOR ASSISTANCE FROM A FOREIGN STATE | AMLC may execute, or

refuse to execute informing the foreign state of the valid ground for not executing or the
delay.80 The provision is based on principles of mutuality and reciprocity81. Assistance includes
the following:
(a) Tracking down, freezing restraining and seizing of proceeds of unlawful activity;
(b) Giving information needed within the procedures laid down by the AMLA; and
(c) Applying for an order of forfeiture of any monetary instrument or property with the
court.82
The AMLC may execute a request for assistance from a foreign State by: (1) tracking down,
freezing, restraining and seizing assets alleged to be proceeds of any unlawful activity
under the procedures laid down in RA 9160; (2) giving information needed by the foreign
State within the procedures laid down in RA 9160; and (3) applying for an order of forfeiture
of any monetary instrument or property in the court: Provided, That the court shall not issue
78
Supra footnote 77.
79
Supra footnote 70.
80
Supra footnote 70.
81
Comity is the recognition which one nation allows within its territory to the legislative, executive, or judicial acts of another
nation, having due regard both to International duty and convenience, and to the rights of its own citizens or of other persons who
are under the protection of its laws [Sison v. Board of Accountacy (G.R. No. L-2529, December 31, 1949), citing Hilton v. Guyot (59 U.
S., 113, 40 Law. ed., 95; 16 S. Ct., 139.)].
82
Supra footnote 77.
Page 32 of 51
such an order unless the application is accompanied by an authenticated copy of the order of a
court in the requesting State ordering the forfeiture of said monetary instrument or property of a
person who has been convicted of a money laundering offense in the requesting State, and a
certification or an affidavit of a competent officer of the requesting State stating that the conviction
and the order of forfeiture are final and that no further appeal lies in respect of either.83
The AMLC may make a request to any foreign State for assistance in the following:
(1) Tracking down, freezing, restraining and seizing assets alleged to be proceeds of any
unlawful activity;
(2) Obtaining information that it needs relating to any covered transaction, money
laundering offense or any other matter directly or indirectly related thereto;
(3) To the extent allowed by the law of the foreign State, applying with the proper court
therein for an order to enter any premises belonging to or in the possession or control
of, any or all of the persons named in said request, and/or search any or all such persons
named therein and/or remove any document, material or object named in said request:
Provided, That the documents accompanying the request in support of the application
have been duly authenticated in accordance with the applicable law or regulation of the
foreign State;
(4) Applying for an order of forfeiture of any monetary instrument or property in the proper
court in the foreign State: Provided, That the request is accompanied by an
authenticated copy of the order of the regional trial court ordering the forfeiture of said
monetary instrument or property of a convicted offender and an affidavit of the clerk of
court stating that the conviction and the order of forfeiture are final and that no further
appeal lies in respect of either.84
REQUIREMENTS FOR MUTUAL ASSISTANCE FROM FOREIGN STATES | A

request for mutual assistance from a foreign State must do the following:
83
Sec. 13(b), RA 9160
84
Sec. 13(c), RA 9160
Page 33 of 51
(1) Confirm that an investigation or prosecution is being conducted in respect of a money

launderer named therein or that he has been convicted of any money laundering
offense;
(2) State the grounds on which any person is being investigated or prosecuted for money
laundering or the details of his conviction;
(3) Give sufficient particulars as to the identity of said person;
(4) Give particulars sufficient to identify any covered institution believed to have any
information, document, material or object which may be of assistance to the
investigation or prosecution;
(5) Ask from the covered institution concerned any information, document, material or
object which may be of assistance to the investigation or prosecution;
(6) Specify the manner in which and to whom said information, document, material or
object obtained pursuant to said request, is to be produced;
(7) Give all the particulars necessary for the issuance by the court in the requested State of
the writs, orders or processes needed by the requesting State; and
(8) Contain such other information as may assist in the execution of the request.85
LIMITATIONS ON REQUEST FOR MUTUAL ASSISTANCE | The AMLC may refuse to

comply with any request for assistance where the action sought by the request contravenes
any provision of the Constitution or the execution of a request is likely to prejudice the
national interest of the Philippines unless there is a treaty between the Philippines and the
requesting State relating to the provision of assistance in relation to money laundering
offenses.86
85
Sec. 13(e), RA 9160
86
Sec. 13(d), RA 9160
Page 34 of 51
MEMORANDUM OF UNDERSTANDING WITH AN EGMONT FIU87 | There are

approximately 100 Egmont members. These are the following Financial Intelligence Units (FIUs)
which the AMLC has signed a Memorandum of Understanding (MOU) with.
● Korean FIU (KoFiu)
● Bank Negara Malaysia (BNM)
● Indonesian Financial Transaction Reports and Analysis Center (INTRAC)
● AMLO of Thailand
● Palau FIU
● Australian Transaction Reports and Analysis Center (Austrac)
● US Financial Crimes Enforcement Network
● Money Laundering Prevention Center of Taiwan
● Peruvian FIU (Peru)
III. Laws
The table below shows the legal development of RA 9160. The following are the laws which
widened the scope of the AMLC.
ANTI-MONEY LAUNDERING ACT OF 2001 Philippine Congress October 17, 2001

(RA 9160)
AN ACT AMENDING RA 9160, OTHERWISE Philippine Congress March 23, 2003

KNOWN AS THE ANTI-MONEY LAUNDERING
ACT OF 2001 (RA 9194)
THE TERRORISM FINANCING PREVENTION Philippine Congress July 2, 2012

AND SUPPRESSION ACT (RA 10168)
87
The Egmont Group is a united body of 165 Financial Intelligence Units (FIUs). The Egmont Group provides a platform for the
secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing (ML/TF). This is
especially relevant as FIUs are uniquely positioned to cooperate and support national and international efforts to counter terrorist
financing and are the trusted gateway for sharing financial information domestically and internationally in accordance with global
Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) standards.
Page 35 of 51
AN ACT TO FURTHER STRENGTHEN THE Philippine Congress July 2, 2012

ANTI-MONEY LAUNDERING LAW,
AMENDING FOR THE PURPOSE SECTIONS
10 & 11 OF RA 9160, OTHERWISE KNOWN AS
THE “ANTI-MONEY LAUNDERING ACT OF
2001” (RA 10167)
AN ACT TO FURTHER STRENGTHENING THE Philippine Congress March 1, 2013

ANTI-MONEY LAUNDERING LAW,
AMENDING FOR THE PURPOSE OF RA 9160,
OTHERWISE KNOWN AS THE ANTI-MONEY
LAUNDERING ACT OF 2001, AS AMENDED
(RA 10365)
AN ACT DESIGNATING CASINOS AS Philippine Congress July 30, 2017

COVERED PERSONS UNDER RA 9160,
OTHERWISE KNOWN AS THE ANTI-MONEY
LAUNDERING ACT OF 2001 (RA 10927)
IV. Conclusion
Taking the discussion above into account, the AMLC can impose its mandates outside the
Philippine territory when a state requests for its assistance so long as the action sought by the
request contravenes any provision of the Constitution or the execution of a request is inimical
to the national interest of the Philippines unless there is a treaty between the Philippines and
the requesting State relating to the provision of assistance in relation to money laundering
offenses.
Page 36 of 51
RE-IMPOSITION OF DEATH PENALTY IN THE

PHILIPPINE REVISED PENAL CODE
I. Introduction
Miscarriage of justice is decried by many, but the unrelenting animosity towards it does not put
it to an end. More than three decades ago, in a small town in Oklahoma, United States, Ron
Williamson and Dennis Fritz were wrongfully convicted of rape and murder of Debra Carter and
were placed in death row. When DNA tests revealing that neither Williamson nor Fritz could
have raped and murdered Carter came out, they were finally exonerated and released.88 This
story illustrates that the justice system, even in the wealthiest country in the world, is flawed.
Williamson and Fritz had to wade through the corridors of unmitigated injustice.
II. Objective
From the set of prefatory statements above, it is clear that my position in the re-imposition of
death penalty in our Revised Penal Code is in the negative. Death penalty is a morbid, inhuman
punishment. The question “Should death penalty be re-imposed in our Penal Code?” should be
changed to “Why should death penalty not be re-imposed in our Penal Code?”. This issue will
be answered based on the points of law and not of religious contentions.
The issue of death penalty has always been the subject of controversy since time immemorial.
There are some who subscribe to the idea that death penalty should be strengthened, not
88
Frontline. Burden of Innocence, https://www.pbs.org/wgbh/pages/frontline/shows/burden/profiles/williamson.html.
Page 37 of 51
abolished. Among those who are for capital punishment are George Brauchler89, Paul
Muschick90, Carl F. H. Henry91, and Parmatmananda Saraswati92.
According to Brauchler, the paramount goal of sentencing is the imposition of justice. Justice is
dismissing a charge, granting a plea bargain, expunging a past conviction, seeking a prison
sentence, or — in a very few cases, for the worst of the worst murderers — sometimes, justice
is death.93 To Muschick’s mind, it is necessary to have capital punishment because some
crimes simply are so horrific that any other punishment, including life in a cage, is
insufficient.94 The contention of Saraswati is founded on Hindu tradition. He said that capital
punishment is allowed under Hindu tradition and that Lord Rama is the embodiment of
dharma, yet he killed King Bali, who had stolen his own brother’s wife.95 Moreover, Henry argues
that nowhere does the Bible repudiate capital punishment for premeditated murder; not
only is the death penalty for deliberate killing of a fellow human being permitted, but it is
approved and encouraged, and for any government that attaches at least as much value to the
life of an innocent victim as to a deliberate murderer, it is ethically imperative.96
However, the American Civil Liberties Union (ACLU)97 opposes death penalty on the following
grounds: (1) The death penalty system [in the US] is applied in an unfair and unjust manner
against people, largely dependent on how much money they have, the skill of their attorneys,
race of the victim and where the crime took place; (2) the death penalty is a waste of
taxpayer funds and has no public safety benefit. The vast majority of law enforcement
professionals surveyed agree that capital punishment does not deter violent crime. x x x The
89
District Attorney of the 18th Judicial District in Colorado
90
Columnist, reporter, and editor at The Morning Call
91
Founder and Editor of Christian Today
92
Co-ordinator of the Hindu Dharma Acharya Sabha
93
Coloradans Should Have the Final Say on the Death Penalty (and I’d Hope They Keep It), an article published on March 1, 2019
94
Pennsylvania’s Death Penalty System Should Be Strengthened, Not Abolished, Amid Newly Raised Concerns, an article published
on June 28, 2018
95
Capital Punishment: Time to Abandon It?, an Hinduism Today article published in 2006
96
Henry, Twilight of a Great Civilization (1998)
97
The American Civil Liberties Union is a nonprofit organization founded in 1920 "to defend and preserve the individual rights and
liberties guaranteed to every person in this country by the Constitution and laws of the United States".
Page 38 of 51
FBI has found the states with the death penalty have the highest murder rates; and (3)
innocent people are too often sentenced to death.98
Now that contentions of the affirmative and the negative are briefly discussed, we backtrack a
little to witness the outset of death penalty as a tool for sanctioning those who committed
heinous crimes.
ORIGIN OF DEATH PENALTY | As far back as the Ancient Laws of China, the death
penalty has been established as a punishment for crimes. In the 18th Century BC, the Code of
King Hammurabi of Babylon codified the death penalty for different crimes. The first death
sentence historically recorded occurred in 16th Century BC Egypt where the wrongdoer, a
member of nobility, was accused of magic, and ordered to take his own life. During this period
non-nobility was usually killed with an ax.99
In the 14th Century BC, the Hittite Code also prescribed the death penalty. The 7th Century BC
Draconian Code of Athens made death the penalty for every crime committed. In the 5th
Century BC, the Roman Law of the Twelve Tablets codified the death penalty. Again, the death
penalty was different for nobility, freemen and slaves and was punishment for crimes. Death
was often cruel and included crucifixion, drowning at sea, burial alive, beating to death, and
impalement. The most notorious death execution in BC was about 399 BC when the Greek
philosopher Socrates was required to drink poison for heresy and corruption of youth.100
Mosaic Law codified many capital crimes. In fact, there is evidence that Jews used many
different techniques including stoning, hanging, beheading, crucifixion, throwing the criminal
from a rock, and sawing asunder. The most infamous execution of history occurred
approximately 29 AD with the crucifixion of Jesus Christ outside Jerusalem. About 300 years
later, the Emperor Constantine, after converting to Christianity, abolished crucifixion and other
98
American Civil Liberties Union. The Case Against Death Penalty. https://www.aclu.org/other/case-against-death-penalty.
99
Laura Randa. Society’s Final Solution: A History and Discussion of the Death Penalty. University Press of America, Inc., 1997.
100
Randa, supra footnote 99.
Page 39 of 51
cruel death penalties in the Roman Empire. In 438, the Code of Theodosius made more than 80
crimes punishable by death.101
Britain influenced the colonies more than any other country and has a long history of
punishment by death. About 450 BC, the death penalty was often enforced by throwing the
condemned into a quagmire. By the 10th Century, hanging from gallows was the most frequent
execution method. William the Conqueror opposed taking life except in war, and ordered no
person to be hanged or executed for any offense. However, he allowed criminals to be mutilated
for their crimes. During the middle ages, capital punishment was accompanied by torture. Most
barons had a drowning pit as well as gallows and they were used for major as well as minor
crimes.102
DEATH PENALTY AROUND THE GLOBE | The following are the countries where death
penalty or capital punishment is legal. The countries are categorized on the basis of their
geographical location.103
AMERICAS
● Antigua and Barbuda
● Bahamas
● Barbados
● Belize
● Cuba
● Dominica
● Guyana
● Jamaica
● Saint Kitts and Nevis
101
102
103
Amnesty International. Death Sentences and Executions 2018. https://www.amnesty.org/.
Page 40 of 51
● Saint Lucia
● Saint Vincent and the Grenadines
● Trinidad and Tobago
● United States
ASIA-PACIFIC
● Afghanistan
● Bangladesh
● China
● Japan
● India
● Indonesia
● Malaysia
● North Korea
● Pakistan
● Singapore
● Taiwan
● Thailand
● Vietnam
SUB-SAHARAN AFRICA
● Botswana
● Chad
● Comoros
● Democratic Republic of the Congo
● Equatorial Guinea
● Ethiopia
● Lesotho
Page 41 of 51
● Nigeria
● Somalia
● South Sudan
● Sudan
● Uganda
● Zimbabwe
MIDDLE EAST AND NORTH AFRICA

● Bahrain
● Egypt
● Iran
● Iraq
● Jordan
● Kuwait
● Libya
● Oman
● Palestinian territories
● Saudi Arabia
● Syria
● United Arab Emirates
● Yemen
EUROPE AND CENTRAL ASIA

● Belarus
Page 42 of 51
As shown in the map above, there are countries where death penalty is, until now, legal. The
data reflected in the map are the findings of Amnesty International from its annual global
report on the death penalty.104
DEATH PENALTY IN THE PHILIPPINES | Death penalty as a means of punishing

criminals is not foreign in the Philippines. In fact, it was legal long before the Philippines
became independent in 1946. Under the Spanish colonial rule, criminals were executed through
firing squad, garrote105, and hanging. In 1902, when Act No. 451106 took effect, garrote as a
means of execution was abolished. Subsequently, another means of execution was introduced
by the United States, and that is electrocution. Death penalty was legal under the Marcos
regime until President Ferdinand E. Marcos was ousted from the office in 1986. Under the 1987
104
Amnesty International. Death Penalty 2018: Dramatic Fall in Global Executions. https://www.amnestyusa.org/.
105
As defined by Collins Dictionary, garrote is a method of execution, as formerly in Spain, with an iron collar tightened about the
neck by a screw. It is well-known in the Philippine history that Mariano Gómez, José Burgos, and Jacinto Zamora (GOMBURZA)
were executed by way of garrote.
106
An Act Abolishing the Use of Garrote as a means of Executing Criminals Hereafter Condemned to Death and Substituting in
place thereof Execution by Hanging
Page 43 of 51
Constitution, death penalty is prohibited, but the Congress is allowed to reinstate it for heinous
crimes107.
UNIVERSAL DECLARATION ON HUMAN RIGHTS (UDHR) | The Universal

Declaration of Human Rights remains as relevant today as it was on the day in 1948 that it was
proclaimed and adopted by the United Nations General Assembly. The extraordinary vision and
resolve of the drafters produced a document that, for the first time, articulated the rights and
freedoms to which every human being is equally and inalienably entitled.108 One of the
provisions of this declaration provides that everyone has the right to life, liberty and security
of person.109 However, since this declaration is only a soft law, it is not legally binding. “Soft
law” means that the provision in question is not of itself “law” but its importance within the
general framework of vital legal development is such that particular attention requires to be
paid to it. Soft law is not a law.110 In other words, soft law does not have any legally binding force.
IV. Laws and Jurisprudence
Death penalty used to be legal in the Philippines. When RA 9346111 took effect, death penalty
has been abolished. Of course, RA 9346 has a retroactive effect because (1) it is favorable to
those who have been convicted of crimes which were punishable by death penalty and (2) the
law provides for its retroactive application. Under the said law, in lieu of the death penalty, the
following shall be imposed: (a) the penalty of reclusion perpetua, when the law violated makes
use of the nomenclature of the penalties of the Revised Penal Code; or (b) the penalty of life
imprisonment, when the law violated does not make use of the nomenclature of the penalties of
the Revised Penal Code.112
107
Under RA 7659, heinous crimes include the following: (a) treason; (b) piracy in general and mutiny on the high seas in Philippine
waters; (c) qualified piracy; (d) qualified bribery; (e) parricide; (f) murder; (g) infanticide; (h) kidnapping and serious illegal detention;
(i) robbery with violence against or intimidation of persons; (j) destructive arson; (k) rape; and (l) importation, distribution,
manufacturing and possession of illegal drugs.
108
Universal Declaration on Human Rights (UDHR)
109
Art. 1, UDHR
110
Santiago, International Law, p. 137 (2015)
111
An Act Prohibiting the Imposition of Death Penalty in the Philippines
112
Sec. 2, RA 9346
Page 44 of 51
As a general rule, laws shall have no retroactive effect113. The law looks forward and not
backward. Lex prospicit, non respicit. However, there are exceptions to this rule. Laws will have
retroactive effect only on the following instances: (a) the law is remedial in nature, since there
are no vested rights in rules of procedure; (b) the statute is penal in nature, provided it is
favorable to the accused provided that he is not a habitual delinquent as defined under the
Revised Penal Code; (c) the law is curative, provided it does not impair vested rights nor affect
final judgments; (d) a substantive right is to be declared for the first time, unless vested rights
are impaired; and (e) the law provides for its retroactivity.
LAWS | Death penalty was legal in the Philippines from the earliest times until it was
abolished. It was in 1993 when death penalty in the Philippines was reinstated through the
approval of President Fidel V. Ramos of RA 7659114. Thirteen years after, death penalty was
abolished through RA 9346. The Philippines then signed the Second Optional Protocol to the
International Covenant on Civil and Political Rights, which commits its member-States to the
abolition of the death penalty within their borders. The protocol was signed on September 20,
2006 and was ratified on November 20, 2007. The table below shows how death penalty in the
country promenaded from its cradle all the way to its grave.
AN ACT ABOLISHING THE USE OF THE Philippine Commission September 2, 1902

GARROTE AS A MEANS OF EXECUTING
CRIMINALS HEREAFTER CONDEMNED TO
DEATH AND SUBSTITUTING IN PLACE
THEREOF EXECUTION BY HANGING (ACT
NO. 451)
AN ACT TO IMPOSE THE DEATH PENALTY Philippine Congress December 31, 1993
ON CERTAIN HEINOUS CRIMES, AMENDING
113
Art. 4, NCC
114
An Act to Impose the Death Penalty on Certain Heinous Crimes, amending for that purpose the Revised Penal Code, as amended,
other special penal laws, and for other purposes
Page 45 of 51
FOR THAT PURPOSE THE REVISED PENAL

CODE, AS AMENDED, OTHER SPECIAL
PENAL LAWS, AND FOR OTHER PURPOSES
(RA 7659)
AN ACT DESIGNATING DEATH BY LETHAL Philippine Congress March 20, 1996

INJECTION AS THE METHOD OF CARRYING
OUT CAPITAL PUNISHMENT, AMENDING
FOR THE PURPOSE ARTICLE 81 OF THE
REVISED PENAL CODE, AS AMENDED BY
SECTION 24 OF RA 7659
AN ACT PROHIBITING THE IMPOSITION OF Philippine Congress June 24, 2006

DEATH PENALTY IN THE PHILIPPINES (RA
9346)
SUPREME COURT DECISIONS | In the case of Echegaray v. Secretary of Justice, et al.115,

the Supreme Court upheld the constitutional validity of death by lethal injection as penalty for
heinous crimes. In the subsequent cases cited in this research paper, however, the Court no
longer imposed death penalty as a penalty but reclusion perpetua or life imprisonment instead
when RA 9346 took effect.
LEO ECHEGARAY v. SECRETARY OF JUSTICE, ET AL.

G.R. No. 132601, October 12, 1998 (EN BANC)
PER CURIAM
FACTS: Echegaray was convicted by the RTC Quezon City for the crime of rape and sentenced
him to death by lethal injection. The RTC decision was affirmed by the Supreme Court.
Echegaray filed a Motion for Reconsideration raising factual issues and a Supplemental Motion
for Reconsideration raising the issue of the constitutionality of RA 76592 and the imposition of
the death penalty for the crime of rape. Both motions were denied by the Supreme Court with a
finding that Congress duly complied with the requirements for the reimposition of the death
115
G.R. No. 132601, October 12, 1998
Page 46 of 51
penalty and thus not unconstitutional. In the meantime, Congress had seen it fit to change the
mode of execution of the death penalty from electrocution to lethal injection and passed RA
8177. Pursuant to the provisions of said law, the Secretary of Justice promulgated the IRR of RA
8177 and directed the Director of the Bureau of Corrections to prepare the Lethal Injection
Manual. Subsequently, Echegaray filed a Petition for Prohibition, Injunction and/or Temporary
Restraining Order to enjoin Secretary of Justice and Director of the Bureau of Prisons from
carrying out the execution by lethal injection of him under RA 8177 and its implementing rules
as these are unconstitutional and void for being cruel, degrading and inhuman punishment per
se.
ISSUE: Whether death by lethal injection is unconstitutional for being a cruel, degrading and
inhuman punishment.
HELD: NO. In lethal injection, the condemned inmate is strapped on a hospital gurney and
wheeled into the execution room. A trained technician inserts a needle into a vein in the
inmate's arm and begins an intravenous flow of saline solution. At the warden's signal, a lethal
combination of drugs is injected into the intravenous line. The deadly concoction typically
includes three drugs: (1) a nonlethal dose of sodium thiopental, a sleep inducing barbiturate; (2)
lethal doses of pancuronium bromide, a drug that paralyzes the muscles; and (3) potassium
chloride, which stops the heart within seconds. The first two drugs are commonly used during
surgery to put the patient to sleep and relax muscles; the third is used in heart bypass surgery.
It is well-settled in jurisprudence that the death penalty per se is not a cruel, degrading or
inhuman punishment. In the oft-cited case of Harden v. Director of Prisons, this Court held that
"[p]unishments are cruel when they involve torture or a lingering death; but the
punishment of death is not cruel, within the meaning of that word as used in the
constitution. It implies there is something inhuman and barbarous, something more than
the mere extinguishment of life." For as long as the death penalty remains in statute books
and meets the most stringent requirements provided by the Constitution, the Court must
Page 47 of 51
confine its inquiry to the legality of RA 8177, whose constitutionality the Court duly sustains in
the face of Echegaray's challenge. The Court finds that the legislature's substitution of the
mode of carrying out the death penalty from electrocution to lethal injection infringes no
constitutional rights of Echegaray.
PEOPLE OF THE PHILIPPINES v. ALFREDO BON

G.R. No. 166401, October 30, 2006 (EN BANC)
TINGA, J.
FACTS: Eight Informations were filed by the Assistant Provincial Prosecutor of Gumaca, Quezon
against Bon, charging him with the rape of AAA and BBB, the daughters of his older brother. All
these cases were consolidated for trial. The rapes were alleged to have been committed in
several instances over a span of six years. The RTC convicted Bon on all eight counts of rape. As
the penalty imposed consisted of eight death sentences, the records of the case were
automatically elevated to the Supreme Court for review. However, in the aftermath of the
pronouncement of the Court in People v. Mateo, the present case was transferred to the Court of
Appeals for appropriate action and disposition. Thereafter, the CA agreed with the rulings of the
RTC in regard to six of the eight death sentences imposed on appellant. The Court affirmed the
conclusions of the CA that it has been established beyond reasonable doubt that Bon is guilty
of six counts of rape and two counts of attempted rape. However, in light of RA 9346, the
appropriate penalties for both crimes should be amended.
ISSUE: Whether death penalty should be imposed upon Bon.
HELD: NO. The sentence of death imposed by the RTC and affirmed by the Court of Appeals
can no longer be affirmed in view of RA 9346. Section 2 of the law mandates that in lieu of the
death penalty, the penalty of reclusion perpetua shall be imposed. Correspondingly, the Court
can no longer uphold the death sentences imposed by lower courts, but must, if the guilt of
Page 48 of 51
the accused is affirmed, impose instead the penalty of reclusion perpetua, or life
imprisonment when appropriate.
PEOPLE OF THE PHILIPPINES v. ELBERTO TUBONGBANUA

G.R. No. 171271 August 31, 2006 (EN BANC)
YNARES-SANTIAGO, J.
FACTS: Since 1998, Tubongbanua had been employed as a family driver by Atty. Sua-Kho, who
worked as the managing partner of a law firm. Sometime in 2001, Tubongbanua stabbed Atty.
Sua-Kho. The latter was brought to the hospital, but the doctors failed to revive her.
Tubongbanua was soon arrested in Calapan, Mindoro, while on his way to his home province.
The RTC Pasig City found him guilty beyond reasonable doubt of the crime of murder under Art.
248, RPC, sentenced him to suffer the severe penalty of death by lethal injection, and ordered
him to pay the legal heirs of the victim actual, moral, nominal, exemplary, and temperate
damages. The case was elevated to the Supreme Court because the penalty imposed was
death. However, pursuant to ruling in People v. Mateo, the case was transferred to the CA. Since
the imposition of the death penalty in this case was affirmed, the case was transmitted to the
Supreme Court on automatic review, immediately upon the promulgation of this Decision.
ISSUE: Whether death penalty should be imposed upon Tubongbanua.
HELD: NO. Article 248 of the Revised Penal Code, as amended by RA 7659, prescribes the
penalty of reclusion perpetua to death for the crime of murder. Considering the qualifying
circumstance of evident premeditation and the aggravating circumstances of dwelling, and
taking advantage of superior strength without any mitigating circumstance, the proper
imposable penalty would have been death. However, in view of the enactment of RA 9346, the
penalty that should be meted is reclusion perpetua. Pursuant to the same law, Tubongbanua
shall not be eligible for parole under Act No. 4103116.
116
Indeterminate Sentence Law
Page 49 of 51
PEOPLE OF THE PHILIPPINES v. MELCHOR CABALQUINTO

G.R. No. 167693, September 19, 2006 (EN BANC)
TINGA, J.
FACTS: Cabalquinto was accused of raping his eight-year old daughter, AAA, for seven times.
He was convicted guilty by the RTC Quezon City for two counts of rape and was sentenced to
suffer the penalty of death. AAA testified that her father had raped her seven times since her
mother, ABC, left for abroad. A medical certificate and ABC’s testimony were presented to
support the charge, but in Cabalquinto’s defense, he claimed that there are material
inconsistencies between the testimony of AAA and ABC with regard to whether AAA cried out
as she was being raped because while AAA testified that she shouted twice, ABC stated that
she did not see AAA struggle nor hear her call out. In 2002, the Court issued a Resolution
requiring the parties to submit their respective briefs to which the parties complied. Pursuant
to the case of People v. Mateo, however, the Court issued a Resolution transferring the case to
the CA for appropriate action. The CA affirmed the RTC decision and added awards for moral
damages exemplary damages. The case is again before the Court for its final disposition.
ISSUE: Whether death penalty should be imposed upon Cabalquinto.
HELD: NO. Carnal knowledge of a woman under 12 years of age is rape as defined under Art.
335 of the Revised Penal Code and is qualified when the offender is a parent of the victim, in
which case, the death penalty shall be imposed as provided under the Death Penalty Law. In this
case, the qualifying circumstances of the victim's minority and her relationship with
Cabalquinto as the latter's daughter were properly alleged in the Informations, proven during
trial and not refuted by him. However, in view of RA 9346 which prohibits the imposition of
the death penalty, the penalty of reclusion perpetua without eligibility for parole should
instead be imposed.
Page 50 of 51
V. Conclusion
Should capital punishment be re-imposed the Philippines? Based from the foregoing, capital
punishment should definitely not be reimposed in the Philippines. It should not be reimposed
because, first, there are innocent people who are wrongly convicted. As Blackstone's ratio goes,
it is better that 100 guilty persons should escape than that one innocent person should
suffer.117 Second, death penalty will not eschew some people from committing heinous crimes.
Lastly, death penalty is a gruesome means of punishing criminals. To err is human, but to
persist in error is diabolical. Criminals can and do change in prison. On a side note, there is no
debate that death penalty was legal in the Philippines, but what is legal does not necessarily
follow that it is moral. Non omne quod licet honestum est.118
This is the end. Nothing follows.
117
People v. Basher Tomawis, G.R. No. 228890, April 18, 2018
118
Not all that is permitted is honorable.
Page 51 of 51

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LEGAL RESEARCH

A.Y. 2020–2021, First Semester

Prepared and Submitted by:

“The man of action has the present, but the thinker

III. Bibliographical Review...................................................................................................... 3

IV. Laws and Jurisprudence................................................................................................... 13

ANTI-MONEY LAUNDERING COUNCIL (AMLC)................................................................... 20

III. Bibliographical Review..................................................................................................... 20

RE-IMPOSITION OF DEATH PENALTY IN THE PHILIPPINE REVISED PENAL CODE.......... 37

III. Bibliographical Review...................................................................................................... 37

IV. Laws and Jurisprudence.................................................................................................... 44

BANGKO SENTRAL NG PILIPINAS (BSP)

III. Bibliographical Review

To give us a better understanding of usury, it is necessary to discuss it by tracing its history

BANGKO SENTRAL NG PILIPINAS (BSP) | The Bangko Sentral ng Pilipinas, established

HISTORY OF BANGKO SENTRAL NG PILIPINAS (BSP) | In 1900, the First Philippine

CONVERTIBLE CURRENCIES | The Bangko Sentral has 19 currencies directly convertible

● Japanese yen (JPY)

IV. Laws and Jurisprudence

TITLE AUTHOR DATE OF EFFECTIVITY

AN ACT FIXING RATES OF INTEREST UPON Philippine Legislature May 1, 1916

AMENDING FURTHER CERTAIN SECTIONS OF President Ferdinand E. January 29, 1973

AN ACT AMENDING REPUBLIC ACT NUMBER Philippine Congress March 2, 2019

SECURITY BANK AND TRUST COMPANY v. RTC MAKATI, ET AL.

LETICIA MEDEL, ET AL. v. COURT OF APPEALS, ET AL.

SPS. CASTRO v. ANGELINA DE LEON TAN

or lead to a hemorrhaging of their assets. Moreover, the subsequent registration of the

ADVOCATES FOR TRUTH IN LENDING v. BANGKO SENTRAL MONETARY BOARD, ET AL.

and deposit substitutes, or loans of financial intermediaries. In addition, nothing in CB

ANTI-MONEY LAUNDERING COUNCIL (AMLC)

III. Bibliographical Review

ETYMOLOGY OF TERRORISM | The words terrorism and terrorist came to English as

TYPES OF TERRORISM | There are five types of terrorism:

MONEY LAUNDERING | Money laundering is the process of making illegally-gained

HISTORY OF MONEY LAUNDERING | Historically, money laundering has been around in

THREE STAGES OF MONEY LAUNDERING | Money laundering evolves through three

(j) Smuggling under RAs 45564 and 193765;

ANTI-MONEY LAUNDERING COUNCIL (AMLC) | The Anti-Money Laundering Council

(a) Financial Crimes Investigation Group (FCIG)

SEC CHAIRMAN INSURANCE COMMISSIONER

REQUESTS FOR ASSISTANCE FROM A FOREIGN STATE | AMLC may execute, or

REQUIREMENTS FOR MUTUAL ASSISTANCE FROM FOREIGN STATES | A

(1) Confirm that an investigation or prosecution is being conducted in respect of a money

LIMITATIONS ON REQUEST FOR MUTUAL ASSISTANCE | The AMLC may refuse to

MEMORANDUM OF UNDERSTANDING WITH AN EGMONT FIU87 | There are

TITLE AUTHOR DATE OF EFFECTIVITY

ANTI-MONEY LAUNDERING ACT OF 2001 Philippine Congress October 17, 2001

AN ACT AMENDING RA 9160, OTHERWISE Philippine Congress March 23, 2003

THE TERRORISM FINANCING PREVENTION Philippine Congress July 2, 2012

AN ACT TO FURTHER STRENGTHEN THE Philippine Congress July 2, 2012

AN ACT TO FURTHER STRENGTHENING THE Philippine Congress March 1, 2013

AN ACT DESIGNATING CASINOS AS Philippine Congress July 30, 2017

RE-IMPOSITION OF DEATH PENALTY IN THE

III. Bibliographical Review

MIDDLE EAST AND NORTH AFRICA

EUROPE AND CENTRAL ASIA

DEATH PENALTY IN THE PHILIPPINES | Death penalty as a means of punishing

UNIVERSAL DECLARATION ON HUMAN RIGHTS (UDHR) | The Universal

IV. Laws and Jurisprudence