Procedure for Disposition of Confiscated Foreign Currency

The Decree treats blackmarketing and smuggling of foreign currencies and foreign exchange instruments as detrimental to the national economy.
The Decree directs government law enforcement to intensify the campaign against blackmarketing and smuggling of foreign exchange.
The Decree designates the Central Bank of the Philippines as the best custodian for confiscated, forfeited or abandoned foreign currencies and foreign exchange instruments.
The Decree authorizes the Central Bank to dispose of these items as the Monetary Board directs through appropriate circulars, rules and regulations.
The Decree aims to expedite proceedings in cases of blackmarketing or smuggling of foreign exchange pending before the courts without unduly prejudicing the rights of the accused.

Section 1 applies whenever foreign currencies or foreign exchange instruments are seized from persons engaged in blackmarketing or smuggling of foreign exchange or in violation of existing foreign exchange regulations.
Section 4 applies when seized foreign currencies or foreign exchange instruments are not claimed or ownership is not admitted in writing within 48 hours from and after seizure.
Section 5 applies when a prima facie case is found against the person(s) from whom or in whose possession the seized foreign currencies or foreign exchange instruments were found and/or against the person(s) probably responsible for the blackmarketing or smuggling.
Section 6 defines the meaning of “dispose” for purposes of the Decree.

Section 1 requires the law enforcement agency making the seizure to immediately conduct an inventory of the seized foreign currencies and foreign exchange instruments.
Section 1 requires the officer or head of the seizure team to issue a detailed receipt to the person(s) on whom or in whose possession the seized items were found.
Section 1 requires, in the absence of any person, the seizure team to leave the receipt in the place where the seized items were found in the presence of at least one (1) witness.
Section 2 requires the inventory to be conducted in the presence of representatives of the Central Bank of the Philippines and the Commission on Audit.
Section 2 requires the inventory to state the amount of foreign currencies or the face value of foreign exchange instruments seized, the serial numbers, and the number of the receipt issued under Section 1.
Section 3 requires the seizure team to execute a sworn statement describing in detail the facts and circumstances surrounding the seizure.
Section 3 requires transmitting the sworn statement together with the inventory to the Central Bank of the Philippines and the Commission on Audit.

Section 4 requires that immediately and not later than twenty-four (24) hours after the inventory, the law enforcement agency directly transmit the seized foreign currencies and/or foreign exchange instruments to the Central Bank of the Philippines.
Section 4 designates the Central Bank as the sole custodian of all foreign currencies and foreign exchange instruments that may be confiscated or forfeited in favor of the Government, or abandoned.
Section 4 directs that Central Bank custody applies notwithstanding any provision of law, rule or regulation to the contrary.

Section 4 provides that if a foreign currency and/or foreign exchange instrument is seized and no person claims or admits ownership in writing within forty-eight (48) hours from and after seizure, the items are deemed abandoned for all legal interests and purposes.
Section 4 authorizes the Central Bank to immediately dispose of abandoned foreign currencies and/or foreign exchange instruments in accordance with existing laws, rules and regulations.

Section 5 provides that if a prima facie case is found, the court where the appropriate information is filed shall conduct daily hearings to expedite determination of the accused’s guilt or innocence.
Section 5 provides that upon final conviction, confiscated or forfeited foreign currencies and/or foreign exchange instruments shall be disposed of by the Central Bank of the Philippines in accordance with existing laws, circulars, rules and regulations.

Section 6 defines “dispose” to include authority to invest all or part of the confiscated, forfeited or abandoned foreign currencies and foreign exchange instruments.
Section 6 defines “dispose” to include authority to make use of the same as reserves.
Section 6 defines “dispose” to include authority to make use of the same as security in the payment of obligations.

Section 7 punishes any public officer or employee, including a private individual, who submits a false or incomplete inventory or statement.
Section 7 punishes any public officer or employee, including a private individual, who without lawful cause fails or refuses to transmit any seized foreign currency or foreign exchange instrument.
Section 7 punishes any public officer or employee, including a private individual, who in any manner violates his duty under the Decree.
Section 7 imposes the penalty of prision correctional for violations.

Section 8 requires the Central Bank of the Philippines to promulgate rules and regulations to implement the Decree.