Title
Establish Foreign Funds Control Office
Law
Republic Act No. 7
Decision Date
Aug 9, 1946
During a national emergency resulting from war, the Foreign Funds Control Office is granted authority to regulate and investigate transactions involving enemy countries or nationals, with violators facing fines or imprisonment.
A

Powers to Require Information and Conduct Investigations

  • Authorized to require individuals to maintain detailed records.
  • Power to demand sworn reports or complete information about transactions involving enemy interests.
  • May require such information before, during, or after transactions.
  • Authority to seize books, records, contracts, letters, memoranda, or other documents.
  • Empowered to take necessary measures consistent with the Act for enforcement.

Definition of "National" of an Enemy Country

  • Includes foreigners who directly or indirectly waged war against the United States or the Commonwealth of the Philippines.
  • Includes foreigners who have aided or given comfort to enemy countries during the war.
  • Encompasses foreigners acting or purportedly acting for the benefit of enemy countries or nationals.
  • Includes Filipino citizens charged with treason or crimes against national security, whether civil or military.

Rule-Making and Further Definitions

  • Foreign Funds Control Office may define terms used in the Act, provided definitions align with the Act’s purposes.
  • Empowered to issue rules and regulations necessary for the enforcement of the Act.
  • Subject to approval by the President.

Penalties for Violations

  • Violations punishable by a fine not exceeding twenty thousand pesos.
  • Alternatively, imprisonment of up to ten years.
  • Court discretion to impose either or both penalties.

Appropriation for Implementation

  • Appropriation of fifty thousand pesos from Philippine Treasury funds for the Office’s operations.
  • Expenditure upon recommendation of the Secretary of Finance with Presidential approval.

Effectivity

  • The Act takes effect immediately upon its approval on August 9, 1946.

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