Reward System for Violations of PD No. 1883

Letter of Instructions No. 1356 orders the establishment of a reward system for information leading to the arrest and conviction of persons violating Presidential Decree No. 1883.
The reward system is intended to deter pernicious practices that harm the national economy, particularly the balance of payments.
The reward payable to informers must be commensurate to attendant risks and attractive enough to secure informer cooperation.

The reward system covers information leading to the arrest and conviction of persons violating Presidential Decree No. 1883.
The enforcement consequence tied to the reward is the forfeiture of foreign exchange and Philippine currency that are confiscated or seized as a consequence of the Presidential Decree No. 1883 violation.
The reward is tied to cases resulting in forfeiture to the National Government.

The Central Bank of the Philippines must establish a reward system for qualifying information.
The reward system must cover information that leads to the arrest and conviction under Presidential Decree No. 1883.
The reward system must be structured around the forfeiture of the confiscated or seized foreign exchange and Philippine currency.

The reward is 20% of the proceeds of the foreign exchange and Philippine currency actually forfeited to the National Government.
The reward amount is P50,000.00, whichever is higher, compared against the 20% computation.
The phrase “proceeds … actually forfeited” controls the base for the 20% computation.

The Central Bank is authorized to pay the informer’s reward out of the proceeds of the exported and imported goods, foreign exchange, and Philippine currency forfeited to the National Government.
The Central Bank is also authorized to pay the informer’s reward from funds appropriated by the Monetary Board for this purpose.

Presidential Decree No. 1883 is treated as the governing framework defining blackmarketing and salting of foreign exchange and imposing heavier penalties.
Letter of Instructions No. 1356 implements a reward mechanism tied to enforcement actions under Presidential Decree No. 1883, specifically arrest, conviction, and forfeiture of seized/confiscated foreign exchange and Philippine currency.