DEFINING THE CRIMES OF BLACKMARKETING AND SALTING OF FOREIGN EXCHANGE AND IMPOSING INCREASED PENALTIES THEREON

WHEREAS, the President of the Philippines, taking cognizance
of the balance of payments deficits, issued Letter of Instructions No. 1307
dated April 11, 1983 and Letter of Instructions No. 1329 dated May 31, 1983,
directing all agencies of the government to adopt all possible measures to
maximize foreign exchange receipts and minimize their outflow;

WHEREAS, notwithstanding efforts of the government to
prevent and minimize the outflow of foreign exchange through means and methods
contrary to existing laws and Central Bank rules and regulations, the outflow of
foreign exchange continues unabated;

WHEREAS, this situation calls for a clearer definition of
what constitutes blackmarketing and salting of foreign exchange and for the
imposition of heavier penalties on those who are engaging in these practices
which are pernicious to the national economy;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree:

SECTION 1. Blackmarketing of Foreign Exchange. That any
person who shall engage in the trading or purchase and sale of foreign currency
in violation of existing laws or rules and regulations of the Central Bank shall
be guilty of the crime of blackmarketing of foreign exchange, and shall suffer
the penalty of recluslon temporal, (minimum of 12 years and one day and maximum
of 20 years) and a fine of not less than Fifty Thousand (P50.000.00) Pesos.

SEC. 2. Salting of Foreign Exchange. That any person engaged
in the business of exporting who shall under-declare or undervalue his exports,
either as to price or quantity, or any person engaged in the business of
importation who shall overvalue or overdeclare his importations, either as to
price or quantity, for the purpose of salting and retaining foreign exchange
abroad in violation of existing laws and Central Bank rules and regulations,
shall be liable for the crime of illegal salting of foreign exchange and shall
suffer the penalty of reclusion temporal and a fine of not less than Fifty
Thousand (P50,000.00) Pesos.

SEC. 3. Definition of Terms. The term “foreign exchange”
shall refer to foreign currency notes, coins, checks, letters of credits,
drafts, bills of exchange or other instruments customarily employed for
international transfer.

SEC. 4. Other Penalties. If the offender shall be a
naturalized citizen of the Philippines, conviction of any of the above offenses
shall carry with it the automatic cancellation of his naturalization as a
citizen of the Philippines and shall, upon service of his sentence, be
immediately deported. A foreigner who is convicted of any of the above offenses
shall, upon service of his sentence, be immediately deported.

SEC. 6. This Decree shall take effect immediately.

Done in the City of Manila this 24th day of September, in the year of Our
Lord, nineteen hundred and eighty-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant