STRENGTHENING THE PRESIDENTIAL ANTI-DOLLAR SALTING TASK FORCE.

WHEREAS, there is a need to further strengthen the
government’s efforts to stop blackmarketing and salting abroad of foreign
exchange;

WHEREAS, there are acts and activities constituting
blackmarketing or salting abroad of foreign exchange which have not been clearly
defined by existing laws, rules and regulations;

WHEREAS, the prevailing economic conditions and developments
as well as the economic crisis require that the authority, powers, functions and
prerogatives of the Presidential Anti-Dollar Salting Task Force created under
Executive Order No. 934, as amended by Presidential Decree No. 1936 be extended
to enhance its effectiveness against blackmarketeers, the salters of foreign
exchange abroad, and other economic saboteurs;

WHEREAS, it is also necessary to reinforce, harmonize and
realign the various laws, rules and regulations against blackmarketing and
salting abroad of foreign exchange such as the reward system for informers under
Letter of Instruction Nos. 1356 and 1445 and Central Bank Monetary Board
Resolution dated February 9,1981;

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 the following:

SECTION 1. Sections 1 and 2 of Presidential Decree No. 1883
are hereby amended to read as follows:

“Section 1. Blackmarketing of, and other illegal acts
involving foreign exchange.—The trading, purchase or sale of foreign
exchange without any lawful authority shall constitute blackmarketing of foreign
exchange under this Section and any person found committing such acts shall upon
conviction suffer the penalty of reclusion temporal (minimum of 12 years and one
day and maximum of 20 years) and/or a fine of not less than Fifty Thousand
(P50.000.00) Pesos.

Failure or refusal by any authorized foreign exchange trader or dealer to
issue Official Central Bank Receipts for the purchase or sale of foreign
exchange, or failure to remit and/or declare foreign exchange purchased in
accordance with the existing rules and regulations on foreign exchange shall
likewise constitute blackmarketing and any person found committing such acts
shall, upon conviction, suffer the penalty prescribed above.

The possession of foreign exchange equivalent to not less than Ten Thousand
US Dollars (US$10, 000.00) by any person who does not have legitimate source of
or lawful authority to possess foreign exchange shall be prima facie evidence of
blackmarketing.

SEC. 2. Salting abroad of foreign exchange.—The
following acts shall constitute salting abroad of foreign exchange and any
person found committing such acts shall upon conviction suffer the penalty
prescribed in Section 1 above:

1. The retention abroad by any person engaged in the business of exportation,
   of his export proceeds of earnings or part thereof, beyond the period prescribed
   by laws, rules and regulations, or the retention abroad by any person of the
   proceeds or earnings from his undeclared exports. The term “exports” includes
   both products and services.

   The undervaluable, underdclaration, misdeclaration, or nondeclaration, either
   as to price or quantity, of exports, shall constitute prima facie evidence of
   salting abroad of foreign exchange as defined in this paragraph.

2. The remittance and retention abroad by any person engaged in the business of
   importation, of foreign exchange by overvaluing or over declaring his imports
   either as to price or quantity.
3. Any activity or transaction resulting in, or involving the unauthorized
   remittance, transfer and/or retention abroad of foreign exchange by any person
   through misdeclaration, misrepresentation, falsification and/or illegal or
   fraudulent means,”

SEC. 2. Section 1 of Presidential Decree No. 1936 which
defines the powers and functions of the Presidential Anti Dollar Salting Task
Force is hereby amended to include the following paragraphs:

“f. After due investigation but prior to the filing of appropriate criminal
charges with the fiscal’s office or the courts as the case may be, to impose a
fine and/or administrative sanctions as the circumstances warrant upon any
person found committing or to have committed acts constituting blackmarketing or
salting abroad of foreign exchange, provided said person voluntarily
admits the facts and circumstances constituting the offense and presents proof
that the foreign exchange retained abroad has already been brought into the
country.

Thereafter, no further civil or criminal action may be instituted against
said person before any other judicial regulatory or administrative body for
violation of Presidential Decree No. 1883.

The amount of the fine shall be determined by the Chairman of the
Presidential Anti-Dollar Salting Task Force and paid in Pesos taking into
consideration the amount of foreign exchange retained abroad, the exchange rate
differentials, uncollected taxes and duties thereon, undeclared profits,
interest rates and such other relevant factors.

The fine shall be paid to the Task Force which shall retain Twenty percent
(20%) thereof. The informer, if any, shall be entitled to Twenty percent (20%)
of the fine. Should there be no informer, the Task Force shall be entitled to
retain Forty percent (40%) of the fine and the balance shall accrue to the
general funds of the National government. The amount of the fine to be retained
by the Task Force shall form part of its Confidential Fund and be utilized for
the operations of the Task Force.”

SEC. 3. The effectivity of Presidential Decree No. 1936 as
amended, is hereby extended up to December 31, 1983.

SEC. 4. All the provisions of Letters of Instructions Nos.
1356 and 1445 are hereby incorporated and made integral parts of this
Decree
subject to the following amendments:

Sections 2 and 3 of Letter of Instructions No. 1356 shall read as
follows:

” Section 2. — The amount of reward shall be 20 % of the
proceeds of the foreign exchange and Philippine currency actually forfeited to
the National Government.

” Section 3.—The Central Bank of the Philippines is hereby
authorized to pay the informer’s rewards out of the proceeds of the imported and
exported goods, foreign exchange and Philippine currency forfeited to the
National Government.”

SEC. 5. All laws, decrees, orders, instructions, rules and
regulations inconsistent herewith are hereby repealed, amended and modified
accordingly.

SEC. 6. This Decree shall take effect immediately.

DONE in the City of Manila this 16th day of December, in the year of Our
Lord, Nineteen Hundred and Eighty-Five.

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