People vs.

Que Po Lay
FACTS

Que Po Lay (Que) was charged of violating Central Bank Circular No. 20 for failing to sell foreign exchange in his
possession consisting of U.S. dollars, U.S. checks, and U.S. money orders amounting to $7,000 to the Central
Bank within one day from the receipt of such foreign exchange.

The trial court found him guilty.

Hence, this appeal where Que contends that Circular No. 20 had no force and effect because it was not
published in the Official Gazette, prior to the act or omission imputed to him.
ISSUES/HELD
Should the circular have been published to produce legal effects? YES. JUDGMENT REVERSED.
RATIONALE

It is true that Circular No. 20 of the Central Bank is not a statute or law but being issued for the implementation of
the law authorizing its issuance, it has the force and effect of law according to settled jurisprudence.

Thus, it has to comply with the requirements of publication of a statute before it may take effect as mandated by
Section 11 of the Revised Administrative Code and Art. 2 of the Civil Code.

Moreover, as a rule, circulars and regulations which prescribe a penalty for their violation should be published
before becoming effective; this is on the general principle and theory that before the public is bound by its
contents, especially its penal provisions, a law, regulation, or circular must first be published and the people
officially and specifically informed of said contents and its penalties.

It is clear that Circular No. 20 did not have any legal effect and bound no one until its publication in the Official
Gazette or after November 1951.
Thus, Que could not be held liable for its violation for it was not binding at the time he was found to have failed to sell
the