ORGANIZED CRIME INVESTIGATION

By
VIRGILIO A. BERINGA, JR.
Ph.D. Crim. (In-progress)
ORGANIZED CRIME INVESTIGATION (PRC)
1. Concepts, nature, and attributes of organized crime;
2. Kinds, origin, and modes of operations OC;
3. Transnational or borderless crimes;
4. Kidnapping and terrorism;
5. Cyber/Technology crimes;
6. Organized syndicates;
7. International and national laws, decrees, treaties and statutes.
Concept of Organized Crime
- Organized Crime poses a direct threat to national and international security and
stability, and continues a frontal attack on political and legislative authority.
Organized crimes disrupt and compromise social and economic institutions, thus
causing a loss of faith in democratic process.
WHAT IS ORGANIZED CRIME?
- An organized criminal group shall mean a structured group of three or more
persons, existing for a period of time and acting in concert with the aim of
committing one or more serious crimes or offences in order to obtain, directly
or indirectly, a financial or other material benefit
- (UN, PALERMO ITALY, 2000)
- All illegal activities engaged in by members of criminal syndicates operatives
throughout the United States and all illegal activities engaged in by known
associates and confederates of such members. (U.S Department of Justice)
- Group activities of three or more persons, with hierarchical links or personal
relationships, which permits their leaders to earn profits or control territories
or markets, internal or foreign, by means of violence, intimidation or
corruption, both in furtherance of criminal activity and to infiltrate the
legitimate economy.
- any enterprise or group of persons engaged in a continuing illegal activity
which has as its primary purpose the generation of profits and continuance of
the enterprise regardless of national borders. (INTERPOL, according to P.J.
Ryan and G.E. Rush)
- any group having some manner of formalized structure and whose primary
objective is to obtain money through illegal activities(FBI, according to H.
Abaddinsky)
- Planned commission of criminal offenses, determined by the pursuit of profit
and power, involving more than two persons over a prolonged or indefinite
period of time, using a commercial or business license scheme, violence,
and/or intimidation. (BKA, GermanyBUNDESKRIMINALAMT)

Is any crime committed by a person occupying, in a established division of

labor, a position designed for the commission of crimes providing that such
division of labor includes at least one position for corrupter, one position for
corruptee, and one position for an enforcer(FBI)

For Organized Group to Work usually it has at least the following:

1. AN ENFORCER
2. A CORRUPTER
3. A CORRUPTEE
AN ENFORCER
the one who makes for the arrangements for the killing (injuring or carrying out
the task physically, economically or psychologically) the members or non members.
A CORRUPTER
- the one who corrupts or bribes, intimidate or threatens, negotiate or sweet
talks into a relationship with public officials, law enforcement officer, or anyone who
would be of help in obtaining security and immunity from possible arrest, prosecution
and punishments.
A CORRUPTEE
- a public officials, law enforcement officers or anybody who not a member of the
organization who can helps the organization
Scale of Organized Criminal
CHARACTERISTICS OF ORGANIZED CRIMES
It is a conspiracy activity involving coordination of members.
Economic gain is the primary goal.
Economic goal is achieved through illegal means.
Employs predatory tactics such as intimidation, violence and corruption.
Effective control over members, associates and victims.
Organized crimes do not include terrorists dedicated to political change.
ATTRIBUTES OF ORGANIZED CRIMES
1. Has no political goal
2. Is hierarchical
3. Has a limited or exclusive membership
4. Constitute a unique subculture
5. Perpetuates itself
6. Exhibits a willingness to use illegal violence and bribery
7. Demonstrates specialization/ division of labor
8. Is monopolistic
9. Is governs by explicit rules and regulations

1. Has no Political Goals

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Organized crime is basically motivated by money and power. It is not

social doctrine neither political belief nor ideological concerns that motivated
leaders and members of the organized crime groups. Political involvement may
be part of its activities for the purpose of gaining protection for its illegal activities.
2. Hierarchical
An organized crime has a vertical power structure with at least three (3) ranks.
The authority is inherent in the position and does not depend on who happens to be
occupying it at any given time.
3. Limited or Exclusive Membership
The criteria such as ethnic background, race, kinship, criminal record and other
similar consideration seems to be the basis for membership in an organized crime
group.
Sponsorship by a ranking members and behavior characteristics also plays
important factors for recruitment such as but not limited to: willingness to commit
criminal act, follow the rules and regulations and secrecy in the organization.
4. Constitute a unique subculture
Members of the organized crime group considered themselves distinct from the
conventional society. They look at the society as weak and stupid and treat them with
derisions if not contempt, and therefore not subject to its rules. This is sometimes
referred to as the underworld.
5. Perpetuates itself
An organized criminal group constitutes an ongoing criminal conspiracy designed
to persist through time; that is, beyond the life of the current membership. In order for
the group to survive, it must have an institutionalized process for inducting new
members and inculcating them with the values and ways of behaving of the social
system. This is shown by the depth of the sub-cultural orientation exhibited by the
group.
6. Willingness to use Illegal Violence and Bribery
Violence is readily available and acceptable in an organized crime group as a
means to achieve its goal. Bribery becomes necessary so as to protect its operation
and insure lesser chance of detection and suppression.
7. Specialization/Division of Labor
There is a need for established functional position filled with qualified members.
Commonly, there is a need for:
(1) an enforcer, one who carries out difficult assignments involving the use of
violence, including murder, in a rational manner. He may use members or non members
or even a specialist to carry out the assignment; and
(2) a corrupter (fixer/money mover), excels in developing contacts.
8.

MONOPOLISTIC
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An organized crime group eschew competition. It strives for hegemony over a

particular geographic area, a particular industry, legitimate or illegitimate, or a
combination of both.
A monopoly, of course, restrains free trade and increases profits. An organized
crime monopoly is maintained by violence, by the threat of violence, or by corrupt
relationships with law enforcement officials. A combination of both methods, violence
and corruption, may be employed.
9. GOVERNS BY EXPLICIT RULES AND REGULATION
An organized crime group, like a legitimate organization, has a set of rules and
regulations that members are expected to follow.
In an organized crime group, however, a rule-violating member is not fired but,
more likely, fired upon
STRUCTURE OF ORGANIZED CRIME GROUPS
- The bureaucratic / Corporate model
- Patrimonial/ Patron Client
The Bureaucratic/ Corporate Model
The corporation, the police, and the military are examples of bureaucracies, that
mode of organization essential for efficiently carrying out large scale tasks.
Patrimonial/ Patron Client
It is a characteristic of traditional societies that centers on families, patrons and
their clients, and other personalities networks.
GENERIC TYPE OF ORGANIZED CRIMES
1. Political Graft
committed by political criminals for purposes of gaining profit though
violence or force for the attainment of political goals or ambitions such as used of
private armies, buying of votes or threatening voters.
2. In-Group Oriented Organized Crime
manned by semi-organized individual with the end view of attaining
psychological gratification such as adolescent gangs.
3. Mercenary/Predatory organized crime
perpetuated for the attainment of direct personal gain but prey upon
unwilling victims.
4. Syndicated Crimes
comes with a structure organization that participates in illicit activity in
society using force, or intimidation.
TYPICAL ORGANIZED CRIME ACTIVITIES
1. THEFT and FRAUD
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Victimizing business:
Hijacking of cargo trucks
Robbery
Bankruptcy fraud (bust-out)
Insurance Fraud
Stock Fraud (Inside Trading)
Victimizing individual persons:
Car theft (chop-shop or export)
Burglary (robbery in a building)
Stock Fraud (pump and dump scam)
Victimizing State:
Bid-rigging public projects
Counterfeiting of Money
Smuggling (Alcohol bootlegging;
Cigarettes butt legging)
Providing immigrant workers to avoid taxes
2. PROVIDING ILLEGAL SERVICES and GOODS
Loan Sharking
Murder for hire
Book making
Toxic Substance
Gambling
People Smuggling
Prostitution
Trafficking in human beings
Drug Trafficking
Arms dealing
Pornography
3. BUSINESS and LABOR RACKETEERING
Casino skimming
Setting up monopolies in rigid market low tech industries.
Bid-rigging
Abusing labor unions
xtortion (e.g. construction, transport, etc)
Use of non-union labor and pocketing the wage difference.
Monopolizing the supply of immigrant workers with the associated
smuggling.

people;

4. Miscellaneous Activities:
Money laundering;
Political corruptions;
Bullying; and
And Piracy.
THEORIES OF CRIME
1. The strain of anomie
2. Differential association
3. Subcultures and social disorganization
4. Social control theory
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5. Ethnic succession
MAFIA
is a term used to describe a number of criminal organizations around the world
the first organization to bear the label was the Sicilian Mafia based in Italy,
known to its members as Cosa Nostra
in sum, mafia means protection against arrogance of the powerful, remedy to
any damage, sturdiness of body, strength and serenity of spirit, and the best
and exquisite part of life.
apparently Sicilian-Arabic derived from terms meaning to protect and to act as
guardian; a friend or companion; to defend; preservation, power, integrity,
strength, and a condition that designates the remedy of damage and ill.
OMERTA
is a code of silence and secrecy that forbids Mafiosi from betraying their
comrades to the authorities.
Ideal of manliness
Noncooperation with authorities
Self-control in the face of adversity
Vendetta-blood washes blood
Neither government nor church to be trusted
The foundation of the entire mafia is respect. Fear is the engine, and money is
the fuel. But longevity of the mafia as an enterprise is built upon an abiding and
uncommon sense of respect.
The penalty for transgression is death, and relatives of the turncoat may also be
murdered. Mafiosi generally do not associate with police (aside perhaps from corrupting
individual officers as necessary). For instance, a mafioso will not call the police when he
is a victim of a crime. He is expected to take care of the problem himself. To do
otherwise would undermine his reputation as a capable protector of others, and his
enemies may see him as weak and vulnerable.
According to legend, the word Mafia was first used in the Sicilian revolt the Sicilian
Vespers against rule of the Capetian House of Anjou on 30 March 1282. In this
legend, Mafia is the acronym for "Morte Alla Francia, Italia Anela" (Italian for "Death to
France, Italy cries!"). However, this version is now discarded by most serious historians.
RULES OF AMERICAN MAFIA
-

Always show respect to those who can command it.

Report any failure to show respect to ones patron immediately.
Violence must be used, even if only a limited type, to ensure respect.
Never ask for surnames.
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Never resort to violence in a dispute with a member or associate of another

family.
Never resort to, or even threaten, violence in a member of your family.
Do not use the telephone except to arrange a meeting place, preferably in code,
from which you will then travel to a place to discuss business.
Avoid mentioning specifics when discussing business-for example names, dates,
and places- beyond those absolutely necessary for understanding.
Keep your mouth shut-anything you hear, anything you see, stays with you, in
your head; do not talk about it.
Do not ask necessary questions. The amount of information given to you is all
you need to carry out your instructions.
Never engage in homosexual activities.
If your patron arranges for two parties to work together, he assumes
responsibility for arbitrating any disputes between the parties.
The boss can unilaterally direct violence, including murder, against any member
of his family, but he cannot engage in murder-for-hire, that is, make a profit from
murder.
The boss cannot use violence against a member or close associate of another
family without prior consultation with that familys boss.
The principal form of security in the American Mafia is an elaborate system of
referral and vouching. Vouching for someone who turns out to be an informant or
undercover officer entails the death penalty.

RUSSIAN ORGANIZED CRIME

VORY V ZAKONE
- aka thieves with code of honor
It is the Sicilian counterpart, linked to a territorial-based provision of protection
services and to alliance between upper world and the underworld. It is characterized by
the three types of actors in crime picture at Russia namely:
(1) corrupt government officials,
(2) shady business tycoons (oligarch); and
(3) members of criminal gang headed by a so called authorities and
loosely tied with criminal fraternity known as thieves in law (Vory V.
Zakone). They were able to create protective roof through their financial
and fraternity connection.
ORGANIZED CRIME IN NORTH AMERICA (LATINO GANGS)
It first formed in the barrios in the 1920s. By 1990s, the Major Latino gangs had
joined into two syndicates, the Nortenos based in northern California and the Surtenos
based in Southern Califoria.
The Nortenos include such gangs as Big Hazard, the Breed Street Gang and
the Silver Leaf Nortenos (SLN).

The Surtenos include the Assasins, King Kobra and Mara Salvatrucha.
In the Midwest
The Latino gang coalesced into two syndicates, the Folk Nation and the Peoples
Nation based in Chicago.
In Texas, Mexican American gangs have proliferated with the Mexican Mafia, the
PRM (Partido Revolucionario Mexicano), and Mexicles being the most prominent.
In the Eastern United States
The major syndicates are La Gran Raza (The Great Race) and La Gran Familia
(The Great Family). The Dominican Gangs became the major player in Drug trade in
Metropolitan New York and in Northern New Jersey.
In Miami and Dade County, Florida,
The Cuban Mafia has built a strong base, having taken advantage of an alliance
with Santo Trafficantes Italian American Mafia family based in Tampa.
In Puerto Rico, the Neta Association began as a prison gang, but it has spread
beyond the island and beyond the prison walls.
ORGANIZED CRIME IN ASIA
China Organized Criminal Groups
1. Gangs (Triad) = work in cooperative ventures involving black market activities,
burglaries and thefts, hijackings and extortions.
2. Criminal Syndicates = commonly involved in sophisticated crimes such as
prostitutions, human trafficking and other organized form of both are involved in
drug trafficking particularly of heroin from the golden triangle as well as
Exploitation of women and children and smuggling of illegal immigrants vices.
Dragon Syndicates is another name for the Chinese Triads, a name popularized
by Martin Booths much acclaimed study The Dragon Syndicates: the Global
Phenomenon of the Triads (New York: Carroll and Graf, 2000).
The Triad came from the symbolic triangle in their flag which indicates the three (3)
elements: The Heaven, The Earth and the Man.
Hong Kong Organized Criminal Groups
Triads, such as Wo Sing Wo and 14K are two of the many triads in Hongkong.
They are involved in various activities ranging from drug trafficking to corruption.
ICAC- Independent Commission Against Corruption is one of the most active
Criminal Justice Unit involved in controlling illicit activities of these triads
JAPAN
Yakuza (8-9-3) or Boryokudan
- is the most influential organized crime group in Japan.
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Yakuza makes billions of dollars through corporate extractions and the Sokoiya
(shareholders meeting men).
Other activities that they are involved include exploitation of women, prostitutions
(mostly coming from the Philippines, Thailand and Taiwan) and gambling den.

CAMBODIA
Drug trafficking and human smuggling are the most notable organized criminal
activities in Cambodia which are widely controlled by the Chinese and Myanmorese.
Other activities involved gambling, corruption, prostitution and money laundering.
Due to peoples belief of the effect of having sex with virgin women, prostitution
became one of the most expensive organized crime and virgin women are the highest
valued commodities.
REPUBLIC OF KOREA
KEANDAL EMENING SCARUPS
Although not considered as criminal groups, they also engage in criminal
activities someway to help the weak and the poor. They are notable for their loyalty and
faithfulness.
Organized criminal groups come in the form of political groups used as
henchmen to attack political rivals
.
Several organized groups are associated with YAKUZA and other groups in the
United States are involved mostly in drug trafficking, prostitution and exploitation of
women.
MYANMAR
Myanmar has the largest organized crime groups controlled by military Junta. It
includes the following:
*United Wa State Army (UWSA) under the command of Wei-Huseh-Kong has
connection with Southeast Asian and North America.
* Kinkang Chinese in coordination with MNDAA, protects cultivation areas and
refining of drugs.
* Myanmar National Democratic Alliance Army control the plantations and
refine opium into heroin and also produced methamphetamine.
Trafficking of women and children to Pakistan and Thailand and corruption are
also some of the activities of the group.
TAIWAN
Taiwan organized crime has close connection with the Chinese Triads and Hong
Kong particularly the United Bamboo Gang. They are involved in drug trafficking,
prostitution, women and child trafficking.
SINGAPORE
This is the country with the lowest cases of organized activities due to stringent
laws and severe penalties and the governments strong will power for the
implementation of laws.
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THAILAND
The country considered to be the most notorious in the world in terms of sex
industry. Supplies or imports about one (1) million women in different countries in Asia.
VIETNAM
Nam Cam Gang is one of the most noted organized crime group in Vietnam
and known for drug trafficking and one of the major transit point of drugs in Laos,
Myanmar, China and Taiwan from Cambodia.
PHILIPPINES
The country considered as the heaven for the sex industry. A number of women
are sent abroad as entertainers but later end-up as prostitutes. Thailand, Japan and
other Asian Countries are common places of their destination. Young children for
pedophiles are also being catered.
1. Francisco Group
Dragon or Kuratong Baleleng Group, now led by Manuel Francisco, operates in
Visayas and Mindanao
2. Pentagon Group
operates in Mindanao headed by Tahir Alonto, a creation of MILF to generate
funds. Alonto is a nephew of MILF Chairman AL HAJ MURAD
3. Lexus Group
specializes in carnapping and operates in NCR and Luzon
4. Rex Wacky Salud Group
engaged in illegal gambling and operates in Cebu
5. Vic Yu Group
engages in illegal gambling and operates in Visayas.
6. Superable Family
a kidnapping for ransom (KFR) group with a 1 Million prize for the leaders head
who was killed in action during a shoot-out with law enforcers
7. Martires KFR group
killed in Action (KIA)
8. Waray-Waray Group
an ethnic group engaged in kidnap for ransom operations. Members are either
belong from the family clan or natives from Samar and Leyte. Their leader was
arrested on September 24, 2005.
9. Lupo Rhu Group
lead by Lupo Miguel Tuliao; Agustin Cavilan; and Nestor Merin.
TRANSNATIONAL ORGANIZED CRIME
CONCEPT OF TRANSNATIONAL CRIME
The concept of transnational crime was coined by the United Nations (UN) Crime
Prevention and Criminal Justice Branch to identify certain criminal phenomena
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transcending international borders, transgressing the laws of several states or having

impact on another country.
TRANSNATIONAL CRIME
a continuing illegal activity of group of person which is primarily concerned with
the generation of profits, irrespective of national boundaries as a result of
globalization.
GLOBALIZATION
refers to the rapid development of the western culture that ultimately affects other
cultures in the world as brought by intellectual and technological advances, in
which some crimes occurring in other countries are attributed.
TRANSNATIONAL ORGANIZED CRIME
is a crime perpetuated by organized criminal group which the aim of committing
one or more serious crimes or offenses in order to obtain directly or indirectly, a
financial or other material benefits committed through crossing of borders or
jurisdictions
ORGANIZED CRIMINAL GROUP
- shall mean a structured group of three or more persons, existing for a period of
time and acting in concert with the aim of committing or more serious crimes or
offenses established in accordance with this convention, in order to obtain,
directly or indirectly , a financial or material benefit
SERIOUS CRIME
- shall mean conduct constituting an offence punishable by maximum deprivation
of liberty of at least four years or a more serious penalty
An offense is transnational in nature if:
It is committed in more than one State;
It is committed in one State but substantial part of its preparation, planning,
direction or control takes place in another State;
It is committed in one State but involves an organized criminal group
engages in criminal activities in more than one State; or
It is committed in one State but has substantial effects in another State.
Factors Making a Nation hospitable to Transnational Crimes
1. Corruption
2. Incomplete or weak legislation
3. Poor enforcement of existing laws
4. Non-transparent financial institutions
5. Unfavorable economic conditions
6. Lack of respect for the rule of law in society
7. Poorly guarded national borders
8. Lack of political will to establish rule of law
9. Geographic location (e.g. along arms or narcotics trafficking route)
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10. Regional geopolitical issues (e.g. long-standing territorial dispute).

PRIMARY STRATEGIES AGAINST TRANSNATIONAL ORGANIZED CRIME
Good Governance
The Rule of Law
International Cooperation
Executive Order No. 265
creating the OSETC for a stronger campaign against transnational crime
the Office of the Special envoy on Transnational Crime is the agency concerned
in resolving overlaps in systems and procedures and determines the appropriate
agency competent to address a specific transnational crime issue
Transnational Crimes
- Trafficking in Persons
- Terrorism
- Drug Trafficking
- Cybercrime
- Money Laundering
- Environmental Crime
- Economic crime
- Intellectual Property Theft
- Piracy and Armed Robbery Against Ships
- Illicit Trade (smuggling) of Small Arms and Light Weapons
HUMAN TRAFFICKING
TRAFFICKING IN PERSON (TIP)
- a form of modern-day slavery
- refers to the recruitment, transportation, transfer or harboring, or receipt of
persons with or without the victim's consent or knowledge, within or across
national borders by means of threat or use of force, or other forms of coercion,
abduction, fraud, deception, abuse of power or of position, taking advantage of
the vulnerability of the person, or, the giving or receiving of payments or benefits
to achieve the consent of a person having control over another person for the
purpose of exploitation which includes at a minimum, the exploitation or the
prostitution of others or other forms of sexual exploitation, forced labor or
services, slavery, servitude or the removal or sale of organs.
Section 3a, RA 9208
Push Factors to Trafficking
1. Individual level
2. Family
3. Community
4. Society
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Individual level
- Lack of education and information
- History of abuse and exploitation
- Womens aspiration
Family
- Domestic violence or marital discord
- Desertion
- Separation
- Neglect of parents
- Breadwinner or desire to improve the familys economic condition
Community
- Congested neighborhood
- Poor housing and living conditions
- Lack of employment opportunities
- Lack of basic social services
Society
- Political and economic insecurity
- Political corruption
- Conflict
- Structural adjustment policies resulting in the rising cost of living
- Poverty
- power relations and gender inequality
- Lure of migration
- Consumerism
- Supply and demand
Pull factors to trafficking
- Increased ease of travel (cheaper and faster travel opportunities, easier access
to passport);
- Higher salaries and standard of living in larger cities and countries abroad
(greater possibilities for acquiring new skills and education, increased job
opportunity, and mobility);
- Established migration routes and ethnic, national communities;
- Active demand for migrant workers in destination countries combined with the
existence of recruitment agencies and persons willing to facilitate jobs and travel;
and
- High expectations of opportunities in other countries boosted by global media
and internet access and stories of returning migrants or those whose families
have profited from remittances.
Global Status of Human Trafficking

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In 2004, according to U.S government 600,000 to 800, 000 people were victims
of trafficking worldwide.
(mostly female and minors and 70 percent were trafficked for sexual exploitation)
According to the data of International Labour Organization 12.3 Million people
were trafficked around the world (across borders and individual countries)
300, 000 children were trafficked to served in armed conflicts (UNICEF)

TIP in Asia
- 9.5 million were trafficked in Asia (ILO).
(1/3 trafficked for other form of economic exploitation, the rest are for commercial
sexual exploitation)
Status of Human Trafficking in the Phil.
- According to the United Nations Children's Fund (Unicef)an estimated 60,000 to
100,000 children in the Philippines are involved in prostitution rings.
- According to the International Labour Organization (ILO) about 100,000 children
are involved in prostitution.
- US government reports, the number of child victims in the Philippines range from
20,000 to 100,000, with foreign tourists, particularly other Asians, as perpetrators.
- The Philippines is ranked under Tier 2 Watch List in the 2009 Trafficking in
Persons Report of the United States (US) State Department due to the Philippine
governments alleged failure to show evidence of progress in convicting
trafficking offenders, particularly those responsible for labor trafficking.
Vulnerable sector
- Profiles of women trafficked show that they are mostly young, without or less
education coming from the rural areas and poor families, which include women
displaced in Central Luzon due to the eruption of Mt. Pinatubo or the landslide in
Guinsaugon Southern Leyte.
Philippine Government Manifested its Commitment against TIP through the
Creation/Amendment of other legislative acts such as:
- Mail-Order Bride (RA 6955)
- Anti-Rape law of 1997 (RA 8553)
- Rape Victim Assistance and Protection Act of 1988 (RA 8505)
- Special Protection of Children Against Abuse, Exploitation and Discrimination Act
(RA 7610)
- An Act Prohibiting the Employment of Children Below 15 Years of Age in Public
and Private Undertakings (RA 7658)
- Migrant Workers and Overseas Filipinos Act of 1995 (RA 8042)
- Philippine Passport Act of 1996 (RA 8239)
- Inter-Country Adoption Law (RA 8043)
Republic Act 9208
Anti-Trafficking in Persons Act of 2003
Approved May 26, 2003
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Consolidation of Senate Bill No. 2444 and House Bill No. 2444

Section 4. Acts of Trafficking in Persons. - It shall be unlawful for any person, natural or
juridical, to commit any of the following acts:
(a) To recruit, transport, transfer; harbor, provide, or receive a person by any means,
including those done under the pretext of domestic or overseas employment or training
or apprenticeship, for the purpose of prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or debt bondage;
(b) To introduce or match for money, profit, or material, economic or other consideration,
any person or, as provided for under Republic Act No. 6955, any Filipino woman to a
foreign national, for marriage for the purpose of acquiring, buying, offering, selling or
trading him/her to engage in prostitution, pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
(c) To offer or contract marriage, real or simulated, for the purpose of acquiring, buying,
offering, selling, or trading them to engage in prostitution, pornography, sexual
exploitation, forced labor or slavery, involuntary servitude or debt bondage;
(d) To undertake or organize tours and travel plans consisting of tourism packages or
activities for the purpose of utilizing and offering persons for prostitution, pornography or
sexual exploitation;
(e) To maintain or hire a person to engage in prostitution or pornography;
(f) To adopt or facilitate the adoption of persons for the purpose of prostitution,
pornography, sexual exploitation, forced labor, slavery, involuntary servitude or debt
bondage;
(g) To recruit, hire, adopt, transport or abduct a person, by means of threat or use of
force, fraud, deceit, violence, coercion, or intimidation for the purpose of removal or sale
of organs of said person; and
(h) To recruit, transport or adopt a child to engage in armed activities in the Philippines
or abroad.
Section 5. Acts that Promote Trafficking in Persons. - The following acts which promote
or facilitate trafficking in persons, shall be unlawful:
(a) To knowingly lease or sublease, use or allow to be used any house, building or
establishment for the purpose of promoting trafficking in persons;
(b) To produce, print and issue or distribute unissued, tampered or fake counseling
certificates, registration stickers and certificates of any government agency which issues
these certificates and stickers as proof of compliance with government regulatory and
pre-departure requirements for the purpose of promoting trafficking in persons;
(c) To advertise, publish, print, broadcast or distribute, or cause the advertisement,
publication, printing, broadcasting or distribution by any means, including the use of
information technology and the internet, of any brochure, flyer, or any propaganda
material that promotes trafficking in persons;
(d) To assist in the conduct of misrepresentation or fraud for purposes of facilitating the
acquisition of clearances and necessary exit documents from government agencies that
are mandated to provide pre-departure registration and services for departing persons
for the purpose of promoting trafficking in persons;
(e) To facilitate, assist or help in the exit and entry of persons from/to the country at
international and local airports, territorial boundaries and seaports who are in
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possession of unissued, tampered or fraudulent travel documents for the purpose of

promoting trafficking in persons;
(f) To confiscate, conceal, or destroy the passport, travel documents, or personal
documents or belongings of trafficked persons in furtherance of trafficking or to prevent
them from leaving the country or seeking redress from the government or appropriate
agencies; and
(g) To knowingly benefit from, financial or otherwise, or make use of, the labor or
services of a person held to a condition of involuntary servitude, forced labor, or slavery.
Section 6. Qualified Trafficking in Persons. - The following are considered as qualified
trafficking:
(a) When the trafficked person is a child;
(b) When the adoption is effected through Republic Act No. 8043, otherwise known as
the "Inter-Country Adoption Act of 1995" and said adoption is for the purpose of
prostitution, pornography, sexual exploitation, forced labor, slavery, involuntary servitude
or debt bondage; Deficiency Syndrome (AIDS).
(c) When the crime is committed by a syndicate, or in large scale. Trafficking is deemed
committed by a syndicate if carried out by a group of three (3) or more persons
conspiring or confederating with one another. It is deemed committed in large scale if
committed against three (3) or more persons, individually or as a group;
(d) When the offender is an ascendant, parent, sibling, guardian or a person who
exercises authority over the trafficked person or when the offense is committed by a
public officer or employee;
COMPUTER CRIME
- any crime accomplished through special knowledge of computer technology.
- any crime where computer is used as a tool or as a target or incidental to the
commission of a crime.
- Also known as Cybercrime.
- Any illegal act in which knowledge of computer technology is used to commit the
offense. (L. E. Quaratiello)
- All illegal activities that are committed by or with the aid of computer or
information technology or in which the computers are the target of the criminal
enterprise. (Martin L. Forst)

CYBER CRIME IN THE PHILIPPINES

The LOVE BUG
By far the most popular incidence of cyber crime in the Philippines is the
ILOVEYOU Virus or the LOVE BUG. The suspect in the case, a 23-year old student
from a popular computer university in the Philippines drafted the virus with the vision of
creating a program that is capable of stealing passwords in computers, ultimately to
have free access to the internet.
16

During the height of the LOVE BUG incident, Reuters has reported: "The
Philippines has yet to arrest the suspected creator of the 'Love Bug' computer virus
because it lacks laws that deal with computer crime, a senior police officer said". The
fact of the matter is that there are no laws relating to Cybercrime in the Philippines. The
National Bureau of Investigation is finding it difficult to legally arrest the suspect behind
the 'Love Bug' computer virus.
As such, the need for countries to legislate Cyberlaws relating to Cybercrime
arises on an urgent priority basis. Due to the incident, the Philippines have seen the
necessity for the passage of a law to penalize cyber crimes, thus the enactment of
Republic Act 8792 otherwise known as the Electronic Commerce Act.
RA 8792
legislated because of I love you
This Act shall be known and
Approved June 14, 2000

virus
cited as the "Electronic

Commerce Act.

Common Types of Cyber Crimes already handled by NBI

1. HACKING / CRACKING
2. MALICIOUS EMAIL SENDING
3. INTERNET PORNOGRAPHY
4. LAUNCHING OF HARMFUL COMPUTER VIRUSES
5. DISTRIBUTED DENIAL OF SERVICE ATTACKS (DOS)
6. WEBSITE DEFACEMENT
7. ACQUIRING CREDIT CARD INFORMATION FROM AN E-COMMERCE
WEBSITE
8. INTERNET SHOPPING USING FRAUDULENTLY ACQUIRED CREDIT CARDS
9. WIRE TRANSFER OF FUNDS FROM A FRAUDULENTLY ACQUIRED CREDIT
CARD
10. ON-LINE AUCTION FRAUD
WHAT ARE COMMON METHODS AND STANDARD TERMS USED TO DESCRIBE
CYBER CRIME?
Hacking
is the act of illegally accessing the computer system/network of an individual,
group or business enterprise without the consent or approval of the owner of the
system

Cracking
is a higher form of hacking in which the unauthorized access culminates with the
process of defeating the security system for the purpose of acquiring money or
information and/or availing of free services
Malicious Sending of E-mails
17

the sending of malicious and defamatory electronic mails for the purpose of
extorting money, or threatening prospective victims

Internet Pornography
The trafficking, distribution, posting, and dissemination of obscene material
including childrens nude pictures, indecent exposure, and child sex slavery
posted into the internet, live streaming videos aired through the internet
A computer virus
is a computer program that can copy itself and infect a computer without
permission or knowledge of the user
Launching of Harmful Computer Virus
1. Virus
2. Worm
3. Trojan Horse
Worm
spread itself to other computers without needing
to be transferred as part of a host
Trojan horse
is a file that appears harmless until executed. Trojan horses do not insert their
code into other computer files
Logic bomb
a set of instructions secretly inserted into a program that is designed to execute if
a particular program is satisfied
the bomb lies dormant until a particular date is reached or command entered
Identity theft
defined as the criminal act of assuming persons name, address, social security
number, and date of birth in order to commit fraud
Phishing
sending fraudulent e-mails or website pop-ups, to get victims to divulge sensitive
financial information such as credit card numbers or social security numbers
Distributed Denial of Service Attacks
DDoS attacks can be committed by employing multiple computers controlled by a
single master computer server to target a particular server by bombarding it with
thousands of packets of data in an attempt to overwhelm the server and cause it
to crash
Website defacement
is the unauthorized modification of a website
18

Acquiring Credit Card Information from a Website that offers E-Services

When you shop online, the most convenient way to pay for the items you order is
through your credit card. When you pay thru your credit card, you need to
disclose information such as your complete name, your postal address, zip code,
state, phone number credit card account number, its expiration date and its
security code/pin. Upon entering the above-mentioned information, it will be
verified real-time by the site merchant. It usually takes a minute to verify
whether the credit card is valid or invalid. If valid, the information you entered will
be stored in the websites database server. Hackers look for the file containing
the credit card information of all the customers who bought from a certain ecommerce site. Upon acquisition thereof, it will be decrypted to make it readable
and all the information of the transactions will be made available.Hackers prefer
VISA, AMERICAN EXPRESS and MASTERCARD when filtering credit card
information. It is because VISA and MASTERCARD are widely accepted by
almost ALL Internet Shopping Sites. American Express on the other hand has no
CREDIT LIMIT
-

Credit card numbers of American Express start with the number 3, MasterCard
credit cards start with the number 5 while VISA Credit cards start with the number
4

American Express credit cards have 15 digits Account Number while Visa and
Mastercard credit cards contain 16.

Internet Shopping Using Fraudulently Acquired Credit Card

Hackers, upon acquiring the desired credit card information now conducts
window shopping, hopping from one shop site to another, looking for cellphones,
gadgets, apparels, computer peripherals, softwares etc. When he finds what he wants
to buy, he then add/s his desired item/s to the shopping cart and checkouts. He will then
supply the Credit Card information of the fraudulently acquired credit card such as the
Complete name of the cardholder, address, zip code, state, email address, credit card
number and expiration date. Other pertinent information such as shipping address of the
items ordered will have to be supplied too.
Wire Transfer of Funds from Fraudulently Acquired Credit Card
When a hacker knows your complete credit card information, he can extract
CASH from the acquired credit/debit card online. By signing up with Western Union
Money Transfer (http://www.westernunion.com) using the fraudulently acquired credit
card information, he can pretend that he will just send money to his relative and western
union will directly debit the credit card and it will reflect on the billing statement of the
original credit card holder. Wire transfer of funds using credit cards require the credit
card security number.
Online Auction Fraud
First, the fraudster should sign up for an account at an online auction site such as
e-bay, yahoo auctions or U-Bid
19

The fraudster falsifies all information that he enters on the signup page. The only
true information is his email address, for he will be contacted by interested
bidders by means of email.He will be asked to provide a credit card. This is
where he will need the fraudulently acquired credit card. When all of the required
fields are signed up, his application will be approved and he will be a registered
member of the said auction site. He is now then allowed to bid, and auction any
item. A fraudster will auction expensive items such as laptops, cellphones, PDAs
(handheld devices), desktop computers, camcorders and hard to find
memorabilias. He will then sell it at a lower price for legitimate bidders to bid
immediately. An online fraudster only accepts payments thru personal checks,
money order, wire transfer and western union money transfer. It is bluntly
stipulated in his auction page.

TECHNICAL TERMS
ISP stands for Internet Service Provider. It provides internet service to internet users.
IP Address series of numbers assigned by an Internet Service Provider to an internet
user when it connects to the Internet
Dynamic IP Address a type of IP Address that changes everytime the internet user
accesses his Internet Service Provider. It is usually assigned to dial-up or base speed
broadband service subscribers (eg. ISP Bonanza, Surfmaxx, PLDT myDSL 128kbps
service etc.)
Static IP Address a type of IP Address that is constant regardless of the time or
number of attempts the internet user accesses the internet. It is usually assigned to
High-Speed Internet Users or Corporate Accounts (eg. ADSL (Asymetric Digital
Subscriber Line) connections, E1 Internet Connections, OC3 Internet Connections, T1
Internet Connections, Leased Line Internet Connections)
Website a portfolio of a person / organization / entity / company which is posted on
the Internet for accessibility worldwide.
The INTERNET PROTOCOL (IP) ADDRESS is the anchor of the investigation of
all crimes committed via the internet. The identification of the IP Address leads to the
identity of the Internet Service Provider (ISP) used to access the internet and eventually
the subscriber of the account where the internet activity was performed.
The IP Address as given by the ISP depends on the type of internet account a
subscriber maintains, whether it is a DYNAMIC IP or STATIC IP.
If Static:
Subscriber information (name, billing address, installation address, type of
internet account, usage and costs etc.) if applicable
If Dynamic
log reports indicating telephone number used to make dial-up access
20

VERY IMPORTANT:
The address of the subscriber as given by the ISP or Phone Company should be
analyzed to determine whether it is a Billing Address or an Installation Address.
For purposes of a search warrant application, the Installation Address is the more
important matter to consider. The purpose of a Search Warrant application/
implementation in a cyber crime investigation, as with any other offense is to confiscate
and seize the instruments/implements, tools used in the commission of the offense.
Since the crime was committed with the aid of a computer, the same and its peripherals
are the instruments used in its commission.
TOP TEN SECURITY TIPS FOR COMPUTER USERS
1. Never send an e-mail that you wouldn't let your wife or boss to read.
2. Turn off your computer when you are not using it. It is the only sure way to keep
the hackers out.
3. Use a password to log onto your computer. Most operating system let you set a
password and to change it regularly.
4. Dont accept cookies. If you have to, delete them when you are finished surfing.
5. Use the latest versions and software patches for your e-mail and your browser.
New security loopholes are constantly being discovered.
6. Keep your antivirus up to date. Hackers never rest. Every email attachment can
contain a virus, so scan it before you open it.
7. Watch your laptop at the airport. Be specially careful at X-ray security machines,
which is where most laptop theft occur.
8. Dont use the same password over and over. Make new variations.
9. Use a paper shredder. Dont just throw out unsolicited credit card application.
Shred them.
10. Never give out your social security number, online or off. This information in a
wrong hand is license to steal.
TERRORISM
-

the word terror derives from the Latin word terrere, meaning to frighten
the use or threatened use of force design to bring about political change. (Brian
Jenkins of the Rand Corporation)
the unlawful use of force or violence against persons or property to intimidate or
coerce a government, the civilian population, or any segment thereof, in furtherance
of political or social objectives (FBI)
an action the urban guerilla must execute with the cold-bloodedness, calmness and
decision (Modern godfather of urban guerilla, Carlos Marighella)
a premeditated, politically motivated violence perpetuated against noncombatant
targets by groups of clandestine state agents, usually intended to influence an
audience (U.S Department of State)
Paul Pillar, an erstwhile deputy chief of the CIA counter-terrorist center, opined that
terrorism has four basic components or elements providing guides to defining it,
namely:
21

1. It is premeditated, planned in advance, rather an impulsive act of rage;

2. It is political and not criminal, but designed to change existing political order;
3. It is aimed at civilians and not a military targets or combat ready troops; and
4. Sub-national groups execute it, not the army of a given country.
the unlawful or threatened use of force or violence by a person or an organized
group against people or property. With the intention of intimidating or coercing
societies or governments, often for ideological or political reasons, (Webster
Dictionary)
a threat or actual use of force or violence for political or other purpose, to foster fear,
distrust, insecurity, and unrest among specific or the general population
violence for effect not primarily, and sometimes not all for the physical effect on the
actual target, but rather for its dramatic on an audience
the calculated use of violence or the threat of violence to attain goals, often political
or ideological in nature
violent criminal behavior designed to generate fear in the community, or a
substantial segment of it, for political purpose

International terrorism
politically-oriented extreme violence that is perpetrated by residents or
representatives of one or more countries against the interest of another country
or by members of a violent foreign politically directed organization not affiliated
with the country being attacked for the purpose of forcing a change in
government or in how society functions
Al Qaeda
in Arabic, this means The Base
founded by Osama bin Laden in 1980
Osama bin Laden
Organized al Qaeda
born in 1955 or 1957 in the city of Riyadh
responsible for truly heinous terrorist incidents, including the 2001 destruction
of the World Trade Center
died killed in Pakistan on May 2, 2011 (Operation Neptune Spear)
Ayman Mohammed Rabie al-Zawahiri
Born June 19, 1951
An Egyptian physician, Islamic theologian and current leader of

al-Qaeda.

Hamas
- "enthusiasm
- an acronym of Harakat al-Muqwamah al-Islmiyyah "Islamic Resistance
Movement")
- is the Palestinian Sunni Islamic or Islamist political party that governs the Gaza Strip.
- Sheikh Ahmed Yassin & Mahmoud Zahar
- Hamas is an extremist group...it is one of the deadliest terrorist organizations in the
world today. George W. Bush
22

Hezbollah
- literally "Party of God
- is a Shi'a Muslim militant group and political party based in Lebanon.
- receives financial and political support from Iran and Syria, and its paramilitary wing
is regarded as a resistance movement throughout much of the Arab and Muslim
worlds
- the United States, the Netherlands United Kingdom, Israel, Australia, and Canada
classify Hezbollah as a terrorist organization, in whole or in part
Jemaah Islamiya
- Dates of operation: 1993- present
- Aliases: "Islamic Congregation, Islamic Community, Islamic Group
- Base of Operation: Indonesia; Malaysia; Philippines; Singapore
- Founding Philosophy: Create an Islamic state across Southeast Asia to include
Singapore, Indonesia, Malaysia, Brunei, southern Thailand, and southern
Philippines.
- JI was added to the United Nations 1267 Committee's list of terrorist organizations
linked to al-Qaeda or the Taliban on 25 October 2002 under UN Security Council
Resolution 1267
Domestic Terrorism
- politically oriented extreme violence that is perpetrated by residents of a country
within that country in order to force a change in government or how in society
functions
TERRORIST IN THE PHILIPPINES
Rajah Solaiman Movement
aka Balik Islam or Back To Islam
founder Hilarion del Rosario Santos III aka Hannah Santos, aka Ahmed Santos,
aka Hilarion del Rosario, converted to Islam in 1993 and married into the top
ranks of the leadership of the Abu Sayyaf Group (ASG)
one of the latest groups affiliated with ASG, MILF and JI
ABU SAYYAF GROUP (ASG)
Aliases:
Al-Harakat Al-Islamiyyah, Bearer of the Sword, Father of the Swordsman
Founding Philosophy
The Abu Sayyaf Group (ASG) was formed in 1991 during the peace process
between the Philippine government and the nationalist/separatist terrorist group,
the Moro National Liberation Front (MNLF). Angered by the movement toward a
peaceful resolution, certain MNLF members formed Abu Sayyaf
DIFFERENT TYPES OF TERRORISM
1. Anti-colonial Terrorism
2. Ideological Terrorism
3. Religious Terrorism
23

Ethnocentric
- the category of terrorist organization which is aimed at establishing a dominant or
superior race that will be looked upon by the entire populace in the world.
Revolutionary
- the category of terrorist group which is dedicated to overthrow an established order
and replacing it with a new political or social structure.
Political
- the category of terrorist group which aims in restructuring the society.
Nationalistic
- those who commit acts of violence due to their loyalty or devotion to their country.
ROOT CAUSES OF TERRORISM
1. Political Ideologicalism
2. Religious Fanaticism
Jihad
the term which refers to the holy war waged by members of the Islamic religion
against the Jews.
IDEOLOGY
body of ideas affecting the social needs and aspirations of an individual or group,
a class or a culture
Bovier defines it as a set of doctrines or beliefs that from the basis of a political,
economic and other systems.
TERRORIST TACTICS
1. Bombings
2. Assassinations and Assaults
3. Kidnapping
4. Hostage-taking/skyjacking
5. Weapons of mass destruction

(WMD)

WHAT IS WEAPON OF MASS DESTRUCTION (WMD)?

- term used to describe a massive weapon with the capacity to indiscriminately kill
large number of people
- it could be nuclear, biological and chemical weapons
Categories of chemical agents (mostly in liquid form)
1. Nerve agents
2. Blistering agents
3. Chocking agents
4. Nerve agents
24

1. Nerve Agents
- agents that disrupt the mechanism by which nerves communicate with organs they
stimulate
- in other words the agents gets the nerves to send the wrong signal to the muscles
they control and hence, disrupt muscle function of the body
ex. Sarin Gas
2. Blistering Agents
there are three common of this type; the most widely known are mustard gas,
lewisite, and phosgene oxime. Mustard gas, first used in World War I, will caused
blistering on the exposed portions of the body, as well as on internal organs. It
will generally cause blindness and then death by respiratory failure
3. Chocking Agents
one of the deadliest choking agents is phosgene gas. This agent damages the
respiratory system and causes the lungs to fill with water, and thus chokes the
victim.
Ex. chlorine
Biological Agents (liquid or dry form)
1. Anthrax
2. Botulinum toxin
3. Brucellosis
4. Cholera
5. Plague
6. Typhoid fever
7. Rickettsia
Anthrax
a single cell organism that is produced by a fermentation process, such as that
by which beer is made
caused by Bacillus anthracis and the effects of exposure include a severe
infection that attacks the skin, lungs, and gastrointestinal tract
direct contact will cause formation of dry scabs all over the victims body and can
develop into systematic infection
when inhaled, the agent attacks the respiratory system with symptoms appearing
from one to seven days
-

Botulinum toxin
a protein made by the clostridium botulinum bacteria
exposure to the toxin, the nerve cell synapses are affected, causing palsy,
spasms, and then paralysis
Brucellosis
also known as undulant fever
symptoms can include intermittent or
sweating, chills, pains in the joints and

prolonged fever, headaches, profuse

muscles and fatigue
25

Cholera
an acute gastrointestinal disease caused by Vibrio Cholera
symptoms include a sudden onset of nausea and or vomiting accompanied by
severe diarrhea and a rapid loss of body fluids
Plague
in natural transmittal form, the plague may the bubonic plague, or black death
that eradicated a great number of European in the middle ages
- transmitted from person to person by respiratory transmission, through rats, or
from the bite of an infected flea
- symptoms are high fever accompanied by general aches, severe weakness, and
pneumonia
Typhoid fever
- caused by an organism called salmonella typhosa which causes fever and frontal
headaches and is usually accompanied by rose colored spots on the skin
- must employed through food and limited water contamination
Rickettsia
- disease that appears in domesticated animals such as sheep, cattle, and goats
- spread to human through inhalation of particles contaminated with organism
- incubation period, ranging from 10 to 14 days
BOMBING
Terrorist commit bombings for a number of reasons:
1. To gain media attention, particularly the target is visible or symbolic.
2. Bombing is a cost effective and efficient way to attack a facility.
3. Bombing can be accomplished with a small number of personnel.
4. Bombing is inexpensive in comparison to alternatives such as kidnapping or
hostage-taking.
5. Random bombing make a considerable impact on the population, because more
people fear a bomb attack than being kidnapped or taken hostage.
6. Explosives are readily available through theft, sympathetic supporters, or
purchase. Explosives can be constructed through the use legitimately purchased
chemicals, fertilizers, and other material.
Types of bombers
1. Amateur
2. Professional
3. Psychopathic
4. Suicidal
1. Amateur
can be described as experiments
2. Professional
26

builds or bombs or does both for profit

3. Psychopathic
acts without rhyme or reason
4. Suicidal
major attack weapon in recent years, particularly among Islamic terrorist
groups
Number of elements which are almost universal in modern terrorist activities
The use of violence to persuade
Bombings or other attacks are employed to make a point with target victims.
Selection of targets and victims for maximum propaganda valueThe use of unprovoked attacks
Maximum publicity at minimum risk
Use of surprise to circumvent countermeasures
Threats, harassment, and violence
Disregarding women and children as victims
Propaganda is used to maximize the effect of the violence
Loyalty to themselves or kindred groups
R.A. 9372
-

Human Security Act of 2007

Approved on March 6, 2007
Effective on May 15, 2007

Terrorism
any person who commits an act punishable under any of the following provisions of
the RPC: (Sec. 3)
1. Article 122 (Piracy in General and Mutiny in the
High Seas or in the Philippine Waters);
2. Article 134 (Rebellion or Insurrection);
3. Article 134-a (Coup d etat), including acts committed by private persons;
4. Article 248 (Murder);
5. Article 267 (Kidnapping and Serious Illegal Detention);
6. Article 324 (Crimes Involving Destruction)
or under
1. Presidential Decree No. 1613 (The Law on Arson);
2. Republic Act No. 6969 (Toxic Substances and Hazardous and Nuclear Waste
Control Act of 1990);
3. Republic Act No. 5207, (Atomic Energy Regulatory and Liability Act of 1968);
4. Republic Act No. 6235 (Anti-Hijacking Law);
5. Presidential Decree No. 532 (Anti-piracy and Anti-highway Robbery Law of
1974); and,
6. Presidential Decree No. 1866, as amended (Decree Codifying the Laws on
Illegal and Unlawful Possession, Manufacture, Dealing in, Acquisition or
Disposition of Firearms, Ammunitions or Explosives)thereby sowing and
creating a condition of widespread and extraordinary fear and panic among the
populace, in order to coerce the government to give in to an unlawful demand
27

shall be guilty of the crime of terrorism and shall suffer the penalty of forty (40)
years of imprisonment, without the benefit of parole as provided for under Act
No. 4103, otherwise known as the Indeterminate Sentence Law, as amended.
R.A. 9372, SEC. 4. Conspiracy to Commit Terrorism
Persons who conspire to commit the crime of terrorism shall suffer the penalty of
forty (40) years of imprisonment
There is conspiracy when two or more persons come to an agreement
concerning the commission of the crime of terrorism
The provisions of Republic Act No. 4200 (Anti-Wire Tapping Law) to the
contrary notwithstanding, a police or law enforcement official and the members of his
team may, upon a written order of the Court of Appeals, listen to, intercept and record,
with the use of any mode, form, kind or type of electronic or other surveillance
equipment or intercepting and tracking devices, or with the use of any other suitable
ways and means for that purpose, any communication, message, conversation,
discussion, or spoken or written words between members of a judicially declared and
outlawed terrorist organization, association, or group of persons or of any person
charged with or suspected of the crime of terrorism or conspiracy to commit terrorism.
Provided, That surveillance, interception and recording of communications
between lawyers and clients, doctors and patients, journalists and their sources and
confidential business correspondence shall not be authorized.

MONEY LAUNDERING
-

MONEY LAUNDERING IS A CRIME.

MONEY LAUNDERING IS ALSO THE WORLDS THIRD LARGEST INDUSTRY
BY VALUE.
Cash is a bearer instrument and completely replaceable and easily convertible,
lends anonymity to many forms of criminal activity and of course is the preferred
medium of exchange in the criminal world.
Covers all procedures to change, obscure or conceal the beneficial ownership or
audit trail of illegally obtained money or valuables so that it appears to have
originated from a legitimate source.
A process through which the existence of an illegal source of unlawful
application of illicit gains is concealed or disguised to make the gains legitimate,
thereby helping to evade detection, prosecution, seizure and taxation.

Money Laundering is called what it is because the term perfectly describes

what takes place, illegal or dirty money is put through a cycle of transactions, or
washed, or laundered, so that it comes out the other end as legal, or clean money.
28

In other words, the source of illegally obtained funds is obscured through a

succession of transfers and deals in order that those funds can eventually be made to
appear legitimate income.
How serious is the problem?
Money laundering allows criminals to preserve and enjoy the proceeds of their
crimes, providing them with the incentive and means to perpetrate such activities and at
the same time expand and consolidate their forces.
Corrupts financial institutions, control sizeable sectors of the economy through
investments and even bribe and infiltrate governments. In extreme cases, it may lead to
the virtual take-over of a legitimate government.
Destroys the integrity of governments. With the increasing awareness of the illeffects of money laundering and the growing interdependence among global
communities, countries that are known to be used by money launderers could be placed
in a bad light, adversely affecting their financial institutions and relations within regional
and global economies.
The three common factors identified in laundering operations are:
a.
The need to conceal the origin and true ownership of the proceeds;
b.
The need to maintain control of the proceeds;
c.
The need to change the form of the proceeds in order to shrink the huge
volumes of cash
generated by the initial criminal activity, the
so-called
predicate offense or unlawful activity.
IMPUNITY
without fear of prosecution
without fear of confiscation
Money laundering is not a single act but is in fact a process that is accomplished
in three basic steps or stages:
a. Placement
b. Layering
c. Integration
-

The physical disposal of cash proceeds derived from the unlawful activity.
The aim is to remove cash from the location of acquisition to avoid detection.
Separating illicit proceeds from their source by creating complex layers of
financial transactions designed to disguise the source of money, subvert the audit
trail and provide anonymity.
The purpose is to disassociate the illicit proceeds from the unlawful activity by
creating intentionally a complex web of financial transactions aimed at concealing
any audit trail as well as the source and ownership of funds.

29

The final stage in the process at which the money is integrated into legitimate
economic and financial systems and is assimilated with all the other assets in the
system.
Integration of laundered money into the economy is accomplished by making it
appear to have been legally earned. Thus, exceedingly difficult to distinguish
between legal and illegal wealth.

Laundering of Proceeds
Mix dirty money with legitimate funds
Use dirty money for legitimate purposes
Invest dirty money in
legitimate business/es
The Vienna Convention of 1988 The United Nations Convention Against Illicit Traffic
in Narcotic Drugs and Psychotropic Substances
To deprive persons engaged in illicit traffic of the proceeds of their criminal
activities and thereby eliminate their main incentive for doing.
Taking profit away from the crime!
Fighting money laundering prevents the criminal from enjoying his ill-gotten gains
and he will also be unable to infuse the same back to his criminal activity or
organization.
The Financial Action Task Force (FATF) is the international body formed by the
leading industrial countries in the world, collectively known as the Group of
Seven (G7), during the Paris G7 Summit of 1989.
The Forty Recommendations
List of measures that the FATF encourages all nations to adopt in order to
institute and implement an effective anti-money laundering program. They
constitute the international standards of anti-money laundering measures with
respect to the criminal justice system, law enforcement procedures and the
regulation of the financial system.
1.
2.
3.
4.
5.

Criminalization of money laundering

Establishment of a system of suspicious transaction reporting
Creation of a centralized financial intelligence unit or FIU
Removal or relaxation of bank secrecy laws
Institution of a system allowing mutual assistance and cooperation between
countries to apprehend and prosecute suspected money launderers

The FATF cracks down on terrorist financing with the following nine special
recommendations :
5. Provide the widest possible range of assistance to other countries law
enforcement and regulatory authorities for terrorist financing investigations.
6. Impose anti-money laundering requirements on alternative remittance systems.
7. Strengthen customer identification requirements in international and domestic
wire transfers.
8. Ensure that entities, in particular non-profit organizations cannot be used to
finance terrorism.
30

The provisions of the Anti-Money Laundering Act of 2001 (AMLA) or R.A.

No.9160, as amended, lays down the Philippine policies and principles to prevent
banks, insurance companies and the securities and capital markets and industries from
being utilized by money launderers to wash their so-called dirty money.
The two-fold policy of the AMLA are :
1. To protect and preserve the integrity and confidentiality of bank accounts;
2. to ensure that the Philippines is not used as a money laundering site of the
proceeds of unlawful activities.
Thus, it is the Philippines policy not only to protect depositors and
investors but of equal importance is the investigation, apprehension and
prosecution of suspected money launderers.
Under the AMLA, money laundering is a crime whereby the proceeds of an
unlawful activity are transacted, thereby making them appear to have originated
from legitimate sources.
Money Laundering as a crime is committed in three (3) different ways under the
AMLA
Any person knowing that any monetary instrument or property represents,
involves, or relates to, the proceeds of any unlawful activity, transacts or attempts
to transact said monetary instrument or property.
Imprisonment of 7 to 14 years and a fine of not less than P 3 Million but not more
than twice the value of the monetary instrument or property involved in the
transaction.
Any person knowing that any monetary instrument or property involves the
proceeds of an unlawful activity, performs or fails to perform any act as a result of
which he facilitates the offense of money laundering referred to in paragraph (a)
above.
Imprisonment of 4 to 7 years and a fine of not less than P 1 Million but not more
than P 3 Million.
Any person knowing that any monetary instrument or property is required under
this Act to be disclosed and filed with the Anti-Money Laundering Council
(AMLC), fails to do so.
Other penalties include:
Forfeiture of the monetary instruments or property involved in the money
laundering offense in favor of the Philippine government.
Perpetual or temporary absolute disqualification from public office, as the case
may be, if the offender be a public official or employee.
If the offender is a corporation, partnership, association or any juridical person,
the penalty shall be imposed on the responsible officer who participated in or
allowed by gross negligence the commission of the crime.
Unlawful Activity refers to any act or omission or series or combination
thereof involving or having DIRECT relation to any of the following:
Piracy on the high seas
Qualified Theft
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Swindling
Smuggling
Offenses under the E-Commerce Act
Hijacking, destructive arson, murder,
Violations of the Securities and Regulation Code
Felonies or offenses of a similar nature under penal laws of other
countries

The Anti-Money Laundering Council (AMLC) is the financial intelligence unit of

the Philippines and is composed of the following officials :
- The Governor of the Bangko Sentral ng Pilipinas
- The Chairperson of the Securities and Exchange Commission
- The Commissioner of the Insurance Commission
A COVERED TRANSACTION is a transaction in cash or other equivalent monetary
instrument involving a total amount in excess of PHP500,000.00 within one (1) banking
day.
Republic Act No. 9160
approved on September 29, 2001
this Act shall be known as the "Anti-Money Laundering Act of 2001.
For the prevention of money laundering, the AMLA contains specific provisions
on the following areas:
a.
Customer identification
b.
Keeping of records
c.
Recognition and reporting of covered and suspicious transactions
d.
Training
Importance of Customer Identification
The inadequacy or absence of KYC standards can subject banks to serious customer
and counter (third) party risks, especially:
1. Reputational risk
2. Operational risk
3. Legal and concentration risk
Reputational Risk
- the potential that adverse publicity regarding a banks business practices and
associations, whether accurate or not, will cause a loss of confidence in the
integrity of the institution.
Operational Risk
- the risk of direct or indirect loss resulting from inadequate or failed internal
processes, people and systems or from external events.
Legal Risk
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the possibility that lawsuits, adverse judgments or contracts that turn out to be
unenforceable can disrupt or adversely affect the operations or condition of a
bank.

RA 9194
approved on March 7, 2003
An Act Amending Republic Act No. 9160, otherwise known as the Anti-Money
Laundering Act of 2001
ARM SMUGGLING
Smuggling
- also known as trafficking, is the clandestine transportation of goods or persons
past a point where prohibited, such as out of a building, into a prison, or across
an international border, in violation of the law or other rules
WHAT ARE FIREARMS?
- includes handguns, revolvers, pistols, rifles, muskets, carbines, shotguns,
cannons and all other deadly weapons from which a bullet, ball, shot, shall or
other missile may be discharged by means of gunpowder or other explosives
- also includes air rifles and air pistols not classified as toys under the provisions of
Executive Order No. 712 dated 28 July 1981. The barrel of any firearm shall be
considered a complete firearm.

FIREARMS TRAFFICKING
- refers to the act of any person who, through the use of any fraudulent
machinations, shall import or bring into, or export from, the Philippines, or assist
in so doing, any firearm or parts thereof, explosive or ammunition or machine,
implements, equipments or tools for the manufacture of firearms.
- shall likewise refer to the act of any person who, contrary to law, shall:
- receive, conceal, buy, sell, or in any manner facilitate the
transportation, concealment or sale of said firearms or parts
thereof, explosive or ammunition or machine, implements,
equipments or tools for the manufacture of firearms, ammunition or
explosives after importation, knowing the same to have been
imported contrary to law.
Why does this illicit activity flourish?
- It is a dangerous but profitable criminal enterprise.
- However, it threatens not only public safety and national security but also
endangers, and oftentimes, takes away the lives of innocent persons.
- It is one of the transnational organized crimes that affect not only the Philippines
and other neighboring Asian countries but also the rest of the world.
- The country lacks anti-firearms smuggling/trafficking laws.
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No region is immune to illicit trade and trafficking in small arms and light
weapons
Collaborative and cooperative measures are essential to address this
transnational threat.

Why should it be addressed?

It poses a serious threat to national security and a stumbling block to economic
development.
Firearms can be tools of violence. Letting the control of the tools of violence get
out of hand can be a disaster for
any society.
Efforts to curtail the problem
Improvement of the traceability of firearms;
Passage of relevant laws and providing stiffer penalties thereto;
Encouraging return of loose firearms through programs such as amnesty and
balik-baril programs; and
More extensive law enforcement.
RELEVANT LAWS
- The Memorandum for the SILG recommending the phase-out of the use,
manufacture or sale of Paltik (home-made) Firearms; and
- The PNP Circular on the disposition of Captured, Confiscated, Surrendered and
Deposited Firearms, Ammunition and Explosives.
BASIC FIREARMS LAWS, RULES AND REGULATIONS:
Section 1, Republic Act No. 8294:
Acts punishable: Unlawful Manufacture, Sale, Acquisition, Disposition or
Possession of Firearms Ammunition or Instruments Used or Intended to be Used in the
Manufacture of Firearms or Ammunitions.
Penalty:Prision correccional in its maximum period and a fine of not less that Fifteen
Thousand pesos(P15,000.00)
(low-powered firearm such as rim fire handgun, .380 or .32 and other firearm of
similar firepower, part of firearm, ammunition or machinery, tool or instrument used or
intended to be used in the manufacture of any firearm or ammunition: Provided that no
other crime was committed)
Section 1, Republic Act No. 8294:
- Acts punishable: Unlawful Manufacture, Sale, Acquisition, Disposition or
Possession of Firearms Ammunition or Instruments Used or Intended to be
Used in the Manufacture of Firearms or Ammunitions.
- Penalty:Prision mayor in its minimum period and a fine of Thirty Thousand pesos
(30,000.00)
- (high-powered firearm which includes those with bores bigger in diameter that .
38 caliber and 9 millimeter such as caliber 40, 41, 44, 45 and also lesser
calibered firearms but considered powerful such as caliber 357 and caliber .22
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center fire magnum and other firearms with firing capability of full automatic and
by burst of two or three: Provided however, That no other crime was committed
by the person arrested)
INTELLECTUAL PROPERTY THEFT
Intellectual property theft is used interchangeably with intellectual property piracy
which is the unauthorized copying of goods, or works such as software, for resale by
way of profit or trade; the production and sale by way of trade of copies of goods which
have been made without the authority of the owner of the intellectual property; the
facilitation of their production, and the distribution of such goods including importation
and retailing; counterfeiting or pirating of goods facilitated by use of the Internet or
satellite technologies, or piracy or theft of information or broadcasts, or unauthorized
photocopying of books for education purposes, or of unauthorized end-user piracy of
software beyond the purchasers license, or piracy of domain names or company
names, or counterfeiting of currency; the unauthorized manufacture and distribution of
copies of such goods and works which are intended to appear to be so similar to the
original as to be passed off as genuine examples. This includes use of famous brands
on clothing not manufactured by or on behalf of the owner of the trade mark, and exact
copies of CDs containing any material or software, which are traded in a form intended
to be indistinguishable to ordinary consumers from the genuine product. Intellectual
property right is the legal ownership by a person or business of a copyright, design,
and patent, trade mark attached to a particular product or process which protects the
owner against unauthorized copying or imitation. Such property rights are an important
element of product differentiation and confer temporary monopoly advantages to
suppliers (Pass, Lowes and Davies 1993: 265). The term intellectual property rights
include copyright and related rights, trademarks and service marks, geographic
indications, industrial designs, patents, layout-designs.
Four categories of intellectual property according to Nicole Leeper Piquero
- Patents
- Trademarks
- Trade secrets
- Copyright
Republic Act No. 8293
approved on June 6, 1997
This Act shall take effect on 1
January
1998.
Intellectual Property Code of the Philippines.
RA 10088
-

known as the "Anti-Camcording Act of 2010

Approved on May 13, 2010

DRUG TRAFFICKING
The Drug Trade
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From the farmers to the producers, the smugglers, the street dealers, and the
users, the drug trade is deeply rooted in the global economy. It is protected and
overseen by powerful groups known as drug cartels that make huge profits from this
multibillion-dollar industry.
What is drug trafficking?
another term for dug trade
refers to the illegal process through
which narcotics and other illegal drugs
are
produced,
transported, and sold.
the illegal cultivation, culture, delivery, administration, dispensation, manufacture,
sale, trading, transportation, distribution, importation, exportation and possession
of any dangerous drug and/or controlled precursor and essential chemical.
generally refers to the sale and distribution of illegal drugs
R.A. 6425 Dangerous Drug Act of 1972 was repealed by,
R.A. 9165 Comprehensive Dangerous Drug Act of 2002.
ENVIRONMENTAL CRIME
Environmental crime
- the deliberate evasion of environmental laws and regulations by individuals and
companies in the pursuit of personal interest and benefit. Where these activities
involve movements across national boundaries, or impacts upon the world as a
whole, they can be termed "international environmental crime
The most common types of environmental crime fall under these major categories:
(1) biodiversity;
(2) natural resources-related crime;
(3) wastes;
(4) banned substances;
(5) other environmental offences like biopiracy and transport of controlled
biological or genetically modified material; Illegal dumping of oil and other wastes in
oceans; violations of potential trade restrictions under the 1998 Rotterdam Convention
on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and
Pesticides in International Trade; Trade in chemicals in contravention to the 2001
Stockholm; Convention on Persistent Organic Pollutants; and fuel smuggling to avoid
taxes or future controls on carbon emissions.
ECONOMIC CRIME
Economic Crime
- referred to as commercial crimes and known also as white collar crimes
- any act characterized by fraud, concealment, or a violation of trust and are not
dependent upon the application or threat of physical force or violence
PIRACY AND ARMED ROBBERY AGAINST SHIPS
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Sea Piracy is described as

(1) an act of any person who, on the high seas, shall attack or seize a vessel or, not
being a member of its complement, nor a passenger, shall seize the whole or part
of the cargo of said vessel, its equipment, or personal belonging of its complement
or passengers;
(2) any attack upon or seizure of any vessel, or the taking away of the whole or part
thereof, or its cargo, equipment, or the personal belongings of its complement or
passengers, irrespective of the value thereof, by means of violence against or
intimidation of persons or force upon things committed by any person, including a
passenger or member or complement of said vessel, in Philippine waters, and
(3) any person who knowingly and in any manner aids or protects pirates, such as
giving them information about the movements of the police or other peace officers
of the government, or acquires or receives property taken by such pirates, or any
person who abets the commission of the piracy.
The definition of piracy is contained in article 101 of the 1982 United Nations
Conventions on the Sea (UNCLOS)
Piracy consist of any of the following acts:
a. any illegal acts of violence or detention, or any act of depredation, committed
for private ends by the crew or the passengers of a private ship or a private
aircraft and directed:
a.1 on the high seas, against another ship or aircraft, or against persons
or property on board of such ship or aircraft.
a.2 against a ship, aircraft, person or property in a place outside the
jurisdiction of any State.
b. Any act of voluntary participation in the operation of a ship or an aircraft with
knowledge of facts making it a pirate ship or aicraft;
c. Any act inciting or of intentionally facilitating an act describe in sub-paragraph
(a) or (b)
SMUGGLING OF CULTURAL PROPERTIES
Smuggling of Cultural Property refers to the act of any person who, through the
use of any fraudulent machinations, shall import or bring into, or export from, transfer
from, the Philippines, or assist in so doing, any cultural properties.
Cultural properties are old buildings, monuments, shrines, documents, and objects
which may be classified as antiques, relics, or artifacts, landmarks, anthropological and
historical sites, and specimens of natural history which are of cultural, historical,
anthropological or scientific value and significance to the nation; such as physical,
anthropological, archaeological and ethnographic materials, meteorites and tektites;
historical objects and manuscripts; household and agricultural implements; decorative
articles or personal adornment; works of art such as paintings, sculptures, carvings,
jewelry, music, architecture, sketches, drawings, or illustrations in part or in whole;
works of industrial and commercial art such as furniture, pottery, ceramics, wrought iron,
gold, bronze, silver, wood or other heraldic items, metals, coins, medals, badges,
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insignias, coat of arms, crests, flags, arms and armor, vehicles or ships or boats in part
or in whole.

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