AN ACT WHICH PROVIDES FOR THE CREATION OF A CENTRAL

AGENCY THAT WILL PRESERVE, MAINTAIN, MANAGE AND

DISPOSE OF SEIZED AND/OR FORFEITED PROPERTIES TO BE
KNOWN AS ASSET MANAGEMENT BUREAU

I.

PREAMBLE
WHEREAS the government has been beset by the perennial
problem of budget deficit occasioned by its inability to raise the
much needed funds through most of its revenue collection
agencies.
WHEREAS such budget deficits inevitably lead to the governments
failure to deliver basic services specially in the critical areas of food
and sustenance, shelter, education, employment, including peace,
order and security.
WHEREAS there are other untapped and very viable sources of
funds to augment government income that could at least mitigate
budget deficit among which are various valuable assets, consisting
of real and personal properties, that were seized and/or forfeited in
its favor.
WHEREAS the constitution, and laws of the country recognize as
well as authorize the seizure and/or forfeiture of illegally acquired
assets and properties including proceeds from the commission of
crimes such as smuggling and laundering through judicial and
quasi-judicial proceedings before the courts and other government
bureaus or agencies.
WHEREAS these seized and/or forfeited assets have either not
been properly managed, mismanaged, lost, stolen or neglected by
the agencies, departments or bureaus endowed with such power
thereby depriving the government of the much needed funds or
resources that could augment its income and reduce budget deficits
which would ultimately redound to the benefit of the public in
general.

WHEREAS there is thus an urgent need to create an accountable

central agency that will serve as trustee or receiver which could
competently and productively preserve, manage, maintain and
dispose of any seized and/or forfeited property.
Now therefore
Be it enacted by the Senate and the House of Representatives of
the Philippines in congress assembled:
Section 1. Declaration of Policy It is hereby declared the policy of
the State to develop an effective system whereby an accountable
central agency that has the capacity the required and competence
shall take responsibility to collect, accept or receive as well as to
preserve, maintain, manage, invest and dispose of any and all seized
and/or forfeited properties in order to prevent wastage, neglect or loss
and instead derive profits or benefits through revenues therefrom that
will ultimately contribute to the national treasury and minimize budget
deficit.

II.

Definition of Terms.
Section 2. As used herein the following terms shall have the
corresponding meaning:
a) assets in custodia legis property lawfully taken by virtue of a
legal process
b) Bureau the Asset Management Bureau
c) civil forfeiture - an in rem action, meaning that the action is
against the property.
d) conservator - a trustee legally appointed to protect and manage
the seized and/or forfeited property
e) contraband any article, the importation of which is prohibited
by law
f) criminal forfeiture - an in personam action, meaning that the
action is against the person, and, that upon conviction, the
punitive effect of forfeiture can be used against the convicted
offender.

g) forfeiture or confiscation judgment- final order compelling a

person or entity to pay a sum of money representing the
proceeds of an offense ii) to forfeit property involved in or
traceable to the commission of the offense
h) laundering - to transform illegally obtained gain into seemingly
legitimate funds
i) lien a legal claim or charge on property, either real or personal,
as security for the payment of some debt or obligation
j) proceeds property of any kind obtained directly or indirectly,
as the result of the commission of the offense giving rise to the
forfeiture and any property traceable thereto, and is not limited
to the net gain or profit realized from the offense.
k) receiver an indifferent person between the parties to a cause,
appointed by the court to receive and present the property or
fund in litigation pendent lite, when it does not seem reasonable
to the court that either party should hold it
l) seizure a prohibition enjoining the owner from disposing of his
property
m) smuggling the surreptitious landing of imported goods in some
isolated portion of the country to evade customs and import
taxes and duties
n) trustee a person in whom confidence is reposed as regards
property for the benefit of another person
III.

Creation, Composition, Powers and Functions

Section 3. Creation. Pursuant to this act there shall be created an
agency to the known as the Asset Management Bureau which shall
undertake or carry into effect the above mentioned policy of the state.
Section 4. Composition. The Bureau shall be headed by its Chief
and ____* other deputies to be appointed by the President of the
Republic of the Philippines for a fixed term of ______* years subject to
the following minimum qualifications:
a)
b)
c) etcetera
Section 5. Posting of Performance Bond Before entering or
discharging the performance of their official functions the Bureau Chief

* Please fill in the necessary number of deputies, term of office and qualifications as you see fit.

and the deputies shall be required to post the necessary performance

bond conditioned upon their faithful discharge of such official functions.

Section 6. Powers and Functions.

following powers and functions:

The Bureau shall have the

a) Act as conservator or receiver for forfeited assets

b) Collect, receive, preserve, maintain and liquidate or dispose of
the forfeited assets or profits therefrom in a manner most
beneficial to the government.
c) To manage and invest the forfeited assets and/or profits
therefrom through government bonds and securities or other
high yielding investment plans to ensure maximum return.
d) Enter into contract, joint venture or management agreements
with other qualified parties or entities involving the forfeited
assets or profits therefrom with the view of harnessing,
promoting or obtaining their maximum potential for return.
e) Conduct research and study as well as to establish linkages
with other similar foreign agencies and bureaus for the purpose
of acquiring relevant knowledge and technical skills with the
view of improving its competence and capacity to accomplish its
official tasks more effectively.
f) Issue such rules and regulations necessary to implement the
provisions of this Act; provided, that such rules and regulations
shall not change or contrary to the intent and purposes of this
Act.
IV.

Agencies, Bureaus, Departments Involved

Section 7. In order to assist the Bureau in the effective
implementation of this Act particularly with respect to the identification
and monitoring of assets due for forfeiture and those that have been
forfeited the following agencies, bureaus and departments of the
government are directed to provide all the required cooperation and
information not otherwise excepted by law:
a)
b)
c)
d)

Bureau of Customs
Bureau of Internal Revenue
Anti-Money Laundering Council
Philippine Commission on Good Government

e)
f)
g)
h)
i)
j)
k)
l)

V.

Department of Environment and Natural Resources

Bureau of Foods and Drug Administration
Philippine Drug Enforcement Agency
National Bureau of Investigation
Philippine National Police
Philpost
Department of Finance
Such other instrumentalities which the Bureau deems in a
position to provide assistance in the performance of its powers
and official functions

Properties Subject of Management by the Bureau

Section 8. Properties Adjudicated in Favor of the Government All
properties, real or personal, including businesses and other interests
relative thereto which have been finally adjudicated in favor of the
government by virtue of judicial or extra judicial proceedings shall be
subject to the comprehensive authority of the Bureau to collect,
receive, manage, preserve, invest, liquidate and /or dispose the same.
Section 9. Abandoned Properties. Such properties, both real and
personal, that may be considered as abandoned and should thus be
escheated or forfeited in favor of the government shall also be under
the comprehensive authority of the Bureau
Section 10. Properties Under Litigation. The Bureau shall likewise
have the authority to take into custody such properties under litigation
both real and personal, for the purpose of preservation thereof upon
orders or directive from the court, body or tribunal before which the
case is pending.
The Bureau has authority to charge the
corresponding expenses for the said purpose which will constitute a
lien on the subject property.
Section 11. Properties Outside the Philippines Properties, both
real and personal, including businesses or any interests relative
thereto which may either have been finally adjudicated in favor of the
government or currently under litigation by virtue of judicial or extra
judicial proceedings shall be also subject to the authority of the Bureau
in accordance with Section 6 or 8 herein, as may be applicable.

VI.

Regulatory Agency

Section 12. For closer monitoring and evaluation of the

performance of the powers and functions of the Bureau, it shall be
under the control and supervision of the Bangko Sentral ng Pilipinas.
Section 13. The Bureau shall likewise periodically submit to the
Commission on Audit all necessary papers, documents, receipts,
financial statements, items or objects for audit pursuant to the
constitutional principle of accountability.

VII.
VIII.

Penal Clause
Separability Clause