Bill extends foreigner land leases to 99 years

The senate approved a bill on Monday extending the maximum term for land leases entered into by foreign investors, and another measure reorganizing the socio-economic planning agency.

Senate Bill No. 2898, which seeks to amend the 31-year-old Investors’ Lease Act, extends the term for foreign leases to 99 from 75 years.

Under the current setup, foreign investors may lease private land for an initial period of 50 years, renewable for a further 25 years.

The latest bill, which is among the measures that Congress seeks to pass before the midterm elections, also allows foreign investors to sublet properties unless barred by contract.

The proposal will also allow foreign investors to lease land for agriculture, agroforestry and ecological conservation.

Senate President Francis Joseph G. Escudero said the bill is in line with government efforts to attract foreign investment, which he called “critical in realizing socio-economic objectives such as increasing employment levels, creating decent work, infusing technology into domestic businesses, and improving the integration of local enterprises with the global market.”

“This bill seeks to address this economic roadblock by strengthening the legal framework for long-term leases provided under Republic Act No. 7652,” he said in a statement.

The Senate also passed on third and final reading a bill seeking to reorganize the National Economic and Development Authority into the Department of Economy, Planning and Development (DEPDev). 

The bill positions DEPDev “as the government’s primary policy, planning, coordinating and monitoring body for economic development.”

Source: Business World

European firms see growth in PHL trade, investment over next 4 years

Most European firms doing business in the Philippines are expecting trade and investment to increase in the next four years, according to a report by the European Chamber of Commerce of the Philippines (ECCP).

The ECCP, in its 2024 Business Sentiment Survey Report released, collected 150 responses from ECCP member companies between November and early December.

According to the report, 85% of the respondents said that they expect the level of their trade and investment to increase in the next four years.

Meanwhile, 11% expect no change, and 3% are projecting a decline.

Around 81% of the respondents also expressed plans to expand over the next four years, while 7% said they expect to contract.

According to the ECCP, 69% of the respondents cited the Philippine economic recovery and growth opportunities as factors behind expansion plans.

“This optimism is supported by the country’s strong economic fundamentals, including positive GDP growth in recent years and in the first three quarters of 2024,” the ECCP said.

Some 63% of the respondents also cited the stable government and political system as behind any expansion plans.

Some 64% of the companies surveyed said the Philippines has increased importance in terms of revenues in the last two years.

The survey also examined the Philippines’ attractiveness as an investment destination, supplier market, and end-user market over the last two years, with 59% saying conditions have generally improved compared to elsewhere in the region.

According to the report, respondents have an overall positive expectations for the Philippines over the next four years.

“They anticipate continued economic growth driven by initiatives such as public-private partnerships, robust private consumption, rising investment spending, a growing population, and improved infrastructure, among other factors,” it said.

“Respondents also expected foreign investments to come in with the passage of several economic liberalization laws, such as the amendments to the Public Services Act, Retail Trade Liberalization Act, and the Foreign Investment Act,” it added.

However, the report cited the need for the government to “adopt a more proactive approach” in addressing corruption, accelerating digitalization, and streamlining regulations.

In particular, 75% of the respondents cited significant barriers to investment and business activity in the Philippines.

“This suggests that addressing these obstacles is crucial for further economic growth and attracting foreign direct investment,” the report concluded.

Source: Business World

How does the law define money laundering?

Section 4 of Republic Act (RA) 10365, otherwise known as the "Anti-Money Laundering Act of 2001", defines money laundering offenses as follows:

"SEC. 4. Money Laundering Offense. – Money laundering is committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity:

"(a) transacts said monetary instrument or property;

"(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or property;

"(c) conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary instrument or property;

"(d) attempts or conspires to commit money laundering offenses referred to in paragraphs (a), (b) or (c);

"(e) aids, abets, assists in or counsels the commission of the money laundering offenses referred to in paragraphs (a), (b) or (c) above; and

"(f) performs or fails to perform any act as a result of which he facilitates the offense of money laundering referred to in paragraphs (a), (b) or (c) above.

"Money laundering is also committed by any covered person who, knowing that a covered or suspicious transaction is required under this Act to be reported to the Anti-Money Laundering Council (AMLC), fails to do so."

Pertinent to the foregoing, the separate opinion of Associate Justice Amy Lazaro-Javier in the recent case of Lingad vs. People (GR 224945, Oct. 11, 2022), an En banc decision of the Supreme Court, is illuminating regarding the permutation of the definition of money laundering, thus:

"The definition in the amended Section 4 of RA 10365 is the prevailing definition of Money Laundering to date.

"Note the permutations of the definition of money laundering in Section 4:

"any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity

"(a) transacts said monetary instrument or property;

"(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or property;

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"(c) conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary instrument or property;"

Applying the foregoing, the prevailing definition of money laundering is the act of transacting a monetary instrument or property; or the conversion, transfer, disposal of, moving, acquiring, possessing or use of said monetary instrument, or property; or the concealment or disguise of the true nature, source, location, disposition, movement, or ownership of or rights with respect to said monetary instrument or property — by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity.

In addition, money laundering is also defined as the failure to report to the Anti-Money Laundering Council of any covered person who, knowing that a covered or suspicious transaction is required under the anti-money laundering Act to be reported.

Source: Manila Times