According to a top BSP source, economic sabotage applies only to crimes like syndicated estafa or swindling.
Under Presidential Decree 1689 issued by the late dictator Ferdinand Marcos in 1980, economic sabotage was defined as estafa committed by a syndicate of five or more persons or corporations or associations that get funds from the general public.
Foreign exchange trading did not fall under this category and is covered only by the foreign exchange trading rules of the BSP, the source said.
However, pyramiding scams could fall under economic sabotage as they are usually perpetuated by corporations that get funds from public investors.
Under Philippine law, estafa or swindling is defined as an act of willful deceit with "unfaithfulness and abuse of confidence" and "false pretenses or fraudulent acts."
Sanctions for economic sabotage could range from life imprisonment to death. "It is also a non-bailable offense," the source said. "So people charged with economic sabotage would have to stay in jail while their cases are being tried."
For violating BSPs foreign exchange trading rules, however, the source revealed the BSP could build up charges against currency speculators and impose sanctions ranging from fines to suspension of banking and related licenses.
However, when these charges are elevated to the court for criminal prosecution, the law becomes even more strict.
"The prosecution has to prove willful violation," the source said. "We have to prove that the acts were committed with the willful or deliberate intent to violate the law."
If convicted, the accused could only get a sentence of two to 10 years imprisonment and monetary sanctions of up to P2 million.
Moreover, the source said that since forex trading has been deregulated when the government liberalized the foreign exchange rate, it has become harder for the BSP to go after deliberate currency speculators.
Meanwhile, the BSP said it has imposed "administrative sanctions" on eight banks for foreign exchange violations, part of the governments effort to protect the peso, which has been trading at all-time lows in recent weeks.
The peso closed at a month-high of 54.30 against the dollar yesterday, from 54-50 on Monday and a 25-month low of 55.10 last March 12.
The BSP said it "has imposed administrative sanctions (monetary and non-monetary) on eight banks, two of which were required to dispose of their excess dollar holdings." With AFP