Expanding the Coverage of R.A. No. 10883 (New Anti-carnapping Act)

Office of thie es TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) MAY 19 P6:37 SENATE RECEIVED BY: S. No. 2138 Introduced by Senator Raffy T. Tulfo AN ACT EXPANDING THE COVERAGE OF REPUBLIC ACT NO. 10883, OTHERWISE KNOWN AS THE "NEW ANTI-CARNAPPING ACT OF 2016," TO INCLUDE THE TAKING OF MOTOR VEHICLES THROUGH DECEIT OR FRAUDULENT SCHEMES WITHIN THE DEFINITION OF CARNAPPING, AND FOR OTHER PURPOSES EXPLANATORY NOTE "Rent-Tangay," "Rent Sangla," and "Pasalo" are schemes where a person rents or obtains possession of a vehicle under the guise of a legitimate transaction and later refuses to return it or pay for it, often pawning or selling it to unsuspecting buyers. These fraudulent schemes or Modus Operandi of Carnapping Syndicates are further explained in BSP Memorandum No. M-2021-047}: 1. Rent-Tangay scheme refers to the act of obtaining a motor vehicle by virtue of a rental contract; and the subsequent failure to return the motor vehicle, upon the lapse of said contract. 2. Rent-Sangla scheme refers to the act of pawning or selling a motor vehicle obtained by virtue of a rent or lease contract. Perpetrator (lessee) pawns or sells the motor vehicle using falsified documents and without the knowledge and consent of the registered owner (lessor). 3. Assume Balance or Pasalo scheme refers to the act of selling a motor vehicle obtained by way of assuming the mortgage loan attached thereto. Rather than paying the promised monthly amortization in relation to the 4 BSP Memorandum No. M-2021-047: https://www.bsp.gov.ph/Regulations/lssuances/2021/M-2021-047.pdf

mortgage, perpetrator sells the motor vehicle to an unwitting buyer using falsified documents. 4. Loan Accommodator scheme refers to an arrangement whereby the perpetrator utilizes a legitimate business which will accommodate or co-sign the loan. Perpetrator then sells motor vehicle using falsified documents and without the knowledge and consent of the accommodator. 5. Labas Casa scheme refers to the act of using so-called "artista" who will acquire an auto loan from a car dealership using spurious documents. Perpetrators then sells motor vehicle by virtue of a deed of sale with assumption of monthly amortization, to the unwitting buyer using falsified documents. Based on the report of the Philippine National Police - Highway Patrol Group, from 2021 to 19 May 2026, a total of 441 recovered vehicles were recorded nationwide involving "Rent-Tangay," "Rent Sangla," "Pasalo," and "Assume Balance" schemes. For 2026, 18 recovered vehicles have already been recorded. This report shows the growing presence of these fraudulent motor vehicle schemes across several regions in the country, indicating that the modus operandi remains prevalent despite enforcement and recovery operations. These fraudulent schemes have been featured in several episodes of the public service program Wanted sa Radyo. In its May 15, 2026 episode, several victims came forward after their vehicles were taken through "Rent-Tangay" schemes, including one case where the victim-owner asked the suspect-renter to use her own car; however, the suspect instead sent her a different vehicle, which was later discovered to also be a rental. At present, these acts only fall under Article 315 of the Revised Penal Code on estafa and not under New Anti-Carnapping Act of 2016 on carnapping, a special penal law punishable by significantly heavier penalties. Accordingly, this bill aims to amend the New Anti-Carnapping Act of 2016 to expand its coverage to include the taking of motor vehicles through deceit within the definition of carnapping. Under this proposed measure, carnapping as defined under the law shall include deceit through fraudulent schemes such as the use of fictitious identities, fraudulent vehicle rental transactions, simulated sales or financing

agreements, false representations, or other similar fraudulent means which have become prevalent in our country, thereby heavily penalizing such acts. In view of the foregoing, the approval of this bill is earnestly sought. RAFFY T. TULFO

SPen Offire of the s TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 MAY 19 P6:37 SENATE RECEIVED BY: S. No. 2138 Introduced by Senator Raffy T. Tulfo AN ACT EXPANDING THE COVERAGE OF REPUBLIC ACT NO. 10883, OTHERWISE KNOWN AS THE "NEW ANTI-CARNAPPING ACT OF 2016," TO INCLUDE THE TAKING OF MOTOR VEHICLES THROUGH DECEIT OR FRAUDULENT SCHEMES WITHIN THE DEFINITION OF CARNAPPING, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section. 1. Section 3 of Republic Act No. 10883, otherwise known as the "New

2 Anti-Carnapping Act of 2016" is hereby amended as follows: "SEC. 3. Carnapping; Penalties. - Carnapping is the taking OR OBTAINING POSSESSION, with intent to gain, of a motor vehicle belonging to another without the latter's consent, or by means of violence against or intimidation of persons, or by using force upon things. CARNAPPING SHALL LIKEWISE INCLUDE INSTANCES WHERE POSSESSION WAS LAWFULLY OBTAINED BUT LATER UNLAWFULLY WITHHELD THROUGH DECEIT OR FRAUDULENT SCHEMES AS CONTEMPLATED UNDER ARTICLE 315 OF THE REVISED PENAL CODE. PROVIDED, THAT THE FAILURE TO RETURN THE MOTOR VEHICLE IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT SHALL GIVE RISE TO A PRESUMPTION OF INTENT TO GAIN. Any person who is found guilty of carnapping shall, regardless of the value of the motor vehicle taken, be punished by imprisonment for not less than

twenty (20) years and one (1) day but not more than thirty (30) years, when the carnapping is committed without violence against or intimidation of persons, force upon things; and by imprisonment for not less than thirty (30) years and one (1) day but not more than forty (40) years, when the carnapping is committed by means of DECEIT OR FRAUDULENT SCHEMES, violence against or intimidation of persons, or force upon things; and the penalty of life imprisonment shall be imposed when the owner, driver, or occupant of the carnapped motor vehicle is killed or raped in the commission of the carnapping. Any person charged with carnapping or when the crime of carnapping is committed by criminal groups, gangs or syndicates or by means of DECEIT OR FRAUDULENT SCHEMES, violence or intimidation of any person or persons or forced upon things; or when the owner, driver, passenger or occupant of the carnapped vehicle is killed or raped in the course of the carnapping shall be denied bail when the evidence of guilt is strong."

Sec. 2. Implementing Rules and Regulations. - The Philippine National Police

together with the Department of Transportation, Land Transportation Office, and other relevant agencies shall promulgate the necessary rules and regulations to 20 implement the provisions of this Act.

Sec. 3. Separability Clause. - If any provision or part hereof is declared invalid

22 or unconstitutional, the remainder of this Act or any provision not affected shall remain in full force and effect.

Sec. 4. Repealing Clause. - All provisions of laws, orders, decrees, including

rules and regulations inconsistent herewith are hereby repealed, amended, and/or modified accordingly.

Sec. 5. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in two (2) newspapers of general circulation in 29 the Philippines. Approved,