Penalty for sale of pre-registered SIM cards pushed

CEBU, Philippines — The Mandaue City Council has approved on first reading a proposed ordinance that would prohibit the sale, distribution, purchase, transfer, and possession for resale of pre-registered Subscriber Identity Module (SIM) cards in a bid to strengthen the implementation of the SIM Registration Act.

Councilor Jennifer Del Mar authored Draft Ordinance No. 102-2026, which seeks to reinforce Republic Act No. 11934 by imposing local regulations and penalties on individuals and businesses involved in the illegal trade of pre-registered SIM cards within the city’s jurisdiction.

“Atong gi-regulate ang pagbaligya aning mga pre-registered nga SIM cards, para dili siya magamit sa mga naay purpose mubuhat og daotan,” Del Mar said in an interview with reporters.

Del Mar said the proposed ordinance mirrors the national law but introduces additional provisions specific to Mandaue City, including penalties for buyers of pre-registered SIM cards.

“We added to penalize the buyer kay sa national law wala may buyer didto. (Pero) wala may seller kung walay buyer. Kung walay demand, walay supply,” she said.

The councilor said she has received reports that pre-registered SIM cards are already being sold in the city.

“Kung ako buyer ko, why buy a SIM nga naka-pre-register na, nga pwede ra man gyud nga kita ang mu-register,” Del Mar said.

She said purchasing a pre-registered SIM card could indicate an intent to use it for unlawful purposes.

“There is already an intent. That’s why we created an ordinance based on some reports nga naa nay namaligya og pre-registered SIMs,” she said.

The proposed ordinance cites the city’s police powers under the Local Government Code, saying stronger local monitoring and enforcement are necessary to help curb cybercrime, online scams, identity theft, fraud, and other offenses committed using anonymously registered SIM cards.

Under the measure, a pre-registered SIM card refers to a SIM that has already been registered or activated before being sold, transferred, or distributed to its intended end user, regardless of whether it was registered using another person’s identity, fictitious information, or the identity of the seller.

The proposed ordinance would apply to public telecommunications entities, their authorized dealers, distributors, retailers, agents, and resellers, as well as business establishments, online sellers, and individuals engaged in the sale, distribution, or purchase of SIM cards in Mandaue City.

Among the prohibited acts are selling or distributing pre-registered or already activated SIM cards; assisting in the registration of SIM cards using false or stolen identities; knowingly purchasing pre-registered SIM cards; possessing such SIM cards for resale; transferring ownership of registered SIM cards without complying with national regulations; and refusing inspections by authorized city personnel.

The measure also requires authorized dealers and retailers to sell only deactivated SIM cards, inform buyers that activation will only take place after lawful registration, and display notices informing customers that the sale and purchase of pre-registered SIM cards are prohibited under both Republic Act No. 11934 and the proposed city ordinance.

Enforcement would be carried out by the Business Permit and Licensing Office (BPLO) in coordination with the Mandaue City Police Office (MCPO), the National Telecommunications Commission (NTC), and the Department of Information and Communications Technology (DICT).

The agencies would conduct inspections, investigate complaints, monitor online marketplaces, issue ordinance violation receipts, and recommend the suspension or revocation of business permits of establishments found violating the ordinance.

If approved on second and final reading, business establishments, dealers, distributors, retailers, and resellers found violating the ordinance would face a P5,000 fine and the immediate suspension of their business permits, subject to possible revocation after due process.

Individual buyers, sellers, or persons found possessing pre-registered SIM cards for resale could be fined P5,000, imprisoned for 30 days to six months, or both, at the discretion of the court, without prejudice to separate charges under Republic Act No. 11934 and other applicable laws. (CEBU NEWS)