Cease-to-Operate Order

The Philippine National Police (PNP) has issued a strict directive in a memorandum titled “Advisory No. 052 – 2024” that requires Private Security Agencies (PSAs), Private Security Training Schools (PSTAs), and Company Guard Forces (CGFs) to automatically have their Licenses to Operate (LTO) automatically cancelled if the entities do not renew their licenses within 60 days of the expiration of their current license. A Cease-to-Operate Order will be issued in the event of non-compliance, thereby stopping all operations for the impacted organizations.

Republic Act No. 11917 and its Implementing Rules and Regulations (IRR), particularly Rule 4, Section 11(c), provide a strong foundation for this directive. For entities operating with an expired LTO, the warning also imposes harsh penalties, which include fines up from PHP 50,000 to PHP 100,000 and the possibility of facing criminal charges. To prevent these repercussions, the PNP fervently advises all Private Security Service Providers (PSSPs) to renew their licenses within the allotted period.

Major Information in the Memorandum:

  • Automatic License Cancellation: If a private security agency, private security training school, or company guard force does not renew their license to operate (LTO) within sixty days of its expiration, the license will be automatically canceled.
  • Cease-to-Operate Order: Non-compliant firms shall cease operations upon the issuance of a Cease-to-Operate Order, which is triggered by failure to renew expired LTOs within the 60-day grace period.
  • Legal Basis: Republic Act No. 11917 and its Implementing Rules and Regulations (IRR), in particular Rule 4, Section 11(c), provide the legal basis for the directive.
  • Penalties for Non-Compliance: Organizations that continue to operate under an expired license token may face fines of up to PHP 100,000 in addition to possible criminal prosecution.
  • Important Reminder: In order to prevent automatic cancellation and the related fines, all Private Security Service Providers (PSSPs) are strongly advised to renew their LTOs within the 60-day post-expiry period.

In order to maintain continuous operations and prevent the serious consequences of non-compliance, this advise is an essential reminder for all PSSPs to promptly comply with regulatory requirements.

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