MANILA, Feb 19 (Reuters) - The Philippines' House of Representatives ratified on Monday a proposed anti-terrorism law that provides for detention of suspects without charge and up to 40 years' jail for anyone convicted.

The Philippines, fighting Muslim insurgents with ties to regional terror network Jemaah Islamiah, has been criticised by its closest security ally, the United States, for having insufficient laws to deal with terrorism suspects.

Some 172 congressmen who attended a special session called by President Gloria Macapagal Arroyo on Monday approved the law. There are 230 members in the lower house, but some did not attend the session.

The measure had been ratified two weeks ago by the Senate and Arroyo must sign it into law.

"This law is a commitment by the Philippines to the international community, keeping our citizens and our neighbours safe from extremists' activities," Jose de Venecia, speaker of the House of Representatives, said before the ratification of the bill.

Opposition congressman Satur Ocampo said his group would contest the measure before the Supreme Court.

Under the proposed law, authorities can hold anyone without charge for three days. It also allows for various forms of electronic surveillance on groups suspected to be engaged in militancy.

Earlier this month, the Senate said anyone wrongfully detained as a terrorism suspect would have to be paid 500,000 pesos ($10,400) per day spent in custody as compensation.

The Senate has also said the law could not be applied two months before and one month after elections in May.

Left-wing groups have said the law could be used by the government to intimidate political opponents, describing it as a "draconian measure".

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