Flood control scandal: AMLC tracking offshore wealth

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) is expanding its investigation into alleged corruption in flood control projects to cover foreign-based assets of individuals linked to the controversy, while also warning domestic banks that they could face liability for failing to detect suspicious transactions.

AMLC executive director Matthew David said the council is now coordinating with foreign counterparts to identify and recover assets abroad that may have been acquired through illicit funds.

These include offshore bank accounts, real estate and other properties.

“Part of our financial investigation are all assets related to corruption. That includes foreign assets of our respondents, such as offshore bank accounts, real properties or other properties they may have acquired abroad,” David said in a radio interview.

Under mutual legal assistance treaties, the Philippines can request foreign jurisdictions to pursue petitions for civil forfeiture, paving the way for repatriation of assets once ownership links to corruption are established.

“If these are seized abroad, they can be returned to the Philippine government,” David added.

Locally, the AMLC official said banks remain the “first line of defense” against money laundering, stressing their obligation to flag and report unusual fund movements.

His comments come as state-owned Land Bank of the Philippines and Development Bank of the Philippines face scrutiny for allowing large withdrawals tied to flood control accounts.

“Banks are the first to see these transactions, not the AMLC. They are the first to detect and even prevent unlawful activities,” David said.

“If they fail to file suspicious transaction reports with the AMLC, we will not know about them.”

He warned that bank employees found complicit in concealing transactions could face administrative cases, enforcement action or even criminal liability for facilitating money laundering.

Aside from banks, AMLC is also examining casinos in coordination with the Philippine Amusement and Gaming Corp. to determine compliance with the Anti-Money Laundering Act and its implementing rules.

The AMLC has so far secured four freeze orders from the Court of Appeals covering assets linked to the flood control probe, including 1,620 bank accounts, 163 vehicles, 40 real properties, 54 insurance policies and 12 e-wallets.

The value of immobilized assets has reached P4.2 billion, with officials expecting the figure to rise as the financial investigation widens.

Freeze orders are initially valid for 20 days but can be extended up to six months. During this period, the AMLC is expected to file petitions for civil forfeiture before the Regional Trial Court, which could allow the government to take permanent possession of the assets.

David said the council remains focused on tracing both domestic and overseas financial links.

“We continue to investigate,” he said, adding that the effort targets not only named account holders but also beneficial owners behind dummy accounts.

The probe is being coordinated with the Independent Commission for Infrastructure (ICI), which consolidates government investigations into high-profile corruption cases linked to the flood control probe.

Discayas’ cars

Meanwhile, the heads of the Bureau of Customs (BOC) and Land Transportation Office (LTO) should be summoned by the ICI to shed light on how the Discaya couple managed to acquire and register so-called hot cars, according to a lawmaker.

“Both BOC and LTO’s liability should be determined by the ICI as to how these vehicles were able to be imported, registered and used in the country,” House public accounts committee chair and Bicol Saro party-list Rep. Terry Ridon said, after news reports that at least eight luxury cars owned by the Discaya couple were smuggled.

Independent ICI bill not a LEDAC priority

House deputy minority leader and ML party-list Rep. Leila de Lima is doubtful of President Marcos’ seriousness in cleansing the bureaucracy of deep-rooted corruption, after the Legislative-Executive Development Advisory Council excluded in its 44 priority bills the pet bill of the House minority bloc – House Bill 4453, which seeks to create an “Independent Commission Against Infrastructure Corruption.”

“We are disappointed that a very crucial measure is missing – our proposed bill to create a stronger, transparent and truly independent commission to probe the anomalous flood control and other infrastructure projects and hold accountable all those involved,” she said.

Opposition lawmakers, led by Minority Leader Marcelino Libanan Jr., wanted to institutionalize an independent body that will have more teeth than the three-member ICI led by retired Supreme Court justice Andres Reyes Jr.

“The composition is OK, but it’s not enough. Our bill (HB 4453) is more complete,” De Lima previously said, referring to Marcos’ ICI.

Integrity pledge

At the same time, Las Piñas Rep. Mark Anthony Santos called on Department of Public Works and Highways (DPWH) Secretary Vince Dizon to immediately reinstate the “Integrity Pledge,” a policy first introduced under former secretary and now ICI member Rogelio Singson to strengthen transparency and accountability in the agency.

“It’s not yet too late. The Integrity Pledge was not a symbolic document – it was a safeguard against corruption and collusion in government projects,” he said.

“Reinstating it will restore public confidence and ensure that only legitimate and transparent contractors can do business with the DPWH,” he noted, adding this is an “anti-corruption tool that required all prospective suppliers and contractors to sign a written commitment to reject corruption.”

In 2013, Singson issued a department order institutionalizing the Integrity Pledge, making it a mandatory requirement for contractors seeking to engage with the DPWH. It served as a clear commitment to uphold ethical practices and accountability in public procurement. — Delon Porcalla