Lacson: AMLA Law Only Recognizes 'Covered' and 'Suspicious' Transactions, Not 'Unusual'

A debate over the definition of bank transactions under the Anti-Money Laundering Act (AMLA) has emerged during the impeachment trial of the Philippine Vice President. Senator-Judge Panfilo Lacson clarified that the law only provides for two categories of reportable bank transactions: 'covered' and 'suspicious,' stating that 'unusual' is not a legal term. Lacson's remarks came on Day 10 of the impeachment trial of Vice President Sara Duterte, following testimony from Nenita Camposano, former Land Bank branch manager for the Department of Education (DepEd). Camposano described withdrawals by DepEd totaling ₱112.5 million in 2023 as 'unusual.' These transactions involved three checks, each worth ₱37.5 million, issued and encashed during Duterte's tenure as DepEd secretary from June 30, 2022, to July 2024. Lacson explained that any deposit or withdrawal exceeding ₱500,000, regardless of whether it is deemed suspicious, constitutes a 'covered transaction' and must be reported. Camposano testified that these encashments were nearly four times the usual range of around ₱10 million. Under questioning by Senator-Judge Kiko Pangilinan, she affirmed that deposits or withdrawals over ₱500,000 by ordinary depositors are indeed covered transactions. Senator-Judge Imee Marcos confronted Camposano with her previous testimony in a House committee hearing where she had answered 'yes' when asked if such ₱37.5 million encashments were a regular occurrence. Camposano then clarified that while she had answered yes, it was unusual for the DepEd specifically during her tenure as branch manager, as it was the only large withdrawal by the agency. Camposano also confirmed, under questioning by Senator-Judge Joel Villanueva citing Bangko Sentral ng Pilipinas Circular 1215, that transactions showing "patterns that are inconsistent with the account owner’s usual behavior" are considered unusual. However, Lacson reiterated that the legal framework focuses on 'covered' and 'suspicious' transactions. Earlier on Wednesday, former Land Bank Shaw Boulevard branch manager Violeta Constantino testified about the encashment of four checks worth ₱125 million each, payable to Gina F. Acosta, a special disbursing officer of the OVP. Constantino also described these ₱125 million withdrawals by the OVP as 'unusual.' Prosecutors have placed on record that the OVP withdrew ₱500 million and DepEd ₱112.5 million in confidential funds between December 2022 and July 2023. The impeachment court has commenced proceedings on Article I of the Articles of Impeachment, which alleges Duterte's misuse of ₱612 million in confidential funds under the OVP and while she was education secretary. The controversy highlights critical discussions in the Philippines regarding the transparency of confidential fund usage and the handling of potentially irregular transactions within the AMLA framework.