VP Duterte impeachment trial highlights 'unusual' transactions amid fund misuse allegations

Witnesses in the impeachment trial of Philippine Vice President Sara Duterte on Wednesday described large cash withdrawals reportedly made by her office as "unusual," casting a spotlight on transactions under the Anti-Money Laundering Act (AMLA). Duterte is facing impeachment raps due to alleged misuse, misappropriation, and irregular liquidation of confidential funds from the Office of the Vice President (OVP) and the Department of Education (DepEd). Former LandBank branch managers testified that cash withdrawals by the OVP and DepEd amounting to P612.5 million were "unusual." A witness stated, "I'm sorry, Your Honor. May we invoke the AMLC rule stating that we cannot disclose any information regarding the reporting." The Anti-Money Laundering Council (AMLC), the government’s watchdog against dirty money, requires banks and other institutions to report certain transactions to curb money laundering, terrorism financing, and other financial crimes. Under AMLA, these reports generally fall into two categories: covered transactions and suspicious transactions. Covered transactions are those that meet the AMLC’s reporting threshold of P500,000 in one banking day, done in cash or other equivalent monetary instruments. These are reported because they exceed the prescribed threshold, not because they are presumed to be illegal. They are reported even if the source of funds is legitimate. Suspicious transactions, on the other hand, may be reported if a bank’s review raises concerns that cannot be satisfactorily explained. AMLA states that transactions may be considered suspicious regardless of the amount involved if certain circumstances exist, such as unclear transaction purposes, unusual customer behavior, or questionable fund sources. Filing of covered and suspicious transaction reports does not automatically mean a violation of the law. Banks submit these reports to comply with their anti-money laundering obligations. The AMLC then analyzes these reports to evaluate whether further investigation is warranted to detect and investigate possible money laundering, terrorism financing, fraud, corruption, tax crimes, and other unlawful activities. Source: GMA News Philippines