Flood control scandal: AMLC tracking offshore wealth

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.

- KEISHA TA-ASAN

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.