MANILA — Banks and other financial institutions reported transactions involving Vice President Sara Duterte-Carpio and her husband for suspected links to offenses including drug trafficking, graft and malversation, an official of the Anti-Money Laundering Council (AMLC) told the Senate impeachment court on Monday.

The testimony placed the country's financial reporting regime at the center of the trial and became a point of contention between the prosecution and the defense.

AMLC Executive Director Ronel U. Buenaventura presented records covering 666 covered transaction reports and 55 suspicious transaction reports involving Ms. Duterte and her husband, Manases R. Carpio, from 2007 to 2025. The reported transactions carried a total value of P4.4 billion.

The figure represents the aggregate value of transactions contained in the reports and does not mean the entire amount was deemed suspicious or tied to illegal activity.

Responding to questioning by prosecution lawyer Mae S. Divinagracia, Mr. Buenaventura explained that the AMLC receives reports from "covered persons" — banks, casinos, real estate brokers and other entities required by law to report certain transactions. Transactions exceeding P500,000 within a single banking day are generally filed as covered transactions, while suspicious transactions may be reported regardless of amount when doubts arise about their legitimacy.

Of the suspicious transaction reports, 34 involved Ms. Duterte and 30 involved Mr. Carpio, with nine naming both, according to AMLC records. Such a report reflects the reporting institution's suspicion and is not by itself proof of wrongdoing.

Some reports involving Ms. Duterte cited alleged graft and corrupt practices, malversation of public funds and possible drug links, based part on adverse media reports. Mr. Buenaventura read from a suspicious transaction report filed by Philippine Savings Bank that cited "drug trafficking and related offenses" in connection with a 2017 criminal complaint involving Mr. Carpio, Paolo Z. Duterte and eight others over the smuggling of 602 kilograms of crystal meth worth P6.4 billion.

Other reports cited alleged graft and corruption and malversation of public funds, and some referred to media coverage involving Ms. Duterte and her family, including controversies over flood control projects and confidential funds.

Defense lawyer Mark C. Vinluan objected to the presentation of reports that relied in part on news reports. Mr. Buenaventura replied that the threshold for filing a suspicious transaction report is suspicion, which may rest on factors including a client's profile and adverse information. The impeachment court overruled the objection, allowing the prosecution to continue presenting the records.

Senator-Judges Alan Peter S. Cayetano and Pilar Juliana S. Cayetano questioned whether news reports furnished a sufficient basis, with Mr. Cayetano likening reliance solely on media coverage to gossip. How the tribunal weighs reports that rest partly on media coverage remains a live evidentiary question as the trial proceeds.

The defense had earlier sought to exclude Mr. Buenaventura's testimony, invoking confidentiality provisions under the Anti-Money Laundering Act. Senator and Presiding Judge Francis G. Escudero denied the request, ruling that confidentiality protections do not prevent the AMLC from complying with lawful subpoenas, subject to safeguards.

"We shall not be distracted or detracted by the rantings or tantrums of anyone inside or outside this courtroom," Mr. Escudero said at the opening of the trial. "Because at the end of the day, it's not about me. It's not about you. It's not about any one of us here. Rather, it is about the country, our people, accountability, justice and fairness," he added.

China-Linked Fund Allegations

Analysts earlier said allegations that China-linked funds flowed to entities associated with Ms. Duterte and her husband could raise national security concerns if evidence establishes that the money was intended to influence Philippine policy.

Former Senator Antonio F. Trillanes IV has alleged that more than P469 million China-linked funds went to entities associated with Ms. Duterte and her husband. Her camp has rejected the allegations as malicious propaganda.

Documents presented by Mr. Trillanes at a news conference last week purportedly showed that the Chinese Embassy donated P150 million in 2019 to Tapang at Malasakit Alliance for the Philippines, Inc., a foundation where Ms. Duterte is an incorporator and trustee. He also alleged that P319 million from the Chinese government and China-based corporations flowed into Cale88 Foods Corp., in which Mr. Carpio held a stake between 2021 and 2024.

Mr. Trillanes said the transactions warranted scrutiny because of their potential implications for national security and foreign policy. The allegations have not been independently established.

Salvador Paolo A. Panelo, Jr., spokesman for Ms. Duterte, dismissed Mr. Trillanes' allegations as another attempt to discredit the Vice President and her family. Ms. Duterte's camp maintained that the accusations were politically motivated and said her defense team was prepared to challenge the claims presented before the Senate impeachment court.

Mr. Trillanes has stood by his allegations, saying they were based on financial records.

— Francessca S. Abalos, BusinessWorld

Source: BusinessWorld