A request by DPWH Secretary Vince Dizon to freeze assets of those involved in flood-control anomalies has resulted in swift action by the BSP and the AMLC. ‘We filed a petition on September 12 and by September 16, the banks of these individuals have already been informed.’
The Bangko Sentral ng Pilipinas (BSP) and the Anti-Money Laundering Council (AMLC) have moved decisively to freeze assets of officials and contractors implicated in alleged flood-control project anomalies, following a request from the Department of Public Works and Highways (DPWH).
DPWH Secretary Vince Dizon confirmed on Tuesday that the petition, filed on 12 September, has already resulted in swift action against those earlier named in complaints before the Ombudsman.
“We filed on September 12, and now, by September 16, the banks of these individuals have already been informed,” Dizon said.
Order covers “BGC boys”
The order covers the so-called “BGC boys” — Alcantara, Hernandez, Mendoza, et al. — as well as contractors Sarah Discaya of St. Timothy Construction, Sally Santos of SYMS Construction Trading and Mark Arevalo of Wawao Builders.
According to Dizon, the enforcement is being pursued through two tracks: under the Anti-Money Laundering Act (AMLA) via the AMLC, and under the newly enacted Anti-Financial Account Scamming Act (AFASA) through the BSP.
“This is a huge development because it will reassure our people. We have begun the process of recovering the money stolen by these individuals,” he added.
AMLC petition
The Court of Appeals on Tuesday granted the AMLC’s petition to freeze 135 bank accounts and 27 insurance policies linked to individuals and corporations allegedly tied to irregular flood-control projects. The petition was filed on 15 September pursuant to the country’s anti-money laundering law.
“Following the issuance of the freeze order, the AMLC will intensify its investigation to determine the full extent of the laundering activities and identify all parties involved,” AMLC executive director Atty. Matthew David said.
The AMLC noted that its preliminary findings point to a possible money laundering scheme involving public funds intended for flood-control initiatives. It added that the freeze order is a critical step toward potential civil and criminal cases, including the retrieval of any funds moved prior to the freeze.
AFASA invoked for the first time
Meanwhile, the BSP confirmed it is invoking AFASA (Republic Act 12010) for the first time to probe the financial accounts under investigation. The law, which took effect in June, criminalizes “money muling” — the use of a financial account to receive, transfer, or withdraw proceeds known to be derived from crimes.
“The BSP is using AFASA for the first time to join and assist other agencies in investigating and prosecuting the persons alleged to be involved in these crimes,” BSP General Counsel Roberto Figueroa said.
“We are also keen to leverage this authority to uphold the integrity of our financial system against criminal actors.”
Under AFASA, provisions on bank secrecy and data privacy do not apply to accounts subject to investigation, enabling regulators to secure material information for prosecution. Convictions carry penalties of six to eight years of imprisonment and/or fines of P100,000 to P500,000, plus possible restitution and asset forfeiture.
Both the AMLC and BSP underscored that the coordinated freeze actions are part of a broader effort to safeguard the financial system and hold accountable those implicated in alleged corruption.Act and the new Anti-Financial Account Scamming Act.
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