Two 2019 bank transactions of Sara flagged as suspicious over possible corruption tied to flood control: AMLC witness

At least two bank transactions of Vice President Sara Duterte way back in 2019 were reported by the Anti-Money Laundering Council (AMLC) as suspicious, with indications of graft and corruption linked to the flood control scam.

The findings emerged on Day 33 of Duterte’s impeachment trial on Monday, after AMLC Executive Director Ronel Buenaventura presented summary reports detailing 34 suspicious transaction reports (STRs) the council holds against the VP alone from 2007 to 2025, covering Duterte’s tenure as Davao City mayor through her vice presidency beginning in June 2022.

The figure was on top of the 30 STRs filed with the AMLC against her husband, Mans Carpio, in the same period.

AMLC’s tabular summary showed that the STRs filed with Duterte dated 4 July 2019 and 15 November 2019 involved premium payments to Mercantile Insurance Company Inc.

Private prosecutor Mae Divinagracia pointed to the 2019 reports and asked the AMLC official what prompted the filing of the STRs, but the opposing camp quickly objected.

Defense lawyer Mark Vinlauan argued that the point was irrelevant to the proceedings, but Presiding Officer Chiz Escudero overruled his objection and allowed the introduction of the records to help establish a pattern of activity.

In response, Buenaventura told the Senate impeachment court that the STRs were filed because of possible corruption.

“Based on records, Your Honor, as reported by the covered person, the reason indicated is graft and corrupt practices,” Buenaventura, a witness for the prosecution, said.

The flagged transaction, however, did not contain amount.

The AMLC official pointed out that these reports were triggered by news articles linking certain corporations to involvement in the flood control corruption scheme in the Department of Public Works and Highways.

Covered institutions, such as banks, non-bank entities, and insurance companies, file an STR with the AMLC when a financial transaction raises red flags and arouses suspicion.

A transaction is generally classified as suspicious if it shows indicators of unlawful activity, a lack of economic rationale, or a mismatch with the client's profile, among others.

Unlike a covered transaction report, which is triggered only when a transaction exceeds P500,000 within a single banking day, an STR has no automatic monetary threshold and must be reported to the AMLC within five working days, regardless of the amount.

Duterte and Carpio’s financial history, including bank records, was examined in court to determine the veracity of allegations of unexplained wealth and discrepancies in her SALNs.

Vinluan, however, contended that the narrative creates no factual link between the insurance company and the corporations mentioned in news articles.

Senator-judge Alan Cayetano slammed the AMLC for its weak verification process for suspicious transactions, arguing that banks should conduct independent assessments rather than mirroring newspaper reports.