Transactions tied to flood management initiatives aboveboard

State-owned Landbank was earlier questioned by senators after a authorities contractor admitted to withdrawing almost half a billion pesos in money in simply two days

MANILA, Philippines – State-owned Land Financial institution of the Philippines (Landbank) denied any mishandling of funds tied to authorities contracts, significantly these in public works.

In an announcement on Monday, September 29, Landbank mentioned all transactions regarding state contracts with the Division of Public Works and Highways (DPWH) have been aboveboard and carried out throughout the bounds of banking legal guidelines.

The state-owned financial institution’s assertion got here days after a Senate listening to the place Sally Santos of SYMS Development Buying and selling admitted to withdrawing P457 million from Landbank’s Malolos Freeway department in simply two days.

Landbank mentioned the funds that have been deposited in contractors’ accounts got here from the Division of Finances and Administration, have been launched in accordance with the Normal Appropriations Act, and have been disbursed by the DPWH.

“These funds are official authorities allocations, not non-public or unverified sources. Landbank, or every other monetary establishment, has no authorized authority to dam or query duly appropriated authorities disbursements,” Landbank defined.

The state financial institution additionally mentioned that each one suppliers and payees comparable to authorities contractors endure a know your buyer (KYC) course of once they open their accounts. These embody the next steps as mandated by the nation’s anti-money laundering legislation:

• All money withdrawals exceeding P500,000 are routinely reported to the Anti-Cash Laundering Council (AMLC) via a lined transaction report
• Any transaction deemed suspicious on the time of execution is straight away flagged to AMLC via a suspicious transaction report

Because the supply of the funds — a authorities disbursement via the DPWH — was a lawful function for fee, Landbank mentioned there was no foundation to withhold the cash’s launch.

“Landbank reiterates that its position is to faithfully execute banking transactions in accordance with legislation and regulatory requirements, and to not assume investigatory capabilities exterior its authorized mandate,” it mentioned.

AMLC Govt Director Matthew David earlier admitted that the council can’t analyze and probe each single transaction report it receives attributable to sheer quantity. 

The Bangko Sentral ng Pilipinas has since capped large-value money transactions at P500,000 in a single day to curb cash laundering actions.

– Rappler.com