Bangko Sentral ng Pilipinas Deputy Governor Elmore Capule criticized the Philippines' bank secrecy laws on Wednesday, July 22, after the Senate impeachment court's subpoenas for Vice President Sara Duterte's financial records excluded foreign currency deposits. Capule expressed frustration that foreign currency deposit unit accounts remain protected even in impeachment proceedings, stating that investigators cannot access FCDU deposits despite the court's order to open bank deposits. The subpoenas, approved by the Senate on Monday, July 20, sought bank and Anti-Money Laundering Council records for Duterte, her husband Manases Carpio, and linked companies as part of an impeachment article accusing Duterte of amassing unexplained wealth. The Foreign Currency Deposit Act provides stricter protections than the Bank Secrecy Law and does not contain an exception for impeachment cases.
Senate Subpoenas Exclude Foreign Currency Deposits on Monday, July 20
The Senate impeachment court approved subpoenas on Monday, July 20, for bank and Anti-Money Laundering Council records involving Vice President Sara Duterte, her husband Manases Carpio, and several linked companies. The prosecution sought the records to establish a financial baseline that could be compared with the couple's declared income, assets, liabilities, and business interests. The request forms part of the impeachment article accusing Duterte of amassing unexplained wealth.
The court excluded the couple's dollar accounts from the subpoenas because foreign currency deposits enjoy stricter protection under the Foreign Currency Deposit Act than peso accounts do under the Bank Secrecy Law. The Bank Secrecy Law expressly allows bank inquiries in impeachment cases. The Foreign Currency Deposit Act does not contain the same exception and requires the depositor's written permission before an account may be examined.
"The other day, the impeachment court issued an order to open bank deposits. But lo and behold, you cannot open FCDU deposits," Capule said during the signing of an information-sharing agreement between the BSP and the Department of Justice. FCDU refers to foreign currency deposit unit accounts, which are commonly denominated in US dollars and other foreign currencies.
Capule Recounts Early Government Corruption Case Experience
Capule is one of the BSP's most senior legal officials. Before becoming deputy governor, he served as the central bank's general counsel and spent years working on banking legislation and financial sector reforms. He was also closely involved in developing the Anti-Financial Account Scamming Act (AFASA), which created new powers for tracing money used in scams and money-muling.
Capule recalled that one of the first cases he handled in government involved a state-owned corporation that transferred funds to a private account at the height of the EDSA revolution. He said he argued that authorities should be allowed to examine the account because the deposited money was itself the subject of litigation. It took about a year to secure a favorable ruling.
"Lo and behold, the fund was transferred one year before," Capule said. "So what do we do now? We have to trace it. So essentially, it's dead. That is my first experience with the secrecy. It can be used by criminals. Thirty-five years later, fast forward, bank secrecy is still very much alive."
Capule also criticized the treatment of bank secrecy under the Anti-Money Laundering Act. "Whenever other jurisdictions see that, they are telling me, 'Are you joking? Bank secrecy and then money laundering in one statute?'" he said.
Capule did not allege that Duterte held undisclosed foreign currency deposits or that any account contained illegal proceeds. AFASA, the new law that he helped craft, provides a narrow exception. In investigations involving financial scams and money-muling, a designated BSP officer may inquire into accounts, including foreign currency deposits, to trace disputed funds and help build cases. Capule noted that this gives the BSP officer authority to examine foreign currency accounts "which the impeachment court cannot do." That power, however, applies only to suspected violations of AFASA.
BSP Clarifies No Direct Role in Subpoena Process
BSP General Counsel Roberto Figueroa clarified that the central bank was not a recipient of the subpoenas and would not direct banks on how to respond. "So far, we haven't received any subpoena," Figueroa told Rappler along the sidelines of the event.
The subpoenas were directed at individual banks, leaving their respective legal teams to determine how to respond, including whether to comply, raise objections, or seek clarification from the impeachment court. "It's for their own legal counsel to determine what they're going to do, whether they're going to comply with the subpoena or not," Figueroa said.
He also stressed that the Anti-Money Laundering Council, which was separately ordered to submit financial records, is institutionally distinct from the BSP. "I know the AMLC was mentioned," he said. "But again, that's AMLC, so that's not BSP." Although BSP Governor Eli Remolona Jr. also chairs the AMLC, the council is a separate government agency with its own statutory powers, procedures, and confidentiality requirements.
FAQ
What did the Senate impeachment court approve on Monday, July 20?
The Senate impeachment court approved subpoenas on Monday, July 20, for bank and Anti-Money Laundering Council records involving Vice President Sara Duterte, her husband Manases Carpio, and several linked companies. The subpoenas were part of an impeachment article accusing Duterte of amassing unexplained wealth.
Why were foreign currency deposits excluded from the subpoenas?
Foreign currency deposits were excluded because the Foreign Currency Deposit Act provides stricter protections than the Bank Secrecy Law and does not contain an exception for impeachment cases. The Act requires the depositor's written permission before an account may be examined, while the Bank Secrecy Law expressly allows bank inquiries in impeachment cases.
What role does the BSP have in responding to the subpoenas?
BSP General Counsel Roberto Figueroa clarified that the central bank has not received any subpoenas and will not direct banks on how to respond. The subpoenas were directed at individual banks, leaving their respective legal teams to determine how to respond.
