Confidence in banking system intact – BSP

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October 10, 2026 | 12:00am

Amid Duterte trial disclosures

MANILA, Philippines — Confidence in the Philippine banking system remains intact, the Bangko Sentral ng Pilipinas (BSP) said, citing banks’ strong fundamentals and safeguards meant to protect the integrity of the financial system.

The BSP issued the statement as the impeachment trial of Vice President Sara Duterte puts bank records and anti-money laundering reports under heightened public scrutiny, raising questions over compliance, financial privacy and reputational risks to banks.

In a statement to The STAR, the BSP said it continues to scrutinize how individual banks comply with requirements under the Anti-Money Laundering Act (AMLA), including the systems used to detect unusual transactions and ensure the accuracy of regulatory reports.

“Confidence in the Philippine banking system continues to be anchored on banks’ strong fundamentals and the BSP’s robust regulatory and supervisory framework,” it said.

“The BSP remains committed to protecting the integrity of the financial system and maintaining public confidence in it,” the BSP added.

The statement comes after Anti-Money Laundering Council (AMLC) executive director Ronel Buenaventura testified before the Senate impeachment court on covered and suspicious transaction reports involving Duterte and her husband, lawyer Manases Carpio.

Buenaventura told the court that their accounts recorded an aggregate P4.4 billion in covered and suspicious transactions from 2007 to 2025. Bank officials have also been called to testify on records subpoenaed by the impeachment court.

A covered transaction report (CTR) generally refers to a transaction exceeding P500,000 within one banking day, which covered financial institutions are required to report to the AMLC.

A suspicious transaction report (STR), meanwhile, may be reported regardless of the amount when certain red flags are present, such as the absence of an apparent legal or economic purpose, an amount inconsistent with a customer’s financial capacity or transactions that deviate from the customer’s usual profile.

The filing of either report does not by itself establish that money came from an illegal source.

Russell Stanley Geronimo, managing lawyer of Geronimo Law, said banks are merely carrying out a statutory responsibility when they submit such reports.

“Under the law, a bank filing an STR or CTR is simply fulfilling a statutory compliance obligation. It is not an accusation of a crime, nor does it establish illicit origins,” Geronimo said.

He warned that presenting gross aggregate transaction figures without sufficient context could make routine commercial transactions appear illicit.

The accuracy of transaction reports has also emerged as an issue during the proceedings.

Buenaventura testified that a bank had sought the correction of reports involving Carpio after what was described as a system glitch. Following validation by the AMLC, a transaction amount originally reported at P2 billion was corrected to P2 million.

The BSP said banks are required to address deficiencies uncovered through supervision.

“Where compliance shortfalls are identified, the BSP provides banks an opportunity to rectify them. The BSP also deploys appropriate supervisory enforcement actions, including penalties, where warranted,” it said.

Beyond compliance, the public presentation of bank records and AMLC information has raised questions about financial privacy and whether the proceedings could have broader reputational implications for banks.

Geronimo warned that the banking system ultimately depends on depositors and businesses believing their financial information will remain confidential.

“The entire banking system relies on trust. Investors and businesses may react by moving capital offshore, utilizing non-bank channels or avoiding local banking infrastructure altogether to protect their commercial privacy,” he said.

He also argued that CTRs and STRs are intended principally as confidential financial intelligence used to generate investigative leads.

Geronimo said publicly releasing such information risks exposing not only the individuals subject of an investigation, but also counterparties and other third parties whose transactions may appear in financial records.

The Senate impeachment court, however, has taken the position that AMLC confidentiality provisions do not prevent the council from complying with a lawful and specific subpoena.

Impeachment court presiding officer Sen. Chiz Escudero earlier said protections against unauthorized disclosure should not prevent the AMLC from carrying out its investigative and litigation functions or complying with subpoenas subject to judicial safeguards.