LANDBANK strongly refutes any insinuations that its handling of government contractor accounts, particularly those related to the Department of Public Works and Highways’ (DPWH) flood control projects, involved any irregular or unlawful activity.
The Bank affirms that all transactions in question were carried out strictly within the bounds of Philippine banking laws and regulations, under full compliance with government mandates and oversight requirements.
The funds deposited in the account of DPWH contractors originated from the Department of Budget and Management (DBM), released pursuant to the General Appropriations Act (GAA) as passed by Congress, and disbursed by the DPWH.
These funds are legitimate government allocations, not private or unverified sources. LANDBANK, or any other financial institution, has no legal authority to block or question duly appropriated government disbursements.
To facilitate fulfillment of government contracts, all creditors/suppliers/payees (i.e. contractors), are enjoined to open and maintain deposit accounts with banks such as LANDBANK, pursuant to DBM Circular No. 2018-14 and Bureau of the Treasury (BTr) Circular No. 3-2018. The Bank has fully observed “Know Your Client” (KYC) protocols, risk management procedures, and documentation requirements for the opening of their LANDBANK accounts.
As mandated by the Anti-Money Laundering Act (AMLA):
∙ All cash withdrawals exceeding ₱500,000 are automatically reported to the Anti-Money Laundering Council (AMLC) through a Covered Transaction Report (CTR).
∙ Any transaction deemed “suspicious” at the time of execution is immediately flagged to AMLC via a Suspicious Transaction Report (STR).
In this case, the legitimacy of the source of funds—government releases through DPWH, the lawful purpose of the payments, and the KYC account opening documentation of the contractors—have all been properly established and recorded. There was, therefore, no basis under the law to withhold the release of funds.
LANDBANK reiterates that its role is to faithfully execute banking transactions in accordance with law and regulatory standards, and not to assume investigatory functions outside its legal mandate.
The Bank remains committed to the highest standards of integrity, regulatory compliance, and public trust. At the same time, it stands ready to fully cooperate with the proper authorities and investigating bodies to help establish the truth and serve the ends of justice.
LANDBANK also affirms that this matter does not diminish its ongoing work of carrying out its mandate—empowering the agricultural sector, supporting farmers and fishers, and advancing the goals of the farming community, which remain at the heart of LANDBANK’s mission of nation-building.
