AMLC Freeze Orders in the DPWH Flood-Control Scandal
The Philippine Anti-Money Laundering Council (AMLC) has intensified its crackdown on illicit funds linked to the Department of Public Works and Highways (DPWH) flood-control scandal. In late September 2025, the Court of Appeals approved a third freeze order covering 836 bank accounts, 12 e-wallets, 24 insurance policies, 81 vehicles, and 12 real estate properties connected to individuals and companies under investigation.
In total, the AMLC has now frozen 1,563 bank accounts, 54 insurance policies, 154 vehicles, 30 properties, and 12 e-wallets — amounting to an estimated ₱2.9 billion in suspected illicit assets. Earlier orders between September 16–19 targeted 135 and 592 accounts, showing the widening scope of the probe.
According to the AMLC, these freezes aim to “disrupt the financial channels used in corrupt activities” and preserve stolen funds for eventual recovery.
Background: The Flood-Control Scandal
The investigation follows widespread reports of irregularities in government flood-mitigation projects. After destructive storms, scrutiny revealed substandard or incomplete flood-control infrastructure despite massive budgets.
President Ferdinand Marcos Jr. has formed an independent commission to audit and investigate infrastructure corruption, while the DPWH asked the AMLC to act against those allegedly involved.
Public Works Secretary Vince Dizon described the missing funds as “unprecedented, maybe billions, even hundreds of billions,” emphasizing the urgent need to trace and secure assets. Several individuals implicated are already facing graft charges before the Ombudsman.
Traditional Finance and AML Challenges
The scandal underscores the vulnerability of the traditional banking system to corruption despite strict Anti-Money Laundering (AML) rules. The frozen accounts reportedly span multiple major Philippine banks, suggesting that even well-known financial institutions were used to launder kickbacks.
The Bangko Sentral ng Pilipinas (BSP), invoking the Anti-Financial Scamming Act, has launched its own probe and can order banks to hold suspicious funds for 30 days. Yet, the sheer scale of frozen accounts highlights how sophisticated networks of accounts, insurance policies, and e-wallets can overwhelm monitoring systems.
Blockchain and Cryptocurrency: Opportunities and Risks
Blockchain technology is often cited as a tool for greater financial transparency. Unlike traditional banking systems, every blockchain transaction is recorded on a public, immutable ledger. This can make tracing illicit funds more straightforward, especially when combined with AI-powered transaction monitoring.
Indeed, the AMLC has requested funding in its 2026 budget for blockchain analytics tools, showing regulators are exploring this frontier. Global blockchain firms like Chainalysis and TRM already help trace illicit crypto flows, proving the technology’s usefulness.
However, cryptocurrencies are not a silver bullet. While transactions are transparent, wallets are pseudonymous and not automatically linked to real identities. Privacy-focused coins, mixing services, and decentralized finance (DeFi) platforms can obscure fund flows, making investigations difficult.
To address this, the BSP regulates Virtual Asset Service Providers (VASPs) such as exchanges and wallet providers, requiring them to implement KYC and reporting rules. Suspicious crypto accounts can be frozen much like traditional bank accounts.
The consensus is clear: blockchain tools can strengthen AML efforts, but effective enforcement requires a hybrid approach — combining technology with strict KYC, regulatory oversight, and international cooperation.
Conclusion
The DPWH flood-control scandal highlights both the strengths and weaknesses of the Philippines’ current AML framework. Freeze orders have been effective in preventing stolen funds from vanishing, but the scale of corruption shows systemic gaps.
As regulators adopt blockchain and AI-driven analytics, the goal is to ensure that both traditional finance and emerging digital systems remain transparent, accountable, and resistant to abuse.
❓ Do you think blockchain-based systems could help prevent future corruption scandals in the Philippines? Share your thoughts below.
FAQs
1. How much has the AMLC frozen in the DPWH flood-control scandal?
As of September 2025, around ₱2.9 billion in assets including 1,563 bank accounts, 154 vehicles, and 30 properties have been frozen.
2. Can cryptocurrencies help trace illicit funds?
Yes, blockchain provides transparency since transactions are recorded on a public ledger. However, privacy tools and pseudonymous wallets pose challenges.
3. What role does the BSP play in anti-money laundering?
The BSP can order banks to hold suspicious funds and regulates Virtual Asset Service Providers (VASPs), requiring strict KYC and reporting compliance.
