Senate President Sherwin ”Win” Gatchalian presented an internal compliance report from Security Bank on Wednesday during the Senate impeachment trial, revealing that Cale88 Foods Corporation failed to submit supporting documents to validate the source and purpose of questioned financial transactions.
During his questioning of Security Bank representative Leslie Y. Cham, Gatchalian read directly from the bank’s records regarding covered and suspicious transaction disclosures submitted to the Anti-Money Laundering Council (AMLC).
”The fresh funds are not commensurate with the declared financial profile of the customer,” Gatchalian said, quoting the bank’s internal findings.
He also read a subsequent section of the compliance audit highlighting the company’s lack of cooperation during internal reviews.
”The client failed to provide supporting documents and remained unresponsive to the request for clarification, which resulted in the bank being unable to validate the source and purpose of the transaction,” Gatchalian said.
When pressed on why Security Bank classified the transactions as suspicious, Cham declined to disclose details, citing legal protections and statutory restrictions regarding AMLC submissions.
”As advised by our legal counsel, if it’s with regard to the suspicious transaction report and covered transaction report, I am not allowed to disclose any information pertaining to that,” Cham said.
”I think this is covered under the Anti-Money Laundering Council’s confidentiality restriction,” he also said.
When Gatchalian asked directly whether Security Bank had formally submitted a suspicious transaction report concerning Cale88, Cham responded that he could not confirm the matter.
Senator-Judge Bam Aquino subsequently questioned Cham regarding standard banking practices and documentary requirements enforced before processing high-value deposits or foreign wire transfers.
Cham explained that financial institutions require verifiable documentation depending on the transaction type, such as deeds of sale for real estate or commercial sales invoices for food manufacturers and exporters.
”It’s really a bank requirement and an industry requirement,” Cham said.
Aquino asked whether Security Bank would process a foreign remittance if a customer failed to provide the required supporting documentation.
”No, actually we don’t transact without any documents,” Cham said.
When asked whether the bank routinely rejects incoming international wire transfers lacking proof of trade obligations, Cham confirmed that undocumented funds are systematically turned away.
”Yes, we don’t accept… Usually, we actually return the money,” Cham also said.
Aquino contrasted this standard operational policy with previous trial evidence showing three Cale88 transactions flagged as suspicious due to the total absence of underlying trade obligations or economic justification.
Cham noted that he lacked the immediate transaction files to explain how the funds entered the account, stating he could not confirm whether the monies were ultimately retained or returned.
When asked if foreign remittances originating from Chinese corporate entities were subjected to secondary compliance reviews, Cham confirmed that internal compliance procedures were executed.
Prior AMLC documentation presented to the tribunal logged P319,326,770.41 in total incoming remittances from corporate entities based in China and Hong Kong to Cale88.
Corporate filings before the court indicate that attorney Manases Carpio, husband of Vice President Sara Duterte, maintained a 47.5 percent equity stake in Cale88 Foods Corporation through 2024.