Philippines: VP Sara Duterte, husband Mans Carpio face twin storm of impeachment evidence fight, tax audit in high-stakes clash

Manila: The on-going impeachment battle in the Philippines has just escalated dramatically.

Lawyer Manases "Mans" Carpio — husband of Vice President Sara Duterte — has gone nuclear.

He hurled three government agencies to a local court for flouting the 1955-era Philippine bank secrecy, the Data Privacy Act and and country's anti-money laundering laws.

His main complaint: Disclosure of details of multi-billion accounts linked to him and his wife.

Carpio filed a sweeping criminal complaint against top Philippine financial regulators (the central bank, BSP, the Anti Money Laundering Council, AMLC) and key House Justice Committee members.

The case, lodged Monday (April 27), 2026) at the Quezon City Prosecutor’s Office, accuses the officials of "illegal and felonious" disclosures of private financial records during the Vice President’s impeachment hearing on April 22, 2026.

Here's an explainer, based on what we know so far:

Carpio's lawyer, Peter Paul Danao, told local media their camp was not given a copy of the supposed bank records presented by the AMLC to the House committee for the Duterte impeachment hearing, nor were given enough time to respond to the allegations.

The AMLC has disclosed to the House Justice Committee a summary of "suspicious transactions" amounting to P6.7 billion linked to Carpio and the Vice President.

Danao said: "How can we admit or deny the supposed transactions when AMLAC (Anti-Money Laundering Council) didn’t give us a copy, and we didn’t get the reports stating details of the origins of the AMLAC summary (of bank transactions)? In my conversations with Atty. Carpio, he vehemently denies (the existence of the reported transactions)".

Sara Duterte has ignored the House committee hearing on the impeachment case lodged against her.

Carpio's 3 targets

Carpio’s legal action strikes at the heart of the government’s financial and legislative oversight bodies. His lawyer insisted that "no legal basis" exists to reveal client's financial records during the House hearing.

He has formally named the following individuals in the criminal charge sheet:

• Regulatory heads: Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. and Anti-Money Laundering Council (AMLC) Executive Director Ronel Buenaventura.

• House Justice Committee members: Chairperson Gerville Luistro (Batangas 2nd District) and committee members Percival Cendaña (Akbayan), Chel Diokno (Akbayan), and Leila de Lima (Mamamayang Liberal).

The allegations

The complaint centres on the "unauthorised" public disclosure of the Vice President’s financial details, which Carpio argues violates three cornerstone Philippine statutes:

Anti-Money Laundering Act (AMLA, RA 11521, signed in 2021)

Bank Secrecy Law (RA 1405, signed in 1965)

Data Privacy Act (RA 10173, signed in 2012)

According to Carpio, a Filipino lawyer like his wife Sara Duterte, the documents presented during the House proceedings — which included detailed records of insurance payments, time deposits, high-value investments, and utility bill transactions — were considered "private data" that should have remained protected from public scrutiny.

As the impeachment proceedings continue to expose the Vice President to unprecedented levels of financial investigation, Carpio’s filing signals a pivot.

His camp's key strategy: discredit the House evidence-gathering process as both procedurally and legally flawed.

The respondents have yet to issue a formal response, but legal experts anticipate a fierce battle over the boundaries of legislative privilege versus the right to financial privacy.

What the law says

The Anti-Money Laundering Act (AMLA, RA 11521, signed in January 2021, amending RA 9160) functions as a specific, significant statutory exception to the Bank Secrecy Law (RA 1405, signed in 1955).

RA 11521 strengthened the Philippines' Anti-Money Laundering Act (AMLA).

How they interact

• Bank Secrecy (RA 1405, signed in 1955): Protects all bank deposits, treating them as "absolutely confidential" — but with limited exceptions — like written consent, impeachment, court orders for bribery/dereliction of duty, or when the deposit is the subject of litigation.

• AMLA (RA 11521, signed in 2021, amending RA 9160): Empowers the Anti-Money Laundering Council (AMLC) to inquire into or examine bank deposits without the depositor's knowledge or consent, provided there is "probable cause" that the deposits are related to money laundering or a predicate crime.

Key principle: Bank secrecy is 'not absolute'

Under Philippine law, there is no fundamental "conflict" that renders one law invalid.

The Philippine Supreme Court has long established that bank secrecy is not absolute.

In its rulings, the top court has consistently held that later laws create new exceptions to the general rule of confidentiality established in 1955.

• State interest: In cases involving "unexplained wealth" or illicit funds, the Court has ruled that the protection afforded by RA 1405 cannot be used as a "shield" to perpetrate or conceal criminal activity.

• Specific authority: AMLA provides a streamlined mechanism —specifically Section 11 — allowing the AMLC to issue bank inquiry orders, which supersedes the restrictive requirements of RA 1405 in covered AMLA-related cases.

Ultimately, the judiciary views these laws as "complementary tools" for maintaining financial accountability rather than competing law.

AMLA effectively expands the state’s investigative reach.

Impeachment coverage 'not automatic' under ALMA?

RA 11521, which amended the Anti-Money Laundering Act (AMLA, RA 9160), generally does not explicitly list "impeachment proceedings" as an automatic exception to the confidentiality of bank records.

However, the application of AMLA in such proceedings is a subject of intense legal debate, particularly regarding whether impeachment constitutes a "competent court" proceeding or if it violates the confidentiality of information (Section 8-A of RA 11521). 

Key aspects of RA 11521 (2021) in this context:

• Strengthened confidentiality (Section 8-A): RA 11521 introduced strict confidentiality rules, prohibiting the Anti-Money Laundering Council (AMLC) and its Secretariat from revealing any information known to them by reason of their office, even after separation from office.

• Bank inquiry power: The AMLC can inquire into bank deposits only upon order of a "competent court" in cases of money laundering offences, not typically via legislative committees (unless authorised by court).

• Controversy/legal debate (as of April 29, 2026):

  • Arguments against coverage: Critics argue that using AMLA-protected records in impeachment hearings violates Section 8-A of RA 11521, which criminalises breaches of confidentiality.

  • Arguments for coverage: Proponents argue that the House Justice Committee acting in aid of impeachment has the mandate to compel disclosure, and that bank secrecy cannot be used to hide illicit activity in a constitutional proceeding.

Power of ALMC

While RA 11521 enhances the power of the AMLC to investigate and access records for money laundering cases, it also strengthens the confidentiality of those records, lawyer and former Senate President Franklin Drilon explained to local media.

While this sets up a potential legal conflict between the AMLA's bank secrecy protections and the legislature's power to compel information during an impeachment inquiry, it is important to review how the top court views such a situation.

In an earlier ruling, the SC has declared that the RA 1405 must "yield" to the state's police power when investigating crimes that threaten national economic integrity.

Precedent

In 2025, the Supreme Court (SC) has ruled that a freeze order issued by the Court of Appeals (CA) for suspected money laundering activities may cover related accounts, subject to certain guidelines to protect the rights of account owners.

In a decision written by Associate Justice Japar B. Dimaampao, the SC En Banc upheld Section 10 of Republic Act (RA) No. 9160, as amended, or the Anti-Money Laundering Act (AMLA), which allows the CA to freeze related and materially linked accounts, if they are included in the application and the amount of the funds or value of the property is identified in the freeze order.

The case stemmed from corruption and plunder charges filed against former Vice President Jejomar Binay and other government officials over the alleged overpricing of the New Makati City Parking II Building, among other irregularities.

The AMLC asked the CA to freeze assets, including bank accounts, insurance policies, securities, and “related accounts” of Binay, family members, and close associates that seemed to be linked to unlawful activities and money laundering schemes.

BIR orders tax audits on VP Duterte, husband Carpio

The BIR has now officially launched a formal tax audit against Vice President Sara Duterte, her husband, lawyer Manases "Mans" Carpio, and nine affiliated businesses.

On Tuesday, April 28, 2026, the tax agency authorised the issuance of Letters of Authority (LOAs) to trigger the investigation, citing the existence of "probable cause" following preliminary reviews of their financial records.

What the audit means

The issuance of an LOA is a critical administrative step that grants BIR revenue officers the legal authority to conduct a "deep-dive" investigation into a taxpayer’s financial history.

With these orders in hand, the assigned officers are empowered to:

• Examine books of accounts: Investigators can demand access to all primary financial ledgers and tax returns.

• Review supporting documents: Officers are permitted to scrutinize all accounting records, including receipts, investment statements, and bank transactions tied to the audited entities.

• Verify compliance: The probe aims to determine if the reported income and tax payments of the Vice President, her husband, and their business interests align with their actual financial activity.

Legal pressure

This move intensifies the mounting legal and financial challenges facing the Duterte camp, which has long accused President Ferdinand Marcos Jr as "bangag" (drug-addict) incapable of running the Asian country.

The Marcos-Duterte "uniteam" tandem won the 2022 elections by a landslide, before the dramatic falling out.

The audit arrives on the heels of VP Duterte’s ongoing impeachment proceedings and Mans Carpio’s criminal complaints against top financial regulators.

As the BIR joins the fray alongside the AMLC and House Justice Committee investigations, the Vice President and her husband face unprecedented scrutiny from multiple state agencies simultaneously.

No timeline for the audit's completion has been released, but the scope —covering nine distinct business entities — suggests a protracted and rigorous investigation ahead.