BSP raises cash withdrawal threshold to P1 million

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March 4, 2026 | 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has raised the threshold for cash withdrawals that will trigger enhanced due diligence (EDD) to P1 million, easing compliance requirements for regular large transactions while keeping safeguards against illicit flows in place.

Under Circular 1230, the Monetary Board approved the recalibration of regulations on large value cash transactions, increasing the threshold to P1 million from P500,000 or its equivalent in foreign currency. The new circular amends provisions under Circular 1218 issued in September 2025, which first set the P500,000 ceiling.

The BSP said the adjustment was based on risk monitoring and consultations with banks and industry groups, which flagged a large number of legitimate cash transactions breaching the previous threshold. These included payroll payouts, loan releases and project-based disbursements.

“The increase also follows the results of the latest anti-money laundering National Risk Assessment and surveillance monitoring, recognizing that robust risk-based safeguards over cash transactions remain essential to protecting financial system integrity,” the central bank said.

In the circular, the regulator said there are money laundering, terrorism financing and proliferation financing risks from cash transactions with banks and other BSP-supervised financial institutions (BSFIs).

Section 929/923-Q of the Manual of Regulations for Banks and Non-Bank Financial Institutions was amended to reflect the new ceiling. It provides that BSFIs “shall adopt appropriate anti-money laundering/countering terrorism and proliferation financing (AML/CTF/PF) policies and procedures to implement the conduct of risk-based EDD procedures,” on large value cash payouts exceeding P1 million.

The P1-million threshold “may be carried out in a single transaction or in a series of transactions within one banking day.” If the threshold is met, EDD “shall be performed at the customer level. EDD need not be performed separately for each transaction, provided the customer has already been subjected to appropriate EDD measures.”

This means depositors may withdraw up to P1 million in cash without triggering enhanced due diligence. For amounts exceeding the threshold, clients will be required to provide information supporting the legitimacy of their transactions.

For individuals and businesses with recurring large transactions, enhanced due diligence will be conducted on a per-customer basis rather than per transaction and should not disrupt regular activity.

The BSP stressed that the approach remains anchored on risk-based supervision.

At the same time, the circular allows banks and other BSFIs to impose stricter internal limits. “In line with risk-based customer due diligence measures, BSFIs may, however, adopt lower cash transaction limits based on its institutional ML/TF/PF risk assessment and/or customer financial profile,” it added.

The BSP also reiterated that financial institutions must escalate cases where enhanced due diligence cannot be completed or when suspicious activity is detected.

“If the BSFI fails to satisfactorily complete the EDD procedures; or reasonably believes that performing the EDD process will tip-off the customer, it shall file a suspicious transaction report (STR) and closely monitor the account and review the business relationship,” the circular said.

Institutions must also consider alerts, red flags, suspicious indicators as well as typologies reported by relevant government agencies involving large or unusual cash transactions in filing STRs.

The earlier P500,000 threshold was imposed in September last year to help curb money laundering and ensure the financial system is not used to facilitate illicit activities.

The new circular will take effect 15 calendar days after its publication either in the Official Gazette or in a newspaper of general circulation in the Philippines.