BSP Raises Cash Withdrawal Due Diligence Threshold to ₱1 Million

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The Bangko Sentral ng Pilipinas has raised the threshold for cash withdrawals that trigger enhanced due diligence (EDD) to 1 million pesos from 500,000 pesos, a move aimed at reducing compliance friction for legitimate transactions while maintaining safeguards against money laundering.

The change is contained in BSP Circular No. 1230, issued on Feb. 27, 2026, which amends the earlier Circular No. 1218 introduced in September 2025.

Under the updated rule, bank clients can withdraw up to 1 million pesos in cash without undergoing additional scrutiny. Withdrawals exceeding that amount will require depositors to provide documentation showing the transaction is legitimate.

Higher Threshold Targets Legitimate Cash Activity

The BSP said the revised threshold reflects consultations with banks and industry groups, which found that many transactions exceeding the previous 500,000-peso limit were routine and legitimate.

These transactions often include payroll payouts, loan releases and project-based disbursements, according to the central bank.

The regulator said raising the threshold allows banks to focus monitoring efforts on higher-risk activity while streamlining normal transactions for individuals and businesses.

Due Diligence Applied Per Customer

The central bank reiterated that enhanced due diligence for clients with regular large withdrawals is applied on a per-customer basis rather than per transaction.

This means recurring transactions tied to legitimate business operations should not be disrupted once a customer’s activity profile has been established.

However, BSP-supervised financial institutions may still impose lower thresholds if their internal risk assessments warrant stricter monitoring.

Part of Ongoing Anti–Money Laundering Framework

The BSP introduced the original 500,000-peso threshold in September 2025 as part of efforts to strengthen safeguards against illicit financial flows and ensure the banking system is not used for money laundering.

The decision to revise the limit follows findings from the Philippines’ latest anti-money laundering National Risk Assessment, as well as ongoing surveillance monitoring by regulators.

The BSP said the updated framework preserves risk-based controls on cash transactions while adjusting thresholds to reflect real-world banking activity.

The central bank added that no threshold applies to non-cash withdrawals under the rules.

This article is published on BitPinas: BSP Raises Cash Withdrawal Due Diligence Threshold to ₱1 Million

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