November 6, 2025 | 12:00am
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) clarified that its new rule on large-value cash transactions does not impose an outright cap on withdrawals, assuring the public that depositors and businesses can still access funds exceeding P500,000 as long as these are supported by valid documents and legitimate purposes.
In a memorandum issued by the BSP’s Financial Supervision Sector, the central bank released a set of frequently asked questions to address public confusion and ensure consistent implementation of Circular 1218, which took effect on Oct. 7.
“The new regulation will not prevent customers from accessing or withdrawing their funds,” the BSP said, adding that the measure “is not intended to burden or financially exclude legitimate private businesses and government-related transactions.”
It emphasized that customers may withdraw more than P500,000 in cash provided that proper identification and supporting documents such as proof of payment for hospital bills or business transactions are presented.
Circular 1218 requires banks and other BSP-supervised financial institutions to apply enhanced due diligence (EDD) for cash transactions exceeding P500,000 per banking day.
However, the BSP clarified that EDD can be performed ahead of time or periodically, particularly for clients who routinely make large withdrawals consistent with their business operations.
“For large value cash payouts or transactions which are already expected as part of a customer’s regular operations, the conduct of EDD can be performed periodically or simplified,” the BSP said.
Additional documents may no longer be required for every transaction if the withdrawals align with the client’s usual business activities and risk profile.
The BSP also allows post-transaction EDD for clients who make multiple withdrawals within a day from different branches or channels as long as the bank’s monitoring system can consolidate the customer’s total transactions.
Banks and financial institutions are required to maintain systems capable of aggregating activities across accounts and branches to detect potential money laundering or terrorism financing risks.
The P500,000 threshold, the BSP said, applies to the aggregate amount of cash transactions in one day, covering both peso and foreign currency withdrawals. It also applies to joint accounts, “for the account of” and “in trust for” arrangements.
According to the central bank, the policy aims to mitigate the risks of money laundering, terrorism financing and proliferation financing, citing findings from its latest risk assessments that showed cash-based transactions are still being exploited to move illicit funds into and out of the financial system.
“This approach enhances payment security and efficiency while avoiding undue delay or disruption to legitimate financial services,” the BSP said.
The BSP further clarified that the new rule would not affect cash aid releases or emergency withdrawals in areas under a state of calamity. Large payouts for such cases may still be made in cash, provided they are properly documented.
Circular 1218 was approved by the Monetary Board on Sept. 18 and directs banks to encourage the use of traceable channels such as fund transfers, checks and digital payments for transactions above the P500,000 threshold.
