The Bangko Sentral ng Pilipinas (BSP) has issued new regulations requiring that large cash transactions exceeding ₱500,000 (or its foreign currency equivalent) be processed through traceable financial channels, as part of efforts to combat money laundering and enhance financial system integrity.
Under BSP Circular No. 1218, Series of 2025, signed on 18 September, all transactions above the ₱500,000 threshold must be conducted via checks, online fund transfers, direct credit to bank accounts, or digital payments. The limit applies whether the amount is reached through a single transaction or an aggregate of smaller transactions within the same banking day.
For cash withdrawals exceeding the prescribed limit, BSP-supervised financial institutions (BSFIs) are required to perform enhanced due diligence (EDD) procedures. If warranted, the transaction must be reported as suspicious. BSFIs may proceed with disbursing the funds once additional documentation is provided by the customer to establish a legitimate business or economic purpose.
The circular also empowers BSFIs to impose stricter thresholds based on their own risk assessments and customer profiling.
“The measure is intended to reduce the risks associated with large cash usage, promote transparency in financial transactions, and enhance the resiliency of the financial system against emerging threats,” the BSP said.
This regulatory reform reflects the central bank’s continued commitment to upholding anti-money laundering standards and strengthening public confidence in the country’s financial infrastructure.
