BSP limits large cash transactions to curb money laundering

The Bangko Sentral ng Pilipinas (BSP) has issued new regulations requiring large value cash transactions above PHP 500,000—or its equivalent in foreign currency—to be processed through traceable channels.

The policy, detailed under Circular No. 1218 series of 2025 and issued on September 18, aims to reduce money laundering risks and improve transparency in financial activities.

According to the circular, traceable methods include checks, online fund transfers, direct credit to deposit accounts, and digital payments.

The PHP 500,000 threshold applies whether reached in a single transaction or through multiple transactions within one banking day.

Withdrawals exceeding the limit will require BSP-Supervised Financial Institutions (BSFIs) to perform enhanced due diligence (EDD) to verify the legitimacy of the transaction.

If warranted, BSFIs may also be required to file a suspicious transaction report in compliance with anti-money laundering regulations.

After completing the EDD process, BSFIs may still approve the withdrawal if customers provide supporting documents or demonstrate a valid business purpose.

BSFIs are also allowed to impose even lower cash transaction thresholds based on their risk profiling and the customer’s financial behavior.

BSP said the regulation strengthens its anti-money laundering and counter-terrorist financing framework while supporting public confidence in the financial system.

The measure is part of the central bank’s broader strategy to align with international best practices and proactively respond to evolving financial risks.