BSP raises cash due diligence trigger to PHP 1 million

The Bangko Sentral ng Pilipinas (BSP) has raised the cash-withdrawal threshold that triggers enhanced due diligence (EDD), a move it said is meant to focus scrutiny on higher-risk activity while streamlining processing for legitimate and routine cash transactions, including recurring ones.

Under BSP Circular No. 1230, issued Feb. 27, 2026, the BSP increased the EDD trigger threshold to PHP 1,000,000 from PHP 500,000.00, following consultations with banks and industry groups that pointed to a large volume of legitimate cash transactions above the previous level.

The BSP said the consultations showed many withdrawals above the former threshold were tied to ordinary payouts such as payroll, loans, and project-based disbursements, prompting a “data-driven recalibration” intended to reduce unnecessary compliance burden while keeping safeguards in place.

The adjustment also follows the latest anti-money laundering National Risk Assessment and BSP surveillance monitoring, which the central bank said continue to show that robust, risk-based controls over cash transactions remain essential to protecting the integrity of the financial system.

For individuals and businesses that regularly conduct large withdrawals, the BSP reiterated an earlier clarification that EDD is performed on a per-customer basis, not per transaction, meaning routine, recurring activity should not be hampered once appropriate checks have been completed.

Based on the circular, depositors may withdraw up to PHP 1,000,000 in cash without EDD; amounts above PHP 1,000,000 require customers to provide information to establish that the transaction is legitimate.

Even with the higher BSP-set threshold, BSP-supervised financial institutions may adopt lower limits depending on their own risk assessments and customer financial profiles, consistent with risk-based due diligence principles.

The BSP first imposed the PHP 500,000.00 threshold in September to help curb money laundering and ensure the financial system is not used to facilitate illicit activities.

The central bank said there remains no threshold on non-cash withdrawals, keeping the focus of the EDD trigger on large-value cash payouts.

Circular No. 1230 amends BSP Circular No. 1218, which was issued in September 2025 as part of tighter regulation on large value cash transactions.