The Bangko Sentral ng Pilipinas (BSP) raised the threshold for cash withdrawals that would trigger enhanced due diligence (EDD). This is designed to focus on higher-risk activity while streamlining the process for legitimate and normal cash transactions, including recurring ones.
Under BSP Circular No. 1230, issued on 27 February 2026, the threshold was raised to ₱1 million from ₱500,000.00. The increase follows consultations with banks and industries, which showed a large number of legitimate cash transactions above the original threshold. These covered payouts, such as payroll, loans, and project-based disbursements.
The increase also follows the results of the latest anti-money laundering National Risk Assessment and surveillance monitoring, recognizing that robust risk-based safeguards over cash transactions remain essential to protecting financial system integrity.
As earlier clarified, for individuals and businesses with regular large transactions, the EDD will be done on a per-customer basis, not per transaction. As such, it should not hamper regular transactions.
Based on the circular, depositors can withdraw up to ₱1 million without EDD. Above ₱1 million, they will have to provide information proving their transactions are legitimate. Nevertheless, consistent with risk-based customer due diligence principles, BSP-supervised financial institutions (BSFIs) may adopt lower thresholds based on their own risk assessments.
The BSP imposed the ₱500,000 threshold in September to help curtail money laundering and ensure the financial system is not used to facilitate illicit activities.
There remains to be no thresholds on non-cash withdrawals.
The new circular amends BSP Circular No. 1218 issued in September 2025.
For more details, visit: https://www.bsp.gov.ph/Regulations/Issuances/2026/1230.pdf. PR