The Bangko Sentral ng Pilipinas (BSP) has mandated a PHP 500,000 daily limit on over-the-counter cash withdrawals and other payouts from banks and non-bank financial institutions.

The move is part of the central bank’s efforts to reduce the risks of money laundering and terrorism financing linked to large-value cash transactions.

Under Circular No. 1218, which the Monetary Board approved on September 18, 2025, customers must now conduct any transactions exceeding the threshold through non-cash methods.

These include payments via cheque, fund transfers, direct credit to deposit accounts, or other digital channels that create a clear audit trail. The cap applies to the total of all transactions conducted by a customer within a single banking day.

While a strict limit has been set, the circular provides a conditional exception. Financial institutions may still approve cash payouts above the cap, but only after conducting enhanced due diligence (EDD).

This process requires the customer to provide additional identification and a verifiable, legitimate business purpose for the large cash transaction.

If an institution is unable to complete the EDD process or suspects it could alert a customer to an investigation, it must file a suspicious transaction report with the Anti-Money Laundering Council (AMLC).

The BSP noted that its latest risk assessment identified large cash transactions as a significant vulnerability for moving illicit funds through the financial system.

The new regulation also reflects previous calls from figures such as former Finance Secretary Cesar Purisima for tougher curbs on cash, who warned that the country’s reliance on banknotes has made it easier for corruption to thrive.

Featured image by fanjianhua via Freepik.