BSP eyes limits on cash, digital transactions to curb corruption

The Bangko Sentral ng Pilipinas (BSP) is considering new measures to combat corruption in government spending, including potential caps on money transfers for both cash and digital transactions.

These reforms aim to deter the use of funds for illicit activities, building on the existing P500,000 daily cash withdrawal limit.

The central bank is also working on a policy that would empower banks to refuse transactions based on suspicion of corruption, as current rules do not allow banks to refuse withdrawals from legitimate account owners.

BSP Governor Eli Remolona Jr. stated that these measures are being implemented due to past corruption controversies, including the multibillion-peso flood control controversy.

State-owned lenders like Land Bank of the Philippines and Development Bank of the Philippines have faced scrutiny for allowing large withdrawals tied to flood control accounts.