BSP limits daily cash withdrawals to P500,000 to fight money laundering

The Bangko Sentral ng Pilipinas (BSP) has implemented a new regulation limiting daily cash withdrawals and payouts from banks to P500,000 to curb money laundering risks.

Circular 1218, issued by BSP Governor Eli Remolona Jr., directs all supervised financial institutions (BSFIs) to conduct enhanced due diligence on large value cash transactions.

Transactions exceeding the P500,000 threshold, which may be reached through a single transaction or multiple transactions within one banking day, must be conducted through traceable methods such as checks, fund transfers, or digital payment platforms.

The new limit also applies to foreign currency cash transactions.

The BSP noted that cash-based transactions have been used to move illicit funds into and out of the financial system, and this move is occurring amid investigations into allegedly anomalous flood control projects involving public works officials and contractors, which the Anti-Money Laundering Council (AMLC) is probing.

BSFIs are allowed to set even lower transaction limits based on their risk assessment and customer profile.