IN a move aimed at curbing potential illicit financial activities, the Bangko Sentral ng Pilipinas (BSP) has imposed a limit of P500,000 on single-transaction payouts or withdrawals at banks and other financial institutions.
BSP Governor Eli Remolona Jr. issued Circular No. 1218, series of 2025, directing central bank-supervised financial institutions (BSFI) to implement “enhanced due diligence on large value cash-related payments and transactions.”
The BSP’s directive comes amid an ongoing investigation into alleged anomalous flood control projects and is intended to deter the use of cash for illegal activities while promoting the integrity of the financial system.
Under the new rules, withdrawals exceeding P500,000 must be made via check payment, fund transfer, direct credit to deposit accounts, or other digital payment methods. Cash transactions exceeding the threshold will be subject to enhanced due diligence (EDD) measures, requiring customers to provide additional identification information and proof of legitimate business purpose or transaction.
The BSP emphasized that if a BSFI cannot satisfactorily complete the EDD procedures or suspects that performing the EDD process will alert the customer, it must file a suspicious transaction report and closely monitor the account.
These institutions are also required to consider alerts, red flags, and suspicious indications reported by government agencies involving large or unusual cash transactions when filing these reports. The circular takes effect 15 calendar days after its publication.
This action follows the Anti-Money Laundering Council’s (AMLC) announcement that the Court of Appeals issued a freeze order on 135 bank accounts and 27 insurance policies linked to individuals and entities under investigation for their alleged involvement in the anomalous flood control projects.
The AMLC is working with the Office of the Ombudsman, the Bureau of Internal Revenue, and the National Bureau of Investigation to examine financial transactions of contractors connected to the probe.
