Manila, Philippines – The Philippine central bank has tightened its scrutiny over cash withdrawals from banks, putting a P500,000 ceiling – or its equivalent in foreign currency – for single-day transactions that won’t require documentation.
Bank clients who want to withdraw cash more than that would have to resort to other formal banking channels that will leave a money trail, a clear signal that authorities have moved to further curb money laundering.
The central bank directive, Circular No. 1218 series of 2025, was issued on Sept. 18, amid a corruption scandal that dragged high-profile lawmakers and public works officials.
“[L]arge value transactions above ₱500,000.00 (or its equivalent in foreign currency) must be conducted through traceable channels such as checks, online fund transfers, direct credit to deposit accounts, or digital payments. The same limit applies to cash transactions in equivalent foreign currencies,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.
“The limit may be reached in a single transaction or series of transactions within one banking day,” it read.
Withdrawals beyond that threshold would compel financial institutions to conduct an enhanced due diligence, and if warranted, file a suspicious transaction report.
Clients cleared after that due diligence could withdraw larger sums but with additional documents or proof that their business purpose is legitimate.
Banks were given the flexibility to lower limits on large value cash transactions, based on their risk assessment and the customer’s financial profile.
“Through this reform, the BSP aims to strengthen measures against the use of cash for illegal activities, promote trust in the financial system, and ensure that it can respond to new risks,” the BSP statement read.
