BSP limits cash withdrawals to Php500,000 per depositor

TL;DR: The Bangko Sentral ng Pilipinas (BSP) has issued a new regulation capping daily over-the-counter cash withdrawals at Php 500,000 per depositor, aiming to curb money laundering, terrorism financing, and proliferation financing risks in the Philippine banking system.

The Bangko Sentral ng Pilipinas (BSP) has issued a new regulation capping daily over-the-counter cash withdrawals at Php 500,000 per depositor, aiming to curb money laundering, terrorism financing,…
The move comes as the government investigates recent corruption scandals linked to large cash transactions in infrastructure projects.
1218, transactions exceeding Php 500,000 or its foreign currency equivalent must be processed through traceable channels, such as checks, online transfers, or digital payment platforms.
Suspicious transactions or failure to comply with EDD require banks to file a suspicious transaction report (STR) and increase account monitoring.
The banking sector is encouraged to move to digital payment adoption to reduce cash transactions.

The Bangko Sentral ng Pilipinas (BSP) has issued a new regulation capping daily over-the-counter cash withdrawals at Php 500,000 per depositor, aiming to curb money laundering, terrorism financing, and proliferation financing risks in the Philippine banking system.

The move comes as the government investigates recent corruption scandals linked to large cash transactions in infrastructure projects.

Under BSP Circular No. 1218, transactions exceeding Php 500,000 or its foreign currency equivalent must be processed through traceable channels, such as checks, online transfers, or digital payment platforms.

Cash withdrawals above the cap are only permitted if the depositor submits proof of legitimate business necessity and the bank conducts enhanced due diligence (EDD). Suspicious transactions or failure to comply with EDD require banks to file a suspicious transaction report (STR) and increase account monitoring.

The banking sector is encouraged to move to digital payment adoption to reduce cash transactions.

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