BSP Increases Cash Withdrawal Threshold to ₱1 Million for Enhanced Due Diligence
In a significant regulatory update, the Bangko Sentral ng Pilipinas (BSP) has raised the threshold for cash withdrawals that trigger enhanced due diligence (EDD). This move aims to focus on higher-risk activities while simplifying the process for legitimate and routine cash transactions, including recurring ones.
New Threshold Under BSP Circular No. 1230
Under BSP Circular No. 1230, issued on February 27, 2026, the threshold has been increased to ₱1 million from the previous ₱500,000. This adjustment follows extensive consultations with banks and various industries, which revealed a substantial number of legitimate cash transactions exceeding the original limit. These transactions often involve payouts such as payroll, loans, and project-based disbursements.
The increase also aligns with findings from the latest anti-money laundering National Risk Assessment and ongoing surveillance monitoring. It underscores the importance of maintaining robust risk-based safeguards to protect the integrity of the financial system.
Streamlined Process for Regular Transactions
As clarified earlier, for individuals and businesses with regular large transactions, the EDD will be conducted on a per-customer basis rather than per transaction. This approach ensures that routine activities are not unnecessarily hindered.
According to the circular, depositors can now withdraw up to ₱1 million without triggering EDD. For amounts above this threshold, they must provide information to prove the legitimacy of their transactions. However, in line with risk-based customer due diligence principles, BSP-supervised financial institutions (BSFIs) may set lower thresholds based on their own risk assessments.
Background and Regulatory Context
The BSP initially imposed the ₱500,000 threshold in September 2025 to combat money laundering and prevent the financial system from being exploited for illicit activities. The new circular amends BSP Circular No. 1218, issued in September 2025, reflecting ongoing efforts to balance regulatory oversight with operational efficiency.
It is important to note that there are no thresholds for non-cash withdrawals, highlighting the specific focus on cash transactions in this regulatory framework.
