BSP caps large cash deals at P500K

The Bangko Sentral ng Pilipinas (BSP) has tightened rules on the handling of large cash transactions in banks and other supervised financial institutions as part of efforts to curb money laundering and illicit financial flows.

In a new directive, Circular No. 1218 series of 2025, the central bank said cash transactions above P500,000 — or its equivalent in foreign currency — must now be carried out using traceable channels such as checks, online transfers, direct account credits, or digital payment platforms. The threshold applies to both single transactions and aggregated dealings within a single banking day.

Excessive cash use

The measure, issued on 18 September, comes as regulators seek to lessen the risks linked to excessive use of cash while encouraging Filipinos to shift toward digital and more transparent payment methods.

For withdrawals above the P500,000 cap, BSP-supervised financial institutions (BSFIs) are mandated to conduct enhanced due diligence. Depending on the customer’s profile and the documents provided to support the legitimacy of the transaction, banks may still release the funds, though they are also required to file suspicious transaction reports when necessary.

Lower internal ceilings for cash transactions

The circular further empowers banks to set even lower internal ceilings for cash transactions if their risk assessments deem it necessary, effectively tightening controls based on the financial behavior of their clients.

The BSP said the reform is designed not only to counter money laundering but also to foster greater trust in the country’s financial system, ensuring that the industry can adapt to emerging risks.