BSP limits withdrawals at P500,000 per day

The Bangko Sentral ng Pilipinas has put a cap on the amount of payouts or withdrawals in a single transaction at half-a-million pesos in a day, amid the ongoing probe into alleged anomalous flood control projects.

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 central bank, recognizing the need to further reinforce measures to deter the use of cash for illicit activities and promote the integrity of the financial system, ordered banks and other financial institutions to adopt appropriate anti-money laundering/counter terrorism and proliferation financing policies and procedures to strictly implement cash transaction limits and restrictions.

In particular, the BSP put a cap on large value cash transactions at no more than P500,000.

With this, withdrawals exceeding the threshold “shall only be made, facilitated, or transacted through check payment, fund transfer, direct credit to deposit accounts, and/or other form using the digital payment platform of the BSFI.” 

“In any case, cash transactions exceeding the set threshold shall be subject to the conduct of appropriate enhanced due diligence (EDD) measures… BSFIs may, after exercise of EDD, allow large value payouts in cash of more than P500,000 or its equivalent in foreign currency, provided that the customer can submit additional identification information and/or proof of legitimate business purpose or transaction,” the BSP said.

“If the BSFI fails to satisfactorily complete the EDD procedures; or reasonably believes that performing the EDD process will tip-off the customer, it shall file a suspicious transaction report and closely monitor the account and review the business relationship,” it added.

The central bank, moreover, said that banks and other supervised financial institutions shall also consider alerts, red flags, and suspicious indications as well as typologies reported by relevant government agencies involving large or unusual cash transactions in filing suspicious transaction reports.

The circular takes effect 15 calendar days following its publication in the Official Gazette or in a newspaper of general circulation.

The BSP directive came following the Anti-Money Laundering Council’s announcement that the Court of Appeals, on September 16, issued a freeze order on 135 bank accounts and 27 insurance policies linked to persons and entities who are subject of an investigation for their alleged involvement in anomalous flood control projects. 

The CA issued the freeze order upon the application of the AMLC —a three-member council composed of the governor of the Bangko Sentral ng Pilipinas, chairperson of the SEC, and the commissioner of the Insurance Commission.

The AMLC is examining financial transactions of contractors linked to the ongoing probe into the anomalous flood control projects, in coordination with the Office of the Ombudsman, the Bureau of Internal Revenue, and the National Bureau of Investigation.—AOL, GMA Integrated News