BSP hikes withdrawal threshold for due diligence checks to P1M

Following consultations with local banks and stakeholders, the Bangko Sentral ng Pilipinas (BSP) has raised the threshold for cash withdrawals that trigger enhanced due diligence (EDD) to P1 million from P500,000.

The increase was provided for in BSP Circular 1230 issued on February 27, 2026, after the BSP, in 2025, directed central bank-supervised financial institutions to implement EDD on cash-related payments and transactions worth P500,000 and above.

With the new circular, depositors can withdraw up to P1 million without EDD,

However, transactions above the amount will require the depositors to provide information to prove that their transactions are legitimate.

“The increase follows consultations with banks and industries, which showed a large number of legitimate cash transactions above the original threshold. These covered payouts, such as payroll, loans, and project-based disbursements,” the BSP said in a statement.

“The increase also follows the results of the latest anti-money laundering National Risk Assessment and surveillance monitoring, recognizing that robust risk-based safeguards over cash transactions remain essential to protecting financial system integrity,” it added.

The previous threshold was put in place in efforts to help curtail money laundering and ensure that the Philippine financial system is not used for illegal activities. — JMA, GMA Integrated News