The Market Monitor Minding the Nation's Business
The Bangko Sentral ng Pilipinas (BSP) has set a limit of ₱500,000 per banking day for cash transactions, in a move to curb money laundering and other risks linked to heavy cash use.
Under Circular No. 1218, series of 2025, issued on Sept. 18, transactions exceeding ₱500,000—or its equivalent in foreign currency—must be carried out through traceable channels such as checks, online fund transfers, direct credits to deposit accounts, or digital payments.
The ceiling applies to both single and multiple transactions within a banking day, including those made in foreign currencies.
For withdrawals beyond this threshold, BSP said supervised financial institutions (BSFIs) must conduct enhanced due diligence (EDD) and, if necessary, file a suspicious transaction report. Larger payouts may still be allowed once customers provide additional documentation or proof of a legitimate business purpose.
The BSP also gave BSFIs the discretion to impose even stricter limits depending on their risk assessment and the customer’s financial profile.
“Through this reform, the BSP aims to strengthen measures against the use of cash for illegal activities, promote trust in the financial system, and ensure that it can respond to new risks,” the central bank said.