BSP probes cash flows tied to flood control scandal

The Bangko Sentral ng Pilipinas (BSP) has launched an investigation into unusually large cash movements in the financial system, which may be linked to alleged anomalies in government flood control projects.

“This flood control scandal was as much of a shock to us as it was to you. But we’re working hard to fix things,” BSP Governor Eli M. Remolona Jr. said in an interview on One News’ Money Talks aired Friday.

Remolona said initial findings showed that most of the suspicious transactions passed through government-owned financial institutions.

“It makes sense because it’s government money, so it will go through government financial institutions. The amounts involved—we had no idea. We knew there was corruption, but not on this scale,” he admitted.

The BSP governor described reports of “piles of cash on a table” as “shocking,” adding that the bulk of the transfers were carried out in cash.

To curb money laundering risks, the BSP recently issued Circular No. 1218, series of 2025, which caps cash transactions at ₱500,000 per banking day. Any amount above this must be coursed through traceable channels such as checks, fund transfers, or digital payments.

“We want to make it more difficult for the contractors, for the guys involved in this flood control mess, to be able to take money out of the banks,” Remolona stressed.