Rules for big cash withdrawals tweaked
The Bangko Sentral ng Pilipinas (BSP) said banks should apply enhanced due diligence (EDD) to cash withdrawals exceeding P500,000 on a per-customer—rather than per-transaction—basis, with reviews anchored on a depositor’s normal business activity.
In a memorandum signed on Feb. 6 by Governor Eli Remolona Jr., the central bank said the clarification was meant to ensure that due diligence checks do not unnecessarily delay legitimate transactions. Banks were also instructed to streamline procedures for customers and provide targeted training for branch staff to ensure consistent and effective implementation.
The guidance follows last year’s order requiring closer scrutiny of over-the-counter cash withdrawals above P500,000 to curb money-laundering risks tied to large-value transactions. Under the rules, customers seeking to withdraw more than that amount in cash need only present documents showing a legitimate purpose, such as a deed of sale or hospital bill, while withdrawals made through traceable, non-cash channels do not require additional documentation.
According to the BSP, EDD process must consider the customer’s risk profile, nature of business or operations, and transaction patterns. A streamlined process may be applied to bank-to-bank transactions, such as interbranch or interbank cash requirements or loan disbursements.
For cash payouts or withdrawals during declared calamities or emergencies, the BSP said certification from the head of agency may be obtained.
Meanwhile, more rigorous due diligence checks will be applied when transactions deviate from a customer’s expected behavior or present heightened risks.
Former Finance Secretary Cesar Purisima earlier called on local policymakers to adopt tougher curbs on cash transactions. He warned that the country’s reliance on envelopes and bags of banknotes has made it easier for corruption to thrive.
This, amid a widening probe into anomalous flood control projects, which implicated lawmakers, members of the Cabinet, government engineers and private contractors.
Since the start of its crackdown last year, the Anti-Money Laundering Council has obtained court approvals to freeze assets totaling P24.7 billion, believed to be connected to the massive corruption scandal.
Remolona had warned that the graft fallout could risk dragging the Philippines back onto the Financial Action Task Force’s “gray list”—a watch list the country had just exited in early 2025 after over three years of efforts to remedy gaps in its antimoney laundering and counterterrorism financing campaigns.
